Governor and Legislature wrong to force E15 ethanol-blended gas on Iowans.

The Iowa Legislature has passed, and Governor Reynolds is expected to sign, a bill that will force most gas stations in Iowa to sell E15 – 15% ethanol-blended gasoline. Both Republicans and Democrats should be ashamed of this bill, especially Republicans. Republicans have traditionally said that they support free-market capitalism where consumers and business owners decide what to buy and sell. In addition to being unprincipled, supporters of this bill are wrong on the facts. The Governor said, “It’s a lower cost of fuel.” We know that the price at the pump is lower, but that does not factor in the various subsidies paid by taxpayers to farmers, ethanol producers, and fuel blenders. It also does not factor in the lower miles per gallon that a car gets when ethanol is blended into the gasoline. Taxpayers will also pay for most of the costs to upgrade pumps and other infrastructure needed by the gas stations. I did not read where there is any phase-out of the mandate. The good news is that those who supported the bill can rest assured that they will continue to get financial support from corn farmers and ethanol producers.

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