Instruction For Retailers Motor Fuel Gallons Annual Report - 2014 Page 7
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13Figure 1: Biofuel Distribution Percentages Based on Annual Retailer Motor
Fuel Reports, 2007-2013
30%
25.0%
25%
20%
15%
11.4%
10.7%
10.2%
9.8%
9.7%
9.2%
9.1%
9.0%
10%
5%
0%
2007
2008
2009
2010
2011
2012
2013
2014
2020 Target
The rise in ethanol sales resulted from a pipeline change which occurred in late 2013.
Iowa’s largest pipeline operator, Magellan Midstream Partners, stopped shipping 87-
octane gasoline to its Iowa terminals and instead shipped 84-octane gasoline which
cannot be legally sold because Iowa requires a minimum 87-octane fuel at gas pumps.
Boosting the fuel to the minimum required 87-octane requires either blending with
ethanol (87-octane fuel can be created by blending 90% 84-octane gasoline with 10%
ethanol because ethanol has a high octane content) or with more expensive 91-octane
premium gasoline. The need to include premium in any non-ethanol gasoline raised the
relative price of non-ethanol gasoline. The impact of the pipeline change is seen in the
higher ethanol sales in Iowa during 2014.
Although the 25% goal was for the state as a whole, it is instructive to consider that
same measure at the retailer and county level. Figure 2 illustrates the breakdown of
retail locations by biofuel distribution percentage calculated using the sales reported by
each retail location for which Retailers Motor Fuel Gallons Annual Reports were filed in
2014 or 2013. The data includes only the retail locations that reported gasoline or
ethanol sales in the respective calendar year, excluding those with only diesel sales
reported. However, as noted above, the calculation of the biofuel distribution percentage
includes any pure biodiesel sales reported at those locations.
The sharp decline in the share of retailers reporting less than an 8.0% biofuel
distribution percentage in 2014 (17%) compared to 2013 (50%) again reflects the
impact of the pipeline change in late 2013. In calendar year 2014 there was a significant
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