VOLUME 1, ISSUE 6
Fear And Politics Are Overtaking The FACTS
• When challenged about their conclusions for the 2 Million Mile
Haul, supporters of a biodiesel mandate desperately responded
by arguing the validity of a B20 study for a B5 mandate. Let’s not
forget they were the ones touting the study as indisputable proof for
their position. We simply responded to their half-baked claims.
For the record, quality and performance are significant B5 issues.
In Minnesota, their mandate has been suspended multiple
times due to cold weather issues. Also, engine manufacturers
caution against various grades of biofuels and they void
warranties for using these blended fuels. If biodiesel
competed favorably, there would be no need to mandate it.
• You’ve heard a lot of theories about the price impact from a
mandate. The fact is nothing is more telling than the reality
we’ve witnessed in Minnesota. Since implementing their mandate,
the average premium paid by Minnesota consumers for a gallon
of diesel was 7.468 cents per gallon (based on DTN and OPIS
data). This premium does not take into consideration the loss of
the $1.00 Federal blender’s credit, which would increase the
premium paid for a B5 blend to 12.468 cents on average.
B5 is not readily available at any major Iowa racks. So, it is
difficult to predict exactly what the real-world pricing differential
would be in Iowa. Yet, there is no reason to believe that the
premium would be materially different than it is in Minnesota.
• After losing the battle of facts, biofuel mandate supporters
undoubtedly will return to emotional arguments. They’ve
accused us of being anti-farmer, anti-Iowan and anti-American.
The truth is our mission is to protect the rights and interests of
all Iowans by serving as the voice of reason for a responsible
and fair marketplace. We have and will continue to support
biofuels because of the impact on our ag industry. However,
mandates eliminate Iowans choice at the pump and drive up
fuel prices. They are not good for our state.
We are all about the American free-market system.
Our position opposing mandates is based on the sound
economic principle that supply and demand should drive
the marketplace. It is important to find viable alternatives
to petroleum-based products, like biodiesel. Yet, we do
not support forcing consumers to buy any single product.
• Proponents of the mandate also would like for you to believe
the only options are biofuel or Iraqi oil. The truth is a small
percentage of our oil comes from the Middle East.
Our biggest supplier is our friends from Canada.
ESTIMATE CRUDE & PRODUCTS IMPORTS TO THE U.S. FROM
LEADING SUPPLIER COUNTRIES (JANUARY – OCTOER 2009)
Imports (Thousand
Barrels/Day)
Percent of
Total Imports
2,220
1,093
1,039
938
753
583
487
480
462
279
1,554
22.5%
11.1%
10.5%
9.5%
7.6%
5.9%
4.9%
4.9%
4.7%
2.8%
15.7%
9,888
100%
4,772
1,734
48.3%
17.5%
Canada
Venezuela
Saudi Arabia
Mexico
Nigeria
Russia
Algeria
Angola
Iraq
Virgin Islands*
Other
OPEC COUNTRIES
PERSIAN GULF COUNTRIES
* Supplier of products made from crude oil
Source: DOE, Petroleum Supply Monthly, December 2009
• Mandate supporters like to label our coalition as “big oil.”
It is true the American Petroleum Institute is a supporter
of our group — they believe in our free-market stance.
Yet, it’s important to note, Iowans for Consumer Fuel Choice
represents a broad and diverse group of Iowans, including:
Teamsters Local 238; Broadway Flying J Travel Plaza;
Casey’s General Stores; Hy-Vee, Inc.; Iowa 80 Truck Stop;
Iowa Association of Business & Industry; Iowa Association of
School Boards; Iowa Automobile Dealers Association; Iowa
Good Roads Association; Iowa Grocery Industry Association;
Iowa Motor Truck Association; Iowa Rural Water Association;
Iowa Section of the American Water Works; Keck Energy;
Kum & Go, LC; Kwik Star; Pilot Travel Centers, LLC; and,
Petroleum Marketers & Convenience Stores of Iowa;
Iowans for Consumer Fuel Choice serves as the voice
of reason for responsible renewable fuel development
in Iowa. Our perspective is clear ... biofuels are good
for Iowa; mandates are bad for Iowans!
Join the voice of reason for responsible renewable fuel development. Get the facts at Give Me FUEL CHOICE.org