In This Issue:

FYI Newsletter Volume 10, Issue 4, April 22, 2005 

ND Governor to Sign E85 Tax Reduction Bill

Infrastructure Funding Available in Illinois
  
•  Princeton, IL Now Offering E85

E85 Sold Considerably Less than Gasoline

•  Kansas Is First to Receive FFV from GM

•  NEVC Participates in Drive Clean  
   Across Missouri

•  Grand Opening in MO Sold Record
   Gallons of E85

•  NEVC Spotlight Article – The District
    of Columbia Public Works

•  Letters to the NEVC

ND Governor to Sign E85 Tax Reduction Bill

The North Dakota Legislature passed, and Governor John Hoeven is expected to soon sign, legislation that will lower the state motor fuel tax on E85 fuel to just 1-cent per gallon. Presently in North Dakota, both E85 and motor gasoline is taxed at a rate of 21 cents per gallon. Legislators have indicated the goal of the tax holiday is to encourage retailers to sell E85 and to encourage consumers to buy the North Dakota-produced, renewable-based fuel that is made from North Dakota-grown corn.

E85, which is designed for use in new flexible fuel vehicles (FFVs), is an alternative fuel composed of 85% ethanol and just 15% gasoline. It should not be confused with 10% ethanol-blended gasolines that may be used in any gasoline engine. E10 is already widely available.

Approximately 400 million gallons of gasoline are sold in North Dakota each year with 120 million gallons containing 10% ethanol as E10. Only 100,000 gallons of E85 were sold in the state last year and only half a dozen stations offered the new fuel. With the state motor fuels tax incentive and more and more FFVs being produced as standard equipment, E85 use is expected to increase dramatically.

Once the E85 tax legislation is signed by Governor Hoeven, the new rate is set to begin on July 1, 2005. The incentive will end when annual statewide sales reach 1.2 million gallons.

Infrastructure Funding Available in Illinois

Governor Rod Blagojevich recently announced that $500,000 in Opportunity Returns funding is now available to establish new E85 facilities at retail gasoline outlets in Illinois.  This aggressive effort to promote the use of ethanol as a viable and efficient source of fuel in Illinois is part of the Governor’s Opportunity Returns initiative, his comprehensive, pro-active strategy to promote economic growth throughout the state. 

 

“My administration is committed to working to reduce gas prices by supporting ethanol as a practical alternative.  With soaring gas prices, ethanol is a cleaner burning and cheaper alternative that also creates jobs in Illinois.  We will do all that we can to support ethanol, and to support higher ethanol blends such as E85.  This is an important step in the right direction,” said Gov. Blagojevich.

 

The Illinois Department of Commerce and Economic Opportunity’s (DCEO) E85 program will provide up to 50 percent of the total cost for converting an existing facility (maximum grant of $2,000 per site) to E85 operation, or for the construction of a new refueling facility (maximum grant of up to $40,000 per facility).  Individuals or companies operating retail gasoline facilities are strongly encouraged to apply.

 

“Governor Blagojevich and I will continue supporting important initiatives that promote ethanol as a viable and environmentally friendly alternative to imported energy sources.  E85 helps our farmers, helps grow our economy and helps lessen our dependence on foreign oil.  I know that this new program will help make E85 more readily available across Illinois,” State Senator George Shadid said.

 

“Governor Blagojevich and I understand that there are innovative ways, right here in Illinois, to decrease our dependence on foreign oil, while providing an important boost to our economy.  This Opportunity Returns funding strongly demonstrates our commitment, today and tomorrow, to ethanol as a viable energy alternative,” State Representative Dan Reitz said.

                                                                       

“With this new program, we will be able to help local gas retailers support ethanol - something many of them want to do.  Gas station operators will now be able to apply for assistance with the costs of the infrastructure they need to be able to offer E85.  Illinois currently has only about twenty E85 stations available to the public, and we want to dramatically increase that number,” said DCEO Director Jack Lavin.  “Depending on demand, we hope to have 100 stations in Illinois by the end of 2006.

 

The $500,000 in funding for the new E85 Clean Energy Infrastructure Development Program is through a grant from the Illinois Clean Energy Community Foundation to DCEO. 

 

“We are very pleased to support this program so that DCEO can assist fuel retailers to make E85 more widely available to Illinois consumers.  E85 produces much less CO2 pollution, the leading global warming gas, and simultaneously produces very real economic development impacts across rural Illinois,” said Foundation Chairman Phil Novak.

 

Also in support of E85, Governor Blagojevich signed legislation in 2003 that eliminated the state sales tax for E85 fuel, pricing it competitively with unleaded gasoline.  E85 fuel now typically runs 13 to 15 cents per gallon less than regular unleaded gasoline.  E85 helps reduce gasoline prices by reducing demand for gasoline, particularly when supplies are tight.

 

Earlier this year, Governor Blagojevich also issued an Executive Order (#7) requiring state employees to use E85 fuel whenever practical.  The State of Illinois operates one of the largest fleets of E85 FFVs in the country.  The new DCEO program will further expand the number of stations available to state employees, as well as the public, to use E85.

 

There are currently more than four million FFVs on the road today nationwide, with approximately 100,000 of those in Illinois.  Widely available models include the 5.3 liter Chevrolet Silverado and GMC Sierra Pickup trucks, 3.0 liter Ford Taurus sedans and 4.0 liter Explorers, as well as 3.3 liter Chrysler Caravan Minivans.  A complete list of models is available at www.E85Fuel.com

Princeton, IL Now Offering E85

Ag View FS, Inc., based in Princeton, Illinois, is supporting local farmers and helping improve air quality by offering the first public E85 fuel pumps in the area. The clean-burning alternative fuel is now available at FAST STOP, located at 720 W. Main, Princeton, Illinois.

The public is invited to help celebrate the grand opening of the availability of E85 on April 9 from 10:00 a.m. until 2:00 p.m. Ag View FS representatives, Mark Dehner, GROWMARK marketing manager of alternative fuels, Jim Rapp, a corn grower representative, and local Farm Bureau representatives will be available to answer questions. WZOE, a Princeton radio station, will broadcast from the event.

E85 fuel will be sold for 85 cents per gallon during the promotion and a hot dog, chips, and a soda will be available for $2.00. Automobile dealers Browning Chrysler-Ford and Peihl Chevrolet-Buick-Pontiac-Cadillac will have flex fuel vehicles on display.

“The fuel is cost competitive, and offers similar performance to conventional gasoline for those who own flex fuel vehicles,” said Dave Miller, Ag View FS energy marketing manager.

Miller continued, “Using alternative fuels is safe and helps increase our energy independence. High crude oil prices encourage consumers to look to alternative fuels

FAST STOP also offers unleaded with ethanol and premium diesel fuel. Later this year the station plans to switch to biodiesel fuel and then will be a total biofuels location. The location’s other amenities include a car wash, atm, pay-at-the pump, and convenience store. They are open 7 a.m. until 7 p.m. during the winter and 6 a.m. until 10 p.m. during the summer.


 

E85 Sold for Considerably Less than Gasoline

Many E85 fueling locations across the nation are selling their E85 at a cost considerably less than regular unleaded gasoline.  E85 retail outlets in places such as Kansas, Missouri, Nebraska, Colorado and Minnesota are selling the fuel up to 50 cents below unleaded.

 

"E85 is the most economic choice at the pump for motorists today,” said Todd Sneller, Executive Director of the Nebraska Ethanol Board and past NEVC Chairman.  “E85 is a clean burning, high performance fuel that will continue to demonstrate benefits to consumers across the country."

 

The six E85 locations in Nebraska are selling their alternative fuel as follows:

 

Pump & Pantry in Grand Island -- $1.699

Pump & Pantry in Hastings – $1.699

United Farmers Coop in York -- $1.699

Cubby Foods in Omaha -- $1.759

Aurora Coop in Aurora -- $1.829

Aurora Coop in Grand Island -- $1.929

 

These prices range is about 20-40 cents below regular unleaded.

 

MFA Oil in Missouri have also priced their fuel 20 cents below unleaded gasoline.  The cooperative owns four E85 locations in the state.  They include the dispensers in Columbia, Macon, Marshall and St. Joseph.

 

Many drivers are saving from 30 to 60 cents per gallon of E85 in Kansas as well.  “We are getting more and more calls from drivers wanting to know how they can use this fuel. They need a flexible fuel vehicle, which has a fuel system that can operate on the higher ethanol content,” said Robert White of the Kansas Corn Growers Association and NEVC Vice-Chairman.

 

In addition to the ability to use cheaper fuel, people who buy FFVs and use E85 in Kansas can claim a state tax credit. An individual who purchases a new FFV has from the date of purchase through that calendar year and the next calendar year to purchase 500 gallons of E85.  They can then submit those receipts with their taxes and receive a $750 tax credit.

 

For a complete listing of E85 fueling locations, visit www.E85Fuel.com.

 

Kansas Is First to Receive FFV from GM


Left to right: Roger Pine, state senator, KCGA Board Member; Kansas Secretary of Agriculture Adrian Polansky; Jere White, Executive Director KCGA and KGSPA.

The State of Kansas has the use of an ethanol-powered Chevrolet Avalanche for a year, thanks to a cost-free lease from General Motors. Governor Kathleen Sebelius took possession of the truck at Kansas Agriculture Day at the Statehouse on March 28.

 

The vehicle will be used by the Kansas Department of Agriculture to promote the use of ethanol. The FFV Avalanche can fuel with E85 at stations in Topeka, Hays, Garnett and Maize.

 

Not only will the state benefit from the use of the vehicle, E85 fuel is priced significantly lower than regular gasoline, according to the Kansas Corn Commission.

 

“E85 is selling for 30 cents or more per gallon below regular unleaded fuel at the pump. Motorists who own flexible fuel vehicles have a real advantage at the pump with today’s fuel prices. There are about 5 million flexible fuel vehicles on the road today,” according to Robert White, KCC Director of Value Added Programs and Vice-Chairman of the NEVC.


 

 

The automaker is offering the use of the flexible fuel trucks to the 26 states that belong to the Governor’s Ethanol Coalition. Governor Sebelius is vice chairman of the GEC and will be chair of the organization in 2006. Kansas is the first state to receive a Chevrolet Avalanche from the GM effort.

 

E85 fuel can be found at four locations in Kansas: Power Plus, 3505 Vine St., Hays; Capital City Oil, 4141 NW Lower Silver Lake Rd., Topeka; Maize Kwik Shop, 5340 N. Maize Rd., Maize, and Petro Plus, 120 S. Maple, Garnett.

 

For more information on ethanol, E85 fuel and flexible fuel vehicles, visit the NEVC website at www.E85Fuel.com.

 
NEVC Participates in Drive Clean Across Missouri


FFV Avalanche at the beginning
of the trip.

The goal of the caravan was to educate Missouri citizens and students on the benefits of fuel economy and use of renewable and alternative fuels in terms of saving money, reducing oil imports, reducing greenhouse gas emissions and generating more efficient technologies.

 

The NEVC along with many other alternative fuel groups participated in the Drive Clean and Green Across Missouri from April 4-8.  The event, sponsored by the Department of Natural Resources’ Energy Center, St. Louis Regional Clean Cities and Kansas City Clean Cities Coalitions, began under the St. Louis Gateway Arch and concluded at the Discovery Center in Kansas City.


William Enk, Sr. (farmer out of Blue Springs, MO) displayed his new E85 titan.

“Along with eleven other alternative fueled vehicles, I drove a 2005 E85 compatible Chevy Avalanche across the state,” said Michelle Kautz, Director of Communications for the NEVC.  “It was a wonderful opportunity to not only educate on FFVs, but it was a great chance to let the public know that they don’t have to pay over two dollars a gallon on fuel.  E85 is being sold much less than gasoline at all fueling sites across the state.”
 

The caravan of FFVs also included a Dodge Ram, a Ford Taurus and a Ford Explorer.  Stops were made at: the Mobil on the Run E85 fueling location in St. Charles, the St. Louis Gateway Arch, Lambert St. Louis Airport, St. Louis Science Center, General Motors Wentzville Manufacturing Plant, University of Missouri-Columbia, Break Time E85 fueling location in Columbia, Missouri State Capitol, Lewis and Clark Building in Jefferson City, University of Missouri-Rolla, Lebanon High School, Southwest Missouri State University, Central Missouri State University and the Discovery Center in Kansas City.

 
Grand Opening in MO Sold Record Gallons of E85

Wallis Oil opened their second E85 fueling location in the state of Missouri and sold a record 4,200 gallons of E85 at their Grand Opening event.  E85 was sold for 85 cents per gallon from 10 a.m. until 5 p.m. on April 14 at the Mobil on the Run at 1401 5th Street in St. Charles.

 

“This was truly a spectacular event.  Vehicles were lined up to fuel with E85 the entire day,” commented Michelle Kautz, NEVC Director of Communications who attended the grand opening.  

 

The grand opening was supported by the NEVC, the Missouri Corn Growers Association, and Wallis Oil.  Many representatives of the city of St. Charles attended the event including St. Charles Mayor Patricia York (shown upper left).

 

The facility  is open 24 hours-a-day, seven days a week.  It includes the pay-at-the-pump option with Speedpass, a car wash, ATM, foodservice, diesel, regular gasoline, and much more. 

 

The Mobil on the Run at 1710 North Bishop in Rolla, Missouri, owned by Wallis Oil, also carries E85.

 
NEVC Member Spotlight - The District of Columbia Public Works. FMA

Department of Public Works, Fleet Management Administration (FMA) has become one of the newest members of the NEVC. The organization helps to improve the District’s competitiveness and quality of life by providing the Department of Public Works (DPW) and other agencies with vehicles and other mobile equipment to meet their services delivery needs, and by maintaining the vehicle and equipment fleet in good working condition.

FMA provides maintenance, parts, and vehicular acquisition services for approximately 3,000 vehicles and pieces of mobile equipment to (DPW) and 35 other District government agencies, departments and commission. In addition, the fleet management program provides fuel and fluids to more than 6,000 vehicles including those maintained by the program, as well as vehicles belonging to the D.C. Public Schools, Metropolitan Police Department, Fire/EMS and the Water and Sewer Authority.

“We are committed to the alternative fuel program and a cleaner environment, so what better way to demonstrates this commitment than not only buying and supporting the infrastructure than to be a part of a group that is proactive. We want to be a part of the entire process. We want to “walk the walk” and not just ‘talk the talk’,” said Ronald S. Flowers, Fleet Administrator for the organization (shown above).

The attitude of the FMA is that while the flexible/bi-fuel vehicle may have the ability to utilize some other fuel than alternative fuel, they will only authorize the use of the alternative fuel, such as E85. The organization controls the driver’s fueling option by utilizing an automated fueling key system.

When asked why the organization joined the NEVC, Flowers responded, “We have to have more grass root organizations. We need a program that gets into our educational system at the lowest level, which speaks to the utilization of alternative fuels. For instance, it could be illustrated in a comic book format for the elementary school level. Alternative fuel usage needs to become a part of an evolution. Children need to embrace it as they grow, that way we are not changing behavior, but rather developing it as they grow.“

Letters to the NEVC



Letters to the NEVC -
This section highlights emails that the NEVC has recently received.  Many of the comments or suggestions that we receive are of interest to a wider audience and we would like to share them with our readers.
 

These emails were sent to Tim Gerlach of the MN E85 Team:

 

I am very happy that I drive a vehicle that uses E85 when regular gas prices are up so high.  Occasionally I see another person using the E85 pump at the gas station I go to.  I will always start up a conversation with them.  Right now we are saving about $.39 per gallon!

 

- Nancy Taklo

 


 

Hello-
 

Is it possible to burn a diluted ratio with gasoline in a non-FFV.  I own a 90 Chevy 1/2 ton truck, 1996 Oldsmobile 1988 and 2002 Oldsmobile Silhouette.
 

Thank you,
Craig Nichols

 


 

Mr. Craig:

 

Thank you for your inquiry on 'blending' a diluted mixture of E85/gasoline into your gasoline-only engines.

 

Officially, we try to discourage motorists from this practice -- as the possibility of component failure exists.  Although we hear from many E85 advocates that blend in E85 with gasoline without apparent problems -- some issues (e.g. fuel pump or sensor failures) might not occur immediately or after short-term use.  It would be unfortunate if problems or poor operation arising from this practice were to be blamed on the fuel or station that sells it.

 

A non-flexible fuel vehicle misfueled with a few gallons of E85 will not likely have any problems.  When misfuelings happen, we instruct station clerks to have customers dilute the fuel with more gasoline at the earliest opportunity.  Sometimes, it simply goes unnoticed. 

 

Sometimes, a check engine light pops on if too much alcohol (too high in oxygen) is present in the fuel.  This light indicates the air/fuel ratio is outside stoichiometric operation.  Typically, blending in more gasoline or after another tankful or two will cause the light to go off again.  If not, an auto technician can reset it very easily (and inexpensively).

 

All foreign and domestic automakers design the vehicles for a minimum of 10% ethanol/90% gasoline.  Flexible fuel vehicles are designed for use with up to 85% ethanol (E85).  And, in some other countries, vehicles are designed for use with other ethanol-gasoline blends.

 

I hope this helps answer your question.  Please do not hesitate to contact us if we can be of further assistance.

 

On behalf of the Minnesota E85 pilot market and National Ethanol Vehicle Coalition,

Tim Gerlach

 

NEVC Calendar

April 22, 2005
Grand Opening of E85 facility at Spinx Store #121 at 2497 South Highway 14 in Greer, SC.  For more information, contact Eric Baumholser at elb@spinxco.com.

 

April 26-28, 2005
M PACT Conference.  For more information go to www.m-pact.org.

 

April 28, 2005

E85 Grand Opening Celebration at Pump & Pantry #27 at 4311 2nd Avenue in Kearney, MO.  E85 for 85 cents per gallon from 11 a.m. until 1 p.m.  For more information, contact Kylie Meyer at (402) 471-2941.

 

May 1-5, 2005

11th Annual Clean Cities Conference to be held in Palm Springs, California.  For more information, email sara_huntley@nrel.gov.

 

May 5, 2005

E85 Grand Opening Celebration for Galva Holstein Ag, LLC at 1583 Market Avenue in Galva, IA.  E85 for 85 cents per gallon from 10 a.m. – 2 p.m.  For more information, contact Christi Vander Voort at cvandervoort@e85fuel.com.


May 16, 2005

E85 Grand Opening celebration at Petro Card 24 at Beasley Park Road in Charleston, Missouri.  E85 for 85 cents per gallon from 11 a.m. – 4 p.m.  For more information, contact David Perkins at dperkins@mfaoil.com.

 

May 20, 2005

E85 Grand Opening celebration at Break Time Convenience Store at 402 N Woodbine in St. Joseph , MO.  85 cents off per gallon of E85 with a maximum purchase of 10 gallons from 11 a.m. - 5 p.m. For more information, contact Ken McClure at kmcclure@mfaoil.com

 

June 7-9, 2005

FedFleet 2005: Keeping in Tune in Nashville, TN.  For more information, visit www.fedfleet.org

 

June 13-14, 2005

NEVC Semi-Annual board of directors meeting at the Holiday Inn Select in Cody, Wyoming. June 13 from 2 p.m. until 5 p.m. and Tuesday, June 14 from 8 a.m. until noon.  For more information, email mkautz@e85fuel.com.

 

June 12-14, 2005
Ethanol Producers and Consumers (EPAC) conference in Cody, Wyoming.  For more information, contact Shirley Ball at shirley@ethanolmt.org

 

June 13- 14, 2005

NEVC Semi-Annual Board Meeting at the Holiday Inn Buffalo Bill Village Hotel in Cody, Wyoming. The meeting will be held on Monday, June 13 from 2 p.m. until 5 p.m. and Tuesday, June 14 from 8 a.m. until noon.  For more information, contact Michelle Kautz at mkautz@e85fuel.com.


CONTACT US. . .


Please feel free to e-mail your story suggestions, comments, corrections or clarifications to us at info@e85fuel.com or call us toll free at 877-485-8595.

Phillip J. Lampert, Executive Director
info@e85.com

Shelia Helzer, Director of Administration
shelzer@e85fuel.com

Kathy Frese, CPA, Director of Finance
kfrese@E85Fuel.com

Michelle Kautz, Director of Communications
mkautz@E85Fuel.com

Roger Listenberger, Director E85 Fuel Networking
Phone:  (217) 877-5267
rlistenberger@E85Fuel.com

Bob Raffety, Infrastructure Development Coordinator
Phone:  (618) 939-4754

braffety@e85fuel.com

Louise Saucier, Membership Coordinator
lsaucier@E85Fuel.com

Christi Vander Voort, NEVC Iowa E85 Coordinator
Phone:  (712) 737-6415

cvandervoort@E85Fuel.com


You may view this FYI online at
http://www.e85fuel.com/news/index.htm

NEVC  promotes the use of 85 percent ethanol as a renewable form of alternative transportation fuel while enhancing agricultural profitability, advancing environmental stewardship and promoting national energy independence.