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In
This Issue: |
FYI Newsletter Volume 9, Issue 10, July 1, 2004
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E85 Retail Outlets to Increase
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E85 Vendors Profit with Tax Breaks:
Alternative Fuel Growth Aided by Tax
Incentives
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Publication Defines How to
Convert Pumps
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First Public E85 Station Open in
West Virginia
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“Something for Everyone”
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E85 Available at Aurora, SD
Cooperative
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Ten E85 Locations Open in
Minnesota in June
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NEW NEVC Web Search
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NEVC Attends Kansas City Clean
Cities Coalition Re-designation
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Member Spotlight -
Alternative Fuels Vehicle Network
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Letters to the NEVC |
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E85
Retail Outlets to Increase |
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-The following is a copy of a report from the Nebraska
Ethanol Board that will be appearing in the Nebraska
Petroleum Marketers upcoming newsletter.
A significant increase in the number of E85 capable
Flexible Fuel Vehicles in the U.S. vehicle fleet is one
factor driving an expansion of retail E85 fuel pumps.
E85 is a blend of 85% ethanol and 15% gasoline. The
fuel is used in Flexible Fuel Vehicles (FFV) specially
designed to use fuel blends ranging from gasoline to E85.
Flexible Fuel Vehicles were first produced in the early
1990’s as an alternative fuel vehicle option. Today, every
domestic automaker produces a wide range of E85 capable
FFV models and several foreign automakers also offer such
vehicles to American consumers.
By the end of 2004 more than 4 million FFV cars, trucks,
SUVs and mini-vans will be on the road in the U.S.
In Nebraska, more than 20,000 such vehicles are in use.
All of these vehicles are designed to use E85
interchangeably with conventional 10% ethanol blends or
gasoline. The “flexible” nature of these vehicles is
that they efficiently accommodate a wide range of
gasoline-ethanol fuel options. The vehicles are well
suited for states like Nebraska where only a few E85
stations currently exist but where demand for the fuel
continues to grow.
With current concerns about fuel supply and price many FFV
owners are interested in determining the availability of
E85. The National Ethanol Vehicle Coalition and many
of its members including General Motors Corporation and
the Nebraska Ethanol Board, continue to work with a
variety of parties to expand the availability of E85.
In several major Midwestern cities E85 is readily
available. As part of a current E85 expansion
program the Nebraska Ethanol Board is working with
interested petroleum marketers to identify stations that
can economically accommodate E85 pumps. We invite
Nebraska petroleum marketers to consider the following:
·
During 2004 several key locations will be
selected to participate in a new product introduction
program featuring E85. The locations must meet
criteria designed to help ensure success on the part of
the participating petroleum marketer as well as program
partners like General Motors.
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The Nebraska Ethanol Board will help
coordinate product introduction. Assistance
available to the participating petroleum marketer will
include access to a data base which includes all Nebraska
owners of E85 capable FFV cars and trucks. The data
base is designed to identify FFV owners in all Nebraska
ZIP codes. This allows a targeted E85 marketing
program and efficient product introduction as well as
ongoing support for E85 product promotion and consumer
awareness programs.
·
The National Ethanol Vehicle Coalition
(NEVC) will provide $1,000 to any vendor for the purpose
of installing E85 using an existing dispensing/storage
program. In some cases additional funds may be
available. Vendors must agree to an E85 marketing
commitment to participate in the program. The NEVC
will provide a $690 imaging package for each participating
station. The NEVC will provide a worksheet for
marketers to use in calculating margins for E85 sales.
Margins on E85 sales are typically higher for efficient
marketers.
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The NEVC will provide additional
point-of-sale materials for product introduction including
the 2004 Purchasing Guide for Flexible-Fuel Vehicles
(contact the Nebraska Ethanol Board for a copy of this
publication).
·
A limited number of stations will be invited
to participate in the General Motors E85 market expansion
program. This program supports the initial
introduction of E85 though an “E85 for 85 cents”
promotion. This promotion is supplemented with media
exposure and a targeted product introduction to FFV owners
in specified ZIP codes near the E85 outlet.
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The Nebraska Ethanol Board and the NEVC will
directly assist marketers with questions about E85
pricing, availability, tax incentives, pump location
criteria, and promotional and educational materials.
These organizations will also assist marketers with E85
highway signage where appropriate.
The E85 market expansion program was initially focused on
major Midwest population centers where the majority of FFV
automobiles and trucks were operated. During the
2004-2005 time period the NEVC will continue to work with
organizations like the Nebraska Ethanol Board to actively
expand E85 pumps along major highway and Interstate
corridors. We invite interested petroleum marketers
to inquire about opportunities to participate in this
program. Please contact Todd Sneller at the Nebraska
Ethanol Board via phone at (402) 471-2941 or e-mail at
tsneller@ethanol.state.ne.us. Additional
information is also available at the Nebraska Ethanol
Board web site:
www.ne-ethanol.org and the NEVC web site:
www.E85Fuel.com. |
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E85 Vendors Profit with Tax Breaks: Alternative Fuel
Growth Aided by Tax Incentives |
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-from June 28, 2004 issue of the OilSpot News and
dtnenergy
Gasoline containing ethanol is now the second most common
gasoline in the United States behind the conventional form
of the fuel, with several states and metropolitan regions
using the ethanol blended reformulated gasoline to comply
with federal guidelines spelled out by the Clean Air Act.
Expanding its use beyond simply being an oxygenate in
gasoline, advocates for corn-based ethanol also point to
the high octane added benefits provided by the farm grown
additive.
Most gasoline that is blended with ethanol in the U.S.
contain either a 5.7 percent, 7.7 percent or a 10 percent
mix of the additive, with the 5.7 percent blend chiefly
found in California. As the National Ethanol Vehicle
Coalition explains, in addition to blends of gasoline and
denatured ethanol ranging from 1 percent to a maximum of
10 percent, generically referred to as “E10,” comes an
alternative that may contain denatured ethanol contents up
to 15 percent.
“E85,” as the fuel is termed, is a federally approved form
of alternative transportation fuel for use in specially
prepared e85 vehicles. While all domestic and foreign
automakers approve the use of E10 in their gasoline
vehicles, the use of E85 is limited to flexible fuel
vehicles, known as FFVs, which have fuel systems designed
and manufactured to operate on any mix of gasoline and
ethanol up to 85 percent.
In 2003, approximately 3 million e85-capable vehicles were
produced and navigating American roadways. E-85 can be
found at work in more than 40 states in the U.S., with the
fuel currently exclusive to private fleets in a number of
those states.
NEVC said ethanol and gasoline levels used in producing
E85 will vary by season and from region to region. For
example, Minnesota, because of its location in the
northern U.S., may have an ethanol content of 70 volume
percent in April, while Texas may have a minimum content
of 79 volume percent during the same month. The E85 blends
in Minnesota will vary from a minimum of 70 volume percent
in winter to a minimum 79 volume percent ethanol in
summer.
As the coalition explains, early autumn changes adjusting
the ethanol level in gasoline are of particular importance
to prevent cold weather starting problems. When supplying
E85 to retail outlets, the date and the expected sales
volumes of each station should be considered when
determining what blend to deliver. An E85 station should
not carry over a summer blend into fall or a fall blend
into winter months. E85 blends, contrary to a popular
misconception, have relatively low vapor pressure
(tendency to evaporate), and a higher petroleum content is
used to bring E85 vapor pressure into line with colder
weather starting requirements. Adjustments may be easily
achieved by adding gasoline to the existing fuel in the
storage tank for the cold weather target blend.
Having recognized that it is currently more expensive to
produce renewable fuels and that renewable fuels do
provide environmental, economic and national energy
security benefits; some states and the U.S. Congress have
established tax incentives that assist in making E85 price
competitive. If these credits are utilized, it is quite
possible that fuel marketers will be able to price E85
similar to, if not less than, regular unleaded gasoline
with similar profit margins as gasoline, said NEVC.
The federal excise tax on E85 and E10 blends is 13.2 cents
instead of the standard 18.4 cents per gallon of gasoline.
Both E10 and E85 receive a 5.2-cent federal excise tax
credit, which took effect January 2003, and equates to 52
cents per full gallon of denatured ethanol.
In another incentive for retailers, the NEVC said it will
provide $1,000 to any vendor for the purpose of
retrofitting an existing dispensing, storage system to
meet E85 specifications. The coalition also offers $700
for a re-imaging package, which includes signs, stickers
and other point of sale material for vendors. NEVC does
require that the retailer offer the fuel for a minimum of
two years.
The coalition “wants to be a partner with E85 resellers,”
said Phillip Lampert, Executive Director with NEVC.
For more information on E85, go to
www.E85Fuel.com. |
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Publication Defines How to Convert Pumps |
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The National
Petroleum News recently wrote a comprehensive article in
their June 2004 issue discussing what needs to be changed
on a gasoline pump to make it ethanol and E85 compatible.
See
http://www.petroretail.net/npn/2004/0406/0406se.asp
for the complete article. |
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First Public E85
Station Open in West Virginia |
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West Virginia
now boasts their first public E85 fueling facility.
Dulaney Oil Company’s new tank and pump has been in
operation for about two months at 144 Dents Run Road in
Morgantown. The station now offers the clean burning
alternative fuel below the price of gasoline.
“We believe this is a positive move we’ve made,” said Mike
Kelly, owner of Dulaney Oil Co. “The fuel is made locally
and our farmers are benefiting from it.”
The station
also offers diesel, kerosene and unleaded gasoline. It is
about one mile off Interstate 79 in Morgantown.
Dulaney Oil is also the bulk supplier for the Department
of Energy’s E85 tank about three miles away. The 1,000
gallon storage tank fuels about fifteen flexible-fuel
vehicles.
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Mike Kelly, owner of Dulaney Oil Company. |
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“Something for Everyone” |
 A
new 6,000 gallon E85 tank was recently installed at the
Amigo Mart #803 at 1229 Cerrillos Road in Santa Fe, New
Mexico (see left). This station marks the third public
facility to carry E85 in the state.
“We’re very excited to offer not only E85 but also E10 and
biodiesel,” said Charles Besinger, Assistant Executive
Director for the Renewable Energy Partners of NM. “Our
motto is to offer ‘something for everyone’.”
The station is planning on doing extensive educational
research for the new pump including radio shows and
submitting articles to the local newspaper.
“This station will offer motorists a way to support
domestically grown fuel and U.S. farmers,” noted Besinger.
E85 is also available at Ever-Ready Oil Company 1200 1st
Street, N.W. in Albuquerque and at Horseman’s Haven
Phillips 66 at 4354 Cerrillos Road in Santa Fe. For a
complete listing of all E85 locations, visit
www.E85Fuel.com. |
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E85 Available in Aurora, SD |
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Mary Olson and her boys fill up their minivan with E85 at
the Aurora station.
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Aurora is the
newest city in the state of South Dakota to sell the
clean, renewable alternative fuel – E85. The Sinclair at
203 Broadway Street houses a 6,000 gallon E85 tank and
pump. The pump opened June 10.
“I am happy to carry the product,” stated Judy Studer,
owner of the Sinclair. “The fuel supports locally owned
VeraSun who have been great supporters and friends of
mine.” VeraSun, a member of the NEVC, is a renewable
energy company that focuses on ethanol production.
A grand opening promotion was held on June 19 and 20 which
sold E85 for 85 cents per gallon. “We sold 432 gallons of
E85 on June 19 and 484 gallons on the twentieth,”
commented Studer. She also stated the renewable product
will always sell for 20 cents less than the unleaded
regular gasoline.
The Aurora Sinclair is open from 6 a.m. until 10 p.m.
seven days a week. The station also offers E10, regular
unleaded gasoline and has a convenience store.
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Ten
E85 Locations Open in Minnesota in June |
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The Minnesota
E85 team announced ten E85 pumps which have opened to the
public in the month of June. They include: |
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Cenex
620 2nd Ave S.
St. James, MN 56081
New Prague Shell
100 10th Ave SE
New Prague, MN 56071
Cenex General Store
Hwy 34 & Hwy 9
Barnesville, MN 56514 |
Nobles
County Coop Cenex
1710 Huminstan Ave
Worthington, MN 56187
Freeborn County Coop
125 Northstar Rd.
Alden, MN 56009
Freeborn County Coop Cenex
21604 State Hwy 56
Austin, MN 55912
Holiday Stop-N-Shop
701 3rd Ave. So.
International Falls, MN 56649
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212 1-Stop Cenex
101 East Hwy 212
Danube, MN 56230
Cenex C-Store
1400 E. Bridge Street
Redwood Falls, MN 56283
Farmers Coop Oil Cenex
118 NE Dupont
Renville, MN 56284
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"We're really
excited by all the interest in E85,” said Tim Gerlach of
the MN E85 Team. “At this rate, we'll have the 100th MN
E85 fueling site open this summer . . . and then some."
All of Minnesota’s E85 locations can be found on the NEVC
website at
www.E85Fuel.com.
Gerlach added, "Each new station adds to the overall
strength of the fueling network. As E85 pops up in new
places, it causes other stations to consider offering E85
and it solidifies consumer awareness . . . it gets people
talking to their friends, family and car dealers." |
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NEW NEVC Web Search |
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Searching for E85
refueling locations on the web has just become easier!
The NEVC has recently added a new feature to our website
which includes a search engine to locate E85 pumps within
cities and states. The feature is located at
http://www.e85refueling.com. You can
use the old way and find a station by clicking on the
state on the U.S. map. OR -- you can just type in the
city, scroll down to the state and press submit.
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NEVC Attends Kansas City Clean Cities Coalition
Re-designation |
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On June 16,
the Kansas City Clean Cities Coalition (KCCCC) celebrated
their fifth anniversary in a ceremony at the Kansas City,
Kansas Woodlands Turf Club. The event brought over 200
representatives from each of the alternative fuels and
special dignitaries.
“June 16, 2004 represents the new beginnings and
re-education of the groups that have re-committed to the
goals and objectives of alternative (American) fuels and
vehicles,” said Benjamin Watson, Kansas City Clean Cities
Coordinator. “The Kansas City Regional Clean Cities
Coalition and stakeholders are re-energized by the
opportunities that exist today at the five-year
celebration and exposition.”
“The five year re-designation ceremony for the Kansas City
Regional Clean Cities Coalition marks a major milestone
for the organization's efforts to advance alternative
fuels and cleaner air for the Kansas City area,” said
Cindy Carroll of the Missouri Division of Natural
Resources who also attended the event.
The NEVC showed their support for the coalition by
attending the event. “The ceremony celebrated the
collaboration of so many organizations working towards the
same goal. We are proud to have members of our
organization such as Benjamin and his coalition who not
only talk the talk, but walk the walk,” said Michelle
Kautz, Director of Communications of the NEVC.
Benjamin Watson added that he is encouraged by the
continued participation and commitment of the KC
stakeholders and co-sponsors to continue for the future.
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Benjamin Watson of KCCC addressed the crowd.
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The Kansas Corn
Growers Association displayed their E85 compatible Taurus
at the event. |
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Member Spotlight - Alternative Fuels Vehicle Network |
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 The
Alternative Fuel Vehicle Network (AFVN) has recently
become one of the newest members of the NEVC. The
organization plans to help us in our effort to promote E85
as an alternative transportation fuel especially in the
state of New Mexico.
The AFVN started in 1986 as a non-profit trade association
for alternative fuels. The AFVN has done contract work on
several alternative fuels for the Department of Energy,
the State of New Mexico Energy Minerals, Natural Resources
Department and the Land of Enchantment Clean Cities
Coalition. They been involved with compressed natural gas
infrastructure development; state alternative fuel energy
policy and analysis; electric vehicle promotion; ethanol
and biodiesel infrastructure development, promotion and
community education; and recently, hydrogen industry
development in the State of New Mexico.
“AFVN is presently under contract from DOE and the State
of NM to develop E85 infrastructure in the State,” stated
Frank Burcham, Executive Director for the AFVN. “NEVC has
several excellent educational pamphlets on E85 and station
signage that we can use in our activities within the
communities we are locating the stations.”
Burcham added, “We need more E85 support in states like NM
that are not big corn growers like the midwest.”
Welcome AFVN to the NEVC! We appreciate your support and
help in obtaining our goal. |
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Letters
to the NEVC |
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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. |
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The following emails were written
to NEVC Director of Communications, Michelle Kautz. . .
E85 Hybrids
Hi Michelle,
With the range of hybrids slated for production in the
next few years, I was wondering if any of the
manufacturers have considered the possibility of making
them capable of using E85. I understand that with most
flex-fuel vehicles there is a loss of fuel efficiency, but
if that FFV was also a hybrid I think that would more than
offset this, resulting a car that not only burns less fuel
but cleaner more environmentally friendly fuel.
- Arthur
. . .
Arthur,
We strongly agree!! We are working closely with each of
the 3 major automobile manufacturers on an E85 hybrid in
the next couple of years. I have added you to our
bi-monthly newsletter distribution listing. Look for more
information about E85 hybrids in months to come.
Thank you for your support of E85!
- Michelle Kautz
Happy in Wisconsin
I am absolutely positively in favor of E85, have been
running it in my 1999 Plymouth Van since the day I
discovered it at the Citgo Station on Maryland/Farwell
Avenue in Milwaukee!
-Jayne
Thanks for the emails to the NEVC! Feel free to
email us with your comments at anytime.
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July 20-22, 2004
FedFleet 2004: The Road to the Future is Now at the Jacob
K. Javits Convention Center in New York, NY. For more
information, visit
www.fedfleet.org.
August 10-12, 2004
American Coalition for Ethanol (ACE) Annual Meeting and
Ethanol Conference in Duluth, MN. E85 for 85 Cents
promotion planned. NEVC/GM sponsored “Tailgate Party” on
Aug. 10. For more information, visit
www.ethanol.org.
August 31 – September 1, 2004
Energy Technology Expo and Conference in Denver, CO. For
more information, visit
www.energytechexpo.com.
September
8-9, 2004
Power Crops for the Americas in Miami, FL. For more
information, email lindsey.sumpter@informa.com.
September 22-25, 2004
National Association of State Fleet Administrator
Conference in Branson, MO. For more information, visit
http://ncsfa.state.ut.us/.
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
Randa Barker, Director of Administration
info@e85.com
Kathy Frese, CPA, Director of Finance
kfrese@E85Fuel.com
Michelle Kautz, Director of Communications
mkautz@E85Fuel.com
Roger Listenberger, Director E85 Fuel Networking
rlistenberger@E85Fuel.com
Louise Saucier, Membership Coordinator
lsaucier@E85Fuel.com
Christi Vander Voort, NEVC Iowa E85 Coordinator
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. |
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