Since the incorporation of the National Ethanol Vehicle Coalition in 2000, it has been apparent that one of, if not the major impediment to the expansion of the use of 85% ethanol, was the cumbersome and complex system that was used to provide tax credits to E85 blenders.  Through the efforts of a number of ethanol advocacy groups including the National Corn Growers Association, Renewable Fuels Association, American Coalition for Ethanol, Clean Fuels Development Corporation, Ethanol Producers and Consumers, and others; a major overhaul of the tax process impacting all forms of ethanol will be implemented on January 1, 2005.

The provisions within VEETC change the way taxes are both collected on ethanol and how blenders of E85 take advantage of the tax incentives.  What is currently a partial exemption from the federal fuel tax will now become a tax credit, a move that will ensure the full amount of tax collected will go into the Highway Trust Fund.  The amount does not change, but the method is streamlined for the benefit of all parties.

With the adoption of the VEETC in the FSC/ETI legislation, E85 retailers can take advantage of the tax savings up front.  In the past, the complicated tax issues relating to E85 blending have made some petroleum marketers hesitant to offer the product.  But now, through this streamlined system, blenders can immediately realize the tax benefits of offering E85 to their customers.  And with easier-to-calculate profit margins, we anticipate that competition in the market place will allow a greater amount of this credit to be passed along to the retailer which will result in greater customer savings.

VEETC will include the following advantages for E85:

• Any terminal location that now stores fuel ethanol and gasoline is a potential E85 distribution point.

• Any terminal operator, refiner or marketer (distributor, jobber or retailer) who buys gasoline and ethanol as separate commodities can receive the $.52 per gallon federal incentive and produce ethanol blends of up to E85 regardless of their company’s tax obligations.

• E85 could be sold through retail service station blending pumps if those stores also converted their premium gasoline tanks to ethanol.  

• E85 can be blended and sold with no loss of cash flow that was contingent on end of year tax settlements.

• E85 profit margins can more easily be determined at the time of sale with out having to wait until year-end tax settlement.

VEETC is a major piece of legislation for the ethanol industry that will spur the development of E85 refueling infrastructure.  The approval of the Volumetric Ethanol Excise Tax Credit has been the top priority of the NEVC for the past four years and we would like to thank our partners and supporters for working to achieve this important legislative victory.

As more information becomes available during the development of procedures to implement the program, the NEVC will be forwarding such data and our interpretations.

Both Parties Agree: Homegrown Alternative to Gasoline Good for MN

Morris Station Offers Ethanol-based E85 Fuel for 85 Cents a Gallon on Oct. 21

In a rare election year display of bipartisan agreement in a battleground state, representatives from both parties will praise E85, an cleaner-burning, renewable-based alternative fuel, at an 11 a.m. ribbon-cutting on October 21 at Jerry's U-Save Conoco, 211 Highway 9 in Morris, Minn. The station is celebrating the opening of a new dispenser and fueling system for E85 fuel by offering it for just 85 cents per gallon all day, October 21. Minnesota's 7th District U.S. Congressman Collin Peterson, a Democrat and senior member of the House Agriculture Committee, is scheduled to speak at the event, as is District 11A Representative Torrey Westrom, a Republican who has authored several bills supporting biofuels in the Minnesota House. Both agree that Minnesota must continue to seek alternative sources of energy and fuel as oil prices reach record levels and political instability threatens oil imports from other nations.

"One of the major reasons Minnesota is a leader in alternative energy today is due to the strong support of public officials from all sides of the political spectrum, including independents," said Tim Gerlach, director of outdoor air programs for the American Lung Association of Minnesota. "Thanks to their vision and unwavering support, we now have the first practical alternative fuel network in the nation, and the resources we need to grow,

produce and sell a cleaner-burning renewable fuel that benefits the local economy as well as improving our environment."

E85 is a 105-octane blend of 85 percent ethanol and just 15 percent petroleum that can be used in a growing number of late model cars, trucks, SUVs and minivans designed as flexible fuel vehicles or FFVs. More than 100,000 FFVs have been registered in Minnesota and more than 4 million are now traveling U.S. roadways. FFVs look and cost the same as gasoline-only

vehicles, but have an added advantage -- they can use any combination of gasoline and/or E85. To see if your vehicle can use E85, look for a decal under the fuel door. A complete listing of all E85 models and the 100-plus Minnesota stations that sell E85 can be found at the American Lung Association of Minnesota's Web site, www.CleanAirChoice.org or by calling 800-LUNG-USA (in MN).

Jerry's U-Save Conoco has previously offered E85, but this new, state-of-the-art E85 fueling system was financed through an agreement involving Monsanto's Fuel Your Profits program, DENCO, LLC; and the National Ethanol Vehicle Coalition (www.E85Fuel.com).

"Supporting renewable fuels is completely aligned with our desire to produce products that benefit the environment and have a positive economic impact in rural America," said Amy Rutherford, Monsanto's Processor Preferred U.S. Business Manager. "We're pleased to support a collaboration that benefits corn growers, ethanol plants and consumers."

Other participants in the event include the Minnesota and Stevens County Corn Growers Associations, Heartland Chevrolet, Morris Auto Plaza and the Minnesota E85 Team partners including the American Lung Association of Minnesota and the U.S. Dept. of Energy Clean Cities program.

Four Days of Discounted E85 in Hays, KS

A promotion was held at the Power Plus fueling facility at 3505 Vine Street in Hays, Kansas to celebrate the opening of their new E85 pump from October 8-12. Power Plus sold the product for 85 cents per gallon on October 8 from 12 to 6 p.m. and for $1.25 per gallon from 6 p.m. on October 8 until 10 p.m. on October 11.

“We sold 1,367 gallons of E85 for the $.85 per gallon promotion and 1,661 gallons of E85 for the $1.25 per gallon promotion,” said Kyle Bauer of Power Plus.
 

Carole Jordan of the Kansas Department of Agriculture and KS Corn Commission truck.

The NEVC along with Bosselman Fuels and the Nebraska Ethanol Board have worked together to bring E85 billboards to the city of Grand Island.  The billboards, one shown left, will indicate  E85 availability at the Pump & Pantry #3 at 3500 West Capital Drive. 

“This is a great way to inform drivers of the availability of this clean burning fuel,” claimed Todd Sneller, President of the Nebraska Ethanol Board and Chairman of the NEVC. 

A billboard is now placed on Highway 281 preceding the Capital Avenue exit and another billboard is located on the fueling site. 

“We look forward to working with other retailers on this new billboard campaign,” said Sneller.

11th National Clean Cities Conference

The Kansas Board of Directors for East Kansas Agri-Energy, LLC, held their official ground breaking ceremony on Friday, October 29, 2004 at 2:00 p.m. The ceremony was held at the plant site in the Golden Prairie Industrial Park in Garnett, KS, which is located at 1304 S. Main Street or ½ mile North of Highway 59 and 169. For more information, call 877-352-3552. East Kansas Agri-Energy is a member of the NEVC.

E85 signs can be seen on various highways throughout the country.  The NEVC has been working with various state agencies to establish this E85 highway signage such as the sign shown right.  

“Locating E85 is key,” said Phil Lampert, Executive Director of the NEVC.  “If all states will agree to place these signs before E85 site highway exits, E85 sales will increase substantially.”

Nebraska’s Governor Johanns unveiled his state signage at the grand opening of the Pump & Pantry in Grand Island on October 4.  Other states such as Missouri and Colorado also have agreed to post signage.

RKA Family from left to right:  Kyle Albertie, Transportation Manager, Kari Elliott, Retail Branding Manager, the late Roger Albertie, and Keith Albertie, Wholesale Manager

RKA Petroleum Companies, based in Romulus, Michigan, has become one of the most recent NEVC members.  RKA is a family-owned and operated company that sells E85 at the wholesale level.

“It is our mission to provide our customers with quality products and superior customer service,” stated Jason Hittleman of RKA  “The company operates a bulk terminal that houses over 13 million gallons of storage, including various gasoline products, diesel products, aviation products, ethanol products, and alternatives, including biodiesel, ultra-low sulfur diesel, and E85.”

Hittleman added they joined the NEVC because of their commitment to preserve the environment.   “The NEVC clearly has a lot to offer for E85 wholesalers and offers a diverse network of resources to help us reach out to the marketplace. “

Hittleman feels that E85 has some challenges ahead.  “E85 is an excellent alternative, but faces a great deal of challenges because of the current tax laws. We are committed to work through the current barriers to help bring a more steady and affordable supply of E85 to the Detroit market.”

RKA also offers many programs depending on their customer's needs, offering above-ground storage tanks, a complete fuel management program, and information for Retail stations interested in selling E85 or Biodiesel. RKA Petroleum Companies is also a minority-owned company. RKA is also active in the Detroit Oilmen's Club, the MPA, and SIGMA.

Welcome RKA Petroleum Companies to the NEVC!

RKA Family from left to right:  Kyle Albertie, Transportation Manager, Kari Elliott, Retail Branding Manager, the late Roger Albertie, and Keith Albertie, Wholesale Manager

 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.

The following emails were written to NEVC Director of Communications, Michelle Kautz. . .

Electric Vehicles and E85 

Will it also be safe to use E85 with electric vehicles? 

Thanks,
Marlowe Camello

. . .

Marlowe,

No, it is not safe for the vehicle.  E85 may only be used in flexible-fuel vehicles.

Thank you for your interest in E85!

-Michelle Kautz

Shelf Life

Good Morning, 

I am with the Air Force Petroleum Office, and have a question for you. Does E85 have a required/suggested shelf life?

Regards,
Richard J. Wilkes

. .

Richard,

There are no shelf life issues that we have experienced with E85. Thank you for your support of this clean, renewable fuel!

-Michelle Kautz

Thanks for the emails to the NEVC!  Feel free to email us with your comments at anytime.

October 29, 2004
East Kansas Agri-Energy Ground breaking ceremony at 1304 S. Main Street at the Golden Prairie Industrial Park in Garnett, KS.  For more information, call 877-352-3552.

November 5, 2004
Grand Opening of first public E85 facility in Idaho.  E85 for 85 cents per gallon until 1,000 gallons are sold at the Stinker Station at 2323 Main Street in Boise, ID.  For more information, contact Michelle Kautz in the NEVC office.

December 1–3, 2004
Pacific Ethanol & Biodiesel Conference & Expo II: Developing an Ethanol & Biodiesel Industry at the Royal Orchid Sheraton Hotel & Towers in Bangkok, Thailand.  For more information, contact Wendy Vincent at wendyv@thestrattongroup.com or call (605) 338-6829.

December 14-15, 2004
The 39th Annual Missouri Governor’s Conference on Agriculture is scheduled for December 12-14, 2004 at the Tan-Tar-A Resort in Osage Beach, MO.  For more information, contact Becky Grisham at Becky.Grisham@mda.mo.gov.

February 24-26, 2005
Commodity Classic in Austin, Texas. For more information, visit www.commodityclassic.com.

May 1-5, 2005
11^th Annual Clean Cities Conference to be held in Palm Springs, California.  For more information, email sara_huntley@nrel.gov.

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

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.