The Growth Energy Market Development team is here to help.

The availability of ethanol at retail service stations and fleet operations is improving throughout the country. This expansion is made possible by both installation of new equipment or the simple conversion of existing petroleum equipment. As the price of premium gasoline has approached record highs, its sales have dwindled. For many retailers, offering flex fuel ethanol options has become a more profitable option.

"We initially installed the pumps to broaden our supply chain to include biofuels. Blending dispensers allow us the flexibility to deliver a full array of biofuels to our customers. Our community has been positive and embraced our efforts to bring renewable fuels to them." — Scott Zaremba, Kansas

In July 2010, Growth Energy announced a proposal to fundamentally reform existing federal ethanol policy. The Fueling Freedom plan calls for the redirection and eventual phasing out of government support for ethanol in return for infrastructure investments that will create competition in the fuels market and give consumers true freedom to choose their fuel.

Until we get there, several organizations and federal agencies have programs in place to help bridge the gap in retail ethanol infrastructure:

Federal Incentives

• Federal tax credit that covers 30 percent (up to $30,000) to install E85 infrastructure. Currently, the credits only apply to E85 pumps, but Growth Energy is working to get these credits extended to flex fuel pumps.
• the Volumetric Ethanol Excise Tax Credit — commonly referred to as a blender’s credit or VEETC — which gives 45 cents to the blender of record on a variable scale based on the level of ethanol combined with the finished fuel. Since the retailer doesn’t get the tax credit be sure to ask your jobber to pass along the blender credit.
• "Section 701 of EPACT 2005 requires Federal agencies to use alternative fuels in fleet dual-fuel vehicles (flexible or bi-fuel) if the fuel is available within five miles or 15 minutes and does not cost more than gasoline on a per-gallon basis." Read the EPACT federal fleet requirements (PDF).

The U.S. Department of Energy maintains a list of incentives are available by state for installing flex fuel pump infrastructure.

Grant Availability

Many different organizations offer grants for the installation of E85 or Flex Fuel pumps. Both the Department of Energy and the USDA Rural Development office offer financial incentives and grant programs for the installation of ethanol infrastructure. In addition, Clean Cities programs, corn growers association and state or local Profitability organizations also provide funding opportunities.

Checklist for Retailers

Thinking about installing a blender pump at your facility? We've got a checklist for installing or converting equipment to dispense E15, E30, E85 and other blends of ethanol.