Fuels

Ethanol Infrastructure Coalescing?

States offering incentives to retailers to sell E85

MADISON, Wis. -- While the National Association of Convenience Stores (NACS) and the Society of Independent Gasoline Marketers of America (SIGMA) have expressed their opposition to recent legislative proposals that would require gasoline retailers to install dispenser systems to handle the sale of E85, a blend of 85% ethanol and 15% gasoline (see related story in this issue of CSP Daily News), but not to the fuel itself, many states are moving ahead with E85 initiatives and retailer incentives that could offset some of the objections raised by the groups, especially upgrading [image-nocss] and refitting costs.

Here are some recent developments, by state:

Wisconsin

Wisconsin Governor Jim Doyle gassed up his GM-built flex-fuel vehicle (FFV) at a Stop-N-Go station in Madison earlier this week and announced a new state effort to recruit more E85 stations to Wisconsin. Part of Governor Doyle's Promoting Our Wisconsin Energy Resources (POWER) Initiative, the $335,000 program will focus on working with and through local governments and others to increase the number of E85 fueling stations, and increase use of E85 in their vehicle fleets:

$175,000 will be used to provide grants to gas station operators to assist in the installation of E85 pumps. This effort is expected to establish 35 new E85 pumps across the state, more than doubling the number of E85 pumps in Wisconsin. $100,000 will be focused on providing incentives to local governments to increase the percentage of FFVs in their fleet, and committing to increasing their use of E85 in them. $40,000 will be focused on actively promoting E85, raising awareness of the fuel, especially among those who already own FFVs. It is estimated that there are more than 100,000 flex fuel vehicles in Wisconsin capable of using E85.

Minnesota

Minnesota recently opened its 200th E85 outlet. More than 140,000 FFVs are on the road in Minnesota, state officials said.

Kansas

More gas stations in Kansas are poised to offer E85, reported the Associated Press. Only 10 stations in Kansas currently offer the fuel. But officials said three more will come on line in the next 40 days and an additional 20 are possible by the end of the year.

In Kansas, people who buy a vehicle that can use E85 gasoline qualify for a $750 tax credit if they purchase 500 gallons of fuel in the first two years. State and federal tax credits also cover about 70% of the distributors' costs in converting a regular fuel line to an E85 line. Last week, the Kansas Legislature passed a bill lowering the tax on E85 from 24 cents to 17 cents per gallon. That bill awaits Governor Kathleen Sebelius' signature.

Indiana

Indiana is offering E85 retailer workshops through April. Click here for information.

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