south dakota first in nation to intro d u c e blender pump incentive pro g r a m

Transcription

1 south dakota first in nation to intro d u c e blender pump incentive pro g r a m Retailers adding new blender pump technology can qualify for cash incentives, tax credits and other support BLENDER ISSUE Imagine being able to offer your customers a variety of ethanol blends E10, E20, E30, E40 and E85 all from one pump! You now have that option. Better yet, there is money available to help you pay for it. The South Dakota Corn Utilization Council, along with a number of ethanol producers, are working with the Ethanol Promotion & I n f o rmation Council (EPIC) to offer an incentive program to encourage gas stations to install one or more blender pumps. These multi-product dispensers pro v i d e multiple levels of ethanol blends from one pump by blending either ordinary gasoline or E10 from one underground tank with E85 or denatured ethanol in a second tank. This innovative program provides financial, branding, marketing and public re l a t i o n s s u p p o rt to any South Dakota station that installs blender pump infrastru c t u re and adopts EPIC s e branding program for ethanol blends. (See page 2 for details.) This is a groundbreaking program that enables fuel retailers to capitalize on the growing consumer interest in having a choice at the pump, said Robert White, director of operations for EPIC. More and more consumers are seeking out ethanol-enriched fuel. With blender pumps, they will have more continued on next page INCENTIVES AVAILABLE FOR RETAILERS! See page 2 for information on how you can qualify for: Up to $5,000 cash grant per station A 30% federal tax credit A 51 per gallon blender credit Comprehensive brand imaging and marketing support FREE BLENDER PUMP CLINICS See back cover for details!

2 grants, tax credits and marketing support available for blender pump installations As a South Dakota petroleum retailer, you could be eligible for a number of incentive programs to help you add blender pumps to your locations: STATE FUNDING Up to $5,000 per station plus branding & marketing support This program, supported by the South Dakota Corn Utilization Council and ethanol producers in the State of South Dakota, will provide up to $5,000 to each station that adds a blender pump. To apply for the grant, visit: www. d r i v i n g e t h a n o l. o rg / southdakota. The Ethanol Promotion & Information Council (EPIC) will provide all e brand imaging, and also provide marketing and public relations support to every station. FEDERAL FUNDING A 30% tax credit and 51 per gallon blender cre d i t The federal government offers an infrastructure tax credit for the installation of alternative fuels. This credit will provide a tax credit to fund 30% of the total costs, up to a total of $30,000. The other program is the Volumetric Ethanol Excise Tax Credit (VEETC). This credit provides a $.51 credit for every gallon of pure (denatured) ethanol blended into gasoline. This incentive is available to the entity that actually blends the ethanol and gasoline together. ADVERTISING An aggressive statewide initiative Once 25 stations have been developed with blender pumps, this program will launch a marketing and PR blitz to drive consumers to these stations that are p a rt of the program. This blitz will include print, o u t d o o r, and radio advert i s i n g. This program will also include pump promotions and grand openings....blender pump incentive pro g r a m continued from front page choices and be able to make their selection based on the blend that best fits their budget. Reid Jensen, president of the South Dakota Corn Utilization Council, said, South Dakota retailers have always been on the vanguard in terms of offering ethanol blends to their customers. This blender pump program offers yet another opportunity for South Dakota retailers to lead the marketplace and give their customers more choices for purchasing this clean-air, homegrown fuel. For more information on the South Dakota Blender Pump Program, contact EPIC at , ext. 202.

3 studies indicate great promise for higher ethanol blends As America continues its quest to become more energy independent, there is great interest in finding ways to blend more ethanol into the nation s transportation fuel supply. Some recent studies indicate that high blends especially E20 and E30 may hit the sweet spot in terms of fuel economy and engine performance. American Coalition for Ethanol: December 2007 The American Coalition for Ethanol (ACE) released a study in December 2007 that highlighted the use of higher ethanol blends. In this study, the following key findings were made: 1. E t h a n o l s energy content was not found to be a direct predictor of fuel economy. 2. E20 and E30 ethanol blends outperformed gasoline in fuel economy tests for certain autos. 3. Standard, non-flex-fuel vehicles operated well on ethanol blends beyond 10 percent. 4. Vehicle emissions met EPA re q u i rements and were improved in key are a s. State of Minnesota/Renewable Fuels Association: March 2008 The State of Minnesota and the Renewable Fuels Association (RFA) released a study in March 2008 that also explored the option of higher blends of ethanol. A primary objective of the study was to determine the effect of E20 on the performance and components of standard vehicles (not FFVs), which are typically limited to running on no more than 10% ethanol blends (E10) due to automaker recommendations and EPA regulations. In this study, the following key findings were made: 1. The vehicle fuel system materials study used both hydro c a r b o n - o n l y fuel (gasoline) and 10 percent ethanol blended fuel to compare to 20 p e rcent ethanol blended fuels. The yearlong project culminated in four (4) separate and distinct material compatibility documents which conclude that the effects of 20 percent ethanol blended fuels do not p resent problems for current automotive or fuel dispensing equipment. 2. The drivability study showed that E20 provided similar power and performance to 10 percent ethanol blended fuel throughout the entire calendar year, which included a broad range of ambient weather conditions. 3. Based on the materials compatibility and drivability testing results of this scoping re p o rt, there are no issues that would prevent moving forward with the comprehensive testing required to certify E20 as a federally approved motor fuel. 4. Final recommendations on how to proceed with respect to E20 must be withheld until the ongoing emissions testing is complete.

4 ethanol FAQs Answers to your questions about blender pumps and higher ethanol blends. Q: How does a blender pump work? A: A blender pump draws fuel from two underg ro u n d tanks and blends the fuels as dictated by the consumer's choice of blend. One tank can contain either E10 (10% ethanol) or regular unleaded gasoline. The other tank can contain either E85 (85% ethanol) or denatured ethanol. As the consumer chooses the blend on the pump face, the blender pump automatically draws fuel from each tank as appropriate in order to deliver the preferred blend. Q: Is blender pump installation complicated? A: The technology that allows a blender pump to work is resident in the pump mechanism itself, so you simply need to connect the pump to two underground storage tanks, something you likely have connected to your pump locations currently. You ll need to clean the tanks as necessary in order to accommodate the two fuels for the blender pump. If you already have E10 or ordinary gasoline in one tank, most likely you can fill the other with E85 or denatured ethanol and be ready to install your blender pump. Q: What are higher ethanol blends? A: Higher blends include any ethanol blend above 10% (E10). The most common are E20, E30, E40 and E85. The E in the designation simply indicates that the fuel contains ethanol and the number associated with it is the percentage of ethanol in that blend. For example, E20 is 20% ethanol, 80% gasoline. E85, the most common higher blend, is 85% ethanol and 15% gasoline. Q: Can higher ethanol blends be used in any vehicle? A: No. While all major automakers approve the use of E10 (10% ethanol) in their vehicles, the U.S. Environmental Protection Agency (EPA) only allows the use of higher blends in flex-fuel vehicles (FFVs). FFVs have specially designed fuel systems that automatically adjust to run on a wide range of fuel b l e n d s f rom E85 to E10 to 100% ord i n a ry gasoline, and every combination in between. (That s why they call them flexible. )

5 A computer in the vehicle automatically adjusts for the amount of ethanol in the gasoline, allowing a driver to fill up with E85 one time, E10 the next, etc. as availability and price dictate. Obviously, this mixing of ethanol blends may result in higher blends of ethanol in the tank at any one time and the computer system adjusts to compensate accordingly. That s why blender pumps make sense for FFV owners. Q: How many flex-fuel vehicles (FFVs) are on the road? A: T h e re are nearly 7 million FFVs on America s highways today and the three U.S.-based automakers have committed to manufacture 50% of their vehicles as FFVs by There are more than 1,500 E85 fueling stations across the nation, with more being added every week. For a complete list of flex-fuel vehicles and fueling station locations, visit www. d r i v i n g e t h a n o l. o rg. Q: How do higher blends affect gas mileage? A: P re l i m i n a ry studies have actually shown fuel economy gains with E20 and E30 blends. E85 does have a fuel economy loss, but is typically priced low enough to offset that loss. (That s the advantage of owning an FFV. You have more options as fuel prices fluctuate.) By the way, most drivers using E10 (the standard 10% ethanol blend) see no difference in fuel economy and some see a gain. Q: Will non-flex fuel vehicles be allowed to use higher blends of ethanol in the future? A: The pre l i m i n a ry studies highlighted earlier spotlight the great potential, but further research is needed to determine the effects. Q: Why would consumers be interested in a blender pump? A: A blender pump gives an FFV owner a great deal of flexibility and options. Just because you drive an FFV does not mean you have to fill up with E85 all the time. A blender pump gives FFV owners the opportunity to fill up with various ethanol blends based on pricing and their vehicle s performance using various ethanol blends. And since the blender pump includes E10 as a s t a n d a rd choice for consumers, you are also providing a fuel that virtually every consumer can use. Additionally, when you have a blender pump at your station, you are showing consumers that you have their best interests in mind by offering them a wide range of fuel options in terms of blend and pricing all featuring clean-burning, domesticallyp roduced ethanol.

6 five good reasons to put in a blender pump and utilize the e label on your pumps 1. YOUR CUSTOMERS ARE LOOKING FOR ETHANOL More and more consumers are seeking out ethanol-enriched fuel and you can help them find it at your stations by installing a blender pump and adding the e label on all your pumps that dispense ethanol blends. 2. YOU BUILD CUSTOMER LOYALTY When you brand your pumps with the e label, you provide assurance to customers that they can always find ethanolenriched fuel at your locations and that keeps them coming back again and again. 3. YOU POSITIVELY POSITION YOUR LOCATIONS IN THE MARKETPLACE Consumers understand and appreciate the benefits of ethanol. When you promote ethanol-enriched fuel at your locations, you enjoy the goodwill that comes with offering a fuel that is e n v i ronmentally friendly and helps America strengthen its energy independence. 4. YOU CAN ALWAYS OFFER CHOICES Once consumers begin seeking out ethanol-enriched fuel, especially these midlevel blends, they want to be able to count on finding it all the time. A blender pump will allow for you to offer several options to these consumers. 5. YOU BENEFIT FROM NATIONAL PROMOTION AND EDUCATION When you label your pumps with the e, you enjoy the benefits of a national marketing, education and publicity campaign focused on p romoting ethanol-enriched fuel including the h i g h - p rofile IndyCar Series that uses 100% ethanol, and the American Le Mans Series that uses E85.

7 ethanol s benefits resonate with consumers ETHANOL LABELS AVAILABLE AT NO CHARGE! A national survey conducted in late 2007 found that a s t rong majority of American consumers are more inclined to throw their economic clout behind e t h a n o l a c l e a n e r, gre e n e r, renewable fuel when it comes to i s s u e s of energy independence, American jobs and the environment: 62% of re s p o n d e n t s believed it s important that adding ethanol to gasoline lessens U.S. dependence on imported oil. 65% of re s p o n d e n t s indicated they believed the American economy benefits from ethanol p ro d u c t i o n. 58% of respondents believed that ethanol-enriched gasoline is better for the environment than ordinary gasoline. Respondents also indicated that the most important benefit of ethanol is that it is better for the environment. The survey also found that, when consumers are provided with re l e v a n t i n f o rmation about ethanol, their interest in purchasing it i n c reased by nearly 20%! Capitalize on the growing interest in ethanol by labeling your pumps at no charge! More and more consumers are seeking out ethanol-enriched fuel. You can help them find it at your station by joining the voluntary branding program in South Dakota. By branding your pumps with the e logo, you help your customers identify the fuel t h e y re looking for and position your station as responsive to consumer demand. ORDER FREE PUMP LABELS ONLINE! southdakota NO CHARGE FOR LABELS! NO CHARGE FOR SHIPPING!

8 f ree blender pump information clinics L e a rn more about the South Dakota blender pump program during a series of free information clinics being held across the state. Choose between morning (9:00 a.m. to noon) or afternoon (1:30 p.m. to 4:30 p.m.) sessions at these locations: P rovide your customers with more choices for ethanol blends and you could qualify for: Up to $5,000 cash grant per station A 30% federal tax credit SIOUX FALLS Monday, May 19 Holiday Inn City Centre WATERTOWN Tuesday, May 20 Watertown Event Center ABERDEEN Wednesday, May 21 Ramada Inn HURON Thursday, May 22 C ro s s roads Hotel & Event Center A 51 per gallon blender credit Comprehensive brand imaging and marketing support Pre-registration is encouraged. e85@epicinfo.org or call EPIC at , Ext The e mark and the stylized e are registered service marks of the Ethanol Promotion and Information Council. 08EPIC-014_0408_XX