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E85 Fuel Workshop

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Title: E85 Fuel Workshop

1

E85 Fuel Workshop
Nebraska Ethanol Board
National Ethanol Vehicle Coalition
Clean Fuels Development Coalition

E85 Fuel Workshop
How Do I Get Started?
National Ethanol Vehicle Coalition

3
Major Partners
4
NEVC Efforts to Promote E85

Our only ethanol effort is to advance the use of
85 ethanol and other HLBE as a form of
alternative transportation fuel.
NEVC engaged in this effort since 1996.
We were doing E85 before E85 was cool.
National Technical Experts-literally and
figuratively wrote the book on E85!

5
NEVC Efforts to Promote E85

Support entrepreneurs that have an interest in
the sale of transportation fuels and not just
hydrocarbons
Provide technical and tax support, i.e. UL
issues, tank lining materials, blender pumps.
Support incentives to assist with offsetting the
cost of new or converted equipment.
Support modification of franchise laws so that
any vendor may now choose to sell an alternative
fuel.-approved Energy Independence and Security
Act of 2007.

6
Use of ethanol today?

Every vehicle in the nation can operate on up to
10 ethanol.
Most small engines can operate on up to 10
ethanol.
Most marine engines can operate on up to 10
ethanol.
Total gasoline use in 2007 was approximately 143
billion gallons.
Limit of amount of ethanol that can be used today
is 14.3 billion gallons.
Realistic national consumption is 13 billion
gallons.

7
Chrysler
Gasoline/Oxygenate Blends Some fuel suppliers
blend unleaded gasoline with oxygenates such as
10 ethanol, MTBE, and ETBE. Oxygenates are
required in some areas of the country during the
winter months to reduce carbon monoxide
emissions. Fuels blended with these oxygenates
may be used in your vehicle.
Ford
Ford endorses the use of reformulated
cleaner-burning gasolines with 10 ethanol or
up to 15 MTBE to improve air quality.
Reformulated gasoline contains oxgenates such as
ethanol.
8
Toyota
Oxygenates In Gasoline Toyota allows the use of
oxygenate blended gasoline where the oxygenate
content is up to 10 ethanol or 15 MTBE. If you
use gasohol in your Toyota, be sure that it has
an octane rating no lower than 87.
General Motors
Gasolines containing oxygenates, such as ethers
and ethanol, and reformulated gasolines may be
available in your area. General Motors recommends
the use of such gasolines if they comply with the
specifications described earlier. However, E85
(85 ethanol) and other fuels containing more
than 10 ethanol must not be used in vehicles not
designed for those fuels.
9
Annual U.S. Gasoline Demandand the Blend Wall
E10 Utilization Limit (10 of 143b) or 14.3
billion gal of ethanol
Source US Dept. of Energy
10

So whats the big deal with E10? Weve been
selling it in NE for years!
The Renewable Fuel Standard or RFS!

11
14.3 billion gallons current max at 10 use rate
Unallocated volume
12
OK, so lets just go to E20

Automobiles may not designed to operate on any
blend of ethanol in excess of 10 alcohol.
The exception are Flexible Fuel Vehicles.
Small engines and marine engines may not be
designed to operate on a blend exceeding 10
ethanol.

13
"To put E20 in the fleet that's out there is
going to corrode every non-ethanol fueling
system," Lutz told the Detroit Free Press in an
interview. "We absolutely guarantee the
destruction of the engine and the fuel injection
system if we go the E20 route. It will not
work. Robert Lutz, Vice-Chairman, General
Motors
14
2008 Flexible Fuel Vehicles
15
From 272 Luminas produced in 1992

16
So Whats 85 Ethanol?
E10-can be used in any vehicle sold in N. America
since early 70s. E85-can be used in selected
vehicles manufactured since 1996. FFV-Flexible
Fuel Vehicle-capable of operating on any
combination of ethanol or unleaded gasoline. No
incremental cost-no switches to flip, completely
transparent to driver. Serviced by any OEM Dealer.
17
FFV System
18
Flexible Fuel System
There is a difference between and FFV and a
vehicle designed to operate on 10 ethanol. NEVC
is working closely with EPA, DOT, DOE to analyze
the issues and determine what is the maximum
level of ethanol that can be operated in the 240
million legacy vehicles.
19
President Bush and Big ThreeCEOs Monday, March
26, 2007
20
Automakers Respondingw/increased FFV Production

Detroit automakers have produced more than 7
million FFVs.
This production is a result of incentives that
were provided in 1988, re-newed in 2005 and
extended in 2007.
There is a cost to produce a flexible fuel
vehicle.
Automakers produce vehicles to enhance
shareholder value.

21
Automakers Responding

Automakers have pledged to double production of
FFVs by 2010.
Further pledged to produce 50 of all vehicles as
FFVs by 2012..if infrastructure develops to
fuel vehicles.
No value to production of FFVs if infrastructure
does not follow.
Energy Bill provides incentives to continue to
build more and more FFVs.

22
Theres no reason the automotive industry cant
go to 100 percent E85 vehicles, and the world we
love doesnt have to change. It requires the
least change in consumer behavior. General
Motors Vice Chairman Bob Lutz Source Automotive
News, January 21, 2008
23
Evaluate your options and consider the
opportunities

Are sales of petroleum products declining?
What of total sales are mid-grade and premium?
Whats the status of my franchise agreement?
Can I remove a product.
Can I add a product.
Does the physical facility lend itself to another
UST/AST?
Whats the existing customer base of FFVs?
Is this base going to continue to grow?
Can I acquire E85 at a reasonable price?

24
Sales of E85 in comparison to Premium UL
Average U.S. Total average Premium gasoline sales
in comparison to average Minnesota E85 sales.
Source EIA, National Petroleum News, MN Dept.
of Commerce, NREL.
25
As importantly, through the efforts of the NEVC,
the Energy Independence and Security Act of 2007
allows a franchisee the ability to remove one
grade of gasoline and sell renewable-alternative
fuels. This so called three fuel provision of
franchise agreements has been a significant
hurdle to retailers that wished to replace
Premium or Mid-grade with E85.
Average U.S. Total average Premium gasoline sales
in comparison to average Minnesota E85 sales.
Source EIA, National Petroleum News, MN Dept.
of Commerce, NREL.
26
The Bottled Water - E85 Opportunity
27
E85 Stations
1,538 E85 Stations
28
From 272 Luminas produced in 1992

29
To the 6 million FFVs on the roads today!
30
2008 Chrysler FFVs
4.7L Chrysler Aspen 2.7L Chrysler Sebring
Convertible Sedan 3.3L Chrysler Town
Country 2.7L Dodge Avenger 4.7L Dodge Dakota
4.7L Dodge Durango 3.3L Dodge Grand
Caravan 4.7L Dodge Ram 4.7L Jeep Commander
Grand Cherokee
Not available for purchase in CA, CT, ME, MA,
NY, PA, RI and VT.
31
2008 Ford FFVs
4.6L Ford Crown Victoria (including taxi police
units) 5.4L Ford F-150 4.6L Mercury Grand
Marquis
32
2008 General Motor FFVs
3.5L 3.9L Chevrolet Impala (including police
units) 5.3L Chevrolet Avalanche Silverado, GMC
Sierra 5.3L Chevrolet Express GMC Savana 5.3L
Chevrolet Suburban GMC Yukon XL 5.3L Chevrolet
Tahoe Police Package Tahoe, GMC Yukon 3.9L
Chevrolet Uplander 3.9L Pontiac Montana (only
available in Canada Mexico)
33
2008 Nissan FFVs
5.6L Nissan Armada 5.6L Nissan Titan
Not available for purchase in CA, NY, ME, VT,
CT, NH, MA, NJ, or RI.
34
2008 Mercedes Benz FFVs
3.0L Mercedes Benz C300 Luxury Sport
35
SEC. 241. PROHIBITION ON FRANCHISE AGREEMENT
RESTRICTIONS RELATED TO RENEWABLE FUEL
INFRASTRUCTURE. (a) In General- Title I of the
Petroleum Marketing Practices Act (15 U.S.C. 2801
et seq.) is amended by adding at the end the
following SEC. 107. PROHIBITION ON RESTRICTION
OF INSTALLATION OF RENEWABLE FUEL PUMPS. (a)
Definition- In this section (1) RENEWABLE
FUEL- The term renewable fuel' means any fuel--
(A) at least 85 percent of the volume of which
consists of ethanol or (B) any mixture of
biodiesel and diesel or renewable diesel (as
defined in regulations adopted pursuant to
section 211(o) of the Clean Air Act (40 CFR, part
80)), determined without regard to any use of
kerosene and containing at least 20 percent
biodiesel or renewable diesel. (2)
FRANCHISE-RELATED DOCUMENT- The term
franchise-related document' means-- (A) a
franchise under this Act and (B) any other
contract or directive of a franchisor relating to
terms or conditions of the sale of fuel by a
franchisee.
36

(b) Prohibitions-
(1) IN GENERAL- No franchise-related document
entered into or renewed on or after the date of
enactment of this section shall contain any
provision allowing a franchisor to restrict the
franchisee or any affiliate of the franchisee
from--
(A) installing on the marketing premises of the
franchisee a renewable fuel pump or tank, except
that the franchisee's franchisor may restrict the
installation of a tank on leased marketing
premises of such franchisor
(B) converting an existing tank or pump on the
marketing premises of the franchisee for
renewable fuel use, so long as such tank or pump
and the piping connecting them are either
warranted by the manufacturer or certified by a
recognized standards setting organization to be
suitable for use with such renewable fuel
(C) advertising (including through the use of
signage) the sale of any renewable fuel
(D) selling renewable fuel in any specified area
on the marketing premises of the franchisee
(including any area in which a name or logo of a
franchisor or any other entity appears)
(E) purchasing renewable fuel from sources other
than the franchisor if the franchisor does not
offer its own renewable fuel for sale by the
franchisee
(F) listing renewable fuel availability or
prices, including on service station signs, fuel
dispensers, or light poles or
(G) allowing for payment of renewable fuel with
a credit card,
so long as such activities described in
subparagraphs (A) through (G) do not constitute
mislabeling, misbranding, willful adulteration,
or other trademark violations by the franchisee.

(2) EFFECT OF PROVISION- Nothing in this section
shall be construed to preclude a franchisor from
requiring the franchisee to obtain reasonable
indemnification and insurance policies.
(c) Exception to 3-Grade Requirement- No
franchise-related document that requires that 3
grades of gasoline be sold by the applicable
franchisee shall prevent the franchisee from
selling a renewable fuel in lieu of 1, and only
1, grade of gasoline.'.
(b) Enforcement- Section 105 of the Petroleum
Marketing Practices Act (15 U.S.C. 2805) is
amended by striking 102 or 103' each place it
appears and inserting 102, 103, or 107'.
(c) Conforming Amendments-
(1) IN GENERAL- Section 101(13) of the Petroleum
Marketing Practices Act (15 U.S.C. 2801(13)) is
amended by aligning the margin of subparagraph
(C) with subparagraph (B).
(2) TABLE OF CONTENTS- The table of contents of
the Petroleum Marketing Practices Act (15 U.S.C.
2801 note) is amended--
(A) by inserting after the item relating to
section 106 the following
Sec. 107. Prohibition on restriction of
installation of renewable fuel pumps.'
and
(B) by striking the item relating to section 202
and inserting the following
Sec. 202. Automotive fuel rating testing and
disclosure requirements.'.

38
FFVs E85 Stations Across NE
Source R.L. Polk, July 2007
41 E85 Stations47,082 FFVs
39
FFVs E85 Stations Across Norfolk
852 FFVs in Norfolk
Source R.L. Polk, July 2007
40
FFVs E85 Stations Across Kearney
972 FFVs in the city of Kearney
Source R.L. Polk, July 2007
41
FFVs E85 Stations Across Omaha
14,066 FFVs in the city of Omaha
Source R.L. Polk, July 2007
42
The E85 Opportunity