Opinion: Fuel Retailers Must Keep One Eye Underground

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November 4, 2021

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by Cassie Mullen (Renewable Fuels Association/Ethanol Producer Magazine) … Retailers will need to soon make major decisions about replacement, and there has never been a better time to replace or upgrade, thanks to a number of state and federal programs that can help defray the cost.

We covered some of these incentives here last month, and the good news is that one program remains part of the Build Back Better Act before Congress, thanks to Rep. Cindy Axne (D-IA). This would provide $1 billion in funding for the U.S. Department of Agriculture for grants over the next 10 years to expand biofuel pump infrastructure, upgrade existing tanks and pumps, and increase usage of higher blends of ethanol and biodiesel. There is a long way to go before this particular element of the legislation becomes law, and further still to go before it funds projects, but it demonstrates a definite interest on the part of policymakers to help the industry move forward.

Adding to the consideration is the fact that the fuel that drives our cars and trucks may be changing as policymakers seek way to decarbonize energy. As much as electric vehicles may be hyped as the future of the automotive industry, it’s a distant future. Even in 2050, according to the U.S. Energy Information Administration, more than three-quarters of new vehicles sold will be powered by liquid fuels, whether gasoline or flex-fuel.

EPA is considering changes that will make regulations less burdensome for underground storage tank owners and operators that store E15 and other ethanol blends. The rule, if adopted, would include requiring new UST systems or replacement equipment to be compatible with blends up to 100%. This is a great opportunity for the ethanol industry, to be sure—and also for retailers to set themselves apart from the competition.

We strongly recommend marketers plan now for an infrastructure that can accommodate a broader set of fuels, especially higher biofuel blends. Those who are faced with the need to replace an antiquated underground storage system can take advantage of the programs outlined and save a lot of money while stepping up and preparing a fuel retail location that will set it apart from the competition, open to the new blends that will come online as more and more innovation arises in today’s climate-concerned (and climate-smart!) atmosphere. READ MORE

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