Putting the Ethanol into EMV

by Robert White (Renewable Fuels Associatio/SIGMA's Independent Gasoline Marketing) Many retailers face infrastructure costs that are simply out of reach. Financing is not as easy as it used to be, and upcoming challenges like EMV can be too much for small and medium retailers. For those in this situation, a strange friend can provide financial assistance to help offset costs. Ethanol has become a standard part of our nation’s fuel supply due to the phase out of MTBE and the Renewable Fuel Standard (RFS). Sure, ethanol-free gasoline is out there, but for the most part, varying blends of ethanol occupy nearly every gallon of gasoline sold from E10 to E85.

In July 2012, E15 became available to consumers, first appearing in Kansas, and has since spread into 30 states. E15 is approved for 2001 and newer light duty cars, trucks, and SUVs, along with all flex fuel vehicles (FFVs). This vehicle segment is more than 80% of all vehicles on the roads today, and consumes more than 90% of all unleaded fuel. When E15 first debuted, you heard from ethanol opponents about how bad this fuel would be, the misfueling concern for retailers, and the damage that would come from its presence in the marketplace. Well, four and a half years later, there has not been one reported case of misfueling or engine damage. Millions upon millions of gallons of E15 have been sold, and all at a discount to E10. In fact, E15 is averaging a 2% discount to E10 today.

But it is simply careless to state that all stations will need expensive upgrades. Underground fiberglass piping and fittings installed in service stations have been compatible with up to 100 percent ethanol for more than 40 years. Double wall underground storage tanks built in 1990 or later are fully comparable for ethanol levels up 100%.

However, E85 is a different animal. The fuel blend, which debuted in 1996, is restricted to FFVs. These vehicles can use any blend of ethanol from 0% to 85% and there are more than 21 million of these vehicles on the roads today. E85 requires different infrastructure than E10, or even E15. Most tanks are compatible, but the majority of dispensers will either require a conversion kit or new equipment. All dispenser manufacturers offer E85 capable equipment, along with all other manufacturers that produce various other fuel system components. Because E85 it is an alternative fuel, it is protected under the Petroleum Marketing Practices Act (PMPA) and existing branding contracts cannot prohibit you from offering E85.

EMV compliance can be expensive, but ethanol can help you out. Not only can it help offset the costs you already will be required to spend, but it also can help differentiate yourself from the competition. Since annual surveys show that more than 70% of consumers base their fuel purchasing decision on cost alone, wouldn’t having a higher ethanol blend like E15 make sense? It is higher octane at a lower price, and approved for more than 80% of the vehicles on the roads today. If E15 or E85 were a problem, do you think several major chains would have made the leap? READ MORE and MORE (Independent Gasoline Marketing)