byo ethanol campaign renewable fuels association (rfa) american coalition for ethanol (ace)

BYO Ethanol Campaign•Renewable Fuels Association (RFA)•American Coalition for Ethanol (ACE)•Nebraska Corn Board (NCB)

BYO Ethanol Campaign Efforts

• Expand Market Development Efforts• Conduct Educational Seminars & Webinars• Technical and Regulatory Industry Support• Safety & Environmental Program Support• Enhance Website Development• Print & Distribute Materials• Facilitate Marketer Assistance Programs• Expand Consumer Awareness Efforts

BYOethanol.com

What is a “Blender Pump?”•Not new technology•Already found in over half the dispensers in the country•Offers consumers more choices at the pump•Dispenser will blend to make various blends of ethanol•Typically two tanks , process usually uses E10 and E85 or denatured ethanol•For use in FFV’s only

How does a blender pump work?

Renewable Fuels Standard

Blender Pumps - What’s in it for you?PCI Compliance: Are you already looking for new equipment?More product choices for your customers on same footprint.Partial qualification for alternative fuels infrastructure tax credit.Uses existing tanks and pipes – huge cost savings.Ethanol plants sell direct – can bypass supplier markup.Flexibility for future approval of additional ethanol blends (E15).Dispenser paid for by the sales of all products, not just E85.

What’s in it for you? E85 Option:

* Sources: RFA: 3/30/10

Prices NL E10 E30 E50 E85Gasoline $2.2200 $2.2200 $1.9980 $1.5540 $1.1100 $0.3330

Ethanol $1.5300 $0.1530 $0.4590 $0.7650 $1.3005

Product Cost $2.2200 $2.1510 $2.0130 $1.8750 $1.6335

Fed Tax - Gas $0.1840 $0.1840 $0.1840 $0.1840

Fed Tax - Ethanol -$0.4500 -$0.0450 -$0.3825

State Tax $0.2680 $0.2680 $0.2680 $0.2680

TOTAL COST $2.6720 $2.5580 $2.0130 $1.8750 $1.7030

What’s in it for you? E98 Option:

* Sources: RFA: 3/30/10

Prices NL E10 E30 E50 E85Gasoline $2.2200 $2.2200 $1.9980 $1.5540 $1.1100 $0.3330

Ethanol $1.5300 $0.1530 $0.4590 $0.7650 $1.3005

Product Cost $2.2200 $2.1510 $2.0130 $1.8750 $1.6335

Fed Tax - Gas $0.1840 $0.1840 $0.1840 $0.1840 $0.1840 $0.1840

Fed Tax - Ethanol -$0.4500 -$0.0450 -$0.1350 -$0.2250 -$0.3825

State Tax $0.2680 $0.2680 $0.2680 $0.2680 $0.2680 $0.2680

TOTAL COST $2.6720 $2.5580 $2.3300 $2.1020 $1.7030

Federal Incentives

• Alternative Fuels Infrastructure Tax Credit– 50%, up to $50,000.– Must be associated with E85 expense to qualify.

• Volumetric Ethanol Excise Tax Credit (VEETC)– $.45/gallon for denatured ethanol.– Quarterly submission, payment in 30 days.

• RINs– Vary in value depending on market.– Can add significant value to concept.

Federal Infrastructure Tax Credit

Current Ethanol Pump Option:1. Standard Dispenser: $ 14,0002. Blender Pump: $ 16,000

Blender Pump:

Flex-Fuel add-on: $ 2,000¼ of Standard Pump: $ 3,500Total E85 Expenses of $ 5,500Blender Pump

Federal Infrastructure Tax Credit

50% of $5,500 for E85 Expenses =Federal Tax Credit: $ 2,750

Net Blender Pump cost: $13,250vs. $14,000 for standard dispenser.

* Manufacturers may offer further discounts

Federal Infrastructure Tax Credit

•Nebraska Corn Board:– Up to $5,000/station– Marketing/promotion support– Application available at www.nebraskacorn.org

•Growth Energy:– Up to $5,000/station– Application available at www.E85fuel.com

Local Incentives

Final Look at Cost: Current Ethanol Blender PumpStandard Dispenser Blender Pump

MSRP $14,000 $16,000Federal Tax Credit $0 $2,750NE Corn Board $0 $5,000Growth Energy $0 $5,000NET COST $14,000 $3,250

* Does not include potential income from VEETC or RINs.

Anticipated Cost: UL Approved Blender PumpStandard Dispenser UL Blender Pump

MSRP $14,000 $23,000Federal Tax Credit $0 $6,250NE Corn Board $0 $5,000Growth Energy $0 $5,000NET COST $14,000 $6,750

* Does not include potential income from VEETC or RINs.

Underwriters Laboratories (UL)

Blender Pumps & E85• De-certified all equipment in October 2006• News recently on E25 certification• E85 blender/dispenser are certified in 2010E15• Different issue• Blender pump would accommodate E15

EquipmentVarious configurations from:• Bennett

– Alan Levine• 727.491.3232• alevine@bennettpump.com

• Dresser Wayne– Scott Negley

• 512.388.8311• Scott.negley@wayne.com

• Gilbarco Veeder-Root– David Zumbaugh

• 336.547.3021• Dave.zumbaugh@gilbarco.com

What is available?

Sales Kits:• Examples of properly labeled

dispensers.• Examples of free label packages• Examples of available brochures• Business Case• Tax Forms• Blending Fuels Magazine• Checklist for conversion or new

installations.• Changes in Gasoline IV CD

What is available?

Dispenser Labels:• Meet all FTC requirements.• Meet recommendations of EPA for liability & consumer

protection.

What is available?

Expert Advice from Team:• More than 40 years of ethanol expertise

administering this program.• Access to the other experts in the industry.• Assistance with blender’s license & tax forms.• Recommendations based on station layouts.• And more…

Nebraska Corn Board Assistance

• $5000/station– Download application at: www.nebraskacorn.org

• Marketing/PR assistance– Mailing to FFV owners in surrounding region– Station promotional event– Discussion points– Media assistance

Station Requirements for Funding

• Complete application for preapproval

• Offer e85 and at least 1 other midlevel blend

• Clearly label products above e10 as “for Flexible Fuel Vehicles”

• Submit picture of pump and labels along with receipts

• Preference for funding : – Earliest appliers– Interstate/major

highway access– Fleet customers secured– Automobile dealer first

fill partnership– Station in city over

10,000– Local Corn Growers

Association support

Additional Information

• Request an information packet or schedule a brief presentation by contacting Susan at susan.zabel@nebraska.gov

• Complete a grant application at www.nebraskacorn.org

• View the webinars at www.BYOethanol.com• Twitter - @blendyourown

Questions?Ron Lamberty:• American Coalition for Ethanol• rvlamberty@ethanol.org• (605) 334-3381• Twitter: @blendor

Robert White:• Renewable Fuels Association• rwhite@ethanolrfa.org• (402) 391-1930• Twitter: @fuelinggood

To watch the webinar, or to get more information, please visit: www.BYOethanol.com

Twitter: @blendyourown

•Nebraska Corn Board

•Ncb.info@nebraska.gov

•800.632.6761