byo ethanol campaign renewable fuels association (rfa) american coalition for ethanol (ace)
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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 - PowerPoint PPT PresentationTRANSCRIPT
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• [email protected]
• Dresser Wayne– Scott Negley
• 512.388.8311• [email protected]
• Gilbarco Veeder-Root– David Zumbaugh
• 336.547.3021• [email protected]
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 [email protected]
• Complete a grant application at www.nebraskacorn.org
• View the webinars at www.BYOethanol.com• Twitter - @blendyourown
Questions?Ron Lamberty:• American Coalition for Ethanol• [email protected]• (605) 334-3381• Twitter: @blendor
Robert White:• Renewable Fuels Association• [email protected]• (402) 391-1930• Twitter: @fuelinggood
To watch the webinar, or to get more information, please visit: www.BYOethanol.com
Twitter: @blendyourown
•Nebraska Corn Board
•800.632.6761