The Iowa Case Study. Midwestern Summit for Transportation Fueling Choice May 29-30, 2013

Transcription

1 Removing E15 Roadblocks: The Iowa Case Study Midwestern Summit for Transportation Fueling Choice May 29-30, 2013

2 EPA s E15 Decision March 6, 2009 waiver submitted to US EPA to increase the allowable ethanol content t in gasoline up to 15% volume. EPA responded October 2010 and January 2011 with partial approval, denial and with conditions: Approved for Vehicles MY2001 and newer, and all FFVs. Denied for Vehicles MY2000 and older; off road engines. Copyright 2013 BYO Ethanol Campaign. All Rights Reserved.

3 E15: What should states do? Goal: Put E15 in a position to help the renewable fuels industry continue to drive your economy. Remove unnecessary barriers to entry Targeted Support 3

4 Are Changes Urgent? Yes! Magellan Pipeline Fuel Change RIN values lower fuel prices to consumer Big corn harvest could set back rural economies without giant sponge 4

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6 State Fuel Specifications Most fuel specifications are determined and implemented by states (IDALs Weights and Measures) No national finished blend spec for E15 Iowa uses input specs for E15 Ethanol used as a component must meet ASTM D For E11 to E15, the gasoline component must meet ASTM D4814, except for distillation Ensure E15 octane rating may be posted 6

7 State Fire Code Regulations Determine agency responsible for above ground fuel dispenser (IA Fire Marshal) Do NOT tie regs to legacy standards (UL) Iowa regs require compatibility with fuel being dispensed. Equates to all current pumps being legal to dispense E15. 7

8 UST System Regulations Determine agency responsible for Underground storage tank systems (IA DNR) States must create system for determining compatibility under US EPA guidance Iowa has model checklist recognized by EPA Relies on certified installers MOST existing equipment IS compatible with E15. 8

9 State Fuel Pump Labels There is a mandated federal E15 pump label. Resolve any issues with state regs, especially with FFV labels. 9

10 Clean Air Act State Implementation Plans States with specialized SIPS may need to update them for E15 and gain approval from US EPA. However, lack of one-pound waiver for E10 make SIP areas very attractive for year-round E15 sales. 10

11 Retailer Liability Protection A retail dealer is not liable for damages, if: Motor fuel complies with fuel specs Motor fuel is selected by a person other than the retail dealer, including an employee or agent of the retail dealer Motor fuel pump is properly labeled 11

12 Retailer Bill of Rights Oil companies try to restrict E15 sales through branded contracts Protect retailers right to offer the products they choose. (Iowa House File 640) Can use/install tanks/lines/pumps to offer E15 without location restrictions Can advertise E15 on price sign, etc. Can use credit card system to process transactions 12

13 E15 in the Marketplace 13

14 State Fleets Only purchase FFVs and/or E15 approved vehicles Require E85 and/or E15 use 14

15 Targeted State Incentives E15 Retailer Income Tax Credit 3 cents/gallon for 2011 through cents/gallon for 2015 and 2016 Differential Fuel/Sales l Tax Credit 15

16 State Incentives Renewable Fuels Infrastructure Program 70% of installation costs Maximum $50, Grant E85 or Blender Dispensers 16

17 Consumers Want E15! Don t let state laws and regulations unnecessarily stand in between consumers and the lowest cost (non-ffv) fuel. Consumer demand has been strong for E15 Typically y costs 4-5 cents less than E10 and cents less than E0 (unblended gas) 17

18 Iowa Status Report 5 registered E15 retailer locations 50+ blender pump locations 100+ dedicated E85 pump locations Real key is retailer decisions this fall based on Magellan pipeline fuels changes We need 100s of stations, not dozens 18

19 Obstacles One pound waiver from summer RVP limit E10 and E15 need same RVP limit Regulatory fix Market based fix State based fix??? Autos need to follow Chevy/Ford on E15 Congress needs to maintain the RFS 19

20 The Future E15 is a necessary stepping stone to E25/30 Ethanol is the fuel economy savior Autos want higher octane fuels, but are worried about availability Could Tier III gasoline regulations bridge the gap? 20

21 Web-Site & Contact Information NW 88th Street Phone (515) Johnston, IA USA Fax (515)