/// Guest post by contributor Chad Johnson, Gilbarco Veeder-Root
The Renewable Fuel Standard was signed into law in 2005 as a way to boost domestic production of renewable fuels. The RFS standard had many mandates but the main piece affecting today’s fueling infrastructure is the use of ethanol.
A few of key facts:
- 2012 fuel consumption: 138 billion gallons of unleaded fuel
- Consumption in the US peaked in 2007 at 140 billion gallons
- Fuel economy improvements forecast fuel consumption to remain flat over the next 3 – 5 years
- Currently 10% ethanol is the limit for standard fuel blend limit
- At current demand the blend wall will be reached at 13.8 Billion gallons of ethanol
- The RFS calls for 14.5 billion gallons of ethanol in 2014
What does the blend wall mean to me as a retailer?
As the blend wall is approached in 2013, there are two courses of actions. Either the RFS law will need to be modified or higher ethanol blends must be introduced into the fuel streams.
When will I know which direction this goes?
It’s safe to say this decision will involve political lobbies and interests from each side.
What is my best course of action for my fueling equipment?
UL has created three tiers of safety listings.
- E0 – E10 – Up to 10% ethanol
- E0 – E25 – Up to 25% ethanol
- E0 – E85 – Up to 85% ethanol
Be sure to understand what listing is required for what level of ethanol is being provided.
Are there any Incentives available for upgrading or installing new equipment?
FEDERAL
Alternative Fuel Infrastructure Tax Credit - Extended
USDA Rural Energy for America (REAP) Grants - Extended - Deadline approaching.
STATE & LOCAL
Check with your local governmental agencies. BYO Ethanol should also be able to help put you in touch with the right organization.
BYO Ethanol Trade Organization offers free grant writing services for the REAP grants. Check the website here.
What about E30?
Underwriters Laboratories has created three tiers of ratings. If E30 were a fuel of choice, a rating up to E85 would be required.
Is ethanol blending at the dispenser an option?
Yes but be sure to start with the tank in the ground when designing the station.. Understanding the starting point will lead to what’s available in terms of dispensed products and compatibility of equipment.
What questions should I be asking of my equipment providers?
The most important question should be what listing does my equipment carry in terms of safety regulations. Secondly, is there an upgrade path at a later date for that equipment.
{Guest Post} Guest post provided by Gilbarco Veeder-Root, the worldwide technology leader for retail and commercial fueling operations, offers the broadest range of integrated solutions from the forecourt to the convenience store and head office. Gilbarco earns the trust of its customers by providing long-term partnership, uncompromising support and proven reliability. The opinions and advice given by guest post contributors are not necessarily those of NATSO or Gilbarco Veeder-Root, and are not intended to be legal advice. Please seek the advice of a qualified professional regarding your specific circumstances.
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