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ICM Worldwide
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Ethanol Infrastructure

Ethanol Infrastructure

Giving drivers a choice at the pump.

At a time of record high gas prices, drivers deserve a choice in how they fuel their vehicle. They should be able to choose between more affordable, cleaner-burning, high-octane, homegrown, and American-made ethanol; or more expensive, dirty, low-octane, regular gasoline from foreign oil. Flex Fuel pumps give drivers this choice by offering a range of ethanol blends.

Over the last five years, ethanol has enjoyed a price advantage over regular gasoline, with ethanol being 15 cents to 75 cents cheaper on a yearly average basis from 2007-2011 and about a dollar cheaper today. Every drop of ethanol that drivers put in their car lowers the price at the pump.

And Flex Fuel pumps don’t just benefit drivers – they also give an distinct business advantage to fuel retailers because it allows them to offer a more affordable motor fuel. In a survey with 10% of the Flex Fuel pump retail population represented:

  • 81% of those surveyed believe there is a price advantage in selling ethanol blends.
  • 60% of the retailers surveyed advertise the price advantage of ethanol.
  • 48% of those surveyed found that overall store traffic improved after installing flexible fuel pumps.


Gasoline Retailer Flex Fuel Pump Incentives

Alternative Fuel Vehicle Refueling Property Tax Incentive

This tax incentive helps fuel retailers defray the cost of installing equipment to dispense alternative fuels, including ethanol, natural gas, propane, electricity, biodiesel, and hydrogen. Unfortunately, Flex Fuel pumps are ineligible for the full credit because the technology was not in use when the tax incentive was enacted in 2005.

  • Growth Energy’s Position: We support extending this tax incentive and modifying it to give Flex Fuel pumps the full value of the tax incentive.

U.S. Department of Agriculture (USDA) Rural Energy for America Program (REAP)
This program provides assistance to agricultural producers and rural small businesses to complete renewable energy projects. USDA has announced a goal of incentivizing the installation of 10,000 flex fuel pumps by 2015 under this program.

  • Growth Energy’s Position: We support additional funding for this program in the 2012 Farm Bill, and oppose efforts to restrict USDA from helping rural fuel retailers.


(Source: Growth Energy, www.ethanolretailers.com)