E-85
The market for alternative fuels such as E-85 is growing, driven by high gasoline prices. With consumer demand for alternative fuel vehicles increasing, auto manufacturers are working to produce more flexible fuel vehicles (FFVs), which are capable of operating on 85% ethanol and 15% gasoline, or any blend in between.

There are more than six million FFVs on the roads today, and automakers will produce several million more each year. FFVS are available in most vehicle classes, including compacts, sedans, minivans, trucks and SUVs. The number of E-85 fueling stations is growing rapidly nationwide.  As of early 2008, there are some 1,400 retail stations (out of 170,000 stations nationwide), offering E85 across the country.


How to Tell if Your Car is an FFV
Check your owner's manual, visit with your dealer, check the fuel filler door, or click here to determine if you drive a vehicle that can fuel with E-85. New models are coming out all the time and there are approximately one million FFVs being produced each year.

Many states offer incentives for the purchase of alternative fuel vehicles. Click here to learn more.
E-85 Blending
The Volumetric Ethanol Excise Tax Credit (VEETC), created by the Jumpstart our Business Strength (JOBS) Act of 2004, H.R. 4520, makes blending ethanol more flexible for petroleum companies and more cost-effective for the E-85 market.  Specifically, the law did the following:
  • Eliminates the E-85 AMT issue so that any taxpayer eligible for the alcohol fuels tax credit will be able to use the volume ethanol excise tax credit system, which means they will be able to file for a refund for every gallon of ethanol used in the marketplace without regard to the income of the taxpayer or whether the ethanol is used in a taxed fuel or tax exempt fuel. Separately, H.R. 4520 eliminates AMT on the Section 40 Alcohol Fuels Income Tax Credit.
  • Allows the alcohol fuels tax credit to be claimed in both taxable and nontaxable markets, such as tax exempt fleet fuel programs.
  • Streamlines the tax refund system for below the rack blenders to allow a tax refund of the alcohol fuels credit on each gallon of ethanol blended with gasoline to be paid within 20 days of blending.
  • Streamlines the use of E-85 at the terminal rack, which will encourage petroleum blenders to blend E-85 as far upstream as possible, which will allow more E-85 to be blended at the terminal rack and to be used in the marketplace.
For information on how to handle, store, and dispense E-85, read the Handbook for Handling, Storing & Dispensing E-85.

Click here for more information on VEETC.
E-85 Infrastructure
The Energy Policy Act of 2005 (H.R. 6) creates a new credit that permits taxpayers to claim a 30% credit, up to $30,000, for the cost of installing clean-fuel vehicle refueling property to be used in a trade or business of the taxpayer or installed at the principal residence of the taxpayer. Clean fuels are defined as any fuel of which at least 85% of the volume consists of ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen and any mixture of diesel fuel and biodiesel containing at least 20% biodiesel.

The portion of the credit attributable to property of a character subject to an allowance for depreciation is treated as a portion of the general business credit; the remainder of the credit is allowable to the extent of the excess of the regular tax (reduced by certain other credits) over the alternative minimum tax for the taxable year. With regard to property used by a tax-exempt entity, the credit applies to the taxpayer who sold the infrastructure property to the tax-exempt entity.

The credit applies to property placed in service between December 31, 2005 and December 31, 2009.  Form 8911 provides additional information and must be used in order to claim the tax credit.

The law repeals code section 179A (the current deduction) after December 31, 2005.
Frequently Asked Questions
How is an FFV different from a gasoline-only vehicle?

An FFV will contain a fuel sensor that detects the ethanol/gasoline ratio. In addition, a number of other parts on the FFV's fuel delivery system are modified so that they are ethanol compatible. The fuel tank, fuel lines, fuel injectors, computer system, anti-siphon device and dashboard gauges have been modified slightly to tolerate the alcohol. This normally includes a stainless steel fuel tank and Teflon-lined fuel hoses. The use of E-85 in gasoline-only vehicles is not recommended as it may cause damage due to the incompatibility of the alcohol fuel (ethanol) with the parts in gasoline-only engines. Performance and emissions will also be compromised.


Can a vehicle be converted to E-85?

In November, 2007, a kit for converting conventional gasoline-fueled vehicles to run on E85 was certified by the U.S. Environmental Protection Agency (EPA) for use in select vehicle models.  The “Flex-Box Smart Kit” manufactured by Flex Fuel US has been developed for use on vehicles common to many police, taxi, and government fleets, such as the Ford Crown Victoria, Mercury Grand Marquis, and Lincoln Town Car using a Ford 4.6-liter engine.  Flex-Fuel US is also seeking and anticipating EPA approval for kits suitable for other makes and models of passenger vehicles, light trucks, and performance vehicles.

Fleet operators and individual car owners can have these conversion kits installed at AAMCO Transmission Centers, as part of their new “Eco-green Auto Service” program. AAMCO has more than 700 locations nationwide.

The compact conversion unit mounts in the engine compartment and controls fuel injection levels by continuously monitoring emissions and engine performance.  The unit adjusts the fuel mix to allow the engine to operate at optimal performance regardless of the fuel blend in the tank.

While other E85 conversion options are available, they would likely be illegal according to the EPA.   Certification by the agency requires testing of the emissions profile after the conversion has been installed, to ensure compliance with federal air quality regulations and emissions standards.

Converting a conventional vehicle to a flexible-fuel vehicle yields several benefits, including:

 

  • An approximate 15 percent per gallon fuel cost saving over gasoline
  •  Increased horsepower
  •  Support for domestically-source fuels and enhanced energy security
  •  Potential reductions in overall greenhouse gas emissions

A copy of EPA’s Updated Certification for Alternative Fuel Converters is available at:  http://www.epa.gov/otaq/cert/dearmfr/cisd0602.pdf.



What is the range of an FFV?

In general, fuel economy of most flex fuel vehicles can be expected to decrease as ethanol content is increased due to the lower energy value in ethanol as compared to gasoline.  Engineering advances are expected to minimize the fuel economy penalty while taking advantage of the increase in octane found in ethanol with the next generation of fuel combustion and ignition technology. Also, please note there are many variables with regard to fuel economy, including the season, the weather, the state of tune of the vehicle, road grade, tire pressure, and the use of air conditioners.

Where can I find E85 fuel?

The US Department of Energy's Alternative Fuels and Advanced Vehicles Data Center now has an online station locator. Just specify which kind of fuel you want, then enter your address, and the locator will map out the closest stations that sell that fuel.

Useful links
 
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