Currently most of the market for ethanol is to use the product in a 10% blend in gasoline as an oxygenate or octane enhancer. Another alternative use of ethanol though is to use an 85% ethanol blend that is called E-85. This can be used in many of the new "FFV" flexible fuel vehicles that are being produced now. Many government vehicle fleets have been mandated to use FFV vehicles. One problem is that there are few refueling stations for E-85 in areas like Pennsylvania. We learned this summer that the National Ethanol Vehicle Coalition (NEVC) obtained a $100,000 grant from the Pennsylvania Department of Environmental Protection to develop four refueling stations in Pennsylvania. Stations will be located in Dauphin, Lancaster, Philadelphia and Pittsburgh. NEVC is interested in developing more E-85 stations around the US and here in Pennsylvania. We recently supported some federal legislation at their request to fund the development of E-85 sites. We were pleased to learn in a letter from Senator Santorum recently that bills have been passed in the House and Senate earmarking $2 million for E-85 refueling station development nationally.

September 2001