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
- 60% of the retailers surveyed advertise the price advantage of
- 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
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)