Are you ready for Ethanol?

March 31, 2006

Sometime in the next couple of months most suppliers will be transitioning from MtBE (Methyl tertiary Butyl Ether) to ethanol. The Energy Policy Act of 2005 mandates an increase in the amount of renewable fuels used in gasoline nationally, and ethanol appears to be the additive of choice. Nationwide we must use 4.0 billion gallons in 2006 and increase every year until 2012, when we need to use 7.5 billion gallons.

In addition the states of Connecticut and New York already ban MtBE and use ethanol. The states of Maine, New Hampshire, Vermont and Rhode Island have banned MtBE effective January 1, 2007 and Massachusetts is considering a ban at the present time. There is also a federal tax credit of .52 cents per gallon available to refiners and distributors on ethanol. These factors as well as the logistical nightmare of supplying both MtBE and ethanol mixed gasoline in the same geographic area prompted the transition.

MtBE is a suspected carcinogen and has polluted private wells and water supplies in many states. Ethanol is a renewable biomass alcohol-based fuel distilled principally (about 90 percent) from corn. For years, it has been blended with gasoline to make gasohol, sold mainly in the Midwestern States. Recently, ethanol has been blended in cleaner-burning gasoline mandated by the 1990 Clean Air Act Amendments, adding oxygen as required by the amendments. Ethanol costs much more than gasoline to produce, but with government support helping create a market, U.S. ethanol production grew from 10 million gallons in 1978 to 4.0 billion gallons (estimated) in 2006.

What do you as a dealer need to do? You need to insure that certain steps are taken prior to receiving your first load of ethanol-blended gasoline. Also remember that most suppliers have already dealt with the transition in other states and have a firm grasp of the situation. However, it is your responsibility to educate yourself and your employees about ethanol.

The ethanol in an ethanol-blend gasoline acts as a solvent and may dissolve and/or loosen materials such as bottom sludge and some wall coatings on petroleum storage tanks. The loosened materials will be suspended in the gasoline and may cause pump filters and vehicle fuel lines to clog.

To prevent clogging, follow these two steps before receiving the first shipment of ethanol-blended gasoline:

Empty and thoroughly clean the storage tank. If this cannot be done, vacuum as much sludge and debris off the bottom of the tank as possible, using an external pump.

Install pump filters suitable for removing an expected increase in particulate matter. Contact your product supplier or pump manufacturer to determine the correct type of filter to use. These special pump filters will have to be changed frequently during the first few months of an ethanol-blend use. If the special pump filters are not used, retail customers may experience clogged automobile fuel line filters and lodge complaints with your station.

Massachusetts and New Hampshire require specific pump labels when ethanol-blended gasoline is dispensed. Contact state authorities or NESSARA for details. Most consumers should not notice any difference as far as vehicle performance. Some reports indicate a minor decrease in fuel economy of between 1-3 %. Motorists should not notice this small difference.

There is still much controversy regarding the use of ethanol, however it appears to be one of the least toxic of the major components of gasoline and it “biodegrades quickly” posing less risk to water resources. However, ethanol is reported to reduce air quality somewhat, which is not good for the Northeast. There is still much to learn about ethanol, and NESSARA will continue to search out answers to keep you informed. For more information go to the NH DES website at www.des.nh.gov/orcb/ustprog_info.htm

New Hampshire DES has done a magnificent job providing information on the transition from MtBE to ethanol.

Finally, don’t forget that the government that is mandating ethanol use today is the same government that sanctioned MtBE use years ago.


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