VA-MD-DC E85 Infrastructure Project

Objective: Make E85 publicly available in up to 12 locations in Virginia, Maryland and DC by providing grant funds to station owners to help defray the cost of conversion.

Virginia Clean Cities has funding available to assist station owners with installing equipment for several additional E85 (or Flex Fuel) stations throughout Virginia.  E85 refueling projects may qualify for $12,000 per hose to assist with certain costs, such as tanks and dispensers, and may qualify for additional marketing support.  Additional funding may also be available in special circumstances.

While the preferred station locations would be along the I-95 corridor, in Hopewell, on I-64 between Charlottesville and Virginia Beach, or near federal and state E85 capable fleets, Virginia Clean Cities is happy to discuss available funding for this or other alternate fuels projects.

E85 infrastructure projects should include equal matching funds from non-federal sources, permit public access to E85 refueling, report E85 fuel sales for two years, continue sales of E85 for a minimum of three years, and allow and assist VCC to conduct an environmental review before construction begins.

Virginia Clean Cities can also help you find additional funds.  For example, Growth Energy has recently announced their Infrastructure Development Program, which includes grants ranging from $2,500 to $5,000 to help with the installation or conversion of E85 and mid-level blend pumps.

For additional information, please contac Alleyn at aharned@hrccc.org or 540-568-8896.

E85 Infrastructure Project:
* I-95 from Maryland to North Carolina
* I-64 from Charlottesville to Virginia Beach
* Near federal and state E85-capable fleets

How:
* Define and develop E85 supply chain
* Partnerships with ethanol producers, fuel distributors/retailers, vehicle dealers, owners of fleet Flex Fuel Vehicles (FFV)
* Grant money helps defray the capital costs and risk

Recent Station Opening – July 30, 2010 – Norfolk Virginia

Funding is still available for this project on a first-come first serve basis

Grants and Tax Credits:
* Up to $12,000 in grants available per E85 hose
* 50% federal tax credit for infrastructure (credit was increased from 30% to 50% in American Recovery & Reinvestment Act)
* Grant money, tax incentives, marketing support and government fleet dedication can reduce capital cost and lower investment risk, especially when: an existing tank can be converted to E85, an additional tank can be added to a new build, and/or a large FFV fleet will agree to fuel at the facility.
*Additional $2,500 – $5,000 from Growth Energy

Multi-year Project Cost:
* $767,000 total project
* $284,000 federal portion (37%; 1 of 13 competitive DOE awards)
* $483,000 match (63%, sources: VA, MD, DC private)

It is also important to educate drivers of FFVs on where they can purchase E85 so that new locations will be patronized. A brochure was developed with a customizable cover so it can target different audiences. The brochure includes unrestricted public access, restricted public access, and private E85 stations, and explains the benefits of using the alternative fuel and makes it clear that E85 can only be used in E85-capable FFVs.

Virginia Clean Cities produces this brochure for Virgina, DC and Maryland.  Click the link below for the most recent version of the station listing.

E85 Station Locator – July 2010

E85 Station Locator

Financing Alternative Fuels — Making a Business Case

Virginia-Maryland-DC retail E85 Grant Program Summary

Discounted Cash Flow Calculator for E85 Investment

US Department of Energy E85 information, including a fleet manager’s toolkit, business case analysis and information on UL listing of dispensers : http://www.afdc.energy.gov/afdc/ethanol/index.html

Tax Credits and Other Incentives

Summary of the federal tax credit for alternative fuel vehicles and refueling property. This document also contains a link to the text of the 2005 Energy Act.

IRS Form 8910 Alternative Fuel Vehicle Tax Credit

IRS Form 8911 Alternative Refueling Property (tanks and pumps) Tax Credit

IRS Guidance for AFV refueling property tax credits

IRS 720 instructions: Excise Tax and Credits

Tax Credits for Alternative Fuel Vehicles Q&A by NGV America

Tax Credits for AF refueling infrastructure summary by NEVC

Tax Incentives and AF information from AFDC response center

The Federal and Virginia Executive Orders Strongly Encourage the Use of Alternative Fuels in Federal and State Vehicles

Executive Order 13423 – Strengthening Federal Environmental Energy and Transportation Management

701 Guidance indicates no waiver will be granted to a federal agency if alternative fuels are reasonably available and

priced.Executive Order 48 — Energy Efficiency in State Government (Virginia)

General & Technical Information on E85