E85

The market for alternative fuels such as E85 is growing, driven by many factors, including fluctuating gasoline prices and energy security. With consumer demand for alternative fuel vehicles increasing, auto manufacturers are working to produce more flex-fuel vehicles (FFVs), which are capable of operating on 85% ethanol and 15% gasoline, or any blend in between.

There are more than eight 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.

Click here to download a brochure with general information about E85 as well as a list of which vehicles can use E85. For additional copies, please contact the RFA Market Development Team at (402) 391-1930.

The number of E85 fueling stations continues to grow nationwide.  As of early 2010, there are more than 2,300 retail stations (out of 160,000 stations nationwide), offering E85 across the country.

E85 Refueling locations by state

How to Tell if Your Car is a 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 E85. New models are coming out each year and there are more than one million FFVs being produced each year.

Many states offer incentives for the purchase of alternative fuel vehicles. Click here to learn more.

E85 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 E85 market. Specifically, the law did the following:

  • Eliminates the E85 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 E85 at the terminal rack, which will encourage petroleum blenders to blend E85 as far upstream as possible, which will allow more E85 to be blended at the terminal rack and to be used in the marketplace.

For information on how to handle, store, and dispense E85, read the Handbook for Handling, Storing & Dispensing E85.

Click here for more information on VEETC.

E85 Infrastructure

In 2009, the American Recovery and Reinvestment Act increased the credit 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, to 50%, up to $50,000. 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.

Frequently Asked Questions

How is a FFV different from a gasoline-only vehicle?

A FFV will contain a fuel sensor that detects the ethanol/gasoline ratio. In addition, a number of other parts on the FFVs fuel delivery system are modified so that they are ethanol compatible. The fuel tank, fuel lines, fuel injectors, computer system and anti-siphon device have been modified slightly. This normally includes a stainless steel fuel tank and Teflon-lined fuel hoses. The use of E85 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 may also be compromised.

Can a vehicle be converted to E85?

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.

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 flex-fuel vehicle can yield 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 a 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