More gas stations to sell ethanol blend

Bill to lower tax on e85 awaits Sebelius' signature

? More gas stations in Kansas are poised to offer e85, an ethanol-gasoline blend that requires a specially manufactured engine to burn, thanks to a number of state and federal incentives.

Only 10 stations in Kansas currently offer the fuel – a mixture of 85 percent ethanol and 15 percent gasoline. But officials say three more will come on line in the next 40 days and an additional 20 are possible by the end of the year.

“It’s starting to take off like wildfire,” Robert White, deputy director of the National Ethanol Vehicle Coalition, said of e85 sales. White said demand is rising as more vehicles capable of using the fuel are produced.

Engines that can burn e85 have been built for about six years and are now standard on many new vehicles.

In Kansas, people who buy a vehicle that can use e85 gasoline are qualified for a $750 tax credit if they purchase 500 gallons of fuel in the first two years. State and federal tax credits also cover about 70 percent of the distributors’ costs in converting a regular fuel line to an e85 line.

Last week, the Kansas Legislature passed a bill lowering the tax on e85 from 24 cents to 17 cents per gallon. That bill awaits Gov. Kathleen Sebelius’ signature.

“It makes the tax more fair, because with the flat tax for all fuels you were actually paying more per mile when using e85,” said Sue Schulte, communications director for the Kansas corn growers and grain sorghum producers associations. “And it encourages the use of e85, too.”