Many states offer incentives for flex fuel pump installations. Check with local administrators for program details. Download a PDF of this list.
Several organizations and federal agencies have programs in place to help bridge the gap in retail ethanol infrastructure such as Clean Fuels Development Coalition, Clean Cities and State Petroleum Marketers.
Fueling equipment for natural gas, liquefied petroleum gas (propane), electricity, E85, or diesel fuel blends containing a minimum of 20 percent biodiesel installed between January 1, 2006, and December 31, 2013, is eligible for a tax credit of 30 percent of the cost, not to exceed $30,000. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Consumers who purchased qualified residential fueling equipment prior to December 31, 2013, may receive a tax credit of up to $1,000. Unused credits that qualify as general business tax credits, as defined by the Internal Revenue Service (IRS), may be carried backward one year and carried forward 20 years. (Reference Public Law 112-240 and 26 U.S. Code 30C and 38). Contact the U.S. Internal Revenue Service for more information. Phone: (800) 829-1040.
The Rural Energy for America Program (REAP) provides loan guarantees and grants to agricultural producers and rural small businesses to purchase renewable energy systems or make energy efficiency improvements. Eligible renewable energy systems include flexible fuel pumps, or blender pumps, that dispense intermediate ethanol blends. The maximum loan guarantee is $25 million and the maximum grant funding is 25% of project costs. At least 20% of the grant funds awarded must be for grants of $20,000 or less. Funding for this program is subject to congressional appropriations through fiscal year 2013. For more information, see the REAP website. (Reference Public Law 112-240 and 7 U.S. Code 8107). Contact Office of Rural Development, Business and Cooperative Programs at USDA for more information. Phone: (202) 690-4730.
The Arizona Biofuel Conversion Program distributes grants to encourage the use of biofuels in the state and to promote the development of fueling infrastructure. Up to $75,000 is available to public and private entities for the incremental cost of projects that result in new or converted biofuel storage and dispensing equipment. Applicants must complete projects within six months of the grant award date. Biofuel is a biomass-derived fuel used directly as a motor fuel. The program ends July 1, 2015. (Reference Arizona Revised Statutes 41-1515.01)
The California Energy Commission administers the Alternative and Renewable Fuel and Vehicle Technology program to increase the use of alternative and renewable fuels. Grants are available for the project that include the expansion of fuel infrastructure, fueling stations and equipment. Contact Shashi Singeetham, Air Quality Specialist at the South Coast Air Quality Management District on the phone at (909) 396-3298 or via email at firstname.lastname@example.org.
The Colorado Corn Blender Pump Pilot Program provides up to $5,000 for each qualified station dispensing mid-level ethanol blends. Projects must meet the application requirements and receive approval from Colorado Corn and the Colorado Department of Oil and Public Safety. Funding is available for up to ten stations in the state. Contact Katrina Davis, Ethanol Project Manager at Colorado Corn for more information. Phone: (970) 351-8201; Email: email@example.com
The Flex Fuel Pump Program offers fuel retailers grants up to 50 percent or $20,000 (whichever is less) toward the purchase of a flex fuel pump, hardware and storage tank or the conversion of an existing pump to a blender pump. The program is open to both new and existing stations in Indiana. Currently, fuel dispenser manufacturer Dresser Wayne and OES, a Gilbarco supplier for Indiana and Kentucky, are also working with ICMC to support the program through equipment discounts to fuel retailers that qualify for the grants. For more information on the Flex Fuel Pump Program, call 317.644.0980 or email firstname.lastname@example.org. Applications are available to download at www.incorn.org.
The Illinois Department of Commerce and Economic Opportunity’s Renewable Fuels Development Program partners with the Illinois Corn Marketing Board to fund new E85 fueling infrastructure at retail gasoline stations. The American Lung Association of Illinois-Iowa administers the grants for up to $5,000 of the total costs for converting an existing facility to dispense E85, or up to 3o percent of the cost to construct a new E85 fueling station or to modify a current station, with a maximum grant of $30,000 per facility. For more infomation, contact Norm Marek at 217.785.5082 or e-mail email@example.com.
The Renewable Fuel Infrastructure Program provides financial assistance to E85 and biodiesel retailers. Cost-share grants are available for up to 70 percdent of the total cost of the project, or $50,000, whichever is less, to upgrade or install new E85 or biodiesel infrastructure. Applicants may also qualify for supplemental incentives of up to 75 percent of the cost of making the improvement, or $30,000, whichever is less, to upgrade or replace an E85 fueling dispenser that has not been approved by an independent testing laboratory. The Renewable Fuels Infrastructure Board was established under the guidance of the Iowa Department of Economic Development; this 11-member board has authority to determine the eligibility of applicants. For more information, contact the Business Finance Program, Iowa Department of Economic Development, 515.725.3133, email firstname.lastname@example.org or visit www.iowalifechanging.com. Or contact Harold Hommes, Marketing and Renewable Fuels Program at the Iowa Department of Agriculture and Land Stewardship. Phone: (515) 242-6237; Email: email@example.com
The Kansas Corn Commission is offering funds to install flex fuel pumps at retail locations. Grants of $6,000 for retailers that meet all requirements. For more information, contact Sue Schulte, Director of Communications, 785.448.6922 or email firstname.lastname@example.org.
Also, the State of Kansas also has an Alternative Infrastructure Tax Credit available for retailers. Tax credits are available for alternative fueling stations who have been placed in service after Jan 1, 2009. An amount up to 40 percent but not to exceed $100,000 will be available for each fueling station. This fund is being administered by the Kansas Department of Revenue. Contact Kathleen Smith at 785.296.3070 or email email@example.com or download a form at www.ksrevenue.org.
The Maryland Grain Producers Utilitzation Board manages a Department of Energy Clean Cities Infrastructure Grant to develop E85 in the Virginia, Maryland and Greater Washington region. Funding is available for an E85 terminal in Maryland and/or up to ten E85 retail sites located in Maryland, Virginia and/or the District of Columbia on a 65 percent cost-share. Cost share must be from non-federal sources. For example, if a project costs $100,000, the grant would pay $35,000 and the recipient would pay the remaining $65,000. Highest priority will be given to an E85 terminal in Maryland. Second highest priority will be given to retail sites located along or near the I-95 corridor. Retail sites must be open to the public. For more information or to submit an application, contact Jill Hamilton or Susan Susanke at 703-322-4484 or at firstname.lastname@example.org.
The Clean Energy Coalition offers the Ethanol Blend Infrastructure Grant Program of up to $10,000 per facility for the cost of purchasing and installing fueling infrastructure necessary to dispense ethanol blends between 15% (E15) and 85% (E85). New infrastructure as well as the conversion of existing infrastructure is eligible. Grants are available for retail and fleet fueling locations that are open to the public, and the infrastructure must be in place and available for use by December 31, 2013. Additional terms and conditions apply. For more information, see the Clean Energy Coalition website.
The Minnesota Clean Air Choice Team is offering funding assistance to fuel retailers for the installation of equipment to dispense E85 to the public. A qualified retailer may apply for a grant in the amount of 50% of eligible project costs. Funding may also be available to fuel retailers for the installation of ethanol blender pumps based on program priorities. Funding is limited and not guaranteed. For more information, see the Clean Air Choice E85 Retailer Information website. Contact Kelly Marczak, Director at the American Lung Association in Minnesota for more information. Phone: (651) 268-7590; Email: email@example.com.
Missouri Corn provides $3,000 grant available to retailers who install flex pump infrastructure, $2,500 for infrastructure and $500 for promotional efforts. For more information, contact Bradley Schad at 573.893.4181 or email firstname.lastname@example.org.
The grant program is $30,000 for the first pump and installation and $10,000 for the second pump. There is $40,000 maximum available per retail location for blender pumps. This money is available on a first-come, first-served basis until the money is exhausted. After that, retailers will be added to a waiting list. If additional funds become available, funding will be awarded in the order applications are received. For more information, contact Kimberly Clark, 402.471.2676 or email email@example.com.
The New York State Energy Research and Development Authority (NYSERDA) administers the Biofuel Station Initiative Program, which provides funding to retail fueling stations offering E85 and biodiesel blends in the state, and to petroleum terminal operators to store, blend, and dispense biofuels. NYSERDA provides a reimbursement of up to 50% of new biofuel dispensing installation costs, including equipment, storage tanks, and associated piping equipment, up to $50,000 per site. NYSERDA also provides a cost reimbursement of up to 50% for new biofuel storage, handling, blending, and rack dispensing equipment, including installation costs, up to $150,000 per site. NYSERDA accepts applications from public access retail fueling station owners and operators in the state. Funding is limited and does not cover facility permitting or engineering costs. A 50% cost-shared technical assistance is also available for the following: technical review of design and construction specifications for the biofuel equipment; analysis of existing and proposed equipment; preparation and submission of requests for biofuel specific permits and waivers to local and state code officials; and facility staff training. For more information, see the NYSERDA Biofuel Station Initiative Program Opportunity Notice.
Through the Biofuels Blender Pump Program, the North Dakota Department of Commerce offers cost-share grants of up to $5,000 per fueling pump, up to $20,000 per retail location, to motor fuel retailers who install qualified biofuel blender pumps and associated equipment. Qualified retailers are also eligible for grants of up to $14,000 at each retail location for tanks and piping installed at the same time the blender pump is installed. A qualified ethanol retail blender pump must: 1) dispense a blend of gasoline and ethanol in the ratio the purchaser selects; 2) meet an industry standard and carry a warranty for compatibility with dispenser components and storage and piping systems; 3) have at least four hoses and dispense either a blend of 10% ethanol (E10) or the minimum blend percentage the U.S. Environmental Protection Agency has approved for use in all vehicles, a blend of at least 2o percent ethanol (E20), and E85; and 4) comply with all alternative fuel, biofuel, and flexible fuel requirements established by law. A qualified biodiesel retail blender pump must dispense varying blends of biodiesel and diesel fuels in the ratio the purchaser selects, and comply with all alternative fuel, biofuel, and flexible fuel requirements established by law. Grant recipients must continue to sell biofuel blends for at least 12 months after receiving funding. This incentive is available through April 30, 2013. To download the application go to: http://www.communityservices.nd.gov/uploads/resources/657/sfn-59918-blender-fuel-appsavable.pdf Conta.ct Andrea Pfennig, Program Administrator, 701.328.2687 or email firstname.lastname@example.org.
The Ethanol Infrastructure Incentive Program provides funding to offset the cost of installing ethanol blender pumps at retail fueling stations throughout the state. Awardees may receive $25,000 for the first pump installed and $10,000 for each additional pump, with a total of $950,000 in funding available for fiscal year 2012. Applications for the current period are being accepted until April 30, 2012, with an additional application period expected to begin June 2, 2012. For eligibility requirements and application instructions, see the Program website. (Reference South Dakota Statutes 10-47B-162 and 164)
A tax credit is available for 25 percent of the cost to install or retrofit fueling pumps that dispense gasoline fuel blends of at least 85 percent ethanol or diesel fuel blends of at least 20 percent biodiesel fuel, or that mix fuel from separate storage tanks and allow the user to select the percentage of renewable fuel. The maximum credit amount is $5,000 per taxable year for each fueling station that has installed or retrofitted a pump. The credit must be claimed within four years of the tax return. The credit expires December 31, 2017.