Since
April 2, 2006, at least 85% of the gasoline in Hawaii has contained 10%
ethanol.
Consumer brochures about the use of ethanol blended gasoline in automobiles (PDF file, 884 kb) and gasoline-powered equipment (PDF file, 761 kb) are available here.
All
gasoline-powered cars sold in the United States are designed to use gasoline
containing up to 10% ethanol, also known as E-10 Unleaded. Click
here for the latest E-10 Fact Sheet! In some states and large metropolitan areas, all of the gasoline contains ethanol, and has for several years. [1]
Gasoline containing up to 10% ethanol has been available in over 42 states for more than 10 years, and in 24 states for more than 20 years.
Today, about half of the gasoline in the U.S. contains ethanol, and the percentage is projected to continue to increase. [2]
The United States' energy policy calls for increased use of alternative fuels for transportation. The national Renewable Fuels Standard requires 7.5 billion gallons of ethanol and biodiesel fuel to be incorporated into the nation's fuel supply by 2012. Current U.S. use of ethanol fuel is about 5 billion gallons per year.
Cost-effective, reliable fuel supplies are essential for Hawaii's economy. Hawaii's need for ground transportation fuels is projected to increase. Renewable fuels can contribute to Hawaii's energy supply, as well as to several of Hawaii's energy objectives. Diversification of fuel supplies can reduce Hawaii's future dependence on imported fossil fuels and the impacts of oil price increases or supply disruptions.
Hawaii's Ground Transportation Fuel Demand:
Since ethanol can be made from many locally available materials, including agricultural products and even yard or wood waste, it can provide long-term energy diversity and energy security, using plentiful renewable resources. Energy diversification is similar to establishing a diversified investment portfolio: when some prices increase and others decrease, the net effect is a more resilient portfolio with less total risk.
Since April 2, 2006, at least 85% of Hawaii's gasoline has contained 10% ethanol. [3]
Fuel marketers in Hawaii prepared for months in advance of the transition to ensure that properly-blended E-10 Unleaded gasoline would be available for delivery to retail service stations and vehicle fleets.
The net effect on Hawaii's consumers is projected to be good in the short term and even more important in the long term.
Federal and State incentives reduce the cost of ethanol in order encourage its use, reduce our dependence on imported fossil fuel, and develop renewable alternatives that can be produced in the U.S. and in Hawaii.
Several studies have concluded that ethanol produced in Hawaii can be competitive with imports, and cost-effective for blending with gasoline.
The Federal incentive is 51 cents per gallon of ethanol. If 40 million gallons of ethanol are blended into Hawaii's gasoline, Federal payments to blenders in Hawaii will be $20.4 million per year. This may help offset startup costs associated with the program. [4]
Minnesota uses E-10 statewide. Their retail prices tend to be at or below the national average.
[1] All of Minnesota, since 1997; Chicago and Milwaukee, since 1999; St. Louis, MO, since 2002; and, since December 2003, all of Connecticut, most of New York, and all of Los Angeles, San Francisco, San Diego, and San Joaquin Valley. Other areas have been using it to reduce pollution during the winter months: El Paso, TX; Denver, Boulder, and Longmont, CO; Missoula, MT; Provo, UT; Las Vegas and Reno, NV; and Phoenix, AZ.
[2] Source: Energy Information Administration, 2007.
[3] The ethanol content law was enacted in 1994. The specific requirement is for at least 85% of the gasoline delivered to retail gasoline stations and fleets to be E-10 Unleaded. An exemption is allowed if competitively priced ethanol is not available, or in the case of undue hardship.
[4] The incentive expires 12/31/2010. 40 million gallons per year @ $0.51/gallon multiplied by 4.75 years = $96.9 million. Two separate studies projected an industry-wide investment of about $10 million to accommodate ethanol blending. Actual investment may be more, due to upgrades or replacement of aging equipment. Also, the relative prices of gasoline and ethanol have been highly volatile recently; it's not known if or when they may stabilize.