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What does it mean for fuel retailers to be ethanol compatible?

What does it mean for fuel retailers to be ethanol compatible?

May 13th, 2020

There have been a lot of conversations happening around Minnesota lately discussing how much ethanol can be blended in our fuel and what that would mean at gas stations. So what does it mean for equipment to be compatible and what’s that look like?

For Drivers

How does the driver’s experience at the dispenser change when they pull up to a pump offering gasoline with 15% ethanol (E15) in addition to the traditional gasoline that has been 10% ethanol (E10) across Minnesota since 1997? It doesn’t. A driver will see the fuel option typically marked as 88 octane and they might notice a lower price and an orange decal that says E15 is for gasoline vehicles made since 2001. Other than that, the nozzles, hoses, and other pieces look the same to the users. E15 may be on its own nozzle or it can share a hose with traditional E10 choices.

For flex fuel vehicle drivers who are seeking out the advantages of E85, it will be offered on a separate nozzle or a totally separate dispenser. Ethanol blends between 20% and 85% (i.e. E20-E85) can only be used by flex fuel vehicles. Many retailers use a yellow nozzle to help FFV drivers find the E85 pump quicker when they are pulling in, but not always. E85 dispensers should be clearly marked to ensure they are only used in flex fuel vehicles.

For Fuel Station Operators

All the fuel equipment in use today should be compatible with ethanol blends of at least 10%. Offering ethanol blends above 10% means needing to ensure that the equipment in use can handle the blend you want to offer. And now is a great time to look at upgrading equipment. To support the growing use of biofuels, the USDA is launching a new funding assistance program, the Higher Blends Infrastructure Incentive Program (HBIIP). The application period is May 15 – August 12.

For those in the fueling industry, this article is here to serve as a starting point for information on fuel compatibility. Much of this will be geared toward offering E15, an 88 octane gasoline blend that can be used by 90% of the cars on the road today, but many of the same points apply to offering E85, which has its own set of higher standards.

Underground Storage Tank System Requirements

According to the Environmental Protection Agency (EPA), there are specific compatibility requirements for storing and selling any fuel that is more than 10% ethanol. This is because gasoline and ethanol can react differently to certain materials and soft metals not designed for storing ethanol blends greater than E10. Soft metals like aluminum, zinc, brass, copper and lead can corrode when in contact with higher ethanol blends. This can lead to issues within the storage tank or piping. Non-metallic materials like rubber, polyurethane and other components found in piping, meters and filters can also change when exposed to higher biofuel blends if they aren’t designed for it.

Water also reacts differently in gasoline depending on the level of ethanol present. But let’s face it, if you have water getting into your fuel system, you’ve got problems regardless of how much ethanol is also there. You need to keep all your fuel tanks and equipment free of water all the time.

Compatibility Levels

Fuel equipment sold today is typically tested by the manufacture to prove that it is compatible at one of four levels of ethanol: 10% (E10), 25% (E25), 85% (E85), or 100% (E100). That marks the highest level of ethanol that equipment has been proven to accommodate without a risk of failure (i.e. spilling fuel into the environment). If a retailer is preparing to offer 88 octane E15 gasoline, the equipment involved needs to handle above the E10 standards, so it is typically rated at E25 or E85. It is worth noting that some pieces of equipment, like most new underground storage tanks, already come as compatible at the E85 or E100 level without any special upgrade. Other pieces of equipment come with a rating of E10, E25, or E85.

Is there a great deal of difference between fuel that is 10% ethanol and 15% ethanol in terms of how it reacts with equipment? According to an Oak Ridge National Laboratory study, “In general, the materials used in existing UST infrastructures would not be expected to exhibit compatibility concerns when moving from E10 to E15.” But compatibility in fuels systems is about safety standards and certifying for the intended fuel to guarantee it works.

The Oak Ridge researchers, like most studies, utilized American Society for Testing and Materials (ASTM) and Society of Automotive Engineers (SAE) fuels for the compatibility study. This means E10 and E15 are represented by test fuels created to act like real-world fuels. The test fuel representing E15 was an ‘aggressive’ 17% ethanol blend “designed to simulate severe, real-world conditions…intended to minimize the length of exposure necessary to rigorously evaluate materials with providing a reference standard.” Similar testing is done when rating a piece of equipment to the E25 standard, utilizing a test fuel that is more aggressive than would be found in a retail setting and at an ethanol blend higher than the end goal. In fact, recent research has been done showing that fuel dispensers from both the major national brands that were designed to meet the E25 standard could safely offer 40% ethanol blends without issues. You can rest assured that if your tanks and equipment are labeled as E15 compatible-indeed they are.

Compatibility Requirements

In order to store and sell E15 and higher ethanol blends, including E85, retailers must prove their tanks and equipment are compatible to the Minnesota Pollution Control Agency. There are two main ways you can do this:

1) Have proof that your equipment is listed by a nationally recognized, independent testing lab for the ethanol blend(s) you will be selling. Underwriters Laboratories (UL) is the primary organization for this.

2) Demonstrate your equipment is approved by the manufacturer to be compatible with the ethanol blend(s) stored. There must be a written statement affirming compatibility for the specific ranges of ethanol blends the equipment is compatible for.

How to know if your tank systems are compatible

If you are interested in selling E15, you may have a lot of questions about how to get started. The good news is the majority of underground tanks are E100 compatible (and have been for many years). Also, many of the dispensers, hanging hardware and other equipment is E25 (or sometimes E85) compatible, depending on the manufacturer, model, and age.

The US Department of Energy (DOE) has an official Handbook for Handling, Storing, and Dispensing E85 and other Ethanol-Gasoline Blends that is a great resource. It offers information on the different manufacturers and equipment that is or is not compatible with ethanol blends. You can find this information laid out in tables within the appendices of the handbook.

This does not mean you can start selling E15 right away if your equipment is listed as compatible in the above tables. You will need to confirm that all the equipment in your fuel system from tank to nozzle is compatible and complete a compatibility form for the MPCA, which may involve assistance from your equipment service provider depending on the level of details in your records.

The Minnesota Pollution Control Agency (MPCA) lists several pieces of equipment that must be compatible with the ethanol blend you will be storing. You can find that list here, along with additional information and resources.

Next Steps – There’s Help!

Depending on a site’s current equipment, a station may need very little new equipment, or it may need significant upgrades, particularly if the equipment is older or already near its typical end of usable life. Luckily, there are a lot of great resources and organizations here to help you.

A great starting point is to use the DOE checklists for installing biofuels that can be found in the handbook mentioned above. They lay out all steps necessary to make the transition.

Please note that the state also requires you to complete and submit the MPCA UST change in status form 30 days prior to introducing a biofuel blend greater than E10. Additionally, within 30 days of introducing your E15 or higher ethanol blend, you must complete the MPCA UST alternative fuel compatibility form.

Labeling

Your equipment installer should provide you with the EPA required dispenser labels once installation is completed. According to the EPA, “an E15 label must be placed on the upper two-thirds of a dispenser. If the dispenser has one nozzle, the E15 label must be placed above the button or control for selecting E15. For a multi-hose dispenser, the label must be placed where it is immediately visible to the consumer.”

Additionally, storage tanks that contain E85 must be labeled on all fillboxes and fillbox covers with a bronze pentagon and E85 printed in the middle of the pentagon.

Take a look at a recent blog post that talks about different E15/88 octane dispensing set-ups for more insight into how to best sell your new product.

Federal Funding Applications Open May 15

If you are a fuel retailer interested in selling E15 or E85 who needs to invest in new equipment, you can find more information on the USDA HBIIP website. The application period starts on May 15th. Stay tuned for a more in-depth blog post about the details this week.