# Presentation: 856415

## Made in Minnesota

- How SEP dollars have fueled E85’s growth

## E85

- 70% to 85% ethanol blend
- Used in flex-fuel vehicles (FFV)
- FFVs allow a choice of E0 to E85
- 30+ FFV models. *More coming!*
- E85 price:
- 2006: Avg. $0.20 to $0.50 LESS than 87-octane in region
- Expect ~15% to 18% less MPG in FFVs

## Project Partners 2007

- American Lung Association of Minnesota*
- AgStar Financial Services
- Ford Motor Company (no longer a partner)
- General Motors Corporation
- MN Corn Growers Association*
- MN Dept of Agriculture*
- MN Dept of Commerce – State Energy Office*
- National Ethanol Vehicle Coalition*
- US Dept of Energy – Clean Cities Program*

- * Indicates Project Partner since inception in 1997

## Team Approach

- Federal, State and Corporate
- Funding for demonstrations, marketing, education, and technical assistance
- American Lung Association
- Coordination and administrative support

## Federal Grant Dollars

- SEP Formula
- $172,500 SEP Formula
- administered by Commerce
- SEP Special Project
- $762,500
- administered by Commerce

- MN Corn Growers
- Millions of dollars!!
- Ford Motor Corp.
- $250,000+
- General Motors (GM)
- $250,000+
- AgStar Financial Services
- $50,000+
- National Ethanol Vehicle Coalition
- $250,000+
- 312 Station/fleet operators
- Millions of in-kind/cash

- To date, 213 direct E85 equipment installation and conversion grants have been awarded. _**All**_ stations have received technical, promotional and imaging assistance through the E85 Team.

**Notes:**
A little more detail:
MN Corn Growers have contributed literally “millions” to this work – by far the most of the E85 Team.
Various other sources/grants have been tapped, too.
First E85 TV and Radio spots were conducted by Ford/E85 Team/MN Timberwolves sponsorship in 1999.
Funds have also contributed to salary, fringe, education, web site, marketing, 

## State Grant Dollars

- Commerce
- $150,000 for additional E85 stations
- Agriculture
- $500,000 for additional E85 stations

**Notes:**
$150,000 in state general fund dollars for additional E85 stations
$500,000 to MN Dept of Ag for additional E85 stations...with help from Commerce

## Investments

- $1,676,448 awarded to retailers (~$8,000 per site)
- ~$15,000 per site invested by retailers through existing in-kind equipment and cash expenditures
- ~$3,000,000+ investment by E85 team in consumer education/advertising, tradeshows, staffing, etc.
- ~$8,000,000+ direct investment by E85 Team, station/fleet operators in constructing largest E85 network

## E85 Station Info

**312 – Minnesota**
- 150 – Illinois
- 60+ – Wisconsin
- 60+ - Iowa
- 36 – South Carolina
- 25 – North Dakota
- 23 – Texas
**1,100+**** – USA** (285 total in Jan. 2004)

**Notes:**
In 1997, only 7 stations were open.  In 2004 the national E85 count was 285.

An estimated 150,000 of the nation’s 6 million E85-capable flex-fuel vehicles (FFVs) have been registered in Minnesota.  Major automakers have pronounced at least 50% of total production could be E85-capable by 2012. 

## Price Comparison

## Growth in sales, stations

- SEP Funding begins

## E85 Stations around the State

## The Future

- Governor Pawlenty is proposing the _***E85 Everywhere:***_
- 1,800 stations by 2010 (quintuple of the current 300 stations)
- In addition, the Governor’s proposal will help retail station owners with grants to partially offset the cost of E85 pump installations.

## Questions?

**Questions?**

**www.CleanAirChoice.org**