Missouri Becomes Third State to Require Gasoline Blend with 10% Ethanol

Executive order requires 70% of state vehicles be capable of using E85

February 2008

Missouri became the third state, after Minnesota and Hawaii, to require all motor gasoline to be blended with 10% ethanol on January 1. Missouri Governor Matt Blunt also signed an executive order to require at least 70% of new vehicles purchased by the state Missouri Office of Administration be flex-fuel vehicles that can run on E85.

"Missouri is a leader in the use of alternative fuels, and this change benefits Missouri’s consumers, economy, environment and farmers," Governor Blunt said. "Filling our gasoline tanks with E10 will improve our air quality and reduce our dependency on foreign oil. Missouri corn fields have now become the oil fields of the 21st Century."

Governor Blunt has also introduced an alternative fuels proposal that would increase the use of alternative fuels through state tax incentives. His proposal would make $2 million available through tax credits to install E85 pumps at gas stations. Currently Missouri has 4,312 service stations, only 92 of which can dispense E85.

The governor also proposed tax credits for state residents who purchase E85. This credit would be equal to $0.25 per gallon in the first year of the program, $0.20 per gallon in the second and third years, and $0.15 per gallon in each subsequent year, with a maximum of $500 per taxpayer per year. The credit will be claimed through state income taxes.

The last part of his alternative fuels proposal is a 10% tax deduction (up to $1500) to encourage the purchase of qualified hybrid vehicles.

Automotive Fleet Magazine ranked Missouri tenth against other states in the number of alternative fuel vehicles as a percentage of the total state fleet. The state fleet currently has 36 hybrid electric and 1,717 E85 vehicles. The magazine ranked the state 59th in the country against thousands of private, state, local and federally managed vehicle fleets.

See Governor Blunt's December 31 press release and January 3 press release.