National Governors Association, General Motors, and 10 States to Develop Ethanol Infrastructure

October 20, 2008

The National Governors Association (NGA) has announced it has built partnerships between General Motors Corporation (GM) and 10 states to enhance access to E85. Alabama, Florida, Idaho, Kansas, Michigan, Missouri, Nebraska, Ohio, Tennessee, and Wisconsin will each work with GM to select pump locations and advance development and usage of each state's E85 infrastructure. E85 is a blend of 85 percent ethanol and15 percent gasoline.

In addition to helping states assess the best locations for E85 pumps, GM will work with top ethanol producers and fuel infrastructure experts to optimize the supply of E85 to the states. The company plans to leverage its network of dealers, plants, and offices and its extended ethanol-related network to promote E85 usage.

Under the partnership agreement, each state will establish an E85 task force that includes a team of state officials, retailers, and automobile manufacturers to help identify target areas for E85 refueling stations. The team will also identify potential funding sources to support pump installation or conversion.

GM says the infrastructure for E85 needs to expand now if the nation is to be ready for the increasing ethanol supply being produced from new cellulosic and biomass sources. In 2007, the United States used 6.8 billion gallons of ethanol, almost all of which was made from domestically produced corn. The Energy Independence and Security Act of 2007 boosted the national Renewable Fuel Standard to 36 billion gallons annually by 2022, capping corn ethanol at 15 billion gallons while calling for 16 billion gallons of cellulosic ethanol and 5 billion gallons of advanced biofuels.

At the same time, production of flexible-fuel vehicles (FFVs) in the United States is growing, with more than 7 million on the road today; more than 1 million FFVs were produced in 2007 alone. FFVs are designed to run on blends of gasoline and ethanol in any percentage up to 85 percent ethanol. GM and other domestic automobile manufacturers have committed to making 50 percent of their vehicles FFVs by 2012.

For more information, see the NGA October 15 press release.