You asked for background information on E-85 motor vehicle fuel. You were particularly interested in its availability in Connecticut and its cost.

AVAILABILITY OF E-85

E-85 is a blend of 85% ethanol and 15% gasoline (most gasoline currently sold in Connecticut contains 10% ethanol). According to the Ethanol Vehicle Coalition, an advocacy group, E-85 is currently not offered for sale in Connecticut or elsewhere in New England. There are six E-85 stations in New York State but none of these facilities are open to the public. Five are operated by the New York Thruway Authority and one is operated by the state's Office of General Services. E-85 is much more widely available in the Midwest than in the Northeast. An Ethanol Vehicle Coalition website, http: //www. e85refueling. com/, shows the availability of E-85 stations nationally.

Currently, about 6 million vehicles nationally, out of a total of about 240 million, are equipped to run on E-85. Most of these are “flexible fuel” vehicles that can also run on conventional gasoline, and the Energy Information Administration (EIA) estimates that only 2% of these vehicles currently operate on E-85. Further information about flexible fuel vehicles is available at http: //www. e85fuel. com/e85101/flexfuelvehicles. php.

COSTS

Currently, most ethanol used in vehicle fuels in this country is made from grain, primarily corn. The price of E-85 varies geographically, in part due to the cost of transporting the grain or other feedstocks to refineries and the blended product to filling stations.

On a national level, E-85 is less expensive than conventional gasoline. According to a June 2006 EIA survey, E-85 was $ 2. 43 per gallon, compared to $ 2. 84 for conventional gasoline. On the other hand, E-85 was five cents per gallon higher in the Mid-Atlantic region (the region closest to Connecticut where E-85 is available to the public). The survey is available on-line at http: //www. eere. energy. gov/afdc/resources/pricereport/pdfs/afpr_jun_06. pdf.

OTHER ASPECTS OF E-85

According to a March 2006 report on ethanol fuels by the Congressional Research Service (CRS), E-85 proponents argue that its use can lead to lower emissions of toxic and ozone-forming pollutants and greenhouse gases. They also argue that ethanol use displaces petroleum imports, thus promoting energy security. Ethanol's detractors argue that various federal and state policies supporting ethanol distort the market and amount to corporate welfare for corn farmers and ethanol producers. Further, they argue that the energy and chemical inputs needed to turn corn into ethanol actually increase emissions and energy consumption, although most recent studies have found modest energy and emissions benefits from ethanol use relative to gasoline.

The CRS report notes that the ethanol market depends heavily on federal incentives and regulations. Ethanol production is encouraged by a federal tax credit of 51 cents per gallon. This incentive allows ethanol, which has historically been more expensive than conventional gasoline, to compete with gasoline and other blending components. In addition, small ethanol producers qualify for an additional production credit. The report, which covers a wide range of policy issues regarding E-85, is available at http: //opencrs. cdt. org/rpts/RL33290_20060303. pdf.

The 2005 federal Energy Policy Act establishes a new 30% tax credit to fueling stations that add E-85 or similar fuels to their offerings. It also establishes the first-ever renewable fuels standard in federal law. The act

requires that at least 4 billion gallons of ethanol and biodiesel be used in 2006, increasing annually to at least 7. 5 billion gallons in 2012. This is an annual increase of approximately 700 million gallons per year.

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