Ethanol Labels news

AGRICULTURE

Kansas ethanol sales jump thanks to new law

Newton Kansan, November 10, 2005

TOPEKA — According to data released by the Kansas Department of Revenue, Kansas gas stations began selling ethanol blended gasoline in dramatically larger quantities following passage of legislation (Senate Bill 56) to remove mandatory labels on gas pumps. Supporters of the new law projected 200 to 300 percent increases in ethanol sales and credit the law, which went into effect this summer, with the increased sales in July and August.

In July of 2005, Kansas gas stations sold 21.4 million gallons of 10 percent ethanol fuel compared to only 2.9 million gallons in July of 2004 — an increase of 738 percent. In August of 2005, 10 percent ethanol fuel sales totaled 21.9 million gallons compared to only 2.8 million gallons in 2004 — an increase of 782 percent.

“We’re thrilled to see Kansas is finally beginning to sell ethanol in respectable amounts,” Tom Tunnell, President of the Kansas Association of Ethanol Processors, one of the lead proponents of SB 56, said. “Some gas stations in urban areas were refusing to offer ethanol because of the labeling requirements despite the obvious economic benefits to the gas station. With the new law, the market is deciding whether or not ethanol is sold. It’s not surprising a higher octane fuel that sells at a lower price than regular unleaded is thriving in the market.”

Prior to the passage of SB 56, the state required gas stations to label gasoline that contained ethanol. The unnecessary warning label sometimes scared off customers, but more importantly tended to place a barrier on gas stations that wanted to sell the lowest price fuel available. The Kansas Association of Ethanol Processors was joined by the Kansas Corn Growers Association, the Kansas Grain Sorghum Producers Association, Kansas Farm Bureau and the Kansas Coop Council in lobbying to remove the mandatory label.

The Kansas Department of Agriculture and Governor Sebelius lobbied legislators on the bill, and it received overwhelming support in both the Kansas Senate and House.

“This is a true success story,” noted KAEP Chairman John Neufeld, manager of U.S. Energy Partners in Russell. “All we needed to do to sell more ethanol in Kansas was get government out of the way. Kansas still has far to go before it can claim the success of states like Iowa and Minnesota, but this was a great first step.”

Senate OKs ethanol bill

by Chris Grenz, The Hutchinson News, February 23, 2005

TOPEKA - Gas stations no longer would be required to place stickers on pumps dispensing ethanol under a bill advanced by the Senate Tuesday.

Under current law, all gas pumps containing 10 percent ethanol must be labeled. But if Senate Bill 56 becomes law, gas stations can choose whether to display a sticker. In rural areas, stations often prefer to display the label because some customers seek out the grain-based bio-fuel.

"I'm one of those folks that likes to use ethanol," said Senate Agriculture Committee Chairman Mark Taddiken, R-Clifton. "I hunt for it when I travel."

But a coalition of agriculture groups contends some retailers, often in urban areas, choose not to sell ethanol to avoid the hassles of the sticker regulation. And some consumers treat the stickers as a warning because they're uncertain whether their vehicles can burn ethanol.

The bill has prompted little opposition, though some have questioned whether it is fair to withhold information from consumers. Sen. Kay O'Connor, R-Olathe, said her son is a mechanic. He told her that the alcohol in ethanol can draw moisture into the fuel line, which can cause rust in older vehicles that have steel lines.

"He said, quite frankly, if we passed this legislation, it would probably be good for his business," she said. "Older cars still have a problem."

But Duane Simpson, a lobbyist with the Kansas Grain and Feed Association, said O'Connor's concern was based on "misinformation."

Decades ago, ethanol used to cause problems in some cars because gasoline used to be rife with impurities, Simpson said. The ethanol acted as a cleaning agent, which loosened the impurities and caused them to gum up the fuel line. Today's gasoline blends are much cleaner, eliminating the problems in all cars.

Simpson said other states have repealed laws requiring ethanol stickers on gas pumps and they've seen a spike in ethanol sales. In Minnesota, a state law requires all fuel must contain 10 percent ethanol and no labels are affixed to gas pumps.

"They've had that mandate for almost a decade and their highways aren't littered with cars," he said. "The scare tactics that you hear, they're just not true. It's an old wives tale."

The Senate advanced the measure on an unrecorded voice vote, setting it up for final approval today.