Arizona

POPULATION (2015): 6,828,065

REGISTERED CARS & LIGHT TRUCKS: 5,386,055

ANNUAL GAS CONSUMPTION (2014): 2.7 Billion GPY

TOTAL RETAIL STATIONS: 1,672

Maximum E85 use:329 Million GPY
FFVs in use:467,880
E85 stations:19
Flex Station implied demand:+134
Maximum E15 use:2.1 Billion GPY
EPA approved E15 vehicles:4.3 Million
E15 Station implied demand:+1,338

Fuel specifications

Gasoline:

The state requires Arizona Cleaner Burning Gasoline (ACBG) year round in Maricopa County and parts of Yavapai and Pinal counties, and from May 1-September 30 in the western half of Pinal County (Phoenix metro area). From November 1-March 31, ACBG specifications require CARB Phase 2 RFG and either CARB Phase 2 RFG or Federal RFG for the rest of the year. A minimum fuel oxygenate requirement is in effect from November 1-March 31.

Reid Vapor Pressure:

Other rules for ACBG include a 7.0 psi RVP from June 1-September 30 at the retail level, and a 9.0 psi RVP from October 1-May 31 (10 psi RVP is permitted only during the month of April). The Tucson metro region has a minimum fuel oxygenate requirement from October 1-March 31.

While Arizona has no specific ban on E15, other regulations prevent the sale of E15 at this time.

Contact information for key state regulatory agencies

Arizona Department of Weights and Measures, 602-542-5729

State Laws & Incentives

State Vehicle Acquisition and Fuel Use Requirements
Arizona state agencies, boards, and commissions must purchase hybrid electric vehicles (HEVs), alternative fuel vehicles (AFVs), or vehicles that meet set greenhouse gas emissions standards; or use alternative fuels. At least 75% of light-duty state fleet vehicles operating in counties with a population of more than 250,000 people must be capable of operating on alternative fuels. If the AFVs operate in counties with populations of more than 1.2 million people, those vehicles must meet U.S. Environmental Protection Agency emissions standards for Low Emission Vehicles. Alternatively, the state fleet may meet AFV acquisition requirements through biodiesel or alternative fuel use or apply for waivers. For the purpose of these requirements, alternative fuels include propane, natural gas, electricity, hydrogen, qualified diesel fuel substitutes, E85, and a blend of hydrogen with propane or natural gas. (Reference Arizona Revised Statutes 41-803).

Biofuels Definitions and Specifications                                       Biodiesel is a fuel that is produced from nonpetroleum renewable resources and meets ASTM specification D6751 and the U.S. Environmental Protection Agency registration requirements for fuels and fuel additives established in Section 211 of the Clean Air Act. E85 is defined as a blend of fuel ethanol and gasoline that meets ASTM specification D5798. The Arizona Department of Weights and Measures must adopt rules to establish and enforce federal standards and ASTM test methods for biofuels and biofuel blends, and blenders of biodiesel must follow the established reporting requirements. (Reference Arizona Revised Statutes 3-3401 and 3-3433 and Arizona Administrative Code R3-7-718)

Federal Incentives

Ethanol Infrastructure Grants and Loan Guarantees
The Rural Energy for America Program (REAP) provides grants and loan guarantees to rural (population less than 50K) small businesses to purchase renewable energy systems or make energy efficiency improvements. Eligible renewable energy systems include equipment used to distribute flexible fuels. The maximum grant funding is 25% of project costs and the maximum loan guarantee is $25 million. The program is funded through fiscal year 2018 but is subject to congressional appropriations thereafter. For more information, see the REAP website.

Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
http://www.rurdev.usda.gov/

Ethanol plant direct E85/ethanol sales

Current ACE members that offer E85/direct ethanol sales in this state include:

Pinal Energy (Maricopa)
Keith Kor, Phone: 520-483-1780

Click here for a complete list of domestic ethanol producers and sales contacts for E85/direct ethanol sales

E15/Flex Fuel Profit Estimate
line
Arizona
AVG STATION (133,000 GPM)
Average Retailer:
New gallons/$$/Mo E15 & Flex: 24,600 $4,100
New Customers/Mo:+2,730 
Additional Merch. Margin from above:$8,000
RINs not applied to reduce price:$1,200
line
TOTAL NEW PROFIT/MO  $13,300
Top Performing Retailer:
New gallons/$$/Mo E15 & Flex:58,300$9,700
New Customers/Mo:+6,474 
Additional Merch. Margin from above:$18,900
RINs not applied to reduce price:$3,300
line
TOTAL NEW PROFIT/MO  $31,900

Want to see what E15/Flex fuels could do for your operation?

Try out the E15/Flex fuel profit Estimator
A Roadmap for Ethanol cover

a roadmap for ethanol

You’re thinking about adding or switching to a new fuel grade on your product slate, and you’ve considered premium and diesel, because those are the fuels all station owners consider. But today, the market is different, and you’re curious about what E15, E85, and other flex fuels could do for your business. Good move.

Download the Full Guide