Colorado

POPULATION (2015): 5,464,574

REGISTERED CARS & LIGHT TRUCKS: 4,620,397

ANNUAL GAS CONSUMPTION (2014): 2.2 Billion GPY

TOTAL RETAIL STATIONS: 1,638

Maximum E85 use:270 Million GPY
FFVs in use:376,735
E85 stations:83
Flex Station implied demand:+72
Maximum E15 use:1.7 Billion GPY
EPA approved E15 vehicles:3,696,317
E15 Station implied demand:+1,310

Fuel specifications

Gasoline:

Conventional

Reid Vapor Pressure:

All areas sell 9.0 psi RVP from May 1-September 15, with the exception of the Denver-Boulder area, which sells 7.8 psi RVP gasoline from June 1-September 15.

Contact information for key state regulatory agencies

Division of Oil and Public Safety, 303-318-8525

State Laws & Incentives

Alternative Fuel Definition
Alternative fuel is defined as compressed natural gas, propane, ethanol, or any mixture containing 85% or more ethanol (E85) with gasoline or other fuels, electricity, or any other fuels, which may include clean diesel and reformulated gasoline, so long as the Colorado Air Quality Control Commission determines that these other fuels result in comparable reductions in carbon monoxide emissions and brown cloud pollutants. Alternative fuel does not include any fuel product that contains or is treated with methyl tertiary butyl ether (MTBE). (Reference Colorado Revised Statutes 25-7-106.8)

Renewable and Alternative Fuel Storage Tank Regulations
The Colorado Department of Labor and Employment, Division of Oil and Public Safety, enforces rules concerning the placement of underground and aboveground storage tanks that contain alternative and renewable fuel. For the purpose of these regulations, an alternative fuel is a motor fuel that combines petroleum-based fuel products with renewable fuels; a renewable fuel is a motor vehicle fuel produced from plant or animal products or wastes. (Reference 7 Code of Colorado Regulations 1101-14 and Colorado Revised Statutes 8-20.5-202 and 8-20.5-302)

Federal Incentives

Alternative Fuel Infrastructure Tax Credit
(Originally expired 12/31/13 - retroactively extended through 12/31/16, by H.R. 2029) Fueling equipment for E85 installed between January 1, 2014, and December 31, 2016, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Station owners with multiple locations can use the credit towards each site. For more information about claiming the credit, see IRS Form 8911.

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

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

E15/Flex Fuel Profit Estimate
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Colorado
AVG STATION (110,000 GPM)
Average Retailer:
New gallons/$$/Mo E15 & Flex: 20,500 $3,400
New Customers/Mo:+2,282 
Additional Merch. Margin from above:$6,700
RINs not applied to reduce price:$990
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TOTAL NEW PROFIT/MO  $11,090
Top Performing Retailer:
New gallons/$$/Mo E15 & Flex:49,000$8,100
New Customers/Mo:+5,411 
Additional Merch. Margin from above:$15,800
RINs not applied to reduce price:$2,800
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TOTAL NEW PROFIT/MO  $26,700

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