Kansas

POPULATION (2015): 2,911,641

REGISTERED CARS & LIGHT TRUCKS: 2,442,435

ANNUAL GAS CONSUMPTION (2014): 1.3 Billion GPY

TOTAL RETAIL STATIONS: 1,190

Maximum E85 use:240 Million GPY
FFVs in use:254,625
E85 stations:22
Flex Station implied demand:+154
Maximum E15 use:1 Billion GPY
EPA approved E15 vehicles:1,953,948
E15 Station implied demand:+952

Fuel specifications

Gasoline:

Conventional

Reid Vapor Pressure:

Nearly all counties in the state use a 9.0 psi RVP from May 1-September 15 at the retail level. Kansas City area counties Johnson and Wyandotte require 7.0 psi gasoline to be sold at the retail level from June 1-September 15.

Contact information for key state regulatory agencies

Department of Agriculture (Weights and Measures), 785-564-6700

State Laws & Incentives

Alternative Fuel Vehicle (AFV) Tax Credit
An income tax credit is available for 40% of the incremental or conversion cost for qualified AFVs, based on gross vehicle weight rating (GVWR) as outlined in the table below. Qualified AFVs include vehicles that operate on a combustible liquid derived from grain starch, oil seed, animal fat, or other biomass, or produced from a biogas source.

Alternatively, a tax credit of 5% of the cost of the AFV, up to $750, is available for the purchase of an original equipment manufacturer AFV. This credit is allowed only to the first individual to take title of the vehicle. For motor vehicles capable of operating on E85, the individual claiming the credit must provide evidence of purchasing at least 500 gallons of E85 between the time the vehicle was purchased and December 31, of the following calendar year. Excess credits may be carried over for up to three years after the year in which the expenditures were made. The credit is only available to entities with corporate income tax liability. For more information, see the Alternative Fuel Tax Credit page. (Reference Kansas Statutes 79-32,201)

Alternative Fueling Infrastructure Tax Credit
An income tax credit is available for 40% of the total cost to install alternative fueling infrastructure after January 1, 2009. Qualified property must be directly related to the delivery of alternative fuel into the fuel tank of a motor vehicle propelled by such fuel. The tax credit may not exceed $100,000 per fueling station. Alternative fuels are defined as combustible liquids derived from grain starch, oil seed, animal fat, or other biomass, or produced from a biogas source. Excess credits may be carried over for up to three years after the year in which the expenditures were made. The credit is only available to entities with corporate income tax liability. For more information, see the Alternative Fuel Tax Creditpage. (Reference Kansas Statutes 79-32,201)

Renewable Fuel Retailer Tax Incentive
A licensed retail motor fuel dealer may receive a quarterly incentive for selling and dispensing renewable fuels, including biodiesel. A qualified motor fuel dealer is eligible for up to $0.065 for every gallon of renewable fuel sold and up to $0.03 for every gallon of biodiesel sold, if the required threshold percentage is met. The threshold is determined by calculating the percent of total gasoline sales that is renewable fuel or biodiesel. For renewable fuel, the threshold increases incrementally on an annual basis from 10% in 2009 to 25% beginning on January 1, 2024. For biodiesel, the threshold increases incrementally on an annual basis from 2% in 2009 to 25% in 2025. No funding is available for this incentive through June 30, 2018 (confirmed July 2017). (Reference Kansas Statutes 79-34,171 through 79-34,176)

Biofuel Blending Equipment Tax Exemption
Qualified equipment used for storing and blending petroleum-based fuel with biodiesel, ethanol, or other biofuel is exempt from state property taxes. The exemption begins at the time of installation at a fuel terminal, refinery, or biofuel production plant, and ends 10 taxable years following the year in which the equipment was installed. Equipment used only for denaturing ethyl alcohol is not eligible. (Reference Kansas Statutes 79-232 and 79-32,251)

Ethanol Production Incentive                                                                                                Qualified ethanol producers are eligible for a production incentive payable from the Kansas Qualified Agricultural Ethyl Alcohol Producer Fund. An ethanol producer may collect $0.035 for each gallon sold to an alcohol blender that is in excess of the producer's base sales, up to 15 million gallons, provided the producer was in production before July 1, 2001, and increases production capacity by five million gallons over the producer's base sales. The same credit applies to a producer who began production on or after July 1, 2001, and before July 1, 2012, and who has sold at least five million gallons to an alcohol blender. A producer who begins production of cellulosic ethanol on or after July 1, 2012, and who sells at least five million gallons to a blender may receive $0.035 for each gallon sold, up to 15 million gallons. Producers must file for the incentive on a quarterly basis through the Kansas Department of Revenue. A producer may not collect the incentive for more than seven years. The incentive expires July 1, 2018. (Reference Kansas Statutes 79-34,160 through 79-34,164)

Alternative Fuel Vehicle (AFV) Acquisition Requirements
State agencies must purchase flexible fuel vehicles (FFVs) capable of operating on E85 fuel unless the desired vehicle model is not available with an E85-capable engine or the cost of the vehicle is at least $250 more than a comparable vehicle that does not use E85. When leasing motor vehicles, state agencies must lease FFVs unless no such vehicles are available for lease. Certain restrictions apply. (Reference Kansas Statutes 75-4617)

Biofuels Use Requirement
State-owned diesel-powered vehicles and equipment must use a biodiesel blend that contains at least 2% biodiesel (B2), where available, as long as the price of the biodiesel blend is not more than $0.10 per gallon as compared to the price of diesel fuel. Individuals operating state-owned motor vehicles must purchase fuel blends containing at least 10% ethanol (E10), as long as these fuel blends are not more than $0.10 per gallon as compared to the price per gallon of regular gasoline fuel. (Reference Kansas Statutes 75-3744a)

E85 Tax Rate and Definition
The minimum motor vehicle fuel tax rate on E85 is $0.17 per gallon, compared to the conventional motor fuel tax rate of $0.24 per gallon. E85 is defined as an alternative fuel that is a blend of denatured ethanol and hydrocarbon and typically contains 85% ethanol by volume, but must contain at least 70% ethanol by volume and complies with ASTM specification D5798-99. (Reference Kansas Statutes 79-3401; 79-3490; and 79-34,141)

Ethanol Blend Dispenser Requirement
A retail motor fuel dispenser that dispenses fuel containing more than 10% ethanol by volume must be labeled with the capital letter "E" followed by the numerical value representing the volume percentage of ethanol, such as E85, as specified in Kansas Department of Agriculture guidelines(PDF). (Reference Kansas Administrative Regulations 99-25-10)

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

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

Prairie Horizon Agri-Energy (Phillipsburg)    
Craig Palmer - Ethanol Products,
Phone: 316-303-3835

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

E15/Flex Fuel Profit Estimate
line
Kansas
AVG STATION (91,000 GPM)
Average Retailer:
New gallons/$$/Mo E15 & Flex: 16,800 $2,800
New Customers/Mo:+1,867 
Additional Merch. Margin from above:$5,400
RINs not applied to reduce price:$810
line
TOTAL NEW PROFIT/MO  $9,010
Top Performing Retailer:
New gallons/$$/Mo E15 & Flex:39,900$6,600
New Customers/Mo:+4,427 
Additional Merch. Margin from above:$12,900
RINs not applied to reduce price:$2,300
line
TOTAL NEW PROFIT/MO  $21,800

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