kansas

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:368,452
E85 stations:26
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 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.

kansas_chart

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. (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 Credit page. (Kansas Statutes 79-32,201)

Biofuels Use Requirement
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 higher as compared to the price per gallon of regular gasoline fuel. (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. (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). (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 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