Kentucky

POPULATION (2015): 4,425,092

REGISTERED CARS & LIGHT TRUCKS: 4,027,934

ANNUAL GAS CONSUMPTION (2014): 2.1 Billion GPY

TOTAL RETAIL STATIONS: 2,137

Maximum E85 use:300 Million GPY
FFVs in use:329,072
E85 stations:68
Flex Station implied demand:+167
Maximum E15 use:1.7 Billion GPY
EPA approved E15 vehicles:3,222,347
E15 Station implied demand:+1,710

Fuel specifications

Gasoline:

Northern-grade RFG is used in the following counties: Boone, Bullitt (in certain areas), Campbell, Jefferson, Kenton and Oldham (in certain areas).  

Reid Vapor Pressure:

In non-RFG counties, 9.0 psi RVP gasoline is required 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), 502-573-0282

State Laws & Incentives

On-Farm Biofuel Production Grants

The Governor's Office of Agricultural Policy provides grants through the County Agricultural Investment Program for on-farm energy efficiency and renewable energy production projects, including funding for equipment, structures, or other supplies necessary to convert biomass crops into useable energy or to convert grains and oilseeds into ethanol or biodiesel for use in on-farm equipment. Fuels produced on a farm with assistance through this program may not be used as transportation fuels for highway use. Applicants are encouraged to review manufacturers' warranties and specifications before using the fuels in any on-farm equipment. For more information, see the Kentucky Agricultural Development Fund Program Portal website.

Alternative Fuel Tax 

An excise tax rate of 9% of the average wholesale price on a per gallon basis applies to all special fuels, including diesel, natural gas, liquefied petroleum gas (propane), ethanol, biodiesel, hydrogen, and any other combustible gases and liquids, excluding gasoline, used to propel motor vehicles. Additionally, a highway motor fuel tax of $0.02 per gallon applies to all special fuels. For taxation purposes, one gasoline gallon equivalent (GGE) of compressed natural gas (CNG) is equal to 5.66 pounds (lbs.) or 126.67 cubic feet. One GGE of liquefied natural gas (LNG) is equal to 6.06 lbs. (Reference Kentucky Administrative Regulations 103.43:330 and Kentucky Revised Statutes 131.130(1), 138.210, 138.220, and 138.226(1))

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

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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Kentucky
AVG STATION (82,100 GPM)
Average Retailer:
New gallons/$$/Mo E15 & Flex: 15,200 $2,500
New Customers/Mo:+1,685 
Additional Merch. Margin from above:$4,900
RINs not applied to reduce price:$730
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TOTAL NEW PROFIT/MO  $8,130
Top Performing Retailer:
New gallons/$$/Mo E15 & Flex:36,000$6,000
New Customers/Mo:+3,997 
Additional Merch. Margin from above:$11,700
RINs not applied to reduce price:$2,100
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TOTAL NEW PROFIT/MO  $19,800

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