Montana

POPULATION (2015): 1,032,949

REGISTERED CARS & LIGHT TRUCKS: 1,397,442

ANNUAL GAS CONSUMPTION (2014): 510 Billion GPY

TOTAL RETAIL STATIONS: 514

Maximum E85 use:69 Million GPY
FFVs in use:101,941
E85 stations:0
Flex Station implied demand:+53
Maximum E15 use:410 Million GPY
EPA approved E15 vehicles:1,117,953
E15 Station implied demand:+411

Fuel specifications

Gasoline:

Conventional

Reid Vapor Pressure:

The state requires 9.0 psi RVP gasoline statewide from June 1-September 15.

Contact information for key state regulatory agencies

Department of Weights and Measures, 406-443-3289

State Laws & Incentives

Ethanol Fuel Blend Use Requirement
State government agencies and universities owning or operating motor vehicles capable of using ethanol-blended gasoline must take all reasonable steps to ensure that the operators of those vehicles fuel with ethanol-blended gasoline if it is commercially available within the vehicle's operating area and competitively priced as compared to conventional gasoline. (Reference Montana Code Annotated 2-17-414)

Ethanol Production Incentive

Montana-based ethanol producers are eligible for a tax incentive of $0.20 per gallon of ethanol produced solely from Montana agricultural products or ethanol produced from non-Montana agricultural products when Montana products are unavailable. If the producer uses non-Montana based agricultural products, the amount of the tax incentive per gallon is reduced proportionately, based on the percentage of non-Montana based agricultural or wood products used in production. The tax incentive is available to a facility for the first six years from the date production begins.

Ethanol eligible for the incentive must be blended with gasoline for sale as ethanol-blended gasoline in Montana, exported from Montana for sale as ethanol-blended gasoline, or used in the production of ethyl butyl ether for use in reformulated gasoline. To receive the tax incentive, an ethanol producer must use at least 20% Montana products to produce the ethanol in the first year of production, must use at least 25% Montana products in the second year of production, and must increase the amount of Montana products by 10% each year thereafter.

(Reference Montana Code Annotated 15-70-522)

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
line
Montana
AVG STATION (83,400 GPM)
Average Retailer:
New gallons/$$/Mo E15 & Flex: 15,400 $2,600
New Customers/Mo:+1,711 
Additional Merch. Margin from above:$5,000
RINs not applied to reduce price:$740
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TOTAL NEW PROFIT/MO  $8,340
Top Performing Retailer:
New gallons/$$/Mo E15 & Flex:36,500$6,100
New Customers/Mo:+4,058 
Additional Merch. Margin from above:$11,800
RINs not applied to reduce price:$2,100
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TOTAL NEW PROFIT/MO  $20,000

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