By John Chambers/Tribune-Star
Boasting prices sometimes 30 or 40 cents cheaper than unleaded gasoline, E85 fuel will be in Marshall, Ill., early June.
"I've got everything on order. Once I get signage in, it will be probably within days," said Karen Riley, vice president of Terre Haute-based Jiffy Mini-Marts Inc.
The retailer became the only one to sell E85 in Indiana after beginning to offer it at 501 S. Third St. the first week of May.
Sales have been at least 500 gallons a day, Riley said.
The blend of 85 percent ethanol and 15 percent gasoline replaced premium gas: "Due to the high price, it was only doing 70 to 100 gallons a day," she said.
E85 was at $1.65 a gallon Thursday at Jiffy, compared to $1.93 a gallon for unleaded gas.
Before it's sold at Jiffy's other locations, its Sullivan station and five in Terre Haute would have to be converted by lining fuel tanks or installing new ones, Riley said.
"It's not as far off as I thought it was. It's more like months instead of years now," Riley said.
E85 is on track to be sold at five Indiana stations by the end of the year: "And I think that's conservative," said Kellie Walsh, executive director of the Central Indiana Clean Cities Alliance Inc.
The not-for-profit is one of more than 80 U.S. coalitions certified by the U.S. Department of Energy to promote alternative fuels and vehicles.
"Folks are just now becoming aware of it. And the governor's office also realizes the potential benefit to the economy," Walsh said.
Similar to an Illinois executive order, Gov. Mitch Daniels signed legislation earlier this year requiring state vehicles to use agriculture-based fuels such as biodiesel and higher-percentage ethanol blends whenever possible. As of August, the state owned more than 13,000 cars and trucks.
State vehicles have access to private E85 tanks in Indianapolis, so the fuel could start to be carried more in outlying communities, Walsh said.
Of about 61,000 consumer vehicles that can use E85 and are licensed in Indiana, 8,500 are in Indianapolis. About 750 are licensed in the Terre Haute area, Walsh said.
She said it has not been proven what happens with others fill with E85.
"The key is just make sure they [consumers] have a flex-fuel vehicle," Walsh said. "What could happen long-term, we're not sure. So definitely, your check engine light's going to come on."
E85 has up to 105 octane. It cuts down carbon dioxide, hydrocarbon and benzene emissions into the environment and is usually produced from corn and other grain products.
It only can be used by flexible-fuel vehicles and reduces mileage by 5 to 15 percent, similar to aggressive driving or poor maintenance.
E85's expansion is focused in the Midwest.
"I mean, this is the corn belt and there are a lot of ethanol plants around," said Bob Raffety, development coordinator for the National Ethanol Vehicle Coalition, an industry advocate group for E85.
Indiana's only facility is in South Bend, about an hour from where the fuel could be sold next.
"In the next couple weeks, hopefully we can get it in," said Greg Cobb of Freedom Oil LLC in Warsaw.
The fuel will be sold in one of five service stations Freedom operates. The company supplies fuel to 25 stations.
Cobb was unsure when E85 would be sold at its other locations.
"At some of the others, you have to have tankage for it," he said.
About 50 Illinois service stations carry E85 or have ordered equipment to use it, Raffety said.
Illinois is second to Minnesota's more than 100 stations that sell the fuel.
"Whereas, I think the awareness has been in Illinois a lot longer [than Indiana] with the governor passing legislation for ethanol, but now Gov. Daniels has done the same thing," he said.
Gov. Rod Blagojevich has signed legislation eliminating sales tax on E85.
Over the three-day Memorial Day weekend, about 31.1 million people are expected to drive 50 miles or more from home, up from 30.5 million a year ago, according to AAA.
Those not using alternative fuels could see a jump in gasoline prices because of anticipated demand increases, said Greg Seiter, spokesman for the AAA Hoosier Motor Club.
"It's very short-lived, but it's very substantial," he said. "But when you break it down and look at where we were a year ago and where we are today, we could certainly be a lot worse."
A gallon of unleaded gasoline averaged $2.11 a gallon Thursday, compared to a national average of $2.05 a year ago, AAA reported.
More than 40 percent of regular pump cost is determined by oil prices. Crude futures tipped more than $51 a barrel Thursday after an unexpected drop in U.S. inventories.
If crude stays around $50 a barrel, experts say gas prices will level off through the next few weeks.
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