2007

FOR RELEASE:        Monday, May 21, 2007
CONTACT:               Colleen Ryan, NYSERDA
                                (518) 862-1090 ext. 3359
                                cqr@nyserda.org

                               Christian King, KNC Holdings, Inc.
                               (518) 783-2100 ext. 25

FLEX-FUEL Vehicle Owners Can Fill-Up at New Station Selling E-85

Albany, New York - - The New York State Energy Research and Development Authority (NYSERDA) and KNC Holdings, Inc. announced today the opening of the first E85 ethanol fuel pumps in the State for public use. The two new E85 pumps, installed by station owner Christian King, are located at the Campus Mobil station on Western Avenue in Albany and at a sister station in Warrensburg. Public officials and Mr. King were joined by representatives from General Motors who were on hand to showcase its line of flexible-fuel vehicles (FFV's), which are capable of running on E85.

"What we are showcasing today is what New York State has been striving for," said Peter R. Smith, President and CEO of NYSERDA. "Increasing the use and availability of alternative fuels, such as E85, is of great importance to help move us away from imported petroleum and bring us closer to energy independence."

"Today is the first step for New York consumers to do their part in helping to reduce our dependence on foreign oil by purchasing E-85," said Christian P. King, President of KNC Holdings, Inc. "In addition, E-85 is 100% American made, burns cleaner than traditional gasoline and the price should be attractive to consumers in the short term thanks to state and federal subsidies."

"As alternative fuels become more available to the public, we will be able to move away from our dependence on foreign oil and utilize energy resources produced here in our country and our state.  New York has and continues to be pro-active when it comes to promoting alternative energy. I look forward to the establishment of many more E-85 pumps like the one that is going on-line today," said Senator Jim Wright, Chairman of the Senate Energy and Telecommunications Committee.

The event today also highlighted NYSERDA's recently released New York State Bio-Fuel Station Initiative which provides incentives up to $50,000 per site for retail E85 or biodiesel pumps. The two KNC Holdings sites are the first two funded under the pilot phase of the program, and NYSERDA has $9.5 million to fund 300 more facilities across the State. The goal of the program is to create a network of stations to ensure that drivers across New York have the opportunity to choose renewable fuels at their local service stations.

There are almost  200,000 FFV's registered in New York that could run on E85. These vehicles operate with a common fuel tank designed to run on varying blends of unleaded gasoline with ethanol. The fuel mixture can contain any ratio of gasoline and ethanol up to 85% ethanol.

General Motors will promote the availability of the fuel with consumer and dealer outreach.  Local GM dealers will also help promote the new refueling locations whenever customers purchase flex-fuel vehicles. 

"We appreciate the efforts of NYSERDA and Campus Mobil to make E85 ethanol available to more New York drivers," said Elizabeth Lowery, Vice President of Environment and Energy, General Motors.  "At GM, we believe that the biofuel with the greatest potential to displace petroleum-based fuels in the U.S. is ethanol and we have made a major commitment to vehicles that can run on E85 ethanol-with over two million of our FlexFuel vehicles on the road today and plans to expand production going forward. We will continue to work with government, organizations and retailers to promote increased use and awareness of E85 ethanol across the country."

New York State has a comprehensive approach to increasing the use of biofuels. State and federal tax credits are available for production of biofuels, the installation of alternative-fuel stations, such as those that dispense E85 and biodiesel. Beginning this year, state taxes on the sale of alternative fuels have been eliminated, which reduces the cost of the fuel to the consumer.  

In July of 2006, legislation was signed that prohibits the use of "exclusivity" contracts between fuel distributors and gas stations that have limited availability of renewable fuels for consumer use in their vehicles. This law allows gas stations to sell renewable fuels even if that fuel type is not offered through the oil company the gas station has a franchise agreement with.  

New York State has invested in the development of cellulosic ethanol. Two pilot plants will be constructed, which will help lead to commercial ethanol production from cellulosic feedstocks in New York State and promote the use of alternative transportation fuels. Production of ethanol from cellulosic feedstocks, such as wood or grasses, represents an opportunity for biomass-based renewable fuels to contribute towards a significant reduction in the amount of petroleum the United States consumes for transportation fuels.

Smith noted, "It is critical that we act now to put the delivery infrastructure for E85 in place and to familiarize the public with the fuel. This will ease the transition from corn-based ethanol to cellulosic ethanol. Ethanol made from cellulose holds much promise for reducing greenhouse gas emissions, and provides economic development opportunities right here in New York State."

In addition, under the Clean Cities Challenge Program, NYSERDA provides cost-shared assistance to companies  to install necessary equipment to blend and distribute biofuels such as E85 to retail stations  A new round of that program will be available this summer. 

Visit www.nyserda.org for more information about NYSERDA programs and funding opportunities.