Tazewell says ethanol use is also driven by other factors. The federal Energy Independence and Security Act of 2007 sets a renewable fuel standard that will require fuel companies to use at least 36 billion gallons of biofuel by 2022.
Ethanol blending also carries a tax incentive. Blends that are 85 percent ethanol and 15 percent gasoline qualify for a 51-cent-tax credit per gallon. A 10 percent ethanol blend qualifies for a 5-cent-tax credit per gallon. The credit goes to the blender.
CleanFuel USA, a Georgetown, Texas-based ethanol distributor, brings ethanol into North Carolina from the Midwest by truck or rail. It blends the fuel at its terminals here.
Steve Walk, the company's director of project development, says CleanFuel passes the blending credit on to the retailers in the form of a lower price.
When gas stations do start selling ethanol blends, it might not be readily apparent to drivers. The state did away with labeling requirements on pumps carrying ethanol blends six years ago.