Five states--Minnesota, Montana, Missouri, Hawaii and Oregon--have laws mandating all gasoline sold in their states to be blended with a 10 percent ethanol mixture, while a sixth state, Florida, will have the same requirement by 2011.
According to the U.S. Department of Energy, E10 is a low-level fuel blend made up of 10 percent ethanol and 90 percent gasoline. Ethanol-blended fuel is sold in all 50 states and accounts for about 1/3 of all vehicle sales. It's intended to produce a higher octane rating than regular gasoline and reduce greenhouse gas emissions.
Minnesota was the first state to require 10 percent of gasoline sold in the state to have 10 percent agriculturally derived ethanol. In 2005, legislation was signed into law requiring all gasoline to have a 20 percent ethanol blend (E20) by 2013.
Missouri requires 10 percent ethanol in all gasoline with an exception: If a distributor cannot find ethanol-blended gasoline at a cost below that of regular gasoline, the exemption applies.
Montana's state E10 law provided a 20 cents per gallon tax incentive for ethanol produced from 100 percent Montana products.
Hawaii, a state with historically higher-than-average gasoline prices, implemented its E10 law in 2006. According to the Hawaii Department of Business, Economic Development and Tourism, a 2007 survey of Hawaii fuel stations found the average cost of a gallon of 100 percent gasoline at $3.22, while a gallon with 10 percent ethanol was $3.17.
