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While Hawaii develops its own ethanol production industry, ethanol will be imported from mainland and possibly other sources. Ethanol will be delivered by barge (if imported) or truck (if produced locally) to fuel terminals for blending with gasoline. The ethanol-blended fuel will then be distributed to fuel service stations.
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It depends on the age of the tank. Most underground fuel tanks are warrantied for a period of 30 years. Starting in the early 1980's, manufacturers of underground fuel tanks began providing warranties for the use of ethanol-blended fuels in their tanks.
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This IRS web page provides some information: http://www.irs.gov/publications/p378/ch04.html. An IRS representative confirmed that the federal ethanol credit (also known as the Volumetric Ethanol Excise Tax Exemption or VEETC) is taken by whomever pays the Federal gasoline excise tax of 18.4 cents. This statement has also been made by the Renewable Fuels Association. The RFA website has a VEETC page, with additional links: http://www.ethanolrfa.org/resource/veetc/.
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Since this fuel formulation is so common throughout the United States, there is a wealth of information available regarding the transition to, and use of, E-10 Unleaded. Here are some examples:
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