Meanwhile, biodiesel backers have helped build a statewide roster of more than 50 sites that offer the fuel, with many selling to the public and offering blends ranging from B10 (10% biodiesel and 90% petroleum diesel) to B99, a nearly pure biodiesel fuel.
New state and federal grants will help add E85 sites. In May, the state air board set aside millions to help set up 34 public E85 stations. Most are planned for the Sacramento area, but new sites will also open in the coming weeks in Carlsbad and Oceanside in San Diego County. Separate grants will fund new E85 sites elsewhere later this year.
Persuading gas station owners to take a chance on biofuels is not easy, though.
To add E85 pumps, most station owners would have to invest more than $50,000 in an era where high fuel prices have benefited refiners but squeezed dealer profits. Even if the owner landed government grants, "that's a big investment, and they have to be sure there's a market there," said Tam Hunt, energy program director for the Community Environmental Council based in Santa Barbara.
What's more, although most stations are independently owned, the majority of California's outlets carry major brands such as Chevron and Shell, and the oil companies impose strict rules about how those stations look and what fuels they offer.
Chevron Corp., one of California's largest fuel retailers, participated in a one-year state demonstration project that included setting up two E85 stations for government use and studying the results. But Chevron won't sell the fuel at stations it owns, and company spokesman Leif Sollid said, "our marketers and retailers have not expressed a widespread desire to install E85 at their stations."
Sollid disagrees with critics who believe U.S. oil companies are dragging their feet on E85 and biodiesel to protect profits from their franchise fuels. Even so, a look at the oil giant's U.S. retail network is telling: Out of 9,600 U.S. stations selling Chevron or Texaco fuel, 26 offer biofuels.
In an industry that has sold the same basic products for more than a century, change doesn't come easily. Sometimes it takes prodding from a younger generation.
Family-owned Redwood Oil Co., based in Rohnert Park, Calif., operates 19 Chevron-branded gas stations. In May, the company started selling 99% biodiesel at one station and added B20 at another outlet a few months ago.
