Broad Coalition Encourages Pelosi to Advance E85 Infrastructure

In a first of a kind effort, a broad coalition of ethanol producers, automakers, agricultural advocates, convenience store owners, petroleum marketers, and equipment manufactures, are encouraging the Speaker of the U.S. House of Representatives to include tax credits that support new alternative fuel infrastructure in any pending energy bill or stimulus package.

“Both Presidential candidates and several members of Congress have recently called for mandatory production of flexible fuel vehicles,” stated Executive Director of the National Ethanol Vehicle Coalition, Phil Lampert. “We support increased production of flexible fuel vehicles or FFVs, but frankly, that overlooks the primary issue which is the lack of sites to fuel these vehicles.”

The broad coalition sending the letter to the Speaker is encouraging that H.R. 6734, the E85 and Biodiesel Access Act introduced by Congresswoman Stephanie Herseth-Sandlin (D-SD) and Congressman John Shimkus (R-IL), be included in any energy legislation that may be approved during this session of Congress. This act would enhance the Alternative Fuel Vehicle Refueling Property Credit.

“The inclusion of the E85 and Biodiesel Access Act in any energy bill or potential stimulus package is critical as it provides fuel retailers with more meaningful assistance in making clean-burning biofuels available to motorists,” stated Executive Vice President for the American Coalition for Ethanol, Brian Jennings.

Vice President for Government Relations of the National Association of Convenience Stores, John Eichberger, stated that the legislation would, “overcome one of the major obstacles to the availability of alternative and renewable fuels infrastructure by offsetting a major portion of the expense of such equipment.”

0 thoughts on “Broad Coalition Encourages Pelosi to Advance E85 Infrastructure

  1. Which Party Will Make or Break Biofuels?

    Biofuel is a bright spot in our economy. Corn Belt states now have cheap fuel, expanding economies, and budget surpluses. Ethanol refineries are coming online in numerous other states: Texas, Louisiana, Florida, Arizona, Oklahoma, Georgia, New York, Pennsylvania, and California. Alternative feedstocks such as sorghum, organic waste, biomass and algae are being introduced. The State of Louisiana and Renergie are building a network of small, localized sweet sorghum ethanol plants, with a 5 to 1 return. Subsidizing biofuels creates jobs, stimulates our economy, and generates County, State, and Federal tax revenue. Money back in your pocket. Every dollar spent on biofuel subsidies results in $10 in economic stimulus. So go figure.

    Merrill Lynch reports that ethanol blended into regular gasoline lowered the cost by 15% and saved 60 billion dollars this year. The new ethanol blender pumps will make a bigger impact, depending on who gets elected President. Typically, blending ethanol with gasoline is done in large quantities by oil companies or fuel distributors. Who ever does the blending gets the 51 cent per gallon tax credit. With the new onsite blender pumps, the retail gas station will get the tax credit. That changes everything. Retailers are expected to pass along most of the blending subsidy to the consumer. Thus, the various blends, E20, E30, E40, E50, E85 will be about 40 to 50 cents a gallon cheaper at the blender pumps. Cheaper than ethanol already is. The Republican Party wants to discontinue the blending subsidy and take this discount away from you. The Democrats want you to have it.

    Ethanol blended at the pump will compete head-on with regular gasoline. This is why Big Oil wants the Republicans to get rid of the blending subsidy. They are threatened by the coming blender pumps. Ethanol blends might soon outsell gasoline, as is the trend in Iowa, Minnesota, Kansas and other ethanol producing states.

    The Republican Party receives huge campaign contributions from Big Oil and their intermediaries. Their battle cry is drill, drill, drill, which we need to do. But drilling now will only impact fuel prices moderately, 7 to 10 years from now. And why all the fanfare about offshore drilling, when oil companies already have 6,000 oil leases they’re not using?

    The Republican platform also calls for eliminating the 54 cent per gallon import tariff on foreign ethanol. What they advocate is that we should lessen our dependence on foreign oil by replacing it with a new dependence on Brazilian Ethanol. This would increase our Trade Deficit and the interest we pay on the National Debt, because we pay for imported fuels with debt instruments and Government Bonds. Importing Brazilian ethanol would not save you much. After shipping and handling costs from Brazil to the U.S., oil companies would pocket the rest. The consumer might save a penny or two at the pump, but your hidden cost would be 6% floating interest on imported fuel paid for with debt instruments.

    By following the Republican plan to end the ethanol import tariff, we would trade one dependency for another, drive up the Trade Deficit and the National Debt, and pay more revolving interest on imported fuel. Instead, we need to keep stimulating domestic biofuels.

    The subsidies we pay on petroleum based fuel are SIX TIMES higher than what we pay on ethanol and biodiesel, even while oil companies make record breaking multi-billion dollar profits. If the Republicans want to discontinue Biofuel subsidies, they should also discontinue Petroleum subsidies. But, instead, they fight to keep $50 Billion worth of annual petroleum subsidies intact. Republicans are clearly aligned with their benefactors – Big Oil.

    The Republican plan to end affordable biofuel subsidies would disrupt a sector of our economy that is thriving and cost you 40 to 50 cents a gallon at the pump. Ending biofuel subsidies is poor judgment and NOT in our National Interest.

    The Republican Deception is:
    Big Oil First. Not Country First.