For Immediate Release
December 20, 2007
Contact: Phil Lampert
Phone: (573) 635-8445 x 11
Email: plampert@e85fuel.com
Energy Bill Advances E85
With the President’s signing of the new national energy bill, a landmark public policy has been adopted which will result in the use of 36 billion gallons of renewable fuels by the year 2022. This action represents a significant change in the energy strategy of the nation and, for the first time, actually drives the country to use less petroleum in our transportation sector. The reduction in petroleum consumption will result from an increase in the fuel economy of new motor vehicles and the mandatory use of renewable fuels.
During 2004, approximately 141 billion gallons of gasoline were consumed in the United States and the new Renewable Fuel Standard established in the energy bill will require 25% of that 2004 baseline amount be in the form of ethanol and biodiesel. Ethanol produced from cellulosic feedstock must comprise 58% of this total by 2022.
Just as importantly, the energy bill also addresses many of the issues E85 advocates have faced in our attempts to grow the fueling infrastructure. Key components of the bill will:
Prohibit franchise agreements from restricting the sale of renewable fuels.
For purposes of E85 and B20, no franchise agreement shall limit the conditions under which these fuels shall be sold.
Agreements entered into on or after the date of the Energy Policy Act update shall not restrict a franchisee from:
Installing a renewable fuel pump.
Converting an existing tank or pump to renewable fuel.
Advertising the sale of renewable fuels.
Purchasing renewable fuels from persons other than the franchisor.
Listing renewable fuel availability on signs, dispensers, or light poles.
Allowing the use of a credit card for payment of renewable fuel.
Congressman Joe Donnelly, D-2nd district of Indiana stated, “While there are a number of reasons why ethanol has yet to mature on the market, a significant contributing factor is that many of the big oil companies use a variety of strategies to make it difficult for their franchised gas stations to offer ethanol. For example, the standard contract issued by many big oil companies prevents franchisees from purchasing fuel from anyone other than the franchise supplier. Since many suppliers do not sell E85, the stations within the franchise cannot either.”
Donnelley went on to say, “In passing the Energy Independence and Security Act, we are taking a crucial step in expanding the availability of E85 so more Americans can take advantage of this clean fuel made from corn grown right here in Indiana.”
The legislation also includes a requirement for the head of each federal agency to install at least one renewable fuel pump at each federal fleet fueling center in the United States by January 1, 2010. The Department of Energy (DOE) is expected to establish a pilot program of no more than 10 refueling infrastructure corridors and provide no more than $20 million for this pilot program. The legislation authorizes $200 million per fiscal year from 2008 to 2014 for the infrastructure program.
The National Ethanol Vehicle wishes to extend our appreciation to both the Congress and the Administration for working together to overcome partisan issues and agree on the content of this historically important shift in the nation’s transportation fuel policy. This is a first, but significant, step in addressing a national goal of securing energy independence, while advancing environmental stewardship.
During 2004, approximately 141 billion gallons of gasoline were consumed in the United States and the new Renewable Fuel Standard established in the energy bill will require 25% of that 2004 baseline amount be in the form of ethanol and biodiesel. Ethanol produced from cellulosic feedstock must comprise 58% of this total by 2022.
Just as importantly, the energy bill also addresses many of the issues E85 advocates have faced in our attempts to grow the fueling infrastructure. Key components of the bill will:
Prohibit franchise agreements from restricting the sale of renewable fuels.
For purposes of E85 and B20, no franchise agreement shall limit the conditions under which these fuels shall be sold.
Agreements entered into on or after the date of the Energy Policy Act update shall not restrict a franchisee from:
Installing a renewable fuel pump.
Converting an existing tank or pump to renewable fuel.
Advertising the sale of renewable fuels.
Purchasing renewable fuels from persons other than the franchisor.
Listing renewable fuel availability on signs, dispensers, or light poles.
Allowing the use of a credit card for payment of renewable fuel.
Congressman Joe Donnelly, D-2nd district of Indiana stated, “While there are a number of reasons why ethanol has yet to mature on the market, a significant contributing factor is that many of the big oil companies use a variety of strategies to make it difficult for their franchised gas stations to offer ethanol. For example, the standard contract issued by many big oil companies prevents franchisees from purchasing fuel from anyone other than the franchise supplier. Since many suppliers do not sell E85, the stations within the franchise cannot either.”
Donnelley went on to say, “In passing the Energy Independence and Security Act, we are taking a crucial step in expanding the availability of E85 so more Americans can take advantage of this clean fuel made from corn grown right here in Indiana.”
The legislation also includes a requirement for the head of each federal agency to install at least one renewable fuel pump at each federal fleet fueling center in the United States by January 1, 2010. The Department of Energy (DOE) is expected to establish a pilot program of no more than 10 refueling infrastructure corridors and provide no more than $20 million for this pilot program. The legislation authorizes $200 million per fiscal year from 2008 to 2014 for the infrastructure program.
The National Ethanol Vehicle wishes to extend our appreciation to both the Congress and the Administration for working together to overcome partisan issues and agree on the content of this historically important shift in the nation’s transportation fuel policy. This is a first, but significant, step in addressing a national goal of securing energy independence, while advancing environmental stewardship.
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