Washington, DC —
Senators John Thune (R-SD) and Barack Obama (D-IL) today introduced S. 2614, the Alternative Energy Refueling System Act of 2006. The bill would provide incentives for gas station owners across the country to install alternative fuel tanks, giving consumers greater opportunities to opt for cleaner, more environment-friendly fuels such as those containing ethanol, compressed natural gas or bio-diesel, in an effort to reduce our nation's dependence on foreign oil.
Today's legislation would provide gas station owners with a reimbursement for 30 percent of the costs (not to exceed $30,000) for the replacement of a petroleum tank or the addition of an alternative fuel tank. It would allow station owners to receive reimbursement for up to two tanks per facility, unlike the existing tax credit that is currently available only once per owner.
As automakers continue to manufacture an increasing number of Flex Fuel Vehicles (FFVs), there is a significant need for more refueling sites across the country. Currently, of the 180,000 gas stations across the country, less than 1 percent of those stations (600), offer alternative fuels such as E-85. Encouraging gas station owners to install alternative refueling systems will give more American consumers the ability to refuel their vehicles with alternative fuels that are better for the environment and our nation's security.
"As the vulnerability of our overdependence on foreign oil becomes a top concern for American consumers who are paying high gasoline prices, our nation needs to shift its focus to alternative sources of energy to meet our energy needs," said Thune. "The Alternative Energy Refueling System Act of 2006 we've introduced today would greatly increase the availability of alternative fuels, such as E-85, compressed natural gas, and bio-diesel, allowing more American consumers to fill up using cleaner, more cost-effective fuels that are better for the environment and made here in America.
"I'm confident that as the demand for alternative fuels continues to grow, gas station owners across the country will be quick to take advantage of the reimbursement this legislation provides and begin installing additional alternative fuel tanks to give their consumers greater options that lessen our dependence on foreign oil. This will also greatly benefit farmers in rural states like South Dakota and Illinois and create American jobs in the growing alternative fuels industry."
"Both Democrats and Republicans agree that we need to get serious about our energy problems and realize that our national security and economic competitiveness in the world is at stake," said Senator Obama. "Increasing availability of renewable fuels is a crucial part of ultimately reducing our dependence on foreign oil and putting America's energy future back in our hands, which is why I am pleased to join Senator Thune in this effort."
Provisions of the Alternative Energy Refueling System Act of 2006:
Below, please find Senator Thune's floor statement on the introduction of the Alternative Energy Refueling System Act of 2006.
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Remarks of Sen. John Thune
Introduction of S. 2614, the Alternative
Energy Refueling System Act of 2006
April 7,2006
Mr. President, I rise today to introduce legislation along with my colleague from Illinois, Senator OBAMA, concerning what we believe is yet another important step in reducing our Nation's dependence on petroleum fuels.
S. 264, the Alternative Energy Refueling System Act of 2006 would provide an incentive for gas station owners across the country to install alternative refueling systems for automobiles. This legislation builds upon the existing tax credit that gas station owners can receive for installing alternative energy tanks. Most importantly, I would like to point out to my colleagues that this legislation does not require any additional taxes.
Currently, as a result of the Energy Policy Act of 2005, a tax credit of up to $30,000 is available through 2009 for gas station owners who install an alternative refueling system . Eligible alternative fuels include those that contain 85 percent by volume of ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, or any mixture of biodiesel or diesel fuel that is composed of at least 20 percent biodiesel.
Our legislation basically allows gas station owners and operators to be reimbursed for 30 percent of the costs--not to exceed $30,000--of installing an alternative energy system .
One of the primary benefits of this legislation is that it can be used for up to two alternative refueling systems per gas station. This is important because under the tax credit that was part of last year's energy bill, a gas station owner can only utilize the $30,000 tax credit one time--even for those individuals who own multiple refueling stations.
For example, if a gas station owner in South Dakota, Illinois, or elsewhere wanted to install three new alternative refueling systems at his or her gas station, under the current system that owner would be limited to the $30,000 tax credit for a single alternative fuel system .
Under our legislation, that same gas station owner would continue to receive the tax credit for the first alternative fuel system . However, the station owner could also be reimbursed for 30 percent of the costs--not to exceed $30,000--for up to two additional alternative refueling systems. Therefore, the legislation we have introduced today would drastically increase the incentives for gas station owners to install additional alternative fuel systems.
I am hopeful that if this bill is signed into law, gas station owners across the country will be able to use this reimbursement mechanism to help consumers who already own or are thinking of purchasing an alternative fuel vehicle.
Senator OBAMA and I are both strong supporters of alternative fuels. In fact, South Dakota and Illinois are leaders in the production of ethanol--our Nation's leading renewable fuel. The legislation we are introducing today in no way preferences ethanol over other alternative fuels. In fact, they are all treated equally under our bill.
Alternative fuels such as E-85, which is composed of 85 percent ethanol, are starting to gain popularity. However, while automakers such as Ford and General Motors are producing an increasing number of flex fuel vehicles, which can run on either E-85 or gasoline, there is a critical need for more alternative refueling sites across the country. Many individuals would be shocked to know that of the 180,000 gas stations across the country, only 600--far less than 1 percent--offer alternative fuels such as E-85.
There are approximately 5 million flexible fuel vehicles on the road today. The addition of alternative refueling systems--such as E-85, compressed natural gas, biodiesel, and hydrogen--will allow American consumers the ability to refuel their vehicles with alternative fuels that are better for both the environment and our Nation's security.
As President Bush noted in his State of the Union Address earlier this year, ``America is addicted to oil, which is often imported from unstable parts of the world.'' Since being elected to Congress I have worked hard in promoting the development of alternative energy sources. In fact, last year's energy bill marked an important milestone due to the 7.5 billion gallon renewable fuels standard that I and others advocated.
S. 2614 utilizes the interest earned from the Leaking Underground Storage Tank Trust Fund, which currently has a $2.6 billion surplus, to reimburse eligible gas station owners who add alternative refueling systems.
This trust fund continues to grow from a portion of the Federal gas tax--one-tenth of a cent per gallon--which amounted to roughly $190 million last year. The fund also continues to grow from the interest that is earned on the balance of the fund, which amounted to roughly $67 million in 2005.
I firmly believe that the Leaking Underground Storage Tank program serves an important function in keeping our land and water safe from storage tank releases. Our legislation simply seeks to use a portion of the interest earned annually to reimburse gas station owners for a portion of the costs associated with the installation of new alternative refueling systems.
An added benefit of using a portion of the interest from this trust fund is that the installation of alternative refueling systems reduces the overall number of petroleum tanks that can cause leaks.
Additionally, this bill ensures that States are not required to use their annual allocation of appropriated funding to reimburse gas station owners for the installation of alternative refueling systems. Such reimbursement would come directly from the EPA Administrator.
Mr. President, this bill would help to lessen our Nation's dependence on foreign sources of oil and--increase the use of alternative fuels. It is a step in the right direction, and is something I hope my colleagues will support.
Today's legislation would provide gas station owners with a reimbursement for 30 percent of the costs (not to exceed $30,000) for the replacement of a petroleum tank or the addition of an alternative fuel tank. It would allow station owners to receive reimbursement for up to two tanks per facility, unlike the existing tax credit that is currently available only once per owner.
As automakers continue to manufacture an increasing number of Flex Fuel Vehicles (FFVs), there is a significant need for more refueling sites across the country. Currently, of the 180,000 gas stations across the country, less than 1 percent of those stations (600), offer alternative fuels such as E-85. Encouraging gas station owners to install alternative refueling systems will give more American consumers the ability to refuel their vehicles with alternative fuels that are better for the environment and our nation's security.
"As the vulnerability of our overdependence on foreign oil becomes a top concern for American consumers who are paying high gasoline prices, our nation needs to shift its focus to alternative sources of energy to meet our energy needs," said Thune. "The Alternative Energy Refueling System Act of 2006 we've introduced today would greatly increase the availability of alternative fuels, such as E-85, compressed natural gas, and bio-diesel, allowing more American consumers to fill up using cleaner, more cost-effective fuels that are better for the environment and made here in America.
"I'm confident that as the demand for alternative fuels continues to grow, gas station owners across the country will be quick to take advantage of the reimbursement this legislation provides and begin installing additional alternative fuel tanks to give their consumers greater options that lessen our dependence on foreign oil. This will also greatly benefit farmers in rural states like South Dakota and Illinois and create American jobs in the growing alternative fuels industry."
"Both Democrats and Republicans agree that we need to get serious about our energy problems and realize that our national security and economic competitiveness in the world is at stake," said Senator Obama. "Increasing availability of renewable fuels is a crucial part of ultimately reducing our dependence on foreign oil and putting America's energy future back in our hands, which is why I am pleased to join Senator Thune in this effort."
Provisions of the Alternative Energy Refueling System Act of 2006:
- Expands the eligible uses of the Leaking Underground Storage Tank program (LUST) to reimburse gas station owners who replace and/or add new alternative fuel storage tanks, such as E-85, Compressed Natural Gas, Natural Gas, Liquefied Natural Gas, Liquefied Petroleum Gas, and Hydrogen, or other alternative fuels as defined by the Environmental Protection Agency;
- Provides gas station owners with a reimbursement for 30 percent of the costs (not to exceed $30,000) of replacing a petroleum tank with or adding an alternative fuel tank;
- Allows gas station owners to receive reimbursement for up to two tanks per facility, unlike the tax credit that is currently only available once per gas station owner;
- Reduces dependency on foreign sources of oil by placing the necessary infrastructure around the country to allow consumers to purchase alternative-fueled vehicles;
- Reduces the overall number of petroleum tanks, which can cause leaks of contaminants that impact public health and drinking water sources;
- Increases the availability of ethanol (E-85) and other alternative fuels; and
- In no way reduces existing environmental safeguards and legal obligations of gas station owners.
Below, please find Senator Thune's floor statement on the introduction of the Alternative Energy Refueling System Act of 2006.
###
Introduction of S. 2614, the Alternative
Energy Refueling System Act of 2006
April 7,2006
Mr. President, I rise today to introduce legislation along with my colleague from Illinois, Senator OBAMA, concerning what we believe is yet another important step in reducing our Nation's dependence on petroleum fuels.
S. 264, the Alternative Energy Refueling System Act of 2006 would provide an incentive for gas station owners across the country to install alternative refueling systems for automobiles. This legislation builds upon the existing tax credit that gas station owners can receive for installing alternative energy tanks. Most importantly, I would like to point out to my colleagues that this legislation does not require any additional taxes.
Currently, as a result of the Energy Policy Act of 2005, a tax credit of up to $30,000 is available through 2009 for gas station owners who install an alternative refueling system . Eligible alternative fuels include those that contain 85 percent by volume of ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, or any mixture of biodiesel or diesel fuel that is composed of at least 20 percent biodiesel.
Our legislation basically allows gas station owners and operators to be reimbursed for 30 percent of the costs--not to exceed $30,000--of installing an alternative energy system .
One of the primary benefits of this legislation is that it can be used for up to two alternative refueling systems per gas station. This is important because under the tax credit that was part of last year's energy bill, a gas station owner can only utilize the $30,000 tax credit one time--even for those individuals who own multiple refueling stations.
For example, if a gas station owner in South Dakota, Illinois, or elsewhere wanted to install three new alternative refueling systems at his or her gas station, under the current system that owner would be limited to the $30,000 tax credit for a single alternative fuel system .
Under our legislation, that same gas station owner would continue to receive the tax credit for the first alternative fuel system . However, the station owner could also be reimbursed for 30 percent of the costs--not to exceed $30,000--for up to two additional alternative refueling systems. Therefore, the legislation we have introduced today would drastically increase the incentives for gas station owners to install additional alternative fuel systems.
I am hopeful that if this bill is signed into law, gas station owners across the country will be able to use this reimbursement mechanism to help consumers who already own or are thinking of purchasing an alternative fuel vehicle.
Senator OBAMA and I are both strong supporters of alternative fuels. In fact, South Dakota and Illinois are leaders in the production of ethanol--our Nation's leading renewable fuel. The legislation we are introducing today in no way preferences ethanol over other alternative fuels. In fact, they are all treated equally under our bill.
Alternative fuels such as E-85, which is composed of 85 percent ethanol, are starting to gain popularity. However, while automakers such as Ford and General Motors are producing an increasing number of flex fuel vehicles, which can run on either E-85 or gasoline, there is a critical need for more alternative refueling sites across the country. Many individuals would be shocked to know that of the 180,000 gas stations across the country, only 600--far less than 1 percent--offer alternative fuels such as E-85.
There are approximately 5 million flexible fuel vehicles on the road today. The addition of alternative refueling systems--such as E-85, compressed natural gas, biodiesel, and hydrogen--will allow American consumers the ability to refuel their vehicles with alternative fuels that are better for both the environment and our Nation's security.
As President Bush noted in his State of the Union Address earlier this year, ``America is addicted to oil, which is often imported from unstable parts of the world.'' Since being elected to Congress I have worked hard in promoting the development of alternative energy sources. In fact, last year's energy bill marked an important milestone due to the 7.5 billion gallon renewable fuels standard that I and others advocated.
S. 2614 utilizes the interest earned from the Leaking Underground Storage Tank Trust Fund, which currently has a $2.6 billion surplus, to reimburse eligible gas station owners who add alternative refueling systems.
This trust fund continues to grow from a portion of the Federal gas tax--one-tenth of a cent per gallon--which amounted to roughly $190 million last year. The fund also continues to grow from the interest that is earned on the balance of the fund, which amounted to roughly $67 million in 2005.
I firmly believe that the Leaking Underground Storage Tank program serves an important function in keeping our land and water safe from storage tank releases. Our legislation simply seeks to use a portion of the interest earned annually to reimburse gas station owners for a portion of the costs associated with the installation of new alternative refueling systems.
An added benefit of using a portion of the interest from this trust fund is that the installation of alternative refueling systems reduces the overall number of petroleum tanks that can cause leaks.
Additionally, this bill ensures that States are not required to use their annual allocation of appropriated funding to reimburse gas station owners for the installation of alternative refueling systems. Such reimbursement would come directly from the EPA Administrator.
Mr. President, this bill would help to lessen our Nation's dependence on foreign sources of oil and--increase the use of alternative fuels. It is a step in the right direction, and is something I hope my colleagues will support.