WASHINGTON –U.S. Senators Mark Dayton and Barack Obama (D-IL), along with four of their Democratic colleagues, today introduced a bill that would expand the use of renewable fuels at retail and federal fleet service stations. Renewable fuels, including an 85% ethanol blend known as E-85, are inexpensive, home-grown alternatives to imported oil. The Dayton-Obama Renewable Fuels Promotion Act would prohibit reported tactics used by oil companies to block the installation of renewable fuel pumps at retail gas stations.

“E-85 is our country’s most promising alternative to foreign oil, and every gas station that wants to sell it should be able to do so,” said Dayton. “Oil companies should not be allowed to stifle competition from renewable fuels, and this bill would ensure that they can’t.”

“This legislation removes burdensome red tape on local gas station owners, allowing them to respond to increasing market demand for renewable fuels, and giving freedom of fuel choice to consumers,” said Obama.

Although six million Americans are driving “flexible-fuel” cars and trucks, which can run on E-85 or conventional gasoline, fewer than one percent of the nation’s gas stations offer E-85. One reason is that some major oil companies block their franchised gas stations from installing renewable fuel pumps by requiring that E-85 pumps be located away from the main sales area, making the pumps inconvenient for the customer to use and costly for the gas station owner to install. The Dayton-Obama bill would make those oil company requirements illegal.

The Dayton-Obama Renewable Fuels Promotion Act also demands that the federal government make biofuels more accessible to the federal government’s own vehicles by installing an E-85 or biodiesel pump at every federal fueling station.

According to the Department of Energy, many of the flex-fuel vehicles the federal government has bought in recent years are still operating entirely on gasoline. This is in direct conflict with a 1999 Executive Order that requires the federal fleet to reduce its petroleum use by 20 percent by using alternative fuels in flex-fuel vehicles. Since 1999, the federal fleet has failed to reduce its oil consumption; petroleum use has actually increased by 1.2%.

One reason for the federal government’s failure to embrace renewable fuels is the absence of the needed infrastructure at federal fueling stations. Only 75 federal fueling stations have biodiesel pumps, and just 40 have E-85 pumps.

Tom Buis, President of National Farmers Union, said: “Rural America is ready and willing to be a major player in establishing our energy independence. I applaud Senators Dayton and Obama for their continued leadership and their efforts to enhance opportunities for fuels from the farm.”

The Dayton-Obama Renewable Fuels Promotion Act is endorsed by the American Coalition for Ethanol, the National Ethanol Vehicle Coalition, and the National Farmers’ Union. Senators Richard Durbin (D-IL), Tom Harkin (D-IA), Debbie Stabenow (D-MI), and Byron Dorgan (D-ND) are cosponsors.

Summary of the Dayton-Obama Renewable Fuels Promotion Act:

Bans oil company policies that interfere with sale of renewable fuels at franchised gas stations.

Requires every federal fleet fueling station to install at least one renewable fuel pump.

Requires the President to report to Congress annually on the federal government’s compliance with: the bill’s requirement to install renewable fuel pumps at federal fueling stations; a 1999 Executive Order requiring federal agencies to reduce petroleum consumption by 20 percent; and a 1992 Energy Policy Act requirement that 75 percent of all new federal fleet vehicle purchases be alternative fuel vehicles.

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