Moran and Udall Introduce Measures to Increase Availability of Alternative Fuels for American Consumers

Bill Provides Incentives for the Installation of Alternative Fuel Tanks

WASHINGTON, D.C. - In an effort to reduce our nation's dependence on foreign oil, Congressmen Jerry Moran (R-KS) and Mark Udall (D-CO) this week introduced H.R. 5346, the Alternative Energy Refueling System Act of 2006. This legislation would provide incentives for gas station owners to install alternative fuel tanks to provide greater access to fuels containing ethanol, bio-diesel, compressed natural gas or hydrogen.

"We have crops growing in our backyard here in America that can help decrease our dependence on foreign oil," Moran said. "This legislation is a necessary step in improving our infrastructure to make alternative energy sources available at the pump."

As automakers continue to manufacture an increasing number of Flex Fuel Vehicles, there is a significant need for more refueling sites across the country. Currently, of the 180,000 gas stations across the country, less than one percent offer alternative fuels such as E-85. In Kansas, alternative fuels are offered at about a dozen stations. 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. 

Provisions of the Alternative Energy Refueling System Act of 2006 include:

• Reduces dependency on foreign sources of oil by placing the necessary infrastructure around the country to allow consumers to purchase alternative-fueled vehicles;
• Increases the availability of ethanol (E-85) and other alternative fuels;
• 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, up to $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 the overall number of petroleum tanks, which can cause leaks of contaminants that impact public health and drinking water sources; and
• In no way reduces existing environmental safeguards and legal obligations of gas station owners.

Companion legislation was introduced in the Senate by John Thune (R-SD) and Barack Obama (D-IL).

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