Barack Obama

E85 interest picks up speed

Tuesday, February 14, 2006

PEORIA JOURNAL-STAR
By Steve Tarter

PEORIA -- Things are looking up for E85, said Sen. Barack Obama, D-Ill.

"The President talked about an addiction to oil. All kinds of technology can reduce our reliance on oil but if we want to do something that's fast and effective, ethanol is the way to go," he said.

This has been a breakout year for E85, a fuel that's 85 percent ethanol and 15 percent unleaded gasoline. Commercials promoted it during the Super Bowl while President Bush called for increased production during his State of the Union Address.

Automakers Ford and General Motors recently announced plans to stimulate the number of outlets where motorists can purchase the fuel.

Only 600 fuel stations -- out of 170,000 gas stations in the country -- presently sell E85. That's despite a market of an estimated 6 million flexible fuel vehicles, cars and trucks with engines that can burn regular gasoline or E85 exclusively or any combination of the two.

"Now we're moving one step beyond just making the vehicles that can run on E85. We're getting to a more robust E85 fuel structure," said Dave Barthmuss, manager of public policy for GM Global Policy Communications in Thousand Oaks, Calif.

GM is employing distinctive yellow gas caps to distinguish flexible fuel vehicles while using its OnStar information service to provide motorists with the location of the nearest E85 fuel station, he said.

In addition to manufacturing 400,000 pick-up trucks, SUVs and cars that run on E85 this year, General Motors is pushing for more fuel options for its customers, said Barthmuss.

The automaker has partnered with VeraSun Energy, a South Dakota-based ethanol producer, and Gas City, an independent petroleum marketer, to set up 20 fuel stations in the Chicago area that would dispense E85.

"We think E85 is very important in helping our country diversify its energy supply plus the (ethanol) fuel boosts horsepower and reduces greenhouse gases," said Barthmuss.

The Ford Motor Co. has also announced plans to increase E85 availability in Illinois and Missouri by establishing a "Midwest ethanol corridor."

"Ford has been putting flexible fuel vehicles on the road for years but the ethanol fueling infrastructure has not kept pace," said Anne Stevens, Ford's executive vice president.

The announcements were well received by corn growers, longtime proponents of corn-based ethanol. "The positive actions by automotive giants like Ford and GM represent a major victory for corn growers and consumers," said John Kuhfuss, president of the Bloomington-based Illinois Corn Growers Association.

But work remains to be done to keep the ethanol bandwagon rolling, said Obama. "We passed legislation last year that allows for a 30 percent tax credit on the installation of E85 pumps at gas stations but we need to push the Internal Revenue Service to issue guidelines so that stations know what to do to receive that credit," he said.

Obama is also concerned about oil companies using their marketplace muscle to shut out ethanol at the pump.

Obama has called for the Government Accounting Office to look into whether some petroleum companies are prohibiting gas station franchise owners from selling renewable fuels like E85.

"You can't blame oil companies for wanting to sell oil and you can't blame them from not wanting to sell alternatives," said Obama.

"But using their power to influence gas station owners who may want to offer an alternative product should be out of bounds," he said.

One Peoria motorist who's been using E85 for the past six months is concerned that the ethanol fuel keeps rising in price.

"When I first started filling up on E85, it was 39 cents below the price of unleaded gasoline. Then it was 30 cents below. Recently it's been just 10 cents less," said Jim Hussey, who fuels up at the lone Peoria-area gas station selling E85, the Phillips station at 2136 S. Airport Rd. in Bartonville.