Obama Requests Investigation into Whether Corporations are Restricting Consumer Access to Alternative Fuels
Thursday, January 26, 2006
Printable FormatFOR IMMEDIATE RELEASE
Washington Contact: Robert Gibbs or Tommy Vietor, (202) 228-5511
Illinois Contact: Julian Green (312) 886-3506
Date: January 26, 2006
Obama Requests Investigation into Whether Corporations are Restricting Consumer Access to Alternative Fuels
WASHINGTON - U.S. Senators Barack Obama (D-IL) and Charles Grassley (R-IA) today asked the Government Accountability Office (GAO) to investigate whether big oil corporations are knowingly restricting consumer access to alternative fuels like ethanol and biodiesel as a result of company policies.
"I believe that it is crucial for our national security and economic security that the United States lessen its dependence on foreign oil," said Senator Obama. "And if big oil companies are standing in the way of consumers who want to fill their vehicles with cleaner alternative fuels made here in the United States, then I believe the American people deserve to know why."
According to an internal memorandum from a major petroleum company obtained by Senator Obama's office, gas station franchise owners are prohibited from selling non brand name renewable fuels like E85 and B20 from fuel islands or underneath canopies bearing the oil company's name or logo. The memo also said that any alternative location of fuel pumps dispensing alternative fuels must be approved.
Senators Obama and Grassley are requesting that GAO, the watchdog arm of Congress, analyze the current state of refueling stations that dispense alternative fuels like E-85 and B20 biodiesel. The investigation would examine whether any oil companies have policies or practices that directly or indirectly prohibit or discourage the construction, installation or operation of E-85 and B20 fueling pumps.
E85 is a blended fuel that contains 85 percent ethanol and 15 percent gasoline. E85, a clean burning renewable fuel made from corn, can be used in Flexible Fuel Vehicles (FFVs), which can also use unleaded fuel when E85 isn't available. Standard vehicles can burn fuel with a 10 percent ethanol mix. B20 is a blended diesel that includes 20 percent biodiesel made from soybeans and can be used in conventional diesel engines.
Since taking office, Senator Obama has been a strong advocate for increasing access to and production of alternative fuels like ethanol. Legislation Obama introduced last year to provide a 30 percent tax credit up to $30,000 for the installation of E85 fuel pumps was included in the Energy bill and signed into law by President Bush. This proposal will encourage increased ethanol use and help reduce our nation's dependence on foreign oil.
Senator Obama is also a strong supporter of biodiesel. Last November, Obama introduced legislation calling for a Renewable Diesel Standard that would require 2 billion gallons of diesel alternatives by the year 2015.
Senator Grassley is the Chairman of the Senate Finance Committee.