Clymers, IN - Today, Congressman Joe Donnelly unveiled legislation that would give drivers more choices when they head to their local gas stations. Introduced in the House last week by Donnelly, H.R. 2025, The Promoting Use of Mixed Petroleum (PUMP) Act of 2007, would increase consumer access to ethanol-based E-85 by making it easier for gas stations to offer the bio-based fuel. In widening the range of options available to the consumer, Donnelly also is aiming to reduce our dependence on foreign oil.
“Ethanol is being touted as an important part of the solution to the problem of America’s dependence on foreign oil,” Donnelly said. “However, despite ethanol’s widespread popularity as an alternative fuel and its ready availability, thanks to places like the Anderson plant, only one percent of American gas stations offer E-85, making it difficult for drivers to purchase. The PUMP Act of 2007 would allow more gas stations to sell E-85 so Americans can take advantage of this clean fuel made from corn grown right here in Cass County.”
While there are a number of reasons why ethanol has yet to mature on the market, a significant contributing factor is that many of the big oil companies use a variety of strategies to make it difficult for their franchised gas stations to offer ethanol. For example, the standard contract issued by many large oil companies prevents franchisees from purchasing fuel from anyone other than the franchise supplier. Since many suppliers do not sell E-85, the stations within that franchise cannot either.
Companies that do supply E-85 often prohibit the sale of the alternative under the main canopy; require E-85 prices to be displayed on separate signs; and prohibit gas stations from accepting franchise credit cards for the purchase of E-85.
“E-85 forces large oil companies to compete for business,” Donnelly said. “When faced with the possibility of losing profit to the competition, oil companies have sought to eliminate the competitor by prohibiting franchisees from selling alternative fuel. These tactics not only limit consumer choice, but also protect big oil profits and reinforce our dependence of foreign oil.”
The PUMP Act of 2007 has two main components. First, it would amend the Clayton Act to explicitly prohibit an oil company from restricting the right of a franchisee to install qualified alternative fuel vehicle refueling equipment, such as E-85 pumps.
Secondly, The PUMP Act would expand the Alternative Fuel Infrastructure Tax Credit. Currently, the federal government offers an Alternative Fuel Infrastructure Tax Credit in order to encourage further investment in E-85 infrastructure. Under the current credit, gas station owners can claim 30 percent of the costs of installing or retrofitting alternative refueling property (i.e., E-85 pumps) up to $30,000. However, the PUMP Act would expand this tax credit to allow gas station owners to claim 50 percent of the cost of alternative refueling property up to $50,000.
“I introduced The PUMP Act of 2007 to increase consumer access to alternative fuels so we can start moving toward energy independence as a nation,” Donnelly said. “Alternative energy sources are critical for ending our dependence on foreign oil and creating jobs right here in Indiana. My legislation would make it easier for gas stations, and ultimately the consumer, to invest in our security, our environment, and our communities.”
###
