For Immediate Release Contact: Betsy Hart
August 01, 2008 (202) 226-8555

HERSETH SANDLIN LEGISLATION INCREASES CONSUMER ACCESS TO E85 AND BIODIESEL AT THE PUMP

Introduces Bipartisan Bill to Provide Incentives for Installing Biofuel Dispensers; Increases Demand for Clean, Domestic Sources of Fuel

August 1, 2008, Washington, DC-Late yesterday, Rep. Herseth Sandlin (D-SD) and Rep. John Shimkus (R-IL) introduced bipartisan legislation that increases the availability of homegrown, renewable biofuels like E85 and biodiesel at gas stations across the country. The E85 and Biodiesel Access Act (H.R. 6734) streamlines the process and provides greater incentives for service station owners to install equipment to dispense E85 and biodiesel – and in doing so, it increases consumer access to these homegrown biofuels and enhances the United States’ energy security.

“With gas prices at an all-time high and our energy security resting in the hands of hostile foreign nations, we need to be giving Americans greater access to biofuels at the pump,” Herseth Sandlin said. “This bill helps gas station owners play an active role in furthering the development of the burgeoning biofuels industry, and gives consumers the option to utilize clean sources of fuel that support South Dakota’s rural economies and encourage American energy independence.”

“I understand there is an expense when installing E-85 pumps, and the ease of adding an E-85 pump varies based on the existing underground infrastructure,” Shimkus said. “But, this legislation will help provide station owners an incentive to sell this American-made fuel.”

The E85 and Biodiesel Access Act would enhance the Alternative Fuel Vehicle Refueling Property Credit. Currently, the Alternative Fuel Vehicle Refueling Property credit allows gas station owners to claim a 30 percent tax credit for the cost of installing clean-fuel vehicle refueling property up to a maximum of $30,000. Additionally, the IRS limits the credit to the amount a dual purpose fuel dispenser exceeds the cost of equivalent conventional refueling dispensers. This has not been sufficient to speed the broad deployment of biofuel dispensing infrastructure. The legislation raises the amount of the credit from 30 percent of the cost of qualifying property to 50 percent, up to a maximum of $100,000, and allows station owners to claim the value for the entire cost of dual purpose fuel dispensers.

This legislation is supported by the American Coalition for Ethanol, the National Ethanol Vehicle Coalition, the Renewable Fuels Association, the National Association of Convenience Stores and the National Biodiesel Board.

"NEVC applauds and supports the E85 and Biodiesel Access Act introduced by Reps. Herseth Sandlin and Shimkus. While this Congress has a strong record of support for the growth of substantial, sustainable renewable fuel industry in the U.S., this legislation provides an enhanced incentive to encourage near term investment in retail renewable fuels distribution infrastructure. Our goal as a nation should be to have renewable fuels available and readily accessible to every American consumer. This bill truly brings biofuels to the neighborhood gas pump," said Phillip Lampert, Executive Director of the National Ethanol Vehicle Coalition.

“This legislation is critical because it provides retailers with more meaningful assistance in making clean-burning biofuels available to motorists, and, ensures that consumers have access to more cost-effective choices at the pump. ACE commends Representative Herseth Sandlin and Representative Shimkus for their leadership on biofuel issues and for their vision in addressing the need to restore competition in the fuels marketplace,” said Brian Jennings, Executive Vice President of the American Coalition for Ethanol.

“NACS applauds the sponsors of this legislation for recognizing that it can be very costly for retailers to install renewable fuels infrastructure. This legislation seeks to remove one of the critical obstacles to the availability of alternative and renewable fuels by offsetting a major portion of the expense of new equipment. NACS thanks Reps. Herseth Sandlin and Shimkus for their leadership and for introducing legislation that will create more favorable market conditions for retailers considering selling alternative fuels,” said John Eichberger, Vice President for Government Relations of the National Association of Convenience Stores.

“The U.S. biodiesel industry applauds Representative Herseth Sandlin and Representative Shimkus for promoting the use of clean burning biodiesel. By enhancing our energy infrastructure, this common-sense legislation will enhance America’s energy independence and make it easier for consumers to utilize domestically produced biodiesel,” said Manning Feraci, Vice President of Federal Affairs of the National Biodiesel Board.

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Congresswoman Stephanie Herseth Sandlin serves South Dakota in the U.S. House of Representatives. She is a member of the Blue Dog Coalition, a group of moderate Democrats committed to fiscal discipline and strong national security, and is co-chair of the Rural Working Group, which is dedicated to raising the profile of issues important to rural America. She also serves on three committees vital to South Dakota’s interests: Agriculture, Veterans’ Affairs and Natural Resources. In the 110th Congress, Rep. Herseth Sandlin was one of only 15 members appointed to serve on the Select Committee on Energy Independence and Global Warming.