Harkin Praises Senate Actions Promoting Ethanol in Highway Bill

HARKIN PRAISES SENATE ACTIONS PROMOTING ETHANOL IN HIGHWAY BILL

Bill Provides tax incentives for stations using E85 And informing consumers of vehicles that can run on ethanol

With gas prices near record highs, Senator Tom Harkin (D-IA) today praised Senate passage of two amendments he co-sponsored designed to increase availability of E85, a motor vehicle fuel made with 85 percent ethanol. The first offers tax incentives to gas stations offering E85. The second requires automakers display stickers inside the gas tank cover and car windshields beginning in 2007 indicating whether their vehicles can use E85. Harkin noted ethanol is now considerably less expensive than ordinary gasoline.

"Increasing access to renewable fuels gives consumers a break at the gas-pump while improving our environment, reducing our dependence on foreign oil and stimulating our rural economy," Harkin said. "These amendments are important steps to promote consumer access to renewable fuels on par with gasoline made from oil."

The amendments adopted today will eliminate two barriers to increasing use of ethanol by informing consumers that their cars are E85 compatible as well as rewarding fuel sellers if they offer E85. Currently, there are more than five million E85 capable flex fuel vehicles in the United States. Today, if every flex fuel car consistently used E85, the U.S. could see an approximate 4.5 billion gallon a year reduction in gas consumption and an annual 26.5 million ton reduction in greenhouse gas emissions.

Although pleased the Senate was finally able to pass the Highway Reauthorization bill today, Harkin expressed disappointment that the final bill fell drastically short of the funding necessary to fully improve and strengthen our nation's highways and transportation system.

http://harkin.senate.gov/news.cfm?id=237664