Statements on Introduced Bills and Joint Resolutions

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

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By Mr. THUNE (for himself and Mr. OBAMA):

S. 2614. A bill to amend the Solid Waste Disposal Act to establish a program to provide reimbursement for the installation of alternative energy refueling systems; to the Committee on Finance.

Mr. THUNE. Mr. President, I rise today to introduce legislation along with my colleague from Illinois, Senator OBAMA, concerning what we believe is yet another important step in reducing our Nation's dependence on petroleum fuels.

S. 264, the Alternative Energy Refueling System Act of 2006 would provide an incentive for gas station owners across the country to install alternative refueling systems for automobiles. This legislation builds upon the existing tax credit that gas station owners can receive for installing alternative energy tanks. Most importantly, I would like to point out to my colleagues that this legislation does not require any additional taxes.

Currently, as a result of the Energy Policy Act of 2005, a tax credit of up to $30,000 is available through 2009 for gas station owners who install an alternative refueling system. Eligible alternative fuels include those that contain 85 percent by volume of ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, or any mixture of biodiesel or diesel fuel that is composed of at least 20 percent biodiesel.

Our legislation basically allows gas station owners and operators to be reimbursed for 30 percent of the costs--not to exceed $30,000--of installing an alternative energy system.

One of the primary benefits of this legislation is that it can be used for up to two alternative refueling systems per gas station. This is important because under the tax credit that was part of last year's energy bill, a gas station owner can only utilize the $30,000 tax credit one time--even for those individuals who own multiple refueling stations.

For example, if a gas station owner in South Dakota, Illinois, or elsewhere wanted to install three new alternative refueling systems at his or her gas station, under the current system that owner would be limited to the $30,000 tax credit for a single alternative fuel system.

Under our legislation, that same gas station owner would continue to receive the tax credit for the first alternative fuel system. However, the station owner could also be reimbursed for 30 percent of the costs--not to exceed $30,000--for up to two additional alternative refueling systems. Therefore, the legislation we have introduced today would drastically increase the incentives for gas station owners to install additional alternative fuel systems.

I am hopeful that if this bill is signed into law, gas station owners across the country will be able to use this reimbursement mechanism to help consumers who already own or are thinking of purchasing an alternative fuel vehicle.

Senator OBAMA and I are both strong supporters of alternative fuels. In fact, South Dakota and Illinois are leaders in the production of ethanol--our Nation's leading renewable fuel. The legislation we are introducing today in no way preferences ethanol over other alternative fuels. In fact, they are all treated equally under our bill.

Alternative fuels such as E-85, which is composed of 85 percent ethanol, are starting to gain popularity. However, while automakers such as Ford and General Motors are producing an increasing number of flex fuel vehicles, which can run on either E-85 or gasoline, there is a critical need for more alternative refueling sites across the country. Many individuals would be shocked to know that of the 180,000 gas stations across the country, only 600--far less than 1 percent--offer alternative fuels such as E-85.

There are approximately 5 million flexible fuel vehicles on the road today. The addition of alternative refueling systems--such as E-85, compressed natural gas, biodiesel, and hydrogen--will allow American consumers the ability to refuel their vehicles with alternative fuels that are better for both the environment and our Nation's security.

As President Bush noted in his State of the Union Address earlier this year, ``America is addicted to oil, which is often imported from unstable parts of the world.'' Since being elected to Congress I have worked hard in promoting the development of alternative energy sources. In fact, last year's energy bill marked an important milestone due to the 7.5 billion gallon renewable fuels standard that I and others advocated.

S. 2614 utilizes the interest earned from the Leaking Underground Storage Tank Trust Fund, which currently has a $2.6 billion surplus, to reimburse eligible gas station owners who add alternative refueling systems.

This trust fund continues to grow from a portion of the Federal gas tax--one-tenth of a cent per gallon--which amounted to roughly $190 million last year. The fund also continues to grow from the interest that is earned on the balance of the fund, which amounted to roughly $67 million in 2005.

I firmly believe that the Leaking Underground Storage Tank program serves an important function in keeping our land and water safe from storage tank releases. Our legislation simply seeks to use a portion of the interest earned annually to reimburse gas station owners for a portion of the costs associated with the installation of new alternative refueling systems.

An added benefit of using a portion of the interest from this trust fund is that the installation of alternative refueling systems reduces the overall number of petroleum tanks that can cause leaks.

Additionally, this bill ensures that States are not required to use their annual allocation of appropriated funding to reimburse gas station owners for the installation of alternative refueling systems. Such reimbursement would come directly from the EPA Administrator.

Mr. President, this bill would help to lessen our Nation's dependence on foreign sources of oil and--increase the use of alternative fuels. It is a step in the right direction, and is something I hope my colleagues will support.

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