Proposed Senate Bill Requires Major Fuel Distributors to Install Ethanol Pumps

October 15th, 2013 by Fiedler Group

Earlier this month the Petroleum Institute Of America “Tulsa Letter” noted that legislation was introduced to the Senate by Tom Harkin (D-Iowa) which would create a build up the nation’s renewable fuel infrastructure via the installation of ethanol pumps at gas stations.

The new bill, S. 1563, would create a $1-billion grant program and require the Department of Energy to establish new regulations designed to compel major fuel companies to install ethanol pumps at their gasoline fueling stations.

The bill would also create a loan program to fund renewable fuel pipelines.

Grant money would be available to fund the purchase and installation of the pumps and tanks necessary to sell ethanol fueling, including E85.

While major fuel distributors would not be eligible to receive grant funds, the proposed legislation would force major distributors to install at least one ethanol pump at 10 percent of their gasoline stations by 2016 and to increase that figure to 50 percent 2022.

The bill was introduced just prior to the government shutdown, so details are still pending.