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Mr. Chairman, I thank you for including in this package before the committee today an amendment I have crafted that is in essence the bill I introduced earlier this year with Senator Salazar – S. 331, the “Alternative Energy Refueling Systems Act of 2007.” This amendment is a straight-forward measure that seeks to increase the number of alternative refueling stations across our country -- something that all Senators should support as we work to reduce our nation’s dangerous dependence on foreign sources of oil. Today, there are over 9 million alternative fuel automobiles on the road. However, while automakers have pledged to produce an increasing number of these vehicles, there is a serious shortfall in the number of gas stations to support these vehicles. For instance, while there are more than 6 millions flex fuel vehicles (FFVs) on the road today, which can run on E-85 or gasoline, less than one percent of all gas stations nationwide offer E-85 fuel. Clearly, more must be done to increase the availability of alternative fuels at the retail level. My amendment would authorize the Department of Energy, through the existing Clean Cities Program, to provide grants to gas station owners who install alternative refueling systems. These grants would greatly assist in expanding the availability of alternative fuels such as E-85 (a mix of 15 percent gasoline and 85 percent ethanol), Biodiesel, Natural Gas, Compressed Natural Gas, Hydrogen, and Liquefied Petroleum Gas. Under this amendment, gas station owners who wish to install a new alternative fuel tank would be reimbursed for 30 percent of the cost (not exceeding $30,000) of expenses related to the purchase and installation of a new alternative refueling system. Keep in mind, subject to annual appropriations, funding for these grants would come from a portion of the penalties that are collected annually from auto manufacturers who violate the Corporate Average Fuel Economy (CAFE) standard – most of which are foreign automakers. This legislation enjoys the support of several business, agriculture, and alternative energy groups, including: General Motors, Ford Motor Company, Daimler Chrysler, Wal-Mart, The Petroleum Marketers Association of America, The National Ethanol Vehicle Coalition, The National Association of Fleet Administrators, The Renewable Fuels Association, The National Bio-Diesel Board, The National Corn Growers Association, The American Soybean Association, The American Coalition for Ethanol, and The National Association of Truckstop Operators A similar measure (H.R. 5534) overwhelmingly passed the U.S. House of Representatives by a vote of 355 to 9 on July 24, 2006. Unfortunately, the Senate was unable to consider our companion measure before adjourning last year. Mr. Chairman, Senator Salazar and I wholeheartedly believe this common sense measure will significantly increase the number of alternative refueling stations nationwide. I look forward to working with my colleagues in the Senate as we work to pass this common-sense bipartisan measure. I would also like to highlight that this legislation is sponsored by Senator Hagel, Senator Conrad, and Senator Klobuchar. Thank you Mr. Chairman, I yield back my time.
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