Ethanol

From the Lansing State Journal:

In an effort to boost consumers' use of alternative fuels, members of Michigan's congressional delegation have introduced legislation, written to President Bush, and held news conferences at gas stations and an ethanol plant.

The House passed one such bill last month. Sponsored by Rep. Mike Rogers, R-Brighton, the proposal would encourage more filling stations to sell E85, a blend of 85 percent ethanol and 15 percent gasoline. Ethanol is an alcohol made mainly from corn.

There are about 5 million to 7 million flexible-fuel vehicles, which run on alternative fuels or gasoline, on U.S. roads today, said Rogers spokeswoman Sylvia Warner. U.S. automakers project production of at least 2 million more each year.

But only about 600 gas stations nationwide - and only 15 to 18 in Michigan - sell E85, Warner said.

Rogers' bill would provide cash grants of up to $30,000 to independent stations to install special E85 pumps. The money would come from the roughly $20 million annually that automakers - mainly foreign ones - pay in fines for failing to meet federal fuel economy standards.

Rogers said that as E85 pumps begin attracting customers, other stations will want to provide the same service.

"Once there are multiple E85 pumps in any area, it makes economic sense for gas stations to install them on their own and for producers and distributors to spread their network across the country," Rogers said.

Sen. John Thune, R-S.D., has introduced a similar bill in the Senate. But at least one Senate Democrat has put a hold on the bill, Thune spokeswoman Jessica Ferguson said.

Ethanol isn't the only substitute for the 140 billion gallons of gasoline that Americans put in their cars and light trucks each year - but it can be one of them, said Paul Resnik, who tracks ethanol producers for the equity research firm Dutton Associates.

Read it all here.