WASHINGTON – Senator Chuck Grassley today brought to the attention of Florida Governor Charlie Crist and Georgia Governor Sonny Perdue that their states’ fuel regulations impede the blending and use of ethanol.
“Every gallon of ethanol we use gets us closer to weaning the United States off foreign oil,” Grassley said. “It makes common sense to do everything we can to use renewable energy sources like ethanol. And, with crude oil at nearly $90 a barrel, it makes sense for their consumers.”
Grassley’s letters to the governors explain the cost savings to consumers when they buy gasoline blended with ethanol. In his letters Grassley urges them to work with their fuel industry to make the necessary changes to each state’s fuel regulations.
Based on fuel consumption in these two states, widespread ethanol blending could lead to the use of nearly 1.5 billion gallons of ethanol annually if fuel regulations are revised.
Here is a copy of each letter.
October 18, 2007
The Honorable Charlie Crist
Governor, State of Florida
Office of the Governor
The Capitol
400 S. Monroe St.
Tallahassee, FL 32399
Dear Governor Crist:
With crude oil prices reaching all-time highs on a nearly daily basis, public officeholders at all levels and jurisdictions are looking for ways to reduce prices at the gas pump for consumers. It is for this reason that I write you today.
It has recently come to my attention that state fuel regulations in Florida currently impede the widespread blending of ethanol in the state’s motor vehicle fuel. I raise this matter with you because at today’s prices, motor fuel blended with 10 percent ethanol has the ability to lower the price of fuel by as much as 10 cents a gallon compared to conventional gasoline. In fact, Gulf Coast ethanol is currently selling for approximately 40 cents per gallon lower than Gulf Coast gasoline. Combined with the federal tax incentive for ethanol, gasoline blended with just 10 percent ethanol could save Florida’s consumers 6 to 10 cents per gallon.
I understand the concern that the fuel distribution infrastructure and transportation systems may not be immediately capable of handling the incoming ethanol. However, the significantly discounted price for ethanol compared to conventional gasoline provides a tremendous economic incentive that will likely lead to the infrastructure and transportation upgrades.
Blending ethanol in Florida’s fuel supply is a great opportunity to lower prices at the pump, extend the fuel supply, and reduce the need for imported foreign petroleum. I hope that you will be able to work successfully with the fuel industry in your state to make the necessary changes to Florida’s state fuel regulations. I believe the economic incentive to blend Florida’s fuel with less expensive ethanol will have a dramatic impact on fuel prices, and result in more money in the pockets of Florida’s consumers.
Thank you for your consideration.
Sincerely,
Charles E. Grassley
United States Senator
October 18, 2007
The Honorable Sonny Perdue
Governor, State of Georgia
Office of the Governor
Georgia State Capitol
Atlanta, Georgia 30334
Dear Governor Perdue:
With crude oil prices reaching all-time highs on a nearly daily basis, public officeholders at all levels and jurisdictions are looking for ways to reduce prices at the gas pump for consumers. It is for this reason that I write you today.
It has recently come to my attention that state fuel regulations in Georgia currently impede the widespread blending of ethanol in the state’s motor vehicle fuel. I raise this matter with you because at today’s prices, motor fuel blended with 10 percent ethanol has the ability to lower the price of fuel by as much as 10 cents a gallon compared to conventional gasoline. In fact, Gulf Coast ethanol is currently selling for approximately 40 cents per gallon lower than Gulf Coast gasoline. Combined with the federal tax incentive for ethanol, gasoline blended with just 10 percent ethanol could save Georgia’s consumers 6 to 10 cents per gallon.
I understand the concern that the fuel distribution infrastructure and transportation systems may not be immediately capable of handling the incoming ethanol. However, the significantly discounted price for ethanol compared to conventional gasoline provides a tremendous economic incentive that will likely lead to the infrastructure and transportation upgrades.
Blending ethanol in Georgia’s fuel supply is a great opportunity to lower prices at the pump, extend the fuel supply, and reduce the need for imported foreign petroleum. I hope that you will be able to work successfully with the fuel industry in your state to make the necessary changes to Georgia’s state fuel regulations. I believe the economic incentive to blend Georgia’s fuel with less expensive ethanol will have a dramatic impact on fuel prices, and result in more money in the pockets of Georgia’s consumers.
Thank you for your consideration.
Sincerely,
Charles E. Grassley
United States Senator