U.S. Senator Barack Obama (D-IL) has introduced legislation which would require oil companies – that earned more than a billion dollars in the first quarter of 2006 – to invest at least one percent of that into installing E85 or other alternative fuel pumps at gas stations across the U.S. It is estimated that Obama’s bill would create more than 7,000 new E85 pumps in the country.
“For too long, American taxpayers have been forced to pay billions in subsidies to the very same record-profiting oil companies who now charge them record gas prices at the pump,” said Obama.
“It’s time for the oil companies to give something back to America by investing just 1% of their record profits into the cheaper, cleaner renewable fuels like E85 that can finally free us from our dependence on Middle East oil,” the Senator added.
The top five U.S. oil companies made $28.2 billion in profits in the first quarter of 2006, a 50% increase from 2004.
Services stations that install alternative fuel pumps would be eligible to receive a tax credit of up to $30,000 to offset the cost of installation. This tax credit was championed by Senator Obama and became law as part of the Energy Policy Act of 2005.
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