Midwest Senators Introduce American Fuels Act

Bill outlines several steps to reduce foreign oil independence. Compiled by staff 

Published on: Mar 27, 2006

Midwest senators, Sens. Barack Obama, D-Ill., and Richard Lugar, R-Ind., introduced a new bill, The American Fuels Act of 2006, which advocates use of renewable fuel technologies to greatly decrease America's dependence on foreign oil.

According to Obama and Lugar, S. 2446 would take the following steps to reducing America's dependence on foreign oil.

The bill would:

  • Spur investment in renewable fuels by increasing the production of cellulosic biomass ethanol  to 250 million gallons by 2012;
  • Create a Renewable Diesel Standard that will require 2 billion gallons of renewable diesel fuel be mixed into the 40 billion gallon annual national diesel pool by 2015;
  • Increase consumer demand for renewable fuels by providing a short-term, 35 cents per gallon tax credit for E85 fuel and by providing automakers with a $100 tax credit for every E85-capable flexible fuel vehicle produced;
  • Require the U.S. government to increase access to renewable fuels by allowing public access to alternative fueling stations located on federal government property and by requiring that only clean buses be eligible for federal cost sharing;
  • Establish a Department of Defense "fly-off competition" that would encourage private sector companies to compete to find the most energy efficient renewable fuels for defense purposes;

In addition, the bill would establish a Director of Energy Security, who would serve as the principal advisor to the president, the National Security Council, the National Economic Council and the Homeland Security Council on renewable energy use.