LIBERTY, Mo. -- Governor Matt Blunt visited the home of the Ford Hybrid Escape where he unveiled his proactive proposal to encourage alternative fuel use in Missouri.
"We have made several policy changes that make Missouri more energy efficient, environmentally-friendly and a leader in alternative fuel use, such as requiring gasoline to be blended with 10% ethanol," he said last week at the Claycomo, Mo., Ford assembly plant. "The creation of the Missouri Renewable Fuel Standard was a major step we took to position Missouri as a leader in ethanol production [image-nocss] and use, but we can do more. I am proposing we further promote alternative fuel use and better protect our air quality by expanding access to E-85 and provide tax incentives for Missourians who purchase hybrid vehicles."
Blunt called for several proactive initiatives targeted at promoting the use of environmentally friendly technology and expanding access to alternative fuel in Missouri.
The governor on Thursday proposed a new, $2 million tax incentive program specifically designed to increase the number of gas stations in Missouri that offer E-85 fuel. The incentives would support new E-85 infrastructure to ensure Missouri drivers who own alternative fuel vehicles have access to cleaner burning, home grown, renewable fuel.
The tax credits would help offset the cost of installing or modifying pumps to dispense fuel that contains 85% ethanol. The cost for stations to modify or install E-85 tanks range from $3,000 to $40,000. Currently there are 4,312 stations in the state and only 92 are capable of dispensing E-85.
Blunt also proposed a new state income tax deduction for Missourians who purchase qualified hybrid vehicles. The deduction would help encourage more Missourians purchasing new cars to consider those that use alternative power. The tax deduction would be valid in the year the vehicle was purchased and equal to the lesser of $1,500 or 10% of the purchase of the vehicle.
The Ford Escape Hybrid is the world's first hybrid vehicle capable of operating on blends of fuel containing as much as E-85. Like other hybrids, the E-85 can switch automatically between pure electric power, pure fuel power, or a combination of the two. The E-85 Escape Hybrid produces about 25% fewer greenhouse gas emissions than a gasoline-fueled Escape Hybrid. It also runs on renewable fuel, which supports Missouri farm families and can help reduce the nation's dependence on imported oil.
Blunt is also calling for tax credits for those who purchase E-85 gasoline. The proposal would help increase alternative fuel consumption across the state and benefit all Missourians who fill up with alternative fuel. Tax credits would be equal to 25 cents per gallon in year one; 20 cents per gallon in years two and three; and 15 cents per gallon in each subsequent year, with a maximum of $500 per taxpayer per year. The credit will be claimed with the Missourians income taxes.
Based on cost differences between conventional and E-85 gasoline, had this credit been in effect during 2007, motorists would have saved an average of 70 cents per gallon over the cost of conventional gasoline.
Gov. Blunt is a champion of alternative fuels. The governor fulfilled a promise he made to Missourians when he signed legislation in 2006 requiring all gasoline offered for sale in Missouri to contain 10% ethanol (E-10). The new standard championed by Gov. Blunt went into effect at the beginning of this year. Missouri is just the third state to implement a broad ethanol requirement.
The governor has also worked to pay back the incentive payments over the last three years that were promised to the Missouri farm families that invested in ethanol cooperatives, but were not made before he took office. He also signed an executive order and supporting legislation requiring that at least 70% of new vehicles purchased by the Office of Administration's state fleet are flex fuel vehicles.
Automotive Fleet Magazine ranked Missouri tenth against other states in the number of alternative fuel vehicles as a percentage of the total state fleet, and 59th in the country against thousands of private, state, local and federally managed vehicle fleets. The state fleet currently has 36 hybrid electric and 1,717 E-85 vehicles.
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