CHICAGO -- Many of Chicago's gas stations are one step closer to being required to offer E15, after a proposal mandating its sale passed a crucial vote in the city council this week.
Aldermen Ed Burke, chairman of the city council's Committee on Finance, Anthony Beale and Ameya Pawar have been championing a proposed ordinance that would require the city's highest-volume gas stations to offer the 15% ethanol blend for sale. After stalling in the city council this summer, the proposal was amended and finally came before a vote of the finance committee, passing 11 to five after a lively debate, said The Chicago Tribune.
According to the proposed ordinance, every licensed fuel retailer operating a self-service gas station open to the public would be required to make available self-service dispensing equipment that dispenses E15, and offer the midgrade blend for sale.
While the original proposal exempted gas stations that sell fewer than 500,000 gallons per year and had a 180-day phase-in period, the ordinance was amended ordinance to raise the volume limit to 850,000 gallons, which would affect an estimated 110 of the 404 licensed gas stations in the city limits, the newspaper said. These operators would also now have 360 days to install E15 dispensers.
Ethanol industry advocates, the American Lung Association of Illinois and some environmental groups have endorsed the proposal, arguing that it would have a big positive effect on gas prices, greenhouse-gas emissions and the economy.
"Should it become law, it will make Chicago the leader in the area of trying to give consumers cheaper fuel and provide cleaner air for the people that breath in big cities," said Burke. "I think it will be precedent-setting and set the standard for the nation."
Petroleum industry groups and AAA Auto Group have lobbied hard against the proposal, arguing that it would force gas stations to go out of business or move, and have little to no effect on the environment or price. They also argued it could damage the vehicles of consumers who unknowingly fill up with E15, which has been approved for use by the U.S. Environmental Protection Agency (EPA) in model-year 2000 and newer vehicles.
"A mandate forcing Chicago gas stations to sell E15 gasoline could come with a heavy price for consumers and small-business owners," said Jim Watson, executive director of the Illinois Petroleum Council, in a statement the group released after the measure passed. "Consumers who use E15 could end up with broken-down cars and high repair bills. And since E15 doesn't qualify for the 20% state sales tax exemption and contains less energy than regular gasoline, filling up with E15 could be more expensive while lowering gas mileage."
Opponents of the proposal have pointed to the per-station cost for retailers installing equipment to dispense E15, with estimates ranging from $50,000 to more than $150,000, the Tribune reported. Prime the Pump, a nonprofit supported by ethanol groups and corn growers associations, has set up a fund to provide grants for gas stations that install E15 pumps.
The proposal will go before the full council for a vote on December 10. Mayor Rahm Emanuel has not endorsed the legislation, nor has he spoken out against it.
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