Congressman Osborne Calls for Probe on Ethanol Blended Fuels; GM Touts Ethanol-Powered SUVs

Washington DC September 22, 2005: The AIADA newsletter reported that citing concerns from officials in his state that prices for ethanol blended fuels are being inflated, Nebraska Congressman Tom Osborne (R-03) called on the House Energy and Commerce Committee to investigate discrepancies between what oil companies pay for the ethanol added to the fuel and what they charge service station owners for E85, a blend of 85 percent ethanol and 15 percent gasoline.

Rep. Osborne told the Omaha World-Herald that the difference in price "appears to be unjustified given the relatively small amount of gasoline that is used to create E85." Nebraska Democratic Senator Ben Nelson is also expected to step up on this issue and push an amendment this week calling on the Federal Trade Commission to investigate ethanol and natural gas prices.

Meanwhile, back in Detroit, General Motors plans to build around 400,000 flex-fuel vehicles capable of running on E85 fuel next year to coincide with the launch of its new full-size SUVs and Chevrolet Avalanche pickup truck, reports the Detroit Free Press.

GM already has 1.5 million vehicles capable of running on E-85, made mostly from corn or other grains. "A lot of people bought them and don’t know they have the capability," said Mark LaNeve vice president of GM North America vehicle sales. "There’s a big education process here."