FREQUENTLY ASKED QUESTIONS

What are the goals of STAGE1?
STAGE1 works to promote America’s energy independence first by Stop Taxing American Grown Energy – STAGE1. The elimination of the at-the-pump gas tax on E-85 ethanol and bio-diesel will help create the consumer demand for American grown energy alternatives. A consumer market for American grown energy will be greatly enhanced when millions of American drivers can ask gas station attendants, “Where’s the pump that I don’t pay the gas tax?”

Cleaner air, more American jobs, less petrol-dollars going to hostile countries, and drivers get a tax break when buying American grown energy! That’s a pretty good start – that’s STAGE1.

What taxes are currently charged at-the-pump on E-85 and bio-diesel?
Currently American drivers pay a Federal 18.4 cent per gallon excise tax and state taxes ranging from 8 cents to as high as 32 cents per gallon. This means a total gas tax of between 26 cents and 50 cents per gallon, not just on oil products, often from countries opposed to American interest, but also on American grown energy alternatives.

Gas station owners can receive a small Federal tax credit through a complicated rebate system for selling bio-fuels (1-5 cents per gallon). Illinois, Iowa and Minnesota have reduced their at-the-pump taxes by a few cents on ethanol and bio-diesel – and have the most number of gas stations offering bio-fuel. (See, it works! Consumers get a tax break. More gas stations offer the American grown fuel alternatives.)
 
What are E-85 ethanol and bio-diesel?
E-85 ethanol is a clean burning high octane fuel alternative made from 85% ethanol and 15% unleaded gasoline. Ethanol is essentially grain alcohol made from starches such as American grown corn, sugar beets, switchgrass, soy, or rice straw. New production facilities even use municipal waste. Bio-diesel is similarly produced largely from American grown sources through a process called transesterification, in which glycerin is separated from vegetable oil. Bio-diesel can also be produced from methane, and even from recycled cooking oils used in restaurants. Like ethanol, bio-diesel is blended with gasoline in most cases, ranging from B2 (2% bio-diesel) to B100 (100% bio-diesel). Most commonly used bio-diesel blends range from 10% to 20% bio-diesel.

What are the benefits of using E-85 ethanol or bio-diesel?
Because these products are much cleaner burning than regular gasoline and diesel, their use helps clean our air and reduce the threats of global warming. Unlike crude oil and gasoline, these alternatives are bio-degradable, meaning spilling is wasteful, but not harmful. And the materials needed for their production largely come from America’s farmers, creating American jobs and adding to our economy. Perhaps most important, the use of bio-fuels reduces America’s reliance on foreign oil, often bought from countries hostile to America.

Can I use E-85 and bio-diesel in my car?
More Americans every day can. Flex-fuel vehicles that can use either gasoline or ethanol blends up to E-85 now number more than 6 million in America. The majority of General Motors vehicles sold today are flex fuel and manufacturers such as Chrysler, Ford, Mercedes-Benz, and Mercury are offering flex-fuel options. See if your car can use E-85 by going to http://www.e85fuel.com/e85101/flexfuelvehicles.php. Diesel cars and truck can run on lower percentage blends of bio-diesel without any modification and up to B100 with little or no modification.

Will I get the same performance using E-85 ethanol or bio-diesel?
E-85 ethanol has higher octane than regular gasoline, but less overall energy per gallon. So you’ll probably get better performance, but a reduction in miles per gallon by 5-15%. Bio-diesel performance is nearly identical to regular diesel. Because both E-85 ethanol and bio-diesel are soluble and burn cleaner, engine life may actually be improved with their usage.

Where can I find E-85 or bio-diesel?
That’s the problem STAGE1 wants to fix. Currently, only about 2,200 of America’s 130,000 gas stations offer consumers an American grown alternative to foreign oil. Many states have no stations offering the choice.  New Federal and state legislation is encouraging stations to make E-85 ethanol and bio-diesel available, but stations are reluctant to do so unless there are consumers wanting to buy E-85 ethanol or bio-diesel. Eliminating the at-the-pump tax will spur consumer demand and encourage more stations to offer the clean American grown alternative to polluting foreign oil.

What about the lost revenue from cutting the tax?
First, that would be a nice problem to have because it would mean our air is getting cleaner, American jobs are being created and America’s energy future is looking brighter! Currently revenues from E-85 and bio-diesel represent less than 1% of taxes generated at-the-pump. The most aggressive forecasts predict growth in the next five years to be five fold or 5% of the total. Expected increases in tax revenue from the jobs produced through the expansion of American grown energy would likely more than offset the at-the-pump tax loss. Because most at-the-pump gas taxes are supposed to be dedicated to road construction (though often are used for other purposes), state legislatures could fund the tax loss through state general fund revenues, which is where a substantial amount of road money comes from anyway. With 42 states running significant budget surpluses, this minor tax cut would easily be absorbed.  In the face of global warming, international terrorism funded with petrol-dollars, burgeoning foreign trade deficits and looming oil shortages, can you think of a better tax to cut to spur behavioral changes than taxes on American grown energy?   Have you ever heard anyone complain about gas tax collections being reduced because people choose more fuel efficient cars? Beginning the move towards American energy independence is simply too important to delay.

How can I make a difference?
Here are five easy steps to promote American grown energy:

• Sign the STAGE 1 petition right now – click here!
• Send an e-mail to your Congressman and State Legislators -- click here!
• Make a small contribution to STAGE 1. We can only make a difference if you help – click here!
• Buy a new or used flex-fuel or diesel vehicle.
• Ask the gas station attendant to make E-85 ethanol and bio-diesel available.