WASHINGTON--(Business Wire)--While the energy bill passed today by the U.S. House of
Representatives is a step forward, it misses significant opportunities
to move America toward less dependence on foreign oil, according to
Richard Kolodziej, president of NGVAmerica. For example, NGVAmerica is
concerned that one of the major provisions of the bill will not be
able to achieve its goal of displacing 36 billion gallons of foreign
oil. The Renewable Fuel Standard (RFS) would require the use of 36
billion gallons of renewable fuel to power vehicles by 2022. By
statute and physical production limitations, corn-based ethanol would
be capped at 15 billion gallons per year. Physical production
constraints also would limit soy-based biodiesel to no more than 3
billion gallons per year. It is envisioned that the rest - 18 billion
gallons - would be produced from cellulosic biofuels. Today, there are
no commercial-scale cellulosic biofuels plants operating in the U.S.,
and it is unrealistic to assume that an industry that could produce 18
billion gallons of fuel per year could develop in just the next 15
years. The House, realizing this, included waivers in their bill to
lower the oil displacement goal, if necessary.
"NGVAmerica believes that oil displacement is too important a
national goal to allow lowering it to be an option," said Richard
Kolodziej, president of NGVAmerica. "Rather, the House could have -
and should have - increased the likelihood that the goal could be
achieved by allowing natural gas and other low-carbon fuels to qualify
under the RFS program. This year, natural gas-powered vehicles will
displace 250 million gallons of oil in the U.S. alone - much of that
in heavy-duty vehicles (like transit buses, school buses, trash trucks
and urban delivery vehicles), where ethanol cannot be used. A growing
natural gas vehicle market would also help stimulate the use of
biomethane - a renewable natural gas produced from landfill gas,
sewage, animal and crop waste or cellulosic crops. The U.S. Department
of Energy estimates that the U.S. could realistically power 10 million
cars with biomethane. "With proper policy support from the federal
government, natural gas and other low-carbon fuels could play a
significant role in making America less dependent on foreign oil while
reducing the level of greenhouse gases," Kolodziej said.
Congress also missed the opportunity to extend the vehicle
purchase and fuel use tax incentives for natural gas and other
non-petroleum vehicles beyond their current expiration dates in 2009
and 2010. "This energy bill contains billions of dollars for programs
to develop fuels and technologies that are technically and
economically years away," said Kolodziej. "Meanwhile natural gas
vehicles are available and are making an oil-displacement impact right
now. It makes no sense to establish oil displacement goals for 2017
and 2022, and then not extend tax incentives to help America reach
those goals," said Kolodziej.
NGVAmerica is a national organization dedicated to the development
of a growing, sustainable and profitable market for vehicles powered
by natural gas or hydrogen. NGVAmerica represents more than 120
companies interested in the promotion and use of natural gas and
hydrogen as transportation fuels, including: engine, vehicle and
equipment manufacturers; fleet operators and service providers;
natural gas companies; and environmental groups and government
organizations. For more information about NGVAmerica, visit our
website at www.ngvamerica.org
NGVAmerica
Richard R. Kolodziej, President, 202-824-7366
fax: 202-824-7087
rkolodziej@ngvamerica.org
Copyright Business Wire 2007
