NPRA Statement on Biofuels Security Act
01.08.07 - NPRA Statement on Biofuels Security Act - Washington, D.C., January 5, 2007 – NPRA, the National Petrochemical & Refiners Association, released the following statement on “The Biofuels Security Act of 2007,” which would increase the renewable fuels standard to 30 billion gallons in 2020 and 60 billion gallons in 2030. The bill would also require that the major oil companies carry E-85 at half of their service stations by 2017.
NPRA Executive Vice President Charles T. Drevna said: “On the first day of the new Congress, Senator Harkin and others have already introduced legislation to expand ethanol use in the United States. While NPRA shares the enthusiasm of these leaders for measures to enhance the energy independence of our country, we cannot support this legislation.
“As NPRA has consistently stated, energy policy based on mandates is no recipe for success. Ethanol from corn is not economic or energy efficient. It has lower energy content than gasoline, has ozone emission problems, especially in warmer weather, and poses transportation and logistical issues. Already, recent reports have indicated that projected ethanol demand is likely to create unacceptable food price increases for those in society least able to afford it: the poor. For more information, see the recent report of the Earth Policy Institute (January 4, 2007) at http://www.earth-policy.org/Updates/2007/Update63.htm.
“ Ethanol is not without its strong points, of course. Besides extending the fuel supply, ethanol increases octane, has dilution benefits that help meet RFG specifications, and limits CO emissions. Clearly, U.S. refiners will continue to rely on ethanol as a vital gasoline blendstock. But while NPRA members are among the largest users of ethanol, we believe allowing the market to operate is the best way to address consumer needs at reasonable prices.
“ Currently, about 700 service stations – mostly in the Midwest – provide E-85. This volume accounts for less than one percent of the total ethanol volume used in the nation’s fuel supply. That’s less than one percent of a product that altogether makes up only four percent of the total gasoline supply. Policymakers should avoid touting E-85 as a comprehensive solution to imported crude oil. In addition, no infrastructure has been built to store, transport and/or sell E-85, or that few studies of the impact of E-85 have been conducted. This legislation itself acknowledges the inadequate numbers of appropriate pumps and vehicles that, when coupled with problems in distributing ethanol, demonstrate that ethanol mandates can easily outstrip the ability of our current infrastructure to deliver.
“ Even with these drawbacks, we are not opposed to the use of ethanol, biodiesel, E-85, or other alternatives based upon market pricing. We believe that alternative fuels will be a growing part of the nation’s energy supplies as their economic viability improves and technological progress continues. We do continue to remain opposed to mandates and subsidies. And we believe that renewable fuels are not the answer to America’s supply problems nor can they deliver on the promise of energy independence. Before collectively abandoning hydrocarbons and stocking up on carbohydrates for energy, all stakeholders should fully understand the proper role of renewables as part of the nation’s transportation fuel mix.”
NPRA members include more than 450 companies, including virtually all US refiners and petrochemical manufacturers. Our members supply consumers with a wide variety of products and services used daily in their homes and businesses. These products include gasoline, diesel fuel, home heating oil, jet fuel, lubricants and the chemicals that serve as "building blocks" in making everything from plastics to clothing to medicine to computers. Contact Sharon Dey 202.457.0480 or
Nicole Friedman 202.457.048
