Grainnet

By M.D. Brading, Biofuels Journal Associate Editor

U.S. Senators Richard Lugar (R-IN) and Tom Harkin (D-Iowa) introduced a bill Sept. 29 which requires the U.S. Department of Energy to study the feasibility of constructing one or more dedicated ethanol pipelines to transport ethanol from the Midwest to the East and West coasts.

The “Ethanol Infrastructure Expansion Act” addresses the feasibility of a dedicated pipeline system that could enable Midwest ethanol producers to deliver alternative fuel to states on both sides of the country.

Pipeline Problems

Pipelines are primarily used to transport a substantial amount of liquid fuels such as gasoline and natural gas from refineries and production facilities.

While it’s a popular method, the movement of ethanol via pipeline is viewed as a limited option because ethanol absorbs water and impurities found in the pipeline.

Additionally, the insufficient volumes of ethanol that need to be transported are a barrier to pipeline use.

Lawmakers feel through a dedicated pipeline, and increasing ethanol demand, there may be economic benefits to transporting the fuel in a dedicated pipeline.

In a statement, Harkin stressed that, “With ethanol demand and production on the rise, an accurate and fair analysis of the potential to distribute ethanol around the country by pipeline is needed.”

“We continue to hear comments that it can’t be done, but it is being done right now in Brazil,” he said. Harkin also pointed out that the goal of the bill is to examine the issue and gather all necessary facts before proceeding.

“Creating a dedicated pipeline system could enable Iowa’s ethanol producers to deliver their products to states with growing demand like California, New York and Pennsylvania, at a lower cost,” he explained.

Ethanol use has increased by more than 20% over the last several years, and with studies estimating that ethanol could account for 20% to 30%, or more of the country’s transportation fuel in the future, a dedicated infrastructure would end transportation woes for the ethanol industry.

However, an undertaking this large may take over 10 years to complete with millions in investment dollars.

Harkin, a long-time advocate of expanding production of ethanol and farm-based renewable fuels said, “Developing ways to increase the availability and use of ethanol nationwide will decrease American’s dangerous dependence on foreign oil, give a boost to the rural economy and improve environmental quality.”

National Fuels Initiative

Meanwhile, Lugar also introduced another bill that may create long-term assurances that alternative fuels remain economically competitive despite oil price fluctuations.

The “National Fuels Initiative of 2006” is based on proposals from Lugar’s keynote address at the Indiana-Purdue University’s Summit on Energy Security held in late August.

Lugar indicated that America’s biggest problem is its reliance on foreign oil in a market that is dominated by unstable governments.

“We can break petroleum’s grip right now,” said Lugar. “The key is to replace oil used in transportation with alternative fuels and improve fuel efficiency of our cars and trucks.” Lugar has been a big proponent of alternative energy, co-sponsoring a host of legislation to end consumers’ dependence on foreign oil, as well as promote biofuel use.

Through the 109th Congress, Lugar joined Harkin and U.S. Sen. Barack Obama (D-IL) in introducing the “Fuel Security and Consumers Choice Act”, that would require all U.S. marketed vehicles to be manufactured as Flex Fuel Vehicles (FFV) within 10 years.

The National Fuels Initiative legislation would establish variable alternative fuel tax credit to support growth of alternative fuel production.

Lugar’s legislation hopes to increase investment in cellulosic ethanol, coals to liquid, and other non-petroleum based fuels by reducing the risks posed by fluctuating oil prices.

Legislation Details

In addition, the fuel legislation:

- Sets a goal to expand U.S. production of biofuels to at least 100 billion gallons per year by 2025.

- Requires all new cars sold within the United States in the next 10 years be FFV capable, allowing consumers a choice of either using E-85, or gasoline.

- Requires 25% of fueling stations across the country to offer E-85, to spur investment in renewable fuel production.

- Enact increased mileage standard that steadily improves fuel economy each year, and encourage research into new advanced technology vehicles such as hybrids and coal-based transportation fuels.

“We must address our energy vulnerability because sufficient investment cannot happen overnight,” he said. “It will take years to build supporting infrastructure and to change consumer behavior.”

Americans have the right to know what the alternative energy plan is and how to achieve it, he said.

“We can achieve the replacement of 6.5 million barrels of oil per day by volume,” Lugar said. “It would provide more jobs for Americans, support our farmers and promote green fuels over fossil fuels.”

For more information, visit the web sites below:

See Related Websites/Articles:

• Lugar Energy Initiative
• Sen. Tom Harkin

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