Diverse coalition urges US Senate to oppose ethanol mandates

By the OGJ Online Staff

WASHINGTON, DC, Dec. 17 -- An unusual coalition of business and labor interests has urged US Senate leaders to oppose legislation mandating ethanol use in gasoline, saying it would hurt consumers.

The coalition -- including refiners, labor unions, and highway user groups -- also urged Majority Leader Tom Daschle (D-SD) to drop his proposal in Senate energy bill S 1766 that would mandate use of renewable fuels, the most commercially available of which is ethanol, from 2 billion gal/year in 2003 to 5 billion gal/year by 2012.

The letter, which also went to Minority Leader Trent Lott (R-Miss.), said the groups oppose "any attempt to add an ill-conceived and problematic ethanol mandate to legislation considered by the Congress."

The coalition said, "As ethanol use is required farther from its traditional Midwest markets, its inability to be transported by pipeline coupled with its specialized [gasoline] feedstock demands will increase gasoline prices across the nation." The groups said a recent study of a proposed ethanol mandate estimated the direct increased cost to consumers at $6.7 billion.

Under Daschle's plan, use of the oxygenate methyl tertiary butyl ether would be banned after 4 years, but states would be allowed to waive the oxygen content from clean fuel programs. The bill would also offer grants to MTBE producers who convert production to other fuel uses (OGJ Online, Dec. 5, 2001).

An energy bill passed by the Republican-led House of Representatives does not include an ethanol mandate. However, fuel ethanol has bipartisan support from politically influential farm states. And President George W. Bush recently supported legislation that encourages the use of ethanol, although he has not specifically endorsed Daschle's provision.

The White House, in its energy blueprint released last May, endorsed a continuation of a partial excise tax exemption for ethanol-blended gasoline. The White House maintained that expanding ethanol use helps clean the air, reduces dependence on foreign oil, and gives farmers added income by boosting demand for corn.

Lobbyists expect to see Congress pass comprehensive energy policy legislation sometime next year.

The coalition members are: the American Highway Users Alliance; National Association of Convenience Stores; National Petrochemical & Refiners Association; Small Business Survival Committee; International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers, and Helpers, AFL-CIO; and the Oxygenated Fuels Association.

Related Articles

West Cornwall Township hears from Sunoco Logistics

12/12/2014

Sunoco Logistics Partners outlined its safety systems during a West Cornwall Township meeting in Pennsylvania on Nov. 10.

Cost-benefit believability

12/08/2014 In anticipation of what might become the costliest federal regulation in US history, Congress should join the Supreme Court in reviewing the Enviro...

EPA poses tighter ground-level ozone pollution controls

12/08/2014 The US Environmental Protection Agency proposed reducing ground-level emissions limits to 65-70 ppb from its current level of 75 ppb. It also will ...

EPA will set RFS requirements for this year next year

12/01/2014

How bad does regulation of the Renewable Fuel Standard have to become before the US Congress ends a program broken beyond repair?

Asia-Pacific refining primed for capacity growth

12/01/2014

Global crude oil refining capacity in 2014 edged lower from 2013 (OGJ, Dec. 2, 2013, p. 34), according to the latest OGJ Refinery Survey.

Deloitte: US gas supplies rebuilt since last winter, EIA's Sieminski says

11/24/2014 The biggest issue this winter could be electricity generation in New England because of pipeline constraints rather than a drawdown of stored natur...

Petrobras initiates start-up of units at Abreu e Lima refinery

11/24/2014 Petroleo Brasileiro SA (Petrobras) has received permission to commission units at its Abreu e Lima refinery (Rnest) at the port of Suape, near Reci...

MRPL wraps Mangalore refinery expansion project

11/13/2014 Mangalore Refinery & Petrochemicals Ltd. (MRPL), a subsidiary of Oil & Natural Gas Corp. Ltd., has fully completed the long-delayed Phase 3...

Low-cost revamp enhances feedstock profitability for Chinese integrated complex

11/03/2014 In 2010, Liaoning Huajin Tongda Chemicals Co. Ltd. (Huajin), a subsidiary of China North Industries Group Corp. (Norinco), completed a series of re...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected