NPRA Urges Congress to Avoid Additional Biofuels Mandates beyond Existing Federal Renewable Fuels Standard at Senate Biofuels Conference.

WASHINGTON -- Charles T. Drevna, Executive Vice President of NPRA, the National Petrochemical & Refiners Association, will participate tomorrow in the Senate Energy and Natural Resources Committee's Transportation Biofuels Conference. NPRA's statement is focused on the challenges refiners face integrating the use of biofuels into the national transportation fuel infrastructure.

While there is universal agreement that biofuels will continue to be a strong, growing part of the nation's transportation fuel mix, NPRA has opposed and continues to oppose the mandated use of biofuels and supports market penetration that is driven by marketplace economics. "An energy policy based on mandates is no recipe for success. As Congress considers expansion -- and proposed legislation to date calls for unprecedented expansion -- of the ethanol and other biofuels mandates, we request that you proceed with caution and prudence," said Drevna.

Stressing that NPRA members are among the largest users of ethanol, and refiners will continue to rely on it as a vital gasoline blendstock, Drevna presents some of the challenges facing refiners using biofuels and offered three recommendations. First, as relatively new biofuels enter the market, increased transportation and logistical issues are likely to arise. "Ethanol is not distributed through pipelines because of problems with water contamination and corrosion....Any significant increase in ethanol production will result in more stress on the distribution system," explains Drevna. Secondly, Drevna recommends that Congress preempt state biofuels mandates. "Congress should preempt local biofuels mandates and reinforce the efficacy of the federal RFS credit-trading system to ensure that the distribution system has the flexibility needed to minimize costs for the consumer."

Finally, biofuels should be developed with the full realization of their impact on air quality. When blended into gasoline, ethanol increases the Reid Vapor Pressure (RVP) of the fuel, resulting in higher volatile organic compound (VOC) emissions -- an ozone precursor during summer months. Drevna recommended, "Congress should defer any support for a renewable motor fuels mandate until it completes an analysis of the ozone impacts of these additional VOC emissions and potential impacts on maintaining attainment with the 8-hour ozone National Ambient Air Quality Standard."

Drevna concludes his statement by stating that the goal of the biofuels industry -- including both corn-based and/or cellulosic ethanol -- should be economic parity, or better, with that of refined petroleum products while not contributing adversely to air quality. "NPRA recommends that Congress avoid mandating increased volumes of biofuels or a hastened implementation schedule for biofuels beyond that of the existing federal RFS."

NPRA is a national trade association with more than 450 member companies, including virtually all U.S. refiners and petrochemical manufacturers.