American Gas - July 2013 - (Page 18)

CAPITOL HILL Federally Mandated Fuel U.S. House considers proposal involving natural gas and the Renewable Fuel Standard In recent years, 40 percent of the nation’s corn crop has been used for ethanol production, diminishing supplies for livestock and food producers and resulting in higher corn prices. WaShinGtOn, dc—A bill introduced in the U.S. House in mid-May aims to expand the scope of the Renewable Fuel Standard to include ethanol produced from domestic natural gas. Currently, ethanol only counts as a renewable biofuel if it is produced from switchgrass, cornstarch, or other easily replenished materials. The bill, sponsored by Reps. Pete Olson (RTexas) and Jim Costa (D-Calif.) and more than a dozen other cosponsors, had been referred to the House Committee on Energy and Commerce for consideration. Groups on record as supporting the bill include the National Cattlemen’s Beef Association, National Chicken Council, and America’s Natural Gas Alliance. Implemented in 2007, the RFS requires that increasing amounts of biofuels be blended into gasoline as a way to produce cleaner car emissions and reduce America’s need for imported oil. But the standard’s “singular focus on corn ethanol translates into higher food costs for working families as well as higher feed costs for livestock producers,” said Olson in a statement. “Expanding the sources for ethanol will only benefit all Americans.” The new bill, H.R. 1959, would establish “Domestic Alternative Fuel” created by domestic natural gas as an independent fuel category and list it as an alternative way to meet the RFS requirements. According to Olson, the artificial market created by the current RFS mandate will require 36 billion gallons of ethanol in less than 10 years—four times the level of the initial 2008 mandate. About 40 percent of the U.S. corn crop was used for ethanol production in recent years, according to the Department of Agriculture, resulting in diminished supplies for livestock and food producers and higher corn prices. “The Renewable Fuel Standard has injected uncertainty into our economy, and it’s time to bring this policy back into balance,” said Costa, also in a statement. “Our bill will help stabilize feed prices and create some sanity in this policy through diversifying sources for ethanol production. America’s families and farmers cannot continue to pay for Washington’s unwillingness to reform the RFS.” Olson added that his primary goal remains the full repeal of the RFS. “However, until then, we can take care of immediate problems by providing greater participation and competition under the program,” he said. A number of companies offer technology to convert natural gas into ethanol, including Dallas-based Celanese Corp., Coskata in Warrenville, Ill., and Hillsborough, N.J.-based Primus Green. The ethanol made from natural gas is chemically identical to corn-based ethanol and has the same low emissions when burned in cars. —Gary James C A P e C A n Av e r A L Space Coast Hits the Burners Florida utility turns to natural gas for three huge plants hOllyWOOd, fl—Florida Power & Light Co.’s Port Everglades power plant in Hollywood is scheduled to be taken down in July as part of a modernization plan in which three 1960s-era oil and gas burning plants are being replaced with new facilities that run solely on natural gas. 18 AmericAn GAs july 2013

Table of Contents for the Digital Edition of American Gas - July 2013

American Gas - July 2013
Contents
President’s Message
Subject Index
Shining a Light for Gas Efficiency
Digest
Issues
Issues
Update
Need to Know
By the Numbers
Places
Scratch, Sniff—Evacuate?
Capitol Hill
Cape Canaveral
The Corner Office
AGA Ops Conference
Elm Street
Work in Progress
Profile
For Good Measure
Law
Jobs
Marketplace
Buyer’s Guide
Headway

American Gas - July 2013