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Monday, December 03, 2007

Biodiesel Corner: Jeff Pieterick of Wisconsin Biofuels Association writes:

"Is it just me, or did the policymakers writing the federal 2008 Renewable Fuel Standards simply run out of gas?"

How else to explain the short-sighted thinking behind this newly released"Renewable Fuel Gasoline Standard?"
In a recent address, Senator Ken Salazar (D-CO) tells us that our nation's security does itself depend upon expanding "our supply of energy sources that can substitute for oil." Why would we then limit our renewable fuel effort to the act of simply adding alcohol to gasoline?

A truly effective RFS would include a fuel-neutral, low-carbon emphasis that would encourage development of the most efficient renewable alternatives that can provide maximum benefit. For now, however, the least we can expect is to properly define transportation fuels to gain a proper baseline from which to start - and diesel fuel needs to be in the policy mix.


According to DOE figures, market share for gasoline in the transportation sector has actually decreased nearly 10% since 1970, a period during which the distillate (diesel) fuel market segment doubled with over 50 billion gallons of diesel being consumed for transportation fuel in 2005.

As pointed out recently in this space, the US diesel portion of the transportation market is about to surge even further ahead - and for all the right reasons.

The enactment of the Ultra Low Sulfur Diesel (ULSD - "Clean Diesel") mandate in 2006 opened the door for automakers to offer a diesel option to US consumers. And these car buyers are already looking to these diesel powered offerings as Alternative Fuel Vehicles that can lower our carbon footprint by way of the improved fuel economy, lower emissions, and lifecycle durability these new generation diesels provide. These same consumers recognize biodiesel as an alternative to the petroleum diesel used in these engines that will further enhance this choice for a "green" power option.

Diesel fuel therefore represents a significant portion of the present transportation fuel sector and is expected to grow as an alternative to gasoline. Meanwhile, diesel itself is recognized as a preferred, "green" option over gasoline for the increased fuel mileage and other carbon efficiencies it provides. Lastly, biodiesel is a commercially viable alternative to petroleum diesel that further compounds the environmental benefits inherent to diesel as an alternative to gasoline. It therefore would seem apparent that any Renewable Fuel Standard (RFS) would include provisions to encourage the distribution and use of diesel and of biodiesel in the diesel market, right?

If you're the policymakers in charge of writing the "2008 Renewable Fuel Gasoline Standard," it's apparently not so obvious. Instead, they chose to place the entire focus of this effort to encourage renewable fuels upon the gasoline segment of the transportation market. Moreover, they choose only "renewable fuel blended into gasoline" (READ: ethanol) as the only tool in the arsenal to improve carbon efficiency and to address the other environmental, geopolitical, and social impacts of our use of transportation fuels.

I suggest instead that we contact our Federal Legislators and ask that they request the EPA to abandon this myopic ethanol mandate and return to the drawing table to arrive at a true Renewable Fuel Standard that addresses the entire transportation fuels market.

Separate formulae will undoubtedly be needed to address the different ways in which each alternative fuel impacts its specific segment of the market. But I don't foresee difficulties that would cause these policymakers to run out of gas in making the trip to revision. Rather, it would seem that by effectively embracing diesel and biodiesel, they will gain much more mileage for their efforts.

Regards,Jeff Pieterick

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