National Petrochemical and Refiners Association Executive Vice President Charles T. Drevna voiced important concerns regarding efforts to increase renewable fuels requirements in testimony to the House Energy and Commerce's Subcommittee on Energy and Air Quality.
Drevna said NPRA has always opposed mandates that limit refiners flexibility to meet consumer demand. He also noted it is imperative that Congress, the Administration and all stakeholders work in a determined, but cooperative effort to "develop policies that achieve balanced fuel supply and demand that still permits environmental improvements."
At the same time, these policies must ensure continued economic growth and security, he added. "These goals are not and cannot be deemed mutually exclusive."
"The Administration's proposal to increase the nation's consumption of renewable fuels in the transportation sector would not appreciably reduce the nation's dependence on foreign oil and could have an effect on refining capacity expansion plans," Drevna said. "A fundamental policy question regarding the efficacy of exporting domestic supplies of transportation fuels under the guise of reducing domestic consumption of that same fuel under a continuing supply/demand imbalance must be addressed."
Drevna also warned the committee of unintended consequences that must be considered by expanding renewable fuel use dramatically.
"Imported oil may very well have geo-political security concerns of its own, but transferring dependency on a commodity, such as corn production, that can be severely impacted by a number of uncontrollable events, like droughts or floods, creates a new dimension of uncertainty to energy supply reliability," he added.
Finally, he warned the committee and Administration officials about the numerous infrastructure challenges that will hamper efforts to meet the Administration's target goals.
"We face several significant issues including the lack of a robust transport system to provide distribution, the availability of 13 billion bushels of corn to meet the increases and a much-needed, but yet unrealized technology breakthrough to manufacture ethanol from cellulosic plant material," Drevna said.
NPRA members include more than 450 companies, including virtually all US refiners and petrochemical manufacturers. Our members supply consumers with a wide variety of products and services used daily in their homes and businesses. These products include gasoline, diesel fuel, home heating oil, jet fuel, lubricants and the chemicals that serve as "building blocks" in making everything from plastics to clothing to medicine to computers.
