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Week Ending February 9, 2006

H.R.547 To facilitate the development of markets for alternative fuels and Ultra Low Sulfur Diesel fuel through research, development, and demonstration and data collection.

This bill is based on Congress’ findings that the US must diversify its fuel supply to include alternative bio-based fuels if the country wants to lessen dependence on foreign sources of petroleum and reduce demand on petroleum in general. Ethanol and other bio-fuels are the fuels of the future but can not be put into the mainstream until problems with the distribution and storage infrastructure are resolved.

Congress recognizes that despite the success of ethanol as a fuel additive, newer bio-based fuels may not be as compatible to fuel transportation and delivery infrastructures. The fuels themselves as well as additives tend to corrode critical elements of delivery and storage systems requiring retrofitting for corrosion, fuel contamination and other such impacts.

The bill directs the Secretary of Energy to carry out a program of research, development, demonstration and commercial application of materials to be added to bio-based fuels and Ultra Low Sulfur Diesel to make them more compatible with the existing infrastructure for storage and delivery.

The new program must prevent or mitigate corrosion of metal, plastic, rubber, cork, fiberglass, glues and any other type of material used in pipes and storage tanks. Also to be prevented or mitigated is the dissolving of storage tank sediments, clogged filters, contamination, poor flow at low temperatures, instability in long term storage, volatile emissions, microbe contamination, electrical conductivity and increased nitrogen oxide emissions.

The program must also address alternatives to conventional methods for refurbishing and cleaning tanks and tank linings and any other problems the Secretary might identify.

With the introduction of Ultra Low Sulfur Diesel fuel comes the complication that the stuff can pick up more sulfur than the allowed 15 parts per million during transport and retailers have no way of verifying the sulfur content. Because diesel, and other fuels containing up to 5000 parts per million in sulfur use the same distribution system to transport low sulfur fuel (15 ppm) the low sulfur fuel is expected to pick up more than 15 ppm in transport and, without a way to accurately test the fuel, the distributor can face fines over $30,000.

Because of a 2000 EPA ruling to reduce sulfur in  bio-diesel by 97% the Secretary is also ordered to research a portable, low-cost and accurate testing technology for measuring sulfur content in diesel fuels. The Secretary has a year to demonstrate progress. Sulfur in fuels, when burned is a leading cause of acid rain. Other by-products of burning high sulfur content fuel is Nitrogen Oxides and minute particulates that cause respiratory problems and increase Ozone pollution.

The National Institute of Standards and Technology is ordered to develop a physical properties data base and reference materials for alternative fuels and to update the data base as new fuels become available. The data base will show physical properties and reference materials about the fuels.

The bill noted that there are over 100 ethanol plants operating in the US today and more in planning stages. 40% of the nation's fuel supply contains an ethanol blend with a blend rate per gallon of about ten percent. Ethanol is highly corrosive with the exception of fuel blend vehicles that can take up to 85% ethanol. Bio-diesel is considered equally as corrosive and as such, if the problem of corrosion and the like is not solved would require retrofitting 160,000 gas stations facilities across the nations to the tune of billions. The estimated cost to retrofit a station is upwards to $200,000.

Amendment activity shaped the bill a bit to include more research into emissions and how to prevent them, when to add additives and to include hydrogen in the R&D and other amendments (Below)

Sponsor:  Rep. Bart Gordon (D-TN-6^th)

Vote: Passed House 400 to 3 (RC 92)  A motion to recommit failed 200 to 207 (RC 91) February 8, 2007

Cost to the taxpayers: "CBO estimates that implementing H.R. 547 would cost $10 million over the 2008-2010 period, assuming the appropriation of the specified amount. Enacting H.R. 547 would not affect direct spending or revenues."

Earmark Certification: "H.R. 547 does not contain any congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e), or 9(t) of rule XXI."

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MORE INFORMATION

CONGRESS' FINDINGS

SPECIFIC ELEMENTS OF CONCERN

AMENDMENTS

SEC. 3. BIOFUEL INFRASTRUCTURE AND ADDITIVES RESEARCH AND DEVELOPMENT.

The Assistant Administrator of the Office of Research and Development of the Environmental Protection Agency (in this Act referred to as the `Assistant Administrator'), in consultation with the Secretary of Energy and the National Institute of Standards and Technology, shall carry out a program of research and development of materials to be added to biofuels to make them more compatible with existing infrastructure used to store and deliver petroleum-based fuels to the point of final sale. The program shall address--

(1) materials to prevent or mitigate--

(A) corrosion of metal, plastic, rubber, cork, fiberglass, glues, or any other material used in pipes and storage tanks;

(B) dissolving of storage tank sediments;

(C) clogging of filters;

(D) contamination from water or other adulterants or pollutants;

(E) poor flow properties related to low temperatures;

(F) oxidative and thermal instability in long-term storage and use;

(G) microbial contamination; and

(H) problems associated with electrical conductivity;

(2) alternatives to conventional methods for refurbishment and cleaning of gasoline and diesel tanks, including tank lining applications; and

(3) other problems as identified by the Assistant Administrator, in consultation with the Secretary of Energy and the National Institute of Standards and Technology.

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AMENDMENTS

Rep. Michael C Burgess (R-TX- 26th)

Amendment to insure that the EPA take notice in its research and development of volatile emissions not only during fueling but also when the fuel is burned and to do that research before the distribution of bio-fuels begins.

Status:  Passed by voice vote February 8, 2007

Rep. Anna Eshoo (D-CA-14th)

An Amendment to the Burgess amendment that would also require EPA to consider strategies to minimize emissions, evaporation in particular, anywhere along the distribution, storage and point of sale course.

Status: Passed House 232 to 185  February 8, 2007 (RC 81)

Rep. Alcee Hastings (D-FL-23rd)

Directs the EPA to consider land-grant colleges and universities, African-American and Latino oriented colleges and universities when considering recipients of grants for R&D.

Status:  Passed House in the Committee of the Whole House 424 to 0  February 8, 2007 (RC 82) Then Passed House 417 to 0February 8, 2007 (RC 87)

Rep. Jerry Weller (R-IL-11th)

Governing private laboratory assessments of new products to require that any devices scrutinized be assessed for compatibility for use with alcohol and bio-fuels.

Status: Passed House in the Committee of the Whole House  424 to 0  February 8, 2007(RC 83) Then Passed House 385 to 24 February 8, 2007 (RC 89)

Rep. Charles Dent (R-PA-5th)

Research and development should include hydrogen fuel.

Status: Passed House in the Committee of the Whole House 226 to 201 February 8, 2007 (RC 84)

Rep. Mike Rogers (R-MI-5th)

EPA should study not only additives that will improve the fuel mixtures but when in the process from farm to pump the additives should be added.

Status: Passed House in the Committee of the Whole House  419 to 6  February 8, 2007(RC 84) Then Passed House 354 to 88 February 8, 2007 (RC 88)

Rep. Pete Roskam (R-IL-6th)

EPA should fund the R&D from money already appropriated.

Status:  Approved by voice vote. Feb. 8, 2007

Rep. Michael C Burgess (R-TX- 26th)

To increase from 50 cents per gallon to $1.00 per gallon the tax break to companies that collect restaurant fryer grease to be turned into bio-diesel.

Status: Ruled non-germane

Eric Cantor (R-VA-7th)

requires that airplane with 42 seats use alternative fuels. The amendment was a vehicle for floor comments on the 42 passenger, 16 crew jet to transport the Speaker to and from Washington, D.C. to San Francisco and the difference between that plane and the 12 passenger, 5 crew jet used by former speaker Dennis Hastert to fly him from Washington, D.C. to Chicago, Il. (The administration extended the transportation and security personnel option to Speaker Hastert after 9-11 because the Speaker of the House is next in line for the presidency if the president and vice president are incapacitated. The use of the planes is to insure the security of the Speaker.)

Status:  Passed House in the Committee of the Whole House  422 to 3  February 8, 2007 (RC 86) Then Passed House 385 to 23 February 8, 2007 (RC 90)

Rep. Ginny Waite-Brown (R-FL-5th)

Requires the Secretary of energy, once this bill's research requirements are met and new technologies are identified, to report to Congress what incentives (Grants, Loans, tax Credits) will be available to businesses manufacturing the technologies.

Status: Passed by voice vote February 8, 2007

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CONGRESS' FINDINGS

SEC. 2. FINDINGS.

The Congress finds that--

(1) in order to lessen United States dependence on foreign sources of petroleum, and decrease demand for petroleum in the transportation sector, the Nation must diversify its fuel supply to include domestically produced biofuels;

(2) while ethanol has been successful in the market place as a fuel additive, newer biofuels may present unique challenges that may render the fuels incompatible with the current fuel transportation and delivery infrastructure, placing the burden of costly refurbishment and construction on fuel distributors and retailers;

(3) chemical additives to the fuels may mitigate the negative impacts of some biofuels on existing infrastructure and preclude costly retrofitting or installation of new biofuel compatible infrastructure and transportation systems;

(4) in order to mitigate air pollution and comply with Federal mandates, Ultra Low Sulfur Diesel fuel was introduced into the marketplace in 2006;

(5) fuel labeled Ultra Low Sulfur Diesel may accumulate more than the statutory limit of 15 parts per million of sulfur when transported through multiple pipelines, tanks, and trucks to the final point of sale; and

(6) fuel distributors and retailers may inadvertently take delivery of fuel labeled Ultra Low Sulfur Diesel with more than 15 parts per million of sulfur without a practical means of verifying sulfur content.

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