The Subcommittee on Energy will receive testimony on how to improve our
renewable fuels infrastructure to accommodate the increasing volumes of
renewable fuels in the transportation sector.
Witnesses
- Sen. Amy Klobuchar (D-MN)
- Alexander Karsner, assistant secretary for energy efficiency and
renewable energy, Department of Energy
- David Terry, project coordinator, Governors’ Ethanol Coalition
- Charles Drevna, executive vice president, National Petrochemical and
Refiners Association
- Jonathan Lehman, advisor, VeraSun Corp.
- Deborah Morrissett, vice president of regulatory affairs/product
development, Chrysler Technology Center
- Phillip Lampert, executive director, National Ethanol Vehicle
Coalition.
2:44 PM Klobuchar Ethanol and biodiesel are near and dear to
Minnesota, but I believe this is also an issue of national security. I’m
glad the energy bill requires auto manufacturers to have 50% of their
vehicles be flexfuel by 2015. Minnesota ranks first in
E85 infrastructure.
2:56 PM Karsner An E85 infrastructure
should be a goal but not an exclusive goal. We see no technical reason
why flexfuel vehicles cannot be more ubiquitous across all markets.
Dorgan Do you think the marketplace will solve this problem?
Karsner I think the question is whether we have the proper stimulus.
Dorgan I’ve talked about the gas company impediments.
Karsner I had lunch with Gov. Pataki. On a state by state basis
those issues are being addressed. On E85 we
have a need to address it.
Dorgan Franchises are barred from listing
E85 on their signs.
Karsner I can’t speak for the position of the franchise owner, but
the New York model may be something we need to examine.
Dorgan Conoco Phillips will not allow sales on the primary island.
Should we just wait for the states to deal with it?
Karsner The New York example has been tested. I’m not an expert on
contract law. Is it an impediment? Obviously, yes.
Dorgan When we see this kind of restraint on the sale of
E85, should we act, or say so be it?
Karsner Something needs to be done. Some policy stimulus. I don’t
start with the premise that the oil companies are necessarily an
adversary to the outcome.
Dorgan It appears to me their actions are adversarial to the sale of
E85.
Karsner Were I a franchisee I likely would see it that way.
Dorgan What about as a policy maker? Keep it off the main island,
don’t allow credit cards, don’t allow advertising.
Karsner I understand your meaning. Fundamentally you have a conflict
between the national imperatives and the law. The problem is that this
is private contract which both parties have joined freely with.
Dorgan You seem to suggest the intermediate blends might get faster
adoption.
Karsner Intermediate blends goes as low as anything above
E10. All pumps are certified for
E15. In theory you could aggressively pursue
E85 and E15 at the
same time.
Dorgan Our goal is 36 billion gallons. If we don’t market it, we
won’t get there.
3:22 PM Under questioning from Tester: Karsner It may be that the
oil companies’ agreements are not aligned with the national security
imperative.
Tester There’s a lot of misinformation out there about ethanol. Is
there action on the part of the DOE to solve
that problem?
Karsner It’s not a one-time story.
Senate Energy and Natural Resources Committee
Energy Subcommittee
366 Dirksen
07/31/2007 at 02:30PM