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Posted on  

October 8, 2002

HOUSE AND SENATE NEGOTIATORS AGREE ON 5 BILLION GALLON RFS

The House energy bill conferees recently voted to submit a revised fuels agreement to Senate conferees that included a 5 billion gallon renewable fuels standard (RFS). Therefore, the debate over the existence and size of an RFS in the energy bill is essentially over. However, the House proposal would make a number of changes to the Senate-passed agreement that remain to be worked out.

The House proposal would remove the Senate-passed federal ban of MTBE, delay implementation of the RFS by one year until 2005, and delay full implementation of the RFS by two years until 2014.

"We are pleased the House offer embraces a 5 billion gallon RFS," said Bob Dinneen, Renewable Fuels Association (RFA) president. "Establishing an RFS is critically important to reducing our dependence on foreign oil and boosting rural economic development."

Dinneen continued: "Having said that, the House offer is not consistent with the desire of consumers and states to phase down MTBE in a uniform fashion while at the same time ensuring adequate fuel supplies. The only impact of delaying the RFS is to jeopardize gasoline supplies as oil companies abandon MTBE. We strongly believe the public will be better served by the adoption of the carefully crafted Senate-passed fuels provision."

With Congress expecting to adjourn within two weeks, the future of the energy bill is uncertain, as a number of energy bill issues remain to be resolved including electricity reform, global warming, and details of the fuels agreement.

 

 

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