May 3, 2001
The Honorable Frank Murkowski
Chairman
Energy and Natural
Resources Committee
United States Senate
Washington, D.C. 20510
Dear Senator Murkowski:
The Governors’ Ethanol Coalition commends your Committee’s introduction
of the National Energy Security Act of 2001 which will help reduce
our dependence on imported sources of energy while stimulating the
nation’s economy. Addressing domestic renewable energy resources as a part
of that legislation will hasten that effort.
An important component of any national energy policy is the increased
use of domestically produced renewable fuels. Renewable fuels, such as
ethanol, will reduce our dependence on imported oil, MTBE and natural gas
while improving our air quality and stimulating local economies. Ethanol
also helps to reduce greenhouse gas emissions.
Ethanol has reached record levels of production with the industry
setting production records for the last seventeen months. Today, 46
ethanol plants are expanding or under constrictions in all parts of the
nation.
The Coalition urges you to consider incorporating a renewable fuels
standard in the National Energy Security Act of 2001 to ensure that
we have a balanced energy strategy that will benefit all areas of the
nation. By requiring that our motor fuel pool include 1.6 percent
renewable component, the nation would triple the amount of imported oil
currently displaced by renewable fuels like ethanol. The nation’s ethanol
producers are confident they can meet that demand by 2010.
The Coalition also strongly supports development and use of E-85 as an
alternative fuel that reduces greenhouse gas emissions and our dependence
on imported oil. Currently, automobile manufacturers are producing over
300,000 flexible fuel vehicles annually that can run on E-85 fuel. These
vehicles not only provide our country an energy security safety net
against gasoline supply disruptions and petroleum price increases, but
will assist with the development of a sustainable and renewable energy
resource.
Several sections of the National Energy Security Act of 2001
address alternative fuel vehicles and the Coalition strongly supports
those provisions, especially Section 973, Section 971 and Section 972. The
Coalition asks that you consider modifying Section 964 to provide a
federal income tax credit for any hybrid vehicle that also operates on a
renewable transportation fuel. As currently drafted, only
petroleum-based fuels would be eligible for this credit.
The Coalition would be pleased to work with you and your staff in the
further development and incorporation of these ideas into the National
Energy Security Act of 2001.
Sincerely,
