US senators offer biofuels bill; calls for 36 bil gal/yr by 2022

Washington (Platts)--27Mar2007

Two US senators plan to unveil a biofuels bill Tuesday to require the
production of 36 billion gallons of renewable fuel annually by 2022, including
21 billion gallons of advanced biofuels that year.

The bill, introduced late Monday by New Mexico Senators Jeff Bingaman, a
Democrat, and Pete Domenici, a Republican, sets differnt goals then
President Bush's proposal to produce 35 billion gallons of alternative fuels
by 2017. The bill by Bingaman and Domenici calls for the production by 2017 of
21 billion gallons of renewable fuels, including 6 billion gallons of advanced
fuels, described as those derived from renewable biomass other than corn
kernels.

"The introduction of this bill is the beginning of what I hope will be a
substantive exploration of the comprehensive set of issues surrounding the
role of biofuels in meeting our future energy security," said Bingaman, the
the chairman of the Senate Energy and Natural Resources Committee, in a
statement published in the Congressional Record Tuesday.

Domenici is the ranking Republican on the committee.

The bill accelerates the 2012 deadline for producing 7.5 billion gallons
by 2012, which was included in the 2005 Energy Policy Act. Instead it would
require 8.5 billion gallons by 2008 and 13.2 billion gallons by 2012.

The measure establishes a pilot program to set up corridors for renewable
fuels infrastructure such as pipelines. It also increases funding available
for biomass research and promotes growth of local biorefineries.

The bill also calls for studies on the feasibility of a nationwide
ethanol-blended gasoline at levels between 10% and 25% ethanol and on the
feasibility of a renewable fuel credit trading program for use of plug-in
hybrids to offset fuel consumption.