US senators seeks DOE study of ethanol pipeline feasibility

Washington (Platts)--14Mar2007

US Senators Tom Harkin of Iowa and Richard Lugar of Indiana Tuesday
introduced legislation directing the US Energy Department to study the
feasibility of transporting ethanol by pipeline from the Midwest to the East
and West Coast.

"We must explore every option for reducing our dependence on foreign
oil," Lugar, the highest ranking Republican on the Senate Foreign Relations
Committee, said in a statement. "Overcoming problems in moving ethanol through
pipelines, as Brazil has done, is important in developing the full promise of
America's renewable fuels. This legislation will help determine US
infrastructure planning and development."

Harkin, a Democrat who chairs the Senate Agriculture Committee, noted
that creating a dedicated pipeline system could enable Iowa's ethanol
producers to deliver their products to states with a growing demand, like
California, New York, and Pennsylvania, at a lower cost.

"The rapid growth of ethanol production and use necessitates the very
near-term study of transporting ethanol by pipeline," he said.

Ethanol use has increased by more than 20% annually over the past several
years and a number of studies estimate that ethanol could account for 20% to
30% or more of America's transportation fuel in the future, the lawmakers
said.

Harkin and Lugar are long-time proponents of ethanol. On the first day of
the 110th Congress, the they introduced a bill to establish a new, more
aggressive renewable fuel stand requiring that 30 billion gallons of ethanol
and biodiesel be included in US motor fuel supply annually by 2020 and 60
billion gallons by 2030. The current RFS requirement of 7.5 billion
gallons/year by 2012 is expected to be met by July of this year.

--Cathy Landry, cathy_landry@platts.com