Biofuels Infrastructure Task Force calls for new incentives to meet infrastructure needs of the Renewable Fuel Standard

In Washington, the Biofuels Infrastructure Task Force, convened by the National Commission on Energy Policy, released its report on the infrastructure implications of the federal Renewable Fuels Standard, and called for new incentives for a wide variety of biofuels infrastructure investments if the nation is to meet federal renewable fuels goals. The Task Force recommended that:

• Further consumer and manufacturer incentives may be needed to accelerate the market penetration of flex-fuel vehicles.
• Consumer acceptance of FFVs will depend in part on expanded access to E85 (or higher-ratio blends) retail stations in urban and rural areas.
• Reducing or limiting the number of different blends that fuel refiners must produce to meet state-level specifications will enable a more efficient biofuels transition.
• Streamlining and simplifying permitting processes along all aspects of the biofuels supply chain would help to reduce costs and lead times for infrastructure investment.
• Market confidence in the government’s commitment to the RFS is a prerequisite for timely private large-scale biofuels investments.

The Task Force said that transporting and blending 356 billion gallons of ethanol will require key infrastructure improvements, and in the current economy access to capital and large-scale investment was difficult under current policy. Task Force Chairman Norm Szydlowski, Former President and CEO, Colonial Pipeline and an NCEP Commissioner, said “U.S. biofuels policy to date has tended to emphasize production incentives and volume mandates. Going forward, it will be increasingly important to focus on other aspects of the equation — notably the need for safe, efficient and reliable infrastructure networks to transport, blend, and distribute biofuel.”

The task force included representatives from ConocoPhilipps, ADM, GM, the National Association of Convenience Stores, Magellan, the Association of Oil Pipe Lines, and the American Coalition for Ethanol

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