WASHINGTON--(BUSINESS WIRE)--While the energy bill passed today by the U.S. House of Representatives is a step forward, it misses significant opportunities to move America toward less dependence on foreign oil, according to Richard Kolodziej, president of NGVAmerica. For example, NGVAmerica is concerned that one of the major provisions of the bill will not be able to achieve its goal of displacing 36 billion gallons of foreign oil. The Renewable Fuel Standard (RFS) would require the use of 36 billion gallons of renewable fuel to power vehicles by 2022. By statute and physical production limitations, corn-based ethanol would be capped at 15 billion gallons per year. Physical production constraints also would limit soy-based biodiesel to no more than 3 billion gallons per year. It is envisioned that the rest – 18 billion gallons – would be produced from cellulosic biofuels. Today, there are no commercial-scale cellulosic biofuels plants operating in the U.S., and it is unrealistic to assume that an industry that could produce 18 billion gallons of fuel per year could develop in just the next 15 years. The House, realizing this, included waivers in their bill to lower the oil displacement goal, if necessary.

“NGVAmerica believes that oil displacement is too important a national goal to allow lowering it to be an option,” said Richard Kolodziej, president of NGVAmerica. “Rather, the House could have – and should have – increased the likelihood that the goal could be achieved by allowing natural gas and other low-carbon fuels to qualify under the RFS program. This year, natural gas-powered vehicles will displace 250 million gallons of oil in the U.S. alone – much of that in heavy-duty vehicles (like transit buses, school buses, trash trucks and urban delivery vehicles), where ethanol cannot be used. A growing natural gas vehicle market would also help stimulate the use of biomethane – a renewable natural gas produced from landfill gas, sewage, animal and crop waste or cellulosic crops. The U.S. Department of Energy estimates that the U.S. could realistically power 10 million cars with biomethane. “With proper policy support from the federal government, natural gas and other low-carbon fuels could play a significant role in making America less dependent on foreign oil while reducing the level of greenhouse gases,” Kolodziej said.

Congress also missed the opportunity to extend the vehicle purchase and fuel use tax incentives for natural gas and other non-petroleum vehicles beyond their current expiration dates in 2009 and 2010. “This energy bill contains billions of dollars for programs to develop fuels and technologies that are technically and economically years away,” said Kolodziej. “Meanwhile natural gas vehicles are available and are making an oil-displacement impact right now. It makes no sense to establish oil displacement goals for 2017 and 2022, and then not extend tax incentives to help America reach those goals,” said Kolodziej.