Statement of Energy and Air Quality Subcommittee Chairman Boucher

"Alternative Transportation Fuels: An Overview"

April 18, 2007

            This morning, we begin a series of hearings on ways to achieve a higher degree of American energy self-reliance.  Our goal is to make a legislative contribution to the Independence Day measures which the Speaker has announced that the House will consider in the mid-summer timeframe.

            This Committee's contribution to that effort will consist of legislation to encourage domestic alternatives to petroleum for transportation fuels, and energy efficiency and conservation measures that will reduce energy consumption.

            Until today, the Subcommittee has focused exclusively on a U.S. response to the challenge of climate change.  I would underscore again this morning that we will propose a mandatory control program for greenhouse gas emissions and later this year report that measure for consideration by the House during the fall.

            The climate change control program will not be a part of the mid-summer energy independence agenda.  Instead, climate change legislation will be taken up in the September - October timeframe.

            Today, as we begin our focus on this Committee's contribution to energy independence, we examine transportation fuels and ways to develop domestic alternatives.  Later hearings will focus on energy efficiency and conservation.

            Our nation has an unhealthy reliance on petroleum, 60% of which is imported from other countries.

            And much of that importation comes from some of the politically least stable places.

            In my view, our need to protect the flow of petroleum ties our hands diplomatically and makes it difficult for the U.S. to assert its larger national interests in a range of international policies.

            Our reliance on oil imports involves us in conflicts we would be better served to avoid.

            And so both for our economic security and national security, we must exert maximum effort to develop domestic alternatives to petroleum to power transportation.

            Over the long term, we can anticipate that more of transportation will be electrically powered through fuel cells and through plug- in hybrids.

            In the near-term, ethanol, both of the corn-based and cellulosic varieties, holds great promise.

            The greater use of biodiesel also holds promise.

            This morning, we will examine the role this Committee can play to advance these alternatives.

            We will also focus this morning on another promising alternative.

            In the coming days I will join with our Illinois colleague, Mr. Shimkus, and other interested Members in introducing legislation to promote the launch of a domestic industry to produce a liquid fuel derived from coal. 

            Since the days of World War II, coal-to-liquid processes have been in use.  Today South Africa derives a substantial portion of its transportation fuels from coal.

            The technology to convert coal to a liquid fuel is well understood, and the process is commercially feasible when the world price of fuel is $40 or higher.

            While today's price is well above $40, there is hesitation in the investor community about the long-term outlook for oil prices.

            A large portion of today's oil price is political risk.  The resolution of diplomatic differences in the Middle East would lend greater assurance to the future export of oil the world market and create a downward pressure on oil prices.

            This uncertainty about the future of oil prices has inhibited the investment of private capital in coal to liquids facilities in the U.S.

            The legislation Mr. Shimkus and I will introduce will serve to bolster investor confidence and pave the way for the launch of a U.S. based coal to liquids industry.

            I want to thank Mr. Shimkus for his partnership with me on this measure which is an important step in our effort to achieve a higher degree of energy self-reliance.

            This morning, we will welcome testimony from our witnesses on the future of ethanol, coal to liquids, and biodiesel and suggestions for the roles of government to advance each.

            President Bush announced in his State of the Union address a goal of consumption in the nation of 35 billion gallons of alternative fuels by 2020.

            Today, we consume approximately 5.5 billion gallons of ethanol annually.

            The President's goal is ambitious, but it needs to be achieved.

            Each of the approaches we will examine this morning can help us achieve it.

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