Federal energy secretary says mandates may be needed
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BISMARCK, N.D. (The Associated Press) - Oct 29 - By BLAKE NICHOLSON Associated Press Writer
Government mandates are not ideal but might be a necessary part of efforts to boost the use of alternative fuels, Energy Secretary Samuel Bodman says.
Bodman spoke Monday at an energy conference sponsored by Sen. Byron Dorgan, D-N.D., who used the occasion to unveil legislation aimed at boosting renewable energy.
Dorgan said he and Sen. Richard Lugar, R-Ind., plan to introduce legislation calling on refineries to blend 36 billion gallons of biofuels annually by 2022, and on automakers to make 80 percent of their production fleet as "flex fuel" vehicles by 2015.
Bodman said he had not seen details of the legislation. President Bush, in his State of the Union speech earlier this year, called for reducing U.S. gasoline use by up to 20 percent by 2017, mainly by increasing alternative fuel production, he said.
"Sure, I'd like to get things done without mandates," Bodman said. But they have "proven to be a requirement in order to get a lot of these things done more effectively," he said.
Among the challenges in promoting alternative energy are making fossil fuels friendlier to the environment, and making renewable fuel production more affordable and easier to bring to market, Bodman said.
Dorgan said there are 6 million "flex fuel" vehicles in the United States capable of using E-85 fuel, a mixture of 85 percent ethanol and 15 percent gasoline, but fewer than 2 percent of the nation's retail gas stations have E-85 pumps.
His bill would set up programs and tax incentives to encourage the installation of more E-85 pumps, he said.
Mike Rud, president of the North Dakota Petroleum Marketers Association, said the cost of installing E-85 pumps likely will reach the $80,000 to $150,000 range.
"Rather than a tax credit, (gas stations) would love to see some upfront money" as an incentive, Rud said. "Tax credits are of really no value to many of our marketers in North Dakota. We're not making money at the pumps. What would better suit our industry ... is something to help offset the (installation) cost."
Only about two dozen North Dakota stations currently offer E-85, Rud said. "Right now, consumer demand is not there for the product," he said.
A number of studies have shown that E-85 has less energy value than regular unleaded gas. Bodman acknowledged that but said he is confident that private industry will find a solution.
Fossil fuels such as oil and coal, nuclear energy and alternative fuels such as ethanol and wind power all will play a role in energy's future, Bodman said.
"There is no one silver bullet here," he said. "We have to pursue a broad range of tactics." |
