[Congressional Record Volume 142, Number 111 (Thursday, July 25, 1996)]
[Senate]
[Pages S8863-S8864]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  GAO REPORT ON MOTOR FUELS: ISSUES RELATED TO REFORMULATED GASOLINE, 
                     OXYGENATED FUELS, AND BIOFUELS

  Mr. DASCHLE. Mr. President, a report released last week by the 
General Accounting Office [GAO] concludes that the reformulated 
gasoline [RFG] program is a cost-effective means of reducing ozone 
pollution and easing our Nation's vulnerability to oil supply 
disruptions and related price shocks. Congress ought to pay close 
attention to the conclusions of this study as it seeks to wean the 
nation off imported petroleum and further improve air quality 
throughout the Nation.
  This independent analysis confirms that the reformulated gasoline 
program is good for the economy and good for the environment. RFG, 
which reduces emissions of volatile organic compounds and toxic air 
pollutants by 15 percent, displaces significant amounts of petroleum, 
much of which is imported. Given the gasoline price shocks that this 
country recently experienced and the petroleum displacement goals 
established by Congress in

[[Page S8864]]

the 1992 Energy Policy Act, it is time to consider nationwide use of 
RFG.
  According to the GAO report, the potential for RFG with oxygenates to 
displace petroleum consumption is significant. GAO expects that by the 
year 2000 about 305,000 barrels per day of petroleum will be displaced 
by oxygenates. This amounts to about 37 percent of the 10 percent 
petroleum displacement goal established by Congress in the 1992 Energy 
Policy Act.
  GAO noted in its report that if all gasoline in the country were 
reformulated, the Nation could displace 762,000 barrels of petroleum 
per day by 2000, and thus meet nearly all of the 10 percent petroleum 
displacement goal. Moreover, despite predictions by the oil industry 
that RFG would cost consumers over 13 cents per gallon more than 
conventional gasoline, GAO found that the actual cost to consumers has 
been negligible.
  The environmental potential of an expanded RFG program is 
extraordinary. In the future, RFG will be even cleaner. In the year 
2000, the Environmental Protection Agency will implement RFG Phase II, 
which will require further reductions in emissions of volatile organic 
compounds and toxic pollutants, as well as reductions of nitrous 
oxides.
  Expanding RFG nationwide will bring these clean air benefits to new 
areas of the country. Moreover, since air pollution is transported over 
vast distances, adopting a nationwide RFG program will help further 
reduce pollution in areas already using RFG to lower ozone levels.
  A nationwide program would achieve these air quality benefits at low 
cost. GAO concluded that Phase II RFG will be one of the most cost-
effective measures available to control low-level ozone pollution. With 
the additional petroleum displacement benefits associated with 
nationwide use of RFG, there seems to be no reason why we should not 
move in that direction.
  Finally, the GAO report demonstrates that continuing research into 
ethanol, an oxygenate used in RFG, is critical. GAO confirmed that 
substantial progress has been made in reducing the cost to produce 
ethanol. Since 1980, the cost to produce corn-based ethanol has dropped 
from $2.50 per gallon to about $1.34 per gallon. I hope that my 
colleagues in Congress will review the findings of the General 
Accounting Office and continue to support the research and incentives 
that have proven so successful in lowering the cost of ethanol 
production and encouraging the development of a strong domestic 
industry. As GAO has shown, these investments provide important 
dividends in terms of cleaner air and greater energy independence for 
the United States.

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