[Congressional Record Volume 154, Number 25 (Thursday, February 14, 2008)]
[Senate]
[Page S1067]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. INHOFE:
  S. 2651. A bill to amend the Clean Air Act to make technical 
corrections to the renewable fuel standard; to the Committee on 
Environment and Public Works. 
  Mr. INHOFE. Mr. President, today I rise to introduce the Technical 
Corrections to the Clean Air Act's renewable fuels standard. This bill 
is a measured response to the overly aggressive biofuels increase 
mandated by the Energy Independence and Security Act of 2007 passed in 
December. The Energy bill's mandates allow no room for error in a fuels 
industry already constrained by tight supplies, full capacity, 
environmental regulation, and volatile market conditions. This 
technical corrections bill is not an effort to substantively overhaul 
the RFS program but rather is an attempt to smooth its unintended 
consequences. Recognizing the delicate political balance surrounding 
RFS, these simple fixes are intended to provide flexibility for the 
fuels industry in meeting these mandates. As ranking member on the 
Environment and Public Works Committee I did not support the 2007 
Energy bill. The enactment of these technical corrections would not 
change my overall opposition to the current flaws enacted to the RFS 
program, but my bill does make this new RFS less onerous.
  The first correction to the Clean Air Act's renewable fuels standard 
allows a carryover of ethanol credits. This improvement does nothing to 
change the currently mandated numbers. Rather, it provides flexibility 
to an industry facing many uncertainties. In 2007, the industry used 
approximately 2 billion gallons of ethanol over and above the necessary 
levels prescribed in the Energy Policy Act of 2005, EPACT. However, 
EPACT language and EPA rulemaking do not allow for 2-year consecutive 
``carryover'' of credits. This means that although the industry has 
exceeded the 2007 requirements, they would be unable to apply these 
credits after 12 months. My bill would accommodate the uncertain levels 
of production from year to year. Considering the myriad variables 
involved in the ethanol production process including crop yields, land 
use, and feed stock prices, it only makes sense to allow more 
flexibility.
  Another fix extends the small refinery exemption by 2 years. This 
language also does nothing to change mandated levels. A small refinery 
produces less than 75,000 barrels average daily aggregate and EPACT 
exempts these facilities from the renewable fuels numbers until 2011. 
These refineries are dealing with drastically smaller economies of 
scale in production. In order to protect these refineries from 
potential economic hardship and subsequent job loss, this exemption 
should be extended from the year 2011 to 2013. 
  I am hopeful that my colleagues in the Senate will join me and 
quickly pass the bill I am introducing today.
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