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Burgess Introduces Biodiesel CAFE Credit

 

Today, U.S. Representative Michael C. Burgess, M.D. (TX-26) introduced H.R. 2454, legislation to encourage the manufacturing of cars that run on a 20% biodiesel-to-gasoline (B20) fuel mix.

Right now, the United States imports nearly 60% of its oil and this number is expected to increase to 75% by 2010. Most of this oil comes from the Middle East and politically unstable nations such as Algeria, Nigeria and Venezuela. Reliance on foreign energy sources undermines our economy and our national security. Home-grown fuels, such as biodiesel, can help move the United States towards greater energy independence.

Despite the energy security and clean air benefits, biodiesel-capable cars and trucks have been slow to hit the market, mainly because of concerns by original equipment manufacturers for automobiles and engines. Although manufacturers are comfortable with B5, most will not certify automobiles to run on B20.

“It is my intention, that this legislation encourages auto and engine manufacturers to work toward making and certifying B20 capable engines and vehicles,” said Congressman Michael Burgess. “This is a logical next step, and one that I think is achievable.”

The Corporate Average Fuel Economy (CAFE) Program was established in the 1970s to reduce the use of petroleum in the United States during the Arab oil embargo. The CAFE law provides for special treatment of vehicle fuel economy calculations for dedicated alternative fuel vehicles and dual-fuel vehicles.

The fuel economy of a dual-fuel vehicle is determined by finding the average of the fuel economy on gasoline or diesel and the fuel economy on the alternative fuel vehicle divided by 0.15. For example, a dual fuel vehicle that averages 25 miles per gallon on gasoline or diesel and 100 miles per gallon on alternative fuel, would earn a CAFE rating of 40 miles per gallon. Under current law, alternative fuels under CAFE include E-85, hydrogen, natural gas, and electricity.

Charles Fiedler, Vice President of Operations at Biodiesel Industries, Inc. in Denton, Texas remarked of the Congressman’s bill, “It gives auto manufactures an additional CAFE credit for biodiesel thereby increasing the number of clean biodiesel cars on our roads. This bill benefits the country, and it benefits business like mine here in North Texas.”

Specifically, it makes biodiesel blend of B20 eligible for the alternative fuel CAFE credit. Alternative fuels receive an additional CAFE credit because they help to reduce the use of petroleum fuels or provide a clean air benefit. Biodiesel does both.

An October 2005 EPA study shows diesel vehicle fuel economy improvements of 33 - 40% and lifecycle carbon dioxide savings of 16 - 20% compared to gasoline vehicles. In addition, for every unit of diesel fuel which is replaced by biodiesel (B100), the total lifecycle greenhouse gas emissions that would have been produced from that unit of diesel fuel would be reduced by 67.7% and by B20, lifecycle GHG emissions are reduced by13 %.