A Path Toward the Broader Use of Biofuels

Opening Statement By Chairman Nick Lampson

I would like to extend a warm welcome to all five witnesses. Thank you for being here today and testifying before the Subcommittee on Energy and Environment on the subject of biofuels, and more specifically on the status of our biofuels research and development, and what steps we can take to enhance those efforts toward better commercialization of new technologies.

I would like to make specific mention that we are joined today by Mr. John Berger, Chairman and CEO of Standard Renewable Energy. I recently joined Mr. Berger at the opening of his company’s large-scale biodiesel facility in Galveston, Texas and look forward to hearing more from him today about his experiences and the continuing research and development challenges facing the industry.

For sometime now, it has been clear to me and many of my colleagues that our nation’s energy needs can no longer be fully met with fossil fuels. Our reliance on fossil fuels, and more specifically foreign sources of energy, jeopardizes our economy, foreign policy, national security, and most importantly our environment.

The scale and complexity of addressing our energy and climate challenges cannot be overstated.

And, though I believe that fossil fuels still remain an important part of any viable, balanced energy strategy, we must continue, and in many cases enhance, our efforts to develop alternative energy sources – namely biofuels.

All over the country, ventures like Galveston Bay Biodiesel are emerging that demonstrate our country’s strong commitment to producing reliable energy through the use of exciting and cutting edge technologies. These projects are shining examples of the American innovative spirit.

Further, they demonstrate how a strong federal commitment to research and development can spur our economic growth and result in real solutions to our energy problems.

Though we have seen amazing growth in our country’s biofuels development, mostly in the forms of corn-based ethanol and soy-based biodiesel, ethanol still represents only 5% of the total gasoline sold, and biodiesel is an even smaller portion of the total diesel market.

Currently, biofuel supply relies almost exclusively on corn-based ethanol. Surely, we would not be where we are today without the efforts of those who pioneered the development of our ethanol industry. Recognition of there efforts to build the ethanol industry and make the current supplies of ethanol available is well deserved.However, concerns have been raised about further expansion of corn-based ethanol and its impact on food and feed supply and costs. And, to meet some of the biofuels mandates that have been proposed, it would require nearly half of the current corn crop produced annually. Clearly, this all suggests that biomass sources for biofuel production must be diversified.

The majority of this focus to diversify the feedstocks has been on cellulosic materials including grasses, wood, and waste materials. However, current technologies for the development of fuel from these sources continue to be expensive and not cost-competitive with corn-based ethanol. If we are going to move toward broader use of biofuels, technology will be necessary to create reasonably priced fuels from cellulosic materials.

To realize this needed “technological bump,” we must increase our investment in research and development, focus our research on the most promising technologies, and ensure that the latest research information is readily available for those looking to either expand their biofuels production or embark upon the development of new facilities.

Earlier this week, the Committee staff released a discussion draft of a bill that I will author and the Committee plans to consider in the coming weeks. The draft attempts to better coordinate and compile information from federal biofuels research programs, focus some of the biofuels research on infrastructure needs and efficiency of biorefineries, study some of the continuing challenges facing broader use of biofuels, and increase the funding levels for biofuels research.

This draft will serve as a starting point to discuss what legislative efforts are needed to ensure we maximize the federal funding spent on biofuels research and development. I am eager to hear from colleagues on the challenges they see ahead, and look forward to working with the Members of the Subcommittee as we move forward toward consideration of this bill.

It is my hope that our witnesses today will share with the Subcommittee their thoughts on the state of biofuels research and development, the technological challenges we continue to face, the efforts underway to commercialize new technologies for biofuels development, and what steps can be taken to ensure that there is strong continued federal support for biofuels research, development and commercialization of technologies.

Their testimony will surely help guide us toward crafting sensible legislation that will help us realize the benefits of biofuels in years to come.

Witnesses

Panel

3 - Robert Dinneen
President Renewable Fuels Association Renewable Fuels Association
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1 - Thomas Foust
Biofuels Research Director National Renewable Energy Laboratory Department of Energy National Renewable Energy Laboratory Department of Energy
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2 - John Berger
Chairman and Chief Executive Officer, Standard Renewable Energy Chief Executive Officer, BioSelect Chief Executive Officer, BioSelect
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4 - Michael J. McAdams
Executive Director Advanced Biofuels Coalition Advanced Biofuels Coalition
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5 - David Waskow
International Program Director Friends of the Earth Friends of the Earth
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