WASHINGTON - U.S. Senator Pete Domenici today continued his call for swift action by Congress and the Executive Branch to adopt an aggressive new renewable fuel standard that will dramatically expand consumption of biofuels.
At a hearing to receive testimony on the Biofuels for Energy Security and Transportation (BEST) Act of 2007 (S.987), which was introduced in March by Domenici and Senator Jeff Bingaman, Domenici noted that any action must include a strong loan guarantee program that will be properly implemented by the Department of Energy (DOE).
The BEST Act contains provisions to clarify and strengthen the loan guarantee program. The bill authorizes up to $250 million for each biofuels production facility and requires DOE to guarantee 100 percent of loans for cellulosic ethanol projects.
“I believe that developing private sector technology is one of the most important ways that we can enhance energy security and improve the environment, which is why I’m such a big supporter of loan guarantee programs that give the private sector a helping hand. But up to this point, when we try to move forward with a robust loan guarantee program, we run into a post that says ‘stop here’ instead of ‘proceed,’ Domenici said.
“Loan guarantees are particularly important if we are to develop advanced biofuels like cellulosic ethanol. We’ve clarified language on loan guarantees in this bill, and I would like to work with the Administration to address other concerns they may have in this area. Let’s get the right language so that when it becomes law, we can begin immediately and the loan guarantee program can flourish," Domenici said.
Domenici also praised Energy Secretary Samuel Bodman and EPA Administrator Steve Johnson for moving forward with new regulations for the Renewable Fuel Standard program, as required in the Energy Policy Act. The new regulations include compliance and enforcement provisions, reporting requirements, and various fuel tracking mechanisms designed to ensure that the program is providing the benefits intended.
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