(18/05/07) Ethanol Pipeline Industry Want Congress to Ease Risks

Some of the nations biggest oil pipeline builders are looking into laying new pipelines dedicated exclusively to ethanol. The ambitious, costly projects would come with a hefty economic risk - but many lawnmakers say the pipelines could provide an essential key to reducing U.S. oil dependence

The industry is hoping lawmakers on Capitol Hill will provide the help they need to get the pipelines built, including easing of siting and permitting requirements, tax incentives for building the lines, and research and development funds.

First Steps in Congress

Congress isn’t considering anything like that yet, but odds look good for an energy bill (S 1321) —now headed to the Senate floor — that includes a provision directing the Energy Department to conduct a feasibility study on construction of dedicated ethanol pipelines.

One of the Senate’s biggest ethanol supporters, Iowa Democrat Tom Harkin, has authored a separate bill asking for the same feasibility study, as well as several other ethanol-boosting measures. An aide in Harkin’s office said Congress is not yet ready to deal with the specifics the pipeline industry says it needs — but Harkin, who heads the Senate Agriculture Committee, said he sees that pipeline study as a first step.

In an e-mail, Harkin wrote, “Our national energy situation necessitates that we increase production of ethanol and ensure its accessibility across the country. In order to meet these goals, we must develop a safe and cost-effective way to transport ethanol. A pipeline would be a large and important investment and we would want to do it right. That is what this feasibility study is about.”

 

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