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Letter of Opposition to Rep. Olson's Domestic Alternative Fuels Act, H.R. 1959

July 15, 2013 J

Dear Representative Olson:

On behalf of more than two million Americans for Prosperity activists in all 50 states, I am writing in strong opposition to your Domestic Alternative Fuels Act (H.R. 1959). Your legislation would allow domestic alternative fuel—ethanol produced from natural gas—to qualify as renewable fuel in the Renewable Fuel Program in the Clean Air Act.

Although the ostensible goal of this legislation is to weaken and undermine the Renewable Fuel Standard (RFS), which requires that refiners blend a certain amount of ethanol in gasoline, it will have an opposite effect. Including more allowable fuels will have the unintended consequence of expanding it. Now is the time to repeal this economically-damaging mandate, not expand it.

Government intervention in the nation’s energy markets has been a categorical failure. Due to energy mandates including the RFS, American families and businesses pay an artificially higher price for their electricity. Expanding the RFS to include additional fuels would fail to alleviate the problems this mandate currently causes, such as higher prices for commodities and feedstock.

Your legislation would wreak havoc on the natural gas market as well. It would put upward pressure on natural gas prices, causing further strain on Americans families and manufacturers, and leading to slower overall economic growth. Natural gas is an abundant and inexpensive energy source that’s fueling the economic recovery; using subsidies and mandates to keep it afloat is neither necessary nor appropriate.

Expanding the Renewable Fuel Standard to include ethanol produced from natural gas is misguided. This mandate should be repealed, not expanded. Americans for Prosperity opposes the Domestic Alternative Fuels Act, and I urge your colleagues to oppose its passage.

Sincerely,

Christine Harbin Hanson
Policy Analyst
Americans for Prosperity

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