July 10, 2012

U.S. House of Representatives
Washington, D.C. 20515

Dear Representative,

Rep. Jeff Flake (R-Ariz.) will soon introduce H.R. 6047, the Phantom Fuel Reform Act, which would amend the renewable fuel program of the Clean Air Act to require the cellulosic biofuel blending requirement to be based on actual production. On behalf of the more than one million members and supporters of the Council for Citizens Against Government Waste (CCAGW), I urge you to support this legislation.

In 2011, the Environmental Protection Agency (EPA) mandated that oil refiners blend 6.5 million gallons of cellulosic biofuel into the U.S. fuel supply, despite the fact that cellulosic biofuel does not exist. Because energy producers cannot purchase nonexistent biofuels, they are forced to buy “waiver credits” directly from the EPA in order to avoid paying hefty fines.

Even though cellulosic biofuel is not produced, the EPA has increased this phantom fuel mandate each year since it went into effect. By February 2013, U.S. energy producers will have paid more than $14 million to the EPA for these phantom fuel credits. This cost is ultimately passed on to consumers in the form of higher gasoline prices.

H.R. 6047 would simply require the EPA to rely on actual industry production levels as opposed to arbitrary predictions. Essentially, oil companies would no longer be required to purchase cellulosic biofuels if none are being produced.

As the post-recession economy struggles to regain its footing and taxpayers continue to face high unemployment and rising prices, the government should do everything in its power to eliminate senseless policies that artificially inflate the price of gasoline. I strongly urge you to support the Phantom Fuel Reform Act. All votes on H.R. 6047 will be among those considered in CCAGW’s 2012 Congressional Ratings.

Sincerely,

Tom Schatz
President, CCAGW