Clean Fuels

Lawmakers conferencing the fiscal year 2012 defense authorization bill have decided to maintain a 2007 energy law provision that bans federal purchases of carbon-intensive alternative fuels, rejecting an attempt by the House to repeal the ban as it applies to the Defense Department.

The conferees' rejection of the House measure to block DOD compliance with section 526 of the energy law is referenced in the House-Senate conference report for the fiscal year 2012 defense authorization bill, released last night by the House Armed Services Committee. The House "recedes" in its attempt to exempt DOD from the section 526 alternative fuel procurement requirement, the conferees say in their final report.

Section 526 bars federal agencies from purchasing alternative fuels with higher greenhouse gas (GHG) emissions than conventional fuel. DOD is currently studying the lifecycle GHG emissions of fuels it purchases containing Canadian tar sands, in light of section 526 requirements.

But industry and other critics have sought to repeal the provision, charging it hampers demand for nonconventional fuels like tar sands, oil shale and coal-to-liquid fuels. Supplies of these fuels, especially Canadian tar sands, are expected to increase given two pipelines already approved by the State Department in recent years, and the possible approval of the controversial Keystone pipeline.

"Failure to repeal Section 526 will increase the nation's dependence on imported oil, while jeopardizing thousands of American jobs that depend on the continued flow of Canadian oil," the American Petroleum Institute (API) said in a press release earlier this year.

But earlier this year, former military officials publicly criticized the 526 repeal proposal, saying it would impede the military's move toward clean energy and maintain the military's reliance on oil and gas.

Rep. Adam Smith (D-WA), ranking Democrat on the House Armed Services Committee, opposed repeal during House floor debate last May on the defense bill. Section 526 bars "tax dollars from being used to purchase fuels that have a higher pollution emission than conventional fuels," Smith said. "As the largest federal agency, exempting DOD from 526 is a step backward in this effort."

The House sought to revoke section 526, as it applies to DOD, when it passed the defense bill in May. But the provision was rejected by the Senate Armed Services Committee earlier this year, with a committee spokesperson saying the panel lacked jurisdiction over the issue.

The conference report now goes to the House and Senate for votes on its final passage.