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TEN reasons why an OPEN FUEL STANDARD is good for the environment

Almost all of the roughly 15 million new vehicles rolled onto Americas roads annually are

capable of running on nothing but oil. This gives oil a stronghold over our economy while

exposing us to economically devastating supply disruptions and price shocks.

An OPEN FUEL STANDARDwould require new cars sold in the U.S. to be warranted to operate

on non-petroleum fuels in addition to or instead of petroleum based fuels. Competition and

consumer choice in the transportation fuel market would, by enabling drivers to choose to

purchase a different fuel on the fly, serve to dampen the impact of oil price volatility on our

economy.

Such a policy would also have important benefits for the environment.

1. Oil is the largest contribution to U.S. CO2 emissions. Oil is responsible for 42% of U.S.CO2 emissions while coal is responsible for 37%. A variety of alternative fuels have

lower lifecycle carbon content than oil. An OPEN FUEL STANDARD would enable lower

carbon fuels to compete against oil.

2. While alternative fuels become greener, oil becomes dirtier. As we shift from coalpowered electricity to natural gas, nuclear and renewable energy our grid is becoming

cleaner as time goes by. Electric vehicles enable us to take advantage of this cleaner

electricity. The shift to second and third generation biofuels also delivers environmental

benefits. In other words, alternatives become cleaner. On the other hand, perpetuating

oil-powered transportation inevitably means that we will be using increasingly carbon

intensive fuels as we move from conventional crude to non-conventional oil made from

tar sands and oil shale.

3. Reduce methane flaring. Throughout the world, natural gas producing countries flaremethane at the wellhead, a greenhouse gas 23 times more potent than CO2. According

to the World Bank 5 trillion cubic feet of methane are flared globally, equivalent to

roughly one third of U.S. natural gas consumption. It takes 100 cubic feet of natural gas

to produce one gallon of methanol. Opening the door to methanol will entice methane

flaring countries to monetize this potent greenhouse gas by capturing it and turning it

into usable fuel.

4. Enable CO2-to-fuel pathways. The most economically sensible way to deal with CO2 isnot to bury it but to use it as feedstock in the production of usable and sellable

products. Ethanol and biodiesel can be made from CO2 soaking algae. Methanol can be

made from hydrogenated flue gas emitted by power plants. Opening our vehicle

platforms to such fuels would instill CO2 in the value chain of our fuel supply ensuring

that every CO2 molecule we burn on board a vehicle is cancelled out by a similar

molecule captured in the fuel making process.

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5. Absent prosperity, environmental concerns fall to the bottom of the publics priority list.Perpetuating petroleums virtual monopoly over transportation fuels would expose our

economy to painful oil shocks with crippling economic impact. In tough economic times,

priorities change and the public is more reluctant to support environmental policies. An

OPEN FUEL STANDARDserves to dampen oil prices as it allows consumers to shift on thefly to alternatives and hence protect the U.S. economy from recessions.

6. Recessions drain investments in renewable energy. When recession hits the renewableenergy sector is the first casualty. Investment funds drain and startups close shop.

Again, the OPEN FUEL STANDARDwould help to reduce the likelihood, frequency and

velocity of recessions, protecting the renewable energy industry from nasty road

bumps.

7. Enable the poor to grow their fuel. Poor, oil dependent countries suffer most from risingoil prices. If cars were capable of running on alternatives, developing economies would

be able to develop their agricultural sector and grow their own fuel on that vast swaths

of land currently used, at most, for subsistence farming. Turning degraded land into

cultivated land would reduce CO2 concentrations.

8. Natural gas fuels emit less GHG than gasoline. Compressed natural gas yields 28%reduction vs. petroleum fuel displaced. Methanol from natural gas yields 8% reduction.

An OPEN FUEL STANDARD would enable natural gas based fuels to compete against oil,

something the current fleet does not permit.

9. A growing portion of our oil is drilled offshore. As the BP Gulf of Mexico spill showedoffshore drilling presents risks of environmentally devastating spills. Alcohol fuels like

ethanol and methanol dissolve in water and are readily consumed by bacteria and

therefore pose no risk to the environment or to groundwater in case of spillage or leak.

Within a few days of an Exxon Valdez like alcohol spill, the ocean would be back to

normal.

10.Gasoline is detrimental to human health. Today, oil companies are allowed to usearomatics as octane boosters. Aromatics like benzene, toluene and xylene are toxic,

carcinogenic and increase pollution. Alcohol fuels are high octane yet non-carcinogens

and should therefore be used instead of aromatics.

An OPEN FUEL STANDARD is an environmentally friendly policy. It is a market based approach

which protects the U.S. economy from debilitating oil shocks without imposing a burden on ournational budget. Without an OPEN FUEL STANDARD we are destined to remain beholden to oil

as the only source of energy in the transportation fuel sector to the detriment of our

environment, health, economy and national security.