WASHINGTON - John Eichberger, NACS vice president of government relations, is testifying today on behalf of the industry regarding the challenges facing the retail motor fuels market as it tries to accommodate the demands set forth in the Renewable Fuels Standard (RFS). The hearing is taking place in the Senate Committee on Energy and Natural Resources, which is chaired by Senator Jeff Bingaman (D-NM).

In his testimony, Eichberger highlights the following facts about the retail fuels industry and its view on the renewable fuels market:

• Retailers are committed to complying with the current laws and regulations and to provide their customers with the best products and services they can offer. As new fuels come to market, NACS members want to have the legal option to sell these fuels if their customers wish to buy them.
• There are many challenges the retail industry faces when considering whether to sell a new fuel and these challenges must be overcome if the goals of the RFS are to be realized:
• Compatibility of retail storage and dispensing equipment
• Risks associated with consumer misfueling
• Risks of retroactive liability should current laws governing the sale of fuels change
• Proposals discussed in the Energy and Natural Resources Committee to set a fuel specification of the future are a good basis for discussion and could lead to some positive outcomes. However, the industry is concerned about specifically dictating the "fuel of the future," since new technologies could bring about better fuel products that are more suitable to the nation??s objectives and require less investment in infrastructure modifications.
• NACS encourages Congress to consider proposals that will allow retailers to have existing equipment evaluated and certified as compatible with new fuels, that protect market participants from liability in the event of consumers misfueling, and that promote development of new fuel products that are more compatible with existing vehicles and infrastructure.

Other witnesses at the hearing include:

• U.S. Senator Tom Harkin
• Bill Brady, CEO of Mascoma Corporation
• Shane Karr, vice president for federal affairs at the Alliance of Automobile Manufacturers
• Bob Dinneen, president & CEO of the Renewable Fuels Association
• Dr. Henry Kelly, acting assistant secretary of the U.S. Department of Energy