6.3.5 Creating Pipeline Capacity for Biofuels

LPDD Recommendation: “The federal government should provide tax incentives to encourage investment in R&D supporting modification of existing pipeline systems to make them compatible with ethanol or biodiesel.”

LPDD Recommendation: “Congress and state legislatures should provide incentives to encourage the construction of pipelines that are dedicated to the delivery of ethanol and biofuels.”

LPDD Recommendation: “FERC should adopt a policy statement calling for a higher rate of return on the equity investment in pipelines that are dedicated to the delivery of ethanol and biofuels.”

LPDD Recommendation: “State governments should provide tax incentives to encourage investment in R&D supporting modification of existing pipeline systems to make them compatible with ethanol or biodiesel.”

DOE report on ethanol pipelines

Considered dedicated pipelines for ethanol under a series of feasibility factors, including the quantity of ethanol production that would make dedicated pipelines economically viable; existing or potential barriers to the construction; and more.