Policy Issues for Alternative Fuels for Military Operations

Abstract : Chairmen and distinguished Members: Thank you for inviting me to speak on the important subject of developing and using unconventional fuels that can substitute for crude oil. I am a Senior Policy Researcher at the RAND Corporation and have over 25 years of experience analyzing and assessing energy technology and policy issues. My remarks today are based on recent and ongoing research that RAND has been conducting with support from the U.S. Departments of Energy and Defense. My views on this topic are also shaped by my experience in watching the rise and fall of the U.S. Synthetic Fuels Corporation during my public service in the U.S. Department of Energy. Today, I will discuss alternative fuels for military transportation, the prospects and policy issues associated with developing a coal-to-liquids industry to meet military fuel needs, and approaches Congress could take to address these issues. My key conclusions are that (1) coal-to-liquids offers one important opportunity as a substitute for crude oil; (2) there are also challenges that must be overcome if a coal-to liquids industry is to be developed in the United States, (3) there are a number of actions the Federal government could take to further develop and explore this option; and (4) it would be unwise to proceed precipitously with a crash" program of investment in coal-to-liquids at this time.