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Chapter IV: Modernizing U.S. Energy Security Infrastructures in a Changing Global Marketplace
product through its normal infrastructure. These alternatives include oil from the pyrolysis of biomass,
hydrocarbons derived from applying the Fischer-Tropsch process to mixtures of carbon monoxide and
hydrogen produced in biomass gasifiers, oil derived from algae, and fatty acid methyl esters. 16 Drop-in biofuels,
such as biobutanol and renewable diesel, can use existing oil and gasoline infrastructure and be “dropped in”
at points along the supply chain without infrastructure modification. Future research on both types of biofuels
can support energy security through fuel diversity without posing additional infrastructure challenges.
Administration Activities and Plans
Propane. The Administration has taken a series of actions to respond to the changes in transmission, storage, and distribution
infrastructure for propane and other natural gas liquids. The Energy Information Administration has added capability to
monitor propane inventories on a more granular, state-by-state basis, greatly enhancing the ability of industry, consumers, and
policymakers to monitor possible shortages or distribution issues. Because propane storage in customer tanks can provide an
additional margin of supply security, the Federal Government supported public education campaigns to encourage consumers
to fill their propane storage early for the 2014–2015 winter season. As of January 2015, propane inventories were above the
5-year average, and the Propane Education and Research Council’s market research shows the campaign contributed to these
increases. k,l
Department of Energy (DOE) alternative fuels programs. DOE has supported research and development on the
compatibility of higher-level ethanol blends with distribution infrastructure and vehicles. DOE grants and loans helped initial
commercial cellulosic ethanol refineries come online. DOE has active research programs on drop-in fuels, and small amounts
are already entering the commercial markets. m DOE also has robust research, development, demonstration, and deployment
programs using electricity and hydrogen in vehicles, and use of these fuels in transportation is increasing.
Department of Defense alternative fuels programs. The Air Force’s 2013 “U.S. Air Force Energy Strategic Plan” includes a
goal to use cost-competitive alternative drop-in fuels for half of “non-contingency” operations by 2025. The Navy’s 2010 report,
“A Navy Energy Vision for the 21st Century,” sets a goal of 50 percent of Naval energy use afloat to be derived from alternative
fuels by 2020. The Navy designated an aircraft carrier task force built around the USS Nimitz as “the great green fleet,” which
is intended to operate using biofuels by 2016. In support of these objectives, the Department of Defense has an active program
of research and development and testing alternative fuels for use in a range of aircraft and ships, including Fischer-Tropsch
synthetic biofuels and small amounts of algal biofuels. The Department of Defense also purchases alternative fuels for research
and testing purposes.
k
Propane Education & Research Council. “Results of the 2014 Consumer Safety Preparedness Campaign.” February 2015. http://
www.propanecouncil.org/uploadedFiles/Council/Campaigns/ConsumerCampaignPresentationResults.pdf. Accessed
March 4, 2015.
l
Energy Information Administration. “This Week in Petroleum: Propane stocks (million barrels) and days of supply.” http://
www.eia.gov/petroleum/weekly/propane.cfm. Accessed February 25, 2015.
m
Department of Energy. “Bioenergy Frequently Asked Questions.” http://www.energy.gov/eere/bioenergy/bioenergyfrequently-asked-questions.
Accessed February 25, 2015.
4-12 QER Report: Energy Transmission, Storage, and Distribution Infrastructure | April 2015