FACTSHEET

OPEN FUEL STANDARD ACT: FUEL COMPETITION AT THE PUMP

The Open Fuel Standard Act (OFS), lead in the House by Reps. Shimkus (R-!), "n#el ($-%&), 'artlett (R-
($), and srael ($-%&), is a technolo#y neutral bill that )ould ensure most ne) *ehicles sold in the +.S.
enable ,uel competition startin# in -./0.
The economic and securi! "u#nera$i#iies associaed %ih &ero#eum de&endence sem 'rom oi#(s
saus as a srae)ic commodi!* %hich in urn sems 'rom is "irua# mono&o#! o"er rans&oraion 'ue#+
The &ur&ose o' OFS is o $rea, his mono&o#! in order o urn oi# 'rom a srae)ic commodi! - as sa#
once %as* due o is "irua# mono&o#! o"er 'ood &reser"aion - o .us anoher commodi!* as sa# is
oda!+
Oi#(s dominaion o"er rans&oraion 'ue# &ro"ides he oi# care# OPEC unacce&a$#e #e"era)e o"er he
)#o$a# econom!+ OPEC ho#ds /01 o' %or#d oi# reser"es and !e* due o a &o#ic! o' consrainin) su&&#!*
&roduces #ess oi# oda! han i did 20 !ears a)o e"en as )#o$a# oi# consum&ion and non-OPEC
&roducion ha"e dou$#ed o"er he same &eriod+
Com&eiion and consumer choice in he rans&oraion 'ue# mar,e %ou#d* $! ena$#in) dri"ers o
choose o &urchase a di''eren 'ue# on he '#! shou#d i $e #ess e3&ensi"e on a &er mi#e $asis* ser"e o
dam&en he im&ac o' oi# &rice "o#ai#i!* and OPEC su&&#! mani&u#aion* on our econom!+
A "arie! o' e3isin) echno#o)ies ena$#e "ehic#es o run on oher 'ue#s in addiion o or insead o'
&ero#eum $ased 'ue#s+ For e3am&#e* "ehic#es ca&a$#e o' o&erain) on )aso#ine as %e## as a#coho# 'ue#s
such as ehano# and mehano#* or an! com$inaion o' such 'ue#s* cos a$ou 4566 more o manu'acure
han )aso#ine on#! cars+
The raio o' '#e3 'ue# "ehic#es in 7ra8i# increased 'rom 8ero o /61 o' ne% cars %ihin hree !ears* and
hus as oi# &rices '#ucuae consumers in 7ra8i# can choose he #eas e3&ensi"e o' a "arie! o' 'ue#s+
A#coho# 'ue#s can $e made 'rom a %ide "arie! o' domesic ener)! resources inc#udin) naura# )as* coa#*
a)ricu#ura# %ase* ener)! cro&s* and rash+

Bill Summary
The CEOs o' he 7i) Three auo com&anies ha"e re&eaed#! saed heir %i##in)ness o commi o
ma,in) 961 o' ne% cars '#e3 'ue# "ehic#es or %arraned o o&erae on $iodiese# $! :65:+
The O&en Fue# Sandard Ac ;OFS< %ou#d $uress his commimen %ih #a%* hus &ro"idin) cerain!
'or in"esors in a "arie! o' a#ernai"e 'ue#s o ram& u& &roducion and 'ue# saion o%ners o insa##
&um&s+
S&eci'ica##!* OFS re=uires ha sarin) in :65>* 961 o' ne% auomo$i#es* sarin) in :65?* 061 o' ne%
auomo$i#es* and sarin) in :65/* @91 o' ne% auomo$i#es are %arraned o o&eraed on non-
&ero#eum 'ue#s in addiion o or insead o' &ero#eum $ased 'ue#s+ Com&#iance &ossi$i#iies inc#ude he
'u## arra! o' e3isin) echno#o)ies as %e## as a cach-a## 'or ne% echno#o)ies+