Ethanol backers pleased with federal legislation

Published 12:00 am Friday, June 6, 2003

WASHINGTON &045; Approval of a popular measure that could put corn-produced ethanol in practically every gas tank in the country boosts chances that Congress will pass a broad-ranging energy bill this year.

Still, there are major hurdles to overcome and the bill’s fate is far from certain.

Sen. Pete Domenici, R-N.M., who is guiding the legislation on the Senate floor, had hoped to wrap up the bill in two weeks. But it took the first week alone just to maneuver through the ethanol provision, considered one of the least controversial parts of the bill.

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And things aren’t likely to get any smoother. Last year the Senate worked nearly two months on an energy bill that never made it out of Congress.

Next week, senators will tackle a proposal to sharply increase the government’s support of the nuclear industry, including a measure that would have the government provide loan guarantees to build a half dozen new-generation nuclear power plants.

Senate approval on Thursday by a lopsided 67-29 vote for the ethanol expansion, doubling the amount of the corn-based fuel to be used in gasoline to 5 billion barrels, was seen by Democrats and Republicans alike as giving strong incentive to get an energy package through Congress.

&uot;The ethanol is driving this thing,&uot; said Sen. Barbara Boxer, D-Calif., in an interview.

Local leaders are encouraged by the increasing support for ethanol.

&uot;The people in Washington must have been listening to us,&uot; said Rep. Dan Dorman, R-Albert Lea. He said Congress adopting an ethanol requirement is &uot;great news for all Midwestern corn growers.&uot;

Brian Thompson, a member on the board of directors at Exol, an ethanol plant near Glenville, said the proposal would fuel the demand for corn.

&uot;The benefit comes from the greater demand for corn, increasing the price across the country,&uot; he said.

He said ethanol plants are being built across the state which could help deal with a rise in demand for the fuel additive.

Beginning in 1999, the Exol plant has produced about 40 million gallons of ethanol for fuel use every year. The local plant has 41 employees and 496 cooperative members, Thompson said.

In its current state, the plant would not be able to produce more ethanol than it already does.

&uot;We’re at the capacity we can do,&uot; he said, &uot;We’re as big as we can get.&uot;

Boxer, who opposes many of the provisions in the Republican-crafted energy legislation including expansion of ethanol use, said, &uot;a lot of us will try to slow it down&uot; but added, &uot;If I was a betting person I’d bet it will pass.&uot;

&uot;The fact that this (ethanol) amendment is part of the bill will give it a lot more legs,&uot; agreed Sen. George Voinovich, R-Ohio, although he acknowledged there are issues &045; including concerns among some senators of what is not in the bill &045; that could cause problems.

The bill assures that ethanol will be a major component of the nation’s gasoline, requiring refineries to use the corn-based fuel in gasoline up to a minimum of 5 billion gallons a year by 2012.

The ethanol additive is made mainly in the Midwest from corn, although it can come from other grains and biomass. Under the new mandate, it would have to be used by refiners in every state except Alaska and Hawaii.

The ethanol provision crafts a solution to a growing environmental concern over MTBE, a rival gasoline additive, that has been found to contaminate drinking water, while giving refineries more flexibility in how it blends gasoline to meet federal air quality requirements. Use of the MTBE additive would be banned.

&uot;By itself it won’t get this bill through, but it gives it a boost,&uot; said Sen. Byron Dorgan, D-N.D., of the motor fuels package.