Dayton thinks America is ready for a biofuels boom, since the bill 
also contains his idea for a new biodiesel tax credit of up to $1 a 
gallon.

"The alternative is to do nothing, to make no change," Dayton said.

http://www.twincities.com/mld/pioneerpress/news/local/3131380.htm


>> or simply tax imported crude, I gotta agree with Todd an his pray 
for acid drought,$3.50 fuel, I'll take 2.00 fuel, it would no doubt 
do more for biofuels faster than any legislative attempt to increase 
production, its all in the consumers pocketbook<<

WASHINGTON ÷ Pro-ethanol forces have won every battle in Congress 
this spring, but with each victory, opposition to the corn-based fuel 
grows more fierce.

Lawmakers from mega-states like California, New York and Texas are 
furious that Midwestern legislators are forcing them to use a fuel 
their states don't produce, don't like and don't want.

"First the government subsidizes ethanol, and then mandates that 
everybody use it," fumed Sen. Charles Schumer, D-N.Y., during a 
debate Tuesday. "That sounds more like something out of the Soviet 
Union than out of the United States of America."

Today, the U.S. Senate is expected to pass an energy bill that 
enthusiastically promotes ethanol. The bill requires tripling the 
amount of ethanol used nationally and includes Minnesota Sen. Mark 
Dayton's proposal requiring most federal vehicles to use ethanol 
blends.

Like Midwestern senators from both parties, Dayton, a Democrat, 
thinks it's good policy to promote homegrown energy, so "the money 
will stay in the country rather than going abroad · (and will) help 
the environment and boost the prices for corn."

Minnesota is the nation's fourth-largest ethanol-producing state, so 
the bill would be a bonanza for the state's booming ethanol industry. 
Minnesota's second senator, Paul Wellstone, also a Democrat, called 
it "a win-win-win": for the environment, for Minnesota farmers and 
for energy independence.

But outside the Corn Belt, the debate has critics complaining anew 
about the tax breaks, import restrictions and federal mandates that 
prop up the industry.

Sen. Dianne Feinstein, D-Calif., noted that ethanol already gets a 53-
cent-a-gallon tax break and enjoys a protective tariff to block 
foreign imports. She calls it "greedy" to add new requirements to 
triple ethanol use in 10 years and push ethanol-only policies to 
clean the air.

"This is a massive transfer of wealth out of some states, into other 
states," she complained. Ninety-eight percent of ethanol comes from 
the Midwest.

Feinstein and other critics couldn't persuade the U.S. Senate, where 
each state has two senators. But the odds are different in the U.S. 
House, where California has 52 votes vs. Minnesota's eight and Iowa's 
five. When the energy bill next goes to a House-Senate conference 
committee, how will Midwesterners prevail?

"We'll have to use our wonderful power of persuasion," said Dayton.

"Eleven percent of the gasoline consumed in the entire United States 
is consumed in California," he said. "If anyone has a stake in 
shifting reliance from large imported foreign oil ÷ and therefore 
gasoline ÷ to U.S.-based alternatives, it would be California. They 
are even more vulnerable to supply disruption and price spikes than 
anyone else in the country."

The Midwest will get help from President Bush. On Wednesday, he 
toured a South Dakota ethanol plant and said the fuel is "good for 
our air, it's good for our economy and it's good for our national 
security."

During the Senate debate, Schumer warned that the ethanol provisions 
would send gasoline prices soaring, prompting "an outcry in the 
nation" and causing senators to ask sheepishly, "How the heck did 
this thing pass?"

Not so, Dayton said. He cited Minnesota's ethanol experience, where 
dire predictions of high prices and shortages did not occur.

Dayton thinks America is ready for a biofuels boom, since the bill 
also contains his idea for a new biodiesel tax credit of up to $1 a 
gallon.

"The alternative is to do nothing, to make no change," Dayton said




Why are there no ethanol plants in NY,CA? does nothing grow in these 
states???? Do they not have ports to import "cheap" corn to make ETOH?
Does California produce all their own dino-fuel, or did they support 
building a pipeline down from Alaska. 

I think there ought to be an added tax on any Ethanol shipped out of 
a state else the people that paid for these plants are not going to 
realize the cost savings of local production. Why doesn't CA have 
enough ethanol plants, the Federal Gov't has been begging and paying 
for them for a while and its only getting better.

Come on "Coasties" put on your thinking caps and figure out ways to 
make ethanol and biodiesel and get with the program.


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