http://www.planetark.org/dailynewsstory.cfm/newsid/21036/story.htm

Opposition slows ethanol in US Senate energy bill

USA: June 4, 2003

WASHINGTON - U.S. Senate action on a plan to double ethanol 
production may be delayed, the Energy Committee chairman said this 
week, because opponents threatened to file dozens of amendments to 
water it down.

Backed by Republican and Democratic leaders of the Senate, the 
current proposal would mandate use of at least 5 billion gallons 
(22.73 billion liters) of renewable fuels such as ethanol in 2012.

Ethanol, distilled from corn and used as an additive for 
cleaner-burning motor fuels, is popular among farm state lawmakers 
and those looking for ways to stretch oil supplies.

Nine senators from the East and West Coasts decry the plan as a way 
to enrich the corn-growing Midwest. Opponents say it is a costly, 
unnecessary additive and that there are other ways to make 
less-polluting fuels.

Senate Energy Committee chairman Pete Domenici, a New Mexico 
Republican, said he hoped for an accord with foes to limit the 
amendments challenging the renewable fuels standard.

Democrats Charles Schumer of New York and Dianne Feinstein of 
California were believed to have 100 amendments ready to block 
mandatory use of renewable fuels. Feinstein has suggested ethanol use 
should be optional.

Majority Leader Bill Frist, Tennessee Republican, said on the Senate 
floor he expected "substantial progress" on a broad energy bill this 
week, which offers incentives and tax breaks for oil drilling, 
conservation and alternative energy.

Ethanol, first introduced as a home-grown response to the oil 
embargoes of the 1970s, has boomed in recent years.

Under the Senate's renewable fuels language, use of methyl tertiary 
butyl ether (MTBE), a rival to ethanol, would be phased out in four 
years. MTBE is banned in some states because it can pollute 
groundwater.

The House has passed its own version of the energy bill. It also sets 
a 5 billion-gallon mandate for renewable fuels with a target of 2015 
and would allow MTBE use to continue.

Some 2.13 billion gallons (9.68 billion liters) of U.S. ethanol were 
distilled last year. Capacity will exceed 3 billion gallons (3.64 
billion liters) by the end of 2003.

Story by Charles Abbott

REUTERS NEWS SERVICE


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