Senate bill would boost use of ethanol

By PHILIP BRASHER

REGISTER WASHINGTON BUREAU

March 27, 2007

Washington, D.C. — Refiners will be forced to dramatically increase their use of fuel ethanol over the next decade under legislation being introduced by key U.S. senators.

The bipartisan legislation, proposed by the chairman and top Republican of the Senate Energy and Natural Resources Committee, would require use of 18 billion gallons of biofuels by 2016 and 36 billion gallons by 2022.

All but 15 billion gallons of that biofuel each year would have to come from sources other than corn, such as crop residue, switchgrass and forestry waste.

Last year motorists consumed about 5 billion gallons of ethanol, which is made primarily from corn.

Under current law, refiners are required to use 7.5 billion gallons of biofuels by 2012. President Bush has proposed using 35 billion gallons of ethanol and other alternative fuels by 2017.

The chairman of the Senate committee, Jeff Bingaman, D-N.M., called the proposed new mandate a "stretch goal," echoing the Bush administration’s description of its proposed alternative fuels mandate.

The bill is also sponsored by Sen. Pete Domenici, R-N.M.

President Bush has proposed to displace 20 percent of gasoline usage by 2017, but he would allow the use of fuels derived from coal, not just biofuels such as ethanol.

The Senate committee plans to hold a hearing on the legislation next month.

The 114 ethanol processors now in operation can produce 5.6 billion gallons a year, according to the Renewable Fuels Association.

Eighty additional plants and expansion projects now under construction will add 6.4 billion gallons in annual production capacity.