Ethanol and the New Senate

In addition to helping ANWR to pass yesterday, Senator Thune's office is reporting another major victory for his ethanol bill (you may remember the sad end of the ethanol bill in the last Senate):

Senator John Thune’s ethanol bill passed a critical hurdle today, clearing the way for the U.S. Senate to greatly increase ethanol use in the America.

In a bipartisan show of support, the Senate Environment and Public Works Committee passed Thune’s renewable fuels standard legislation. Thune introduced the bill last week with EPW committee chairman, Sen. James Inhofe, R-OK.

“This is a critical first step to increasing ethanol use in America,” Thune said. “We are closer to passing legislation that will dramatically increase ethanol demand, guaranteeing a good market for South Dakota farmers. Today’s vote clears the way for the Senate to make ethanol a cornerstone of America’s energy policy. The Senate now has an opportunity to improve – and pass – this vital legislation to strengthen America’s energy security.”

Thune’s legislation establishes a renewable fuels mandate requiring refineries to blend 6 billion gallons of ethanol into gasoline by 2012 and phases out the use of methyl tertiary butyl ether (MTBE).

The bill improves similar legislation that ethanol and oil producers agreed to last year, which set a 5 billion gallon requirement for refineries by 2012. That legislation was incorporated into the Energy Bill, which stalled in the Senate.

Quick facts about Thune’s ethanol bill:

·        S. 606 - Sponsored by Sen. John Thune, R-SD and co-sponsored by Sens. James Inhofe (R-OK), Kit Bond (R-MO), George Voinovich (R-OH)

·        Establishes a renewable fuels mandate requiring refineries to blend 6 billion gallons of ethanol into gasoline by 2012, a 20 percent increase over the last year’s number.

·        Improves similar legislation that ethanol and oil producers agreed to last year, which set a 5 billion gallon requirement for refineries by 2012. That legislation was incorporated into the Energy Bill, which stalled in the Senate.

·        Greatly increases the use of biofuels produced from agricultural commodities.

·        Phases out the use of MTBE in the U.S. fuels marketplace in four years, eliminates the federal oxygenate requirement in reformulated gasoline, and protects air quality.