New Legislation Extending Ethanol Program Introduced in House; 33 Members in Bipartisan Push For Extension Through Year 2007

17 September 1997

    WASHINGTON, Sept. 17 -- Farm-state members of the House of
Representatives are pushing new legislation to extend the federal ethanol tax
incentive program through the year 2007.
    "The importance of ethanol cannot be overstated," Reps. Ray LaHood and Tom
Ewing, both Illinois Republicans, said in a statement Wednesday as they led a
bipartisan group of 33 House members seeking the ethanol extension.
    Gasoline distributors currently get a 5.4 cent per gallon excise tax
credit for ethanol.  (Farmers and ethanol producers don't get the credit.)
The tax plan, designed as an incentive to encourage ethanol use and
production, is currently set to expire at the end of the year 2000.
    "There is no dispute that ethanol has a positive impact on our
environment, on reducing our dependence on foreign oil, and on the rural
economy of this country," the congressmen said.
    "These are the reasons why the ethanol provision was established in 1979,
and these are certainly the reasons why it should continue today."
    The new ethanol bill was introduced Wednesday with its 33 co-sponsors in
the House.  It is a companion bill to legislation introduced earlier in the
Senate by Sen. Dick Durbin (D-Ill.).
    Sen. Durbin called extension of the ethanol tax incentive a "top priority
of the Illinois congressional delegation."  His Senate version, he said, is
supported by Sens. Carol Moseley-Braun (D-Ill.), Chuck Grassley (R-Iowa), Tom
Harkin (D-Iowa), Paul Wellstone (D-Minn.), and  Tim Johnson (D-S.D.).
    Praising the new House effort led by members of the House Alcohol Fuels
Caucus, Sen. Durbin said:
    "Ethanol's benefits are well documented.  It strengthens the economy,
improves the environment and decreases our dependence on foreign oil.  I
believe this program should continue beyond its current sunset in the year
2000."
    Durbin wants to attach his ethanol extension to reauthorization of a major
transportation bill, the Intermodal Surface Transportation and Efficiency Act.
Called ISTEA, the highway bill "provides a perfect opportunity for this
extension,"  Sen. Durbin said.

SOURCE  Fuels for the Future