Ethanol Industry Wants U.S. To Become More Corney

WASHINGTON, Sept 16, 2003; Reuters reported that industry proponents said Congress should give ethanol and other renewable fuels a larger share of the U.S. fuel market sooner than now proposed because of the rapid growth of the industry.

House and Senate negotiators were in the early stages of writing a compromise version of a wide-ranging energy bill. Both chambers have voted to mandate use of renewable fuels.

The earmark would start at 2.7 billion gallons in 2005 under the House plan and 2.6 in 2006 under the Senate.

Proponents did not suggest a figure but noted U.S. ethanol plants would have an estimated 3.4 billion-gallon capacity in 2005. Production this year could reach 2.7 billion.

At least one farm group believes the starting point should be 3 billion gallons in 2005.

A spokesman for the Renewable Fuels Association said the figure should be "somewhere between 2.6 and 3.4" billion gallons.

"We don't want to draw a line in the sand. We want to work with members of the conference," he said.

In a letter to negotiators, 17 ethanol and farm groups said the so-called renewable fuels standard in the bill should reflect "the unprecedented growth in recent ethanol production."

"Indeed, the U.S. ethanol industry is already producing at a higher rate than would be required in 2005 under the RFS in both the House and Senate bills," the letter said.

Earlier in the day, the senator overseeing the negotiations said a draft of a potential compromise bill would be completed by the end of the week except for "all but about four sections."