House and Senate negotiators on the US energy bill will be asked to give ethanol a larger share of the US fuel market sooner than is now proposed, backers of the renewable fuel said, according to Reuters.
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Both chambers support a so-called renewable fuels standard that would require use of five billion gallons a year (19 billion litres) of ethanol at the end of a decade – the Senate puts the target at 2012, the House sets it at 2015, Reuters said.
The news agency said US use of ethanol has boomed in the past few years, as a rival fuel additive, methyl tertiary butyl ether, has fallen into disfavour as a ground-water pollutant. Both products are used to create cleaner-burning fuels, the report noted.
National Corn Growers Association President Fred Yoder told Reuters his group would try to persuade lawmakers writing the final compromise version of the bill to advance the mandate to 2010.
A spokesman told the news agency the Renewable Fuels Association regarded the proposed Senate mandate of five billion gallons in 2012 as “one of the cornerstone things.” RFA would prefer a starting guarantee “closer to 3 billion” gallons in 2005, the report added.
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By GlobalDataEthanol output may total 2.7 billion gallons this year, Reuters said, adding that, under the House bill, the earmark for renewable fuels would begin at 2.7 billion gallons in 2005 while the Senate begins at 2.6 billion gallons in 2006.
Both chambers would eliminate a requirement now in place for use of oxygenated fuels, Reuters said.
The news agency said the Senate would phase out use of MTBE in four years, while the House would allow use to continue, and the House also would give MTBE and renewable fuels protection against defective-product lawsuits, the Senate would limit the shelter to renewable fuels.
Reuters said there are 73 ethanol plants in 20 states, spanning the nation but mainly in the Midwest, while 13 additional plants are under construction.
