Ethanol Industry Hears from Washington's Leaders


South Dakota Senator Tom Daschle


Iowa Senator Chuck Grassley

South Dakota Senator Tom Daschle and Iowa Senator Chuck Grassley and Iowa Representative Jim Nussle addressed attendees of the Renewable Fuels Association's National Conference on Ethanol Policy & Marketing in Albuquerque, New Mexico with their outlooks for the future of the ethanol industry, including the present effort to extend the ethanol tax incentive beyond 2000.

Senator Daschle presented a list of items that must occur for the ethanol industry to realize its growth potential:

  • Extend the ethanol tax incentives through 2007.
  • Allow farmer-owned cooperatives to take advantage of the small producer tax credit.
  • Work with USDA to ensure that any efforts to reduce emissions of greenhouse gases include expanding the use of ethanol.
  • Work with the EPA, USDA, the automakers and others to explore opportunities presented by low-sulfur gasoline.
  • Aggressively explore alternatives, such as ETBE, for increasing ethanol's share of the expanding RFG market.
  • Ensure that domestic ethanol makers do not face unfair competition from subsidized imports of MTBE.

"Between the situation in the Persian Gulf, the new Clean Air standards, and the Administration's proposed new research and development package to reduce greenhouse gas emissions, the incentives have never been greater, and the stakes have never been higher," said Daschle.

Senator Grassley, a member of the Senate Finance Committee, recalled the battle in the Congress last year to first preserve the existing tax incentives for ethanol, and later to extend them as part of the balanced budget act. "We were able to transform a very hopeless defense into a very aggressive offense," said Grassley. Grassley, along with Senator Carol Moseley-Braun, succeeded in including an extension of the ethanol tax incentive through 2007 in the Senate highway reauthorization bill, which is currently being debated on the Senate floor.

Representative Nussle focused on the message that needs to be conveyed to all Members of Congress concerning the domestic ethanol industry. Noting the benefits of ethanol with regard to the environment, energy security, jobs and our Mideast oil dependency, Nussle stated the ethanol program has a much broader constituency than just American farmers. "This affects suburbs, it affects urban areas, it affects all Americans in all corners of this country, and it's about energy for the future," said Nussle.


Illinois Senator Carol Moseley-Braun


Iowa Representative Jim Nussle









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