"To sustain ethanol's growth as an alternative transportation fuel, we must continue to support its broader-based use," Gov. Frank O'Bannon said.Ethanol Coalition. "We applaud House and Senate conferees and the Congressional leadership for acting in a bipartisan manner to ensure that domestically produced, renewable fuels continue to play a role in our nation's energy mix."
The extension will allow for new investment in the domestic ethanol industry, particularly by farmer-owned cooperatives. The extension will also enable the industry to move into cellulose-based feedstocks for ethanol production, including rice straw and other agricultural waste, forestry residues and municipal waste.
Senator Chuck Grassley (R-IA) and Senator Carol Moseley-Braun (D-IL) co-authored the extension provision that was included in the final highway bill. The bill reduces the incentive slightly, from 5.4¢ to 5.3¢ in 2001, 5.2¢ in 2003, and 5.1¢ in 2005. House Speaker Newt Gingrich virtually assured that the ethanol extension would be approved when he appointed ethanol proponents Rep. Jim Nussle (R-IA) and Rep. Kenny Hulshof (R-MO) to the highway bill conference, passing over long-time ethanol opponent Ways and Means Committee Chairman Bill Archer (R-TX). "I did this because as Speaker of the House, I thought this was the right thing to do for the country," said Gingrich.
Prior to passage
of the highway bill, the Governors' Ethanol Coalition sent a letter signed
by 16 governors to House Speaker Newt Gingrich, Senate Majority Leader
Trent Lott, House Democratic Leader Dick Gephardt and Senate Democratic
Leader Tom Daschle urging them to support the Senate's provision to extend
the ethanol incentive. "The ethanol industry is a critical value-added
market for farmers across rural America," wrote the governors. "Nationally,
the production of ethanol utilizes almost seven percent of our nation's
annual corn production. Ethanol creates new markets for this corn while
leading to the creation of nearly 200,000 jobs." Ethanol enjoys the support of a broad-based coalition including the Clinton Administration, Congressional leadership, 71 U.S. Senators, scores of Representatives, 22 governors, farm leaders, independent gasoline marketers, consumers, environmentalists and national security experts. The grassroots campaign was capped by the nation's corn growers, who flooded their Congressional offices with seed tags from across the country in support of the extension.
