Renewable Fuels Legislation, Committee Action and Letters

Interest in passage of a nationwide renewable fuel standard continues to grow in Congress as lawmakers seek ways to expand domestic energy supplies. Legislation has been introduced by Nebraska Senator Chuck Hagel and South Dakota Senator Tim Johnson (S. 1006) and South Dakota Representative John Thune (H.R. 2423) which would create a renewable fuel requirement that would increase the annual ethanol consumption from the current usage of approximately 2 billion gallons to more than 15 billion gallons by 2016, by displacing 600,000 barrels of imported crude oil per day.

"We have an opportunity to develop energy and environmental policies that work together," said Senator Hagel. "By establishing a renewable fuel standard, we can improve our air quality, strengthen our national security, reduce our trade deficit, decrease dependency on foreign oil, and create an expanded market for America's farmers."

The bill has been referred to the Senate Energy and Natural Resources Committee, which is in the process of drafting comprehensive energy policy legislation. A recent letter signed by the American Coalition for Ethanol, American Farm Bureau Federation, American Soybean Association, Clean Fuels Development Coalition, Ethanol Producers and Consumers, National Biodiesel Board, National Corn Growers Association, National Farmers Union, National Grain Sorghum Producers, New Uses Council, Renewable Fuels Association and Women Involved in Farm Economics was sent to the Congress in support of S. 1006 and H.R. 2423.

 "Our Nation is facing another energy crisis. Oil imports are approaching 60 percent of our total oil use and are projected to continue increasing. We are supporting the development and will work for the passage of a comprehensive energy policy that includes incentives for domestic energy production. First and foremost among our priorities is the inclusion of a renewable fuels standard for the U.S. motor fuel market," the letter states. "A renewable fuels standard will not solve all of our energy problems, but it can and should be part of the solution. Along with conservation and increased domestic production, America can move toward energy independence," they said.