Administration Releases Energy Policy Plan, Calling for Increased Ethanol Use

With a strong emphasis on increased production of oil, natural gas and nuclear power, the Energy Task Force Report released by the Bush Administration also points to a greater need for renewable fuels and energy conservation to expand energy supplies.

Ethanol, particularly, is singled out in the report as a successful example of renewable energy. "Beyond energy benefits, development of biomass benefits rural economies that produce crops used for biomass, particularly ethanol and biomass electricity generation," the report states. "Ethanol, a biofuel based on starch crops such as corn, is already making a significant contribution to U.S. energy security, displacing more oil than any other alternative fuel," the report states.

The report recommends continuing the ethanol excise tax exemption to continue to grow the industry. It also supports increased research and development dollars for renewable energy.

The report also cites "boutique fuels" as presenting major production and distribution challenges for refiners. "These different requirements sometimes make it difficult, if not impossible, to draw on gasoline supplies from nearby areas or states to meet local needs when the normal supply is disrupted," the report states. It recommends the Administration "study opportunities to maintain or improve the environmental benefits of state and local 'boutique' clean fuel programs while exploring ways to increase the flexibility of the fuels distribution infrastructure, improving fungibility, and provide added gasoline market liquidity."

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