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Posted on  

May 18, 2001

Bush Energy Plan Calls for Increased Use of Ethanol to Expand Domestic Energy Supplies and Reduce Pollution

After four months of study and review, President George Bush today unveiled his energy policy blueprint calling for the increased use of renewable fuels, like ethanol, to expand our domestic energy supplies and further reduce air pollution from vehicles. The report cites ethanol as a successful example of renewable and alternative fuels. President Bush recommends funding for promising ethanol research and supports continuing federal ethanol incentives.

"The ethanol industry is very pleased with the recognition President Bush and his report give the positive role ethanol plays in reducing air
pollution and expanding our energy supplies," said Eric Vaughn, president of the Renewable Fuels Association (RFA). "The ethanol industry is expanding its production capacity at record pace to meet the consumers' need for high-octane, clean-burning fuels. We have opened more than a dozen new plants in the past two years and there are nearly 40 additional plants scheduled for construction over the next two years. With the President's support, we are prepared to expand ethanol's role in providing clean, domestic fuels."

The plan calls for greater funding "for the Department of Energy's Energy Supply account that would provide increased support for research and
development of renewable energy resources." The report also recommends that the Administration work with Congress "to continue the ethanol tax
exemption." The report based these recommendations on the following findings:

· "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."

· "Beyond energy benefits, development of biomass benefits rural economies that produce crops used for biomass, particularly ethanol."

· "Today, many states are considering phasing out the use of MTBE, an oxygenate additive for gasoline. If they do so, that will likely spur
greater reliance on ethanol."

· "Reformulated gasoline contains fuel additives such as ethanol to increase oxygen content, which reduces harmful emissions such as carbon monoxide."

· "The biofuel ethanol is mostly used as a fuel additive to reduce vehicles' smog-causing emissions."

· "The Clean Air Act required the use of oxygenates, such as MTBE and ethanol in fuel. These oxygenates account for 92 percent of alternative fuel use."

 

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