A NATION SO WEALTHY IT BURNS FOOD:

Senate Gives Ethanol an Added Boost: Farm-state lawmakers push through a measure to double the amount in the gas supply by 2012. The potential effect on prices is unclear. (Richard Simon and Warren Vieth, June 16, 2005, LA Times)

For years, Congress has showered tax breaks on ethanol, portraying the fuel that is derived mostly from corn as a homegrown alternative to oil imports.

But even the Corn Belt could not have imagined its good fortune Wednesday as the Senate voted to double the amount of ethanol, to 8 billion gallons, that must be added to the nation's gasoline supply by 2012.

"The Senate is poised to make ethanol a cornerstone of America's energy policy," said Sen. John Thune, a Republican from ethanol-producing South Dakota.

The provision was added on a 70-26 vote to a far-ranging energy bill moving through the Senate. It is widely regarded as critical to getting Congress to adopt a new national energy policy, a priority of President Bush's. [...]

Bush applauded efforts to boost the ethanol requirement, saying it was a key element of a broader strategy to reduce the nation's dependence on foreign oil. "We're pretty good about growing corn here in America, and we've got a lot of good corn growers," he told industry officials at an energy efficiency conference in Washington.

Bush said he looked forward to the day when a future president would say, "Show me the crop report," instead of asking, "How many barrels of crude oil are we importing?"

Although he did not endorse a specific amount, Bush said it was important for Congress to approve a renewable fuel standard requiring a minimum amount of ethanol and biodiesel, which can come from soybeans as well as recycled waste products such as cooking grease.

The president prodded the Senate to set aside partisan politics and pass an energy bill quickly, saying the public's patience, not to mention his own, was wearing thin.

"My advice is, they ought to keep this in mind: Summer is here, temperatures are rising, and tempers will really rise if Congress doesn't pass an energy bill," Bush said.

Bush's call for action reflected a more confrontational approach than his past public comments on presidential priorities that stalled in Congress.

Sen. Tom Harkin (D-Iowa) called the ethanol mandate something "we've been waiting for for a long time," and warned that if the provision was stripped out during House-Senate negotiations on a final bill, "there won't be an energy bill, period."

The energy bill passed by the House in April would require that 5 billion gallons of renewable fuel be added to gasoline by 2012, virtually assuring that an ethanol mandate of some amount would be in the final version of the legislation. [...]

Sen. John McCain (R-Ariz.) also complained about additional government support for the ethanol industry. "How much is enough?" he asked after voting against the measure.

Looks like he'll skip the Iowa caucuses again.

Posted by Orrin Judd at June 16, 2005 6:24 AM