U.S. Congress puts energy bill in limbo

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Published: November 21, 2002

WASHINGTON, D.C. – American farmers will have to wait until the new

Congress convenes next year for a new U.S. energy policy expected to

double the market for corn-based ethanol.

The Senate, deadlocked for months in talks with the House of

Representatives, particularly over provisions dealing with oil drilling

in the Arctic National Wildlife Refuge, agreed Nov. 13 there was not

enough time left to wrap up the bill in the current congressional

session.

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The bill will die formally when Congress adjourns.

The delay was a big disappointment to farmers who hoped for a

congressional mandate to more than double the market for corn-based

ethanol.

Ethanol would be a prime component in any renewable fuels standard, or

RFS, section included in the bill, and an ethanol mandate would more

than double the use of the fuel.

While House and Senate negotiators were willing to agree on a

19-billion litre mandate for ethanol, they disagreed on when. The

Senate proposed that it take effect in 2012, the House in 2014.

National Corn Growers Association vice-president Jon Doggett and chair

Tim Hume, a Colorado farmer, said support for an RFS remained strong.

If Congress has to start again on an energy bill next year, ethanol

will be in a strong position, they said.

“The groups that supported a renewable fuels standard are still in

place,” Hume said. “Just because Washington doesn’t have its act

together doesn’t mean people will start walking away from it.”

California lawmakers and some environmental groups oppose the ethanol

guarantee for a variety of reasons. They say fuel prices will rise if

ethanol is required as an ingredient and that ethanol is not a clean

fuel. Proponents disagree.

About the author

Tom Doggett

Reuters News Agency

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