The use of ethanol as an additive to gasoline has proven to be successful in reducing the amount of pollution emitted by gasoline engines. Additionally, the expanded use of a domestically produced and renewable energy source reduces America’s dependence on foreign oil.
Ethanol production is important to American agriculture because it uses farm commodities, particularly corn, thus increasing demand for the commodity. Diesel fuel using soybeans and other farm product conversions are rapidly expanding the potential to increase commodity prices and reduce reliance on fossil fuels.
Ethanol has a unique opportunity to expand its market as a gasoline additive to reduce air pollution, required under the Clean Air Act. Problems with groundwater pollution caused by methyl tertiary butyl ether (MTBE), the petroleum-based additive currently used in 80 percent of fuels in areas with air quality problems, is creating calls for the elimination of MTBE. Ethanol can take on MTBE’s market share. Ethanol’s potential was greatly increased by the President’s decision to deny California’s request for a waiver from the Reformulated Gasoline requirement.
Farm Bureau policy strongly supports maintaining the link between ethanol and solutions to air pollution problems. The eventual phase-out of MTBE will allow for ethanol to greatly expand its market, particularly on the West Coast, a market currently dominated by MTBE. AFBF also supports efforts in Congress to require that motor fuels used in the U.S. contain a percentage of renewable, ag-based fuel.
The following legislation has been introduced in the 107th Congress: |
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| Bill # | Sponsor | Summary | Status |
| H.R. 2249 | Blunt, MO | To amend section 211 of the Clean Air Act to require a more uniform formula for gasoline and diesel fuel so that gasoline and diesel fuel manufactured for one region of the country may be transported to and sold in other regions of the country, and for other purposes. | Pending before the House Energy and Commerce Committee |
| S. 1006 | Hagel, NE Johnson, SD |
To provide for the energy security of the United States and promote environmental quality by enhancing the use of motor vehicle fuels from renewable sources, and for other purposes. | Pending before the Senate Energy and Natural Resources Committee |
| S. 892 | Harkin, IA Lugar, IN |
To amend the Clean Air Act to phase out the use of methyl tertiary butyl ether in fuels or fuel additives, to promote the use of renewable fuels, and for other purposes. | Pending before the Senate Environment & Public Works Committee |
| H.R. 1999 | Nussle, IA | To amend the Clean Air Act to prohibit the use of methyl tertiary butyl ether as a fuel additive, to require Federal vehicles to use ethanol fuel, and for other purposes. | Pending before the House Energy and Commerce and Ways and Means Committees |
| S. 907 | Carnahan, MO | To amend the Internal Revenue Code of 1986 to encourage the use of ethanol and the adoption of other forms of value-added agriculture, and for other purposes. | Pending before the Senate Finance Committee |
| S. 670 | Daschle, SD | To amend the Clean Air Act to eliminate methyl tertiary butyl ether from the United States fuel supply and to increase production and use of ethanol, and for other purposes. | Pending before the Senate Environment & Public Works Committee |
| S. 312 | Grassley, IA | To amend the Internal Revenue Code of 1986 to provide tax relief for farmers and fishermen, and for other purposes. | Pending before the Senate Finance Committee |
| H.R. 608 | Ganske, IA | To amends section 211 of the Clean Air Act to prohibit the use of MTBE, to provide flexibility within the oxygenate requirement of the Environmental Protection Agency’s Reformulated Gasoline Program, to promote the use of renewable ethanol, and for other purposes. | Pending before the House Energy and Commerce Committee |
| S. 613 | Fitzgerald, IL | To amend the Internal Revenue Code of 1986 to enhance the use of the small ethanol producer credit. | Pending before the Senate Finance Committee |
| H.R. 1636 | Thune, SD | To amend the Internal Revenue Code of 1986 to allow allocation of small ethanol producer credit to patrons of cooperative, and for other purposes. | Pending before the House Ways and Means Committee |
| S. 265 | Fitzgerald, IL | To prohibit the use of, and provides for remediation of water contaminated by, methyl tertiary butyl ether. | Pending before the Senate Environment & Public Works Committee |
| H.R. 454 | Johnson, IL | To prohibit the use of, and provides for remediation of water contaminated by, methyl tertiary butyl ether. | Pending before the House Energy and Commerce Committee |
