Springtime for Ethanol (registration required) In his State of the Union address, President Bush is expected to call for a huge increase in the amount of ethanol that refiners mix with gasoline, probably double the current goal of 7.5 billion gallons by 2012.
While the details of the proposal are not known, 15 billion gallons of ethanol would work out to more than 10 percent of the country’s current gasoline consumption, and is far beyond the current capacity of about 5.4 billion gallons.
At least half of the new ethanol would come from corn, signaling the administration’s support to the Midwest farm states that have benefited the most from the recent ethanol boom.
For an industry once dominated by the will of a single powerful producer, Archer Daniels Midland, ethanol has come a long way, joining the oil industry and producers of major agricultural commodities as an entrenched political force in Washington. And it now enjoys a powerful role in presidential politics because of Iowa’s status as one of the first states to select delegates to the parties’ nominating conventions.
Home »Unlabelled » SOTU: Will Bush Plug Plug-ins?
SOTU: Will Bush Plug Plug-ins?
01:16
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First hint from the NY Times says ethanol will be the big winner in Bush's State of the Union Address. Advocates of plug-in cars are hoping for a another good word and perhaps some funding for plug-in hybrids. We'll see.
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