December 19, 2007

Energy bill to increase renewable fuels

President Bush will sign into law today a historic energy bill that will increase the production of renewable fuels like ethanol and raise mileage standards in cars. The bipartisan energy bill passed by overwhelming majorities in both the House and Senate.

The bill would gradually increase the annual use of biofuels by raising the Renewable Fuels Standard to 36 billion gallons by 2022. The bill also requires that 21 billion gallons of the Renewable Fuels Standard must be “advanced biofuels” refined from cellulosic sources like non-food plant material such as wood chips, switch grass or agricultural plant waste. Advanced biofuels must also have 50 percent lower lifecycle green house gas emissions.

Todd Sneller, administrator of the Nebraska Ethanol Board, said that the higher Renewable Fuels Standard marks a new phase of the economic and environmental benefits of ethanol.

“Cellulosic ethanol will play a significant role in the future of ethanol, and I’m excited that the energy bill promotes a fuel that will be cheaper, cleaner and better for the environment than current fuels. Cellulosic ethanol doesn’t turn food into fuel—it can use any plant material, from switch grass to corn cobs to wood chips,” Sneller said.

Jim Jenkins , Chair of the Nebraska Ethanol Board, said the Renewable Fuels Standard would lead to increased economic development in Nebraska. The ethanol industry has already created thousands of jobs and generated millions in tax revenues and increased economic activity.

“Ethanol will continue to play an increasingly important role in trying to achieve environmentally sound energy independence. Our state will soon see ethanol plants that are even more efficient and environmentally friendly than current ethanol technology,” Jenkins said.