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Energy bill may include ethanol

Nash, Tom

The Automotive Service Association (ASA) reports that a ranking member of the Senate Energy and Natural Resources Committee, Frank Murkowski (R-AK), will attach a provision to an energy bill to force U.S. oil companies to add ethanol to automobile fuel. Sen. Murkowski added the ethanol provision in hopes of getting U.S. Senate Majority Leader Tom Daschle (D-SD) to take the legislation to the floor sometime this year. Ethanol, a fuel additive that makes gasoline burn cleaner, is made from corn; South Dakota is a major corn-producing state.

Sen. Daschle supports a measure that includes ethanol in the energy bill. In fact, he and Sen. Richard Lugar (R-IN) have introduced legislation every year to add ethanol to gasoline.

The oil industry opposes using ethanol, stating it will raise the cost of gasoline. According to Jeanne Miller, a spokeswoman for Exxon-- Mobil, "We believe the proposed ethanol provision is anti-consumer."

U.S. Secretary of Energy Spencer Abraham said he felt certain Sen. Daschle will include ethanol in the final energy proposal.

"One of the underlying goals of the White House's energy plan is to remove unnecessary regulations from the energy industry," he said.

Copyright Hearst Business Publishing Jan 2002
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