Senate Panel Backs Renewable-Fuel Measure ; Cites Gas Prices, Iraq in Appeal

Summary


WASHINGTON - A Senate panel, responding to high gasoline prices and pressure from farm states, voted unanimously Wednesday to require refiners and importers to more than double the use of ethanol and other agriculture-derived fuels by 2012.

The bipartisan support for an ambitious renewable-fuels "mandate" of 8 billion gallons a year came as the Energy and Natural Resources Committee continued work on an energy bill that still faces many obstacles. Once the requirement is fully implemented, corn-based ethanol and other renewables - made from sugar cane, soybeans, beets, cornstalks and grasses - would account for about 5 percent of the U.S. gasoline market, said Sen. Jim Talent, R-Mo., author of the plan.

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Senate Panel Backs Renewable-Fuel Measure ; Cites Gas Prices, Iraq in Appeal

"This is about fuel in our farm fields and not under sands in Saudi Arabia," said Sen. Byron Dorgan, D-N.D.

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