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New Energy Bill Creates Market For Ethanol

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By Ben Dunsmoor
Published: December 14, 2007, 6:15 PM

South Dakota ethanol plants produce almost a billion gallons of the renewable fuel every year. And the Energy Bill the U.S. Senate just passed would push that production forward.

South Dakota Republican Senator John Thune calls the passage of the Senate's version of the Energy Bill a victory for South Dakota's renewable fuels industry. The bill would require nine billion gallons of ethanol to be blended with America's gas supply next year, and by 2015 that number would increase to 15 billion gallons.

Senator John Thune helped pass America's first renewable fuels standard as part of the 2005 Energy Bill. But since ethanol production in the United States has already exceeded that standard Thune says it was crucial to pass a new bill with new standards this year. 

Senator John Thune says, "We had to get this done, we had to get it done soon because the renewable fuel industry was running into sort of a wall with regard to the market." 

The new standard would create a market for renewable fuels by increasing the amount of ethanol required to be blended with gas. The standard would also require auto-makers to make more flex-fuel vehicles, and require vehicles to average 35 miles to the gallon by 2020.

Thune says, "That hasn't been touched in a long time. This is a major breakthrough in terms of having what they call the first new café standard put into law that we've seen for sometime." 

And just like the first renewable fuels standard in 2005, Senator Thune says this standard will help South Dakota's farmers and ethanol producers for years to come. 

Thune says, "They were really anticipating and looking toward Congress to act on this, so we can keep this forward momentum of renewable energy in this country moving." 

Senator Tim Johnson says this Energy Bill will put South Dakota on the forefront of producing renewable fuels for the country. 

Congresswoman Stephanie Herseth-Sandlin also calls the passage of the Energy Bill a victory for the state. She says the House should consider the bill next week and have it ready for the President's signature before the holidays.








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