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June 28, 2005   Email to Friend 

SENATE PASSAGE OF ENERGY BILL BOOSTS CHANCES FOR BIO-ETHANOL AND GREATER ENERGY SECURITY
Debra Davis
(334) 613-4686
June 28, 2005

WASHINGTON, D.C. The U.S. Senate today voted 85-12 to pass comprehensive energy legislation that could dramatically expand production of ethanol made from not only grain but also from agricultural wastes such as corn stover or wheat straw with the help of new biotechnology enzymes. Among other things, the legislation would require U.S. gasoline suppliers to blend 8 billion gallons of ethanol annually into the domestic fuel supply by 2012.

Alabama Farmers Federation National Affairs Director Keith Gray said the legislation is good news for farmers and consumers.

"We are extremely pleased that the Senate passed an energy bill that will truly be a win-win, a win for producers and a win for the consumer," Gray said. " This bill is more focused on biomass and other alternative forms of fuel that can be produced in Alabama and would mean that the U.S. would rely less on foreign oil and more on a fuel supply that is more environmentally friendly and is sustainable."

At the last minute, the Senate also adopted major portions of a bill recently introduced by Senators Harkin and Lugar that adds even more support for biofuels and biobased products. The Harkin-Lugar amendment creates greater incentives for bioethanol and biobased plastics production from crop biomass and funding for research and development of new biotech enzymes. Specifically, it would establish a reverse auction for the production of the first billion gallons of ethanol made from cellulose containing crop wastes instead of grain and explicit extension of the federal biobased purchasing preference to cover federal government contractors.

Energy legislation that passed the House of Representatives earlier this year does not include these provisions, although it, too, supports renewable energy with a renewable fuels standard. A House-Senate leadership conference will draft a final version of the bill to be voted on by both chambers.

"We will work closely with our allies in the environmental and agricultural communities to reach out to conference leaders and ensure the strongest possible bioenergy provisions are in the final bill," said Brent Erickson, BIO's executive vice president for industrial and environmental biotechnology. "These measures are a big step toward enhancing our national security by providing incentives for energy from 'tilling, not drilling.'"

"Recent breakthroughs in biotechnology are going to allow us to produce more ethanol right here at home than we ever thought possible," Erickson added. "We could be producing up to 25 percent of our transportation fuel needs by combing biotechnology and agriculture to produce bioethanol in the not-too-distant future and this energy bill will be a big stimulus to help us meet that goal."

BIO represents more than 1,100 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and 31 other nations. BIO members are involved in the research and development of healthcare, agricultural, industrial and environmental biotechnology products.

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