PRESS RELEASE (repost of Congressional vote on Ethanol Tax Incentive)
For Immediate Release
May 22, 1998
Contact: Mary Wertschnig
(202) 289-3835
CONGRESS VOTES TO EXTEND ETHANOL TAX INCENTIVE;
Big Victory for Environment, Economy and Energy Security
Washington, D.C. - Today Congress agreed to extend the ethanol tax incentive through 2007 as part of the six-year federal highway
reauthorization bill. By a vote of 297 to 86 in the House and 88 to 5 in the Senate, Congress voted in favor of the highway bill, H.R. 2400, the
Building Efficient Surface Transportation and Equity Act of 1998 (BESTEA). President Clinton has said, "I will be pleased to sign this legislation."
"Today's vote for the extension is a vote for American jobs, a brighter economy, cleaner air and increased energy independence," said Eric
Vaughn, President of the Renewable Fuels Association. "Ethanol enjoys broad, bipartisan support including 71 U.S. Senators, scores of
Representatives, the Administration, and 22 governors who agree the U.S. has much to gain by making investments in domestically-produced,
renewable, clean-burning alternatives to petroleum today so that we, as a nation, may provide a more sustainable future for our children."
The provision to extend the ethanol tax incentive was originally added to the highway bill by Senators Chuck Grassley (R-IA) and Carol
Moseley-Braun (D-IL), and was subsequently approved overwhelming on the Senate floor by a vote of 71 to 26. House Ways and Means
Committee conferees, led by Reps. Jim Nussle, Kenny Hulshof and Ranking Member Charles Rangel (D-NY), agreed to the Senate language,
which extends the ethanol tax incentive through 2007, with modest reductions to 5.3› in 2001, 5.2› in 2003, and 5.1› in 2005.
"Today's vote would not have been possible without the tremendous leadership of Senator Chuck Grassley, Senator Kent Conrad, Rep. Kenny
Hulshof and Rep. Jim Nussle on the highway bill conference," said Vaughn. "We also wish to thank the Congressional leadership, particularly
House Speaker Newt Gingrich, who demonstrated great vision and leadership by appointing strong ethanol supporters to the conference
committee. And the support of Senate Majority Leader Trent Lott, Senate Democratic Leader Tom Daschle and House Democratic Leader Dick
Gephardt was crucial throughout the legislative process. Likewise, we extend our appreciation to the House Alcohol Fuels Caucus Co-Chairs,
Rep. Bill Barrett, Rep. David Minge, and Rep. Lane Evans, for their tireless efforts to advance the production and use of ethanol."
"The extension will ensure that we can continue to grow the industry and, as a result, greatly expand upon the environmental, energy security and
economic benefits that we are experiencing today," said Vaughn. "The extension will encourage farmers across rural America to continue to invest
their hard-earned dollars in cooperatively-owned ethanol plants. It will also encourage the commercialization of biomass ethanol, which offers
tremendous potential for converting waste products, such as sugar cane bagasse in Louisiana, rice hulls in California, and municipal solid waste in
New York, into a clean burning transportation fuel."
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