To: Seeker of Truth who wrote (54548 ) 10/21/2004 6:44:12 AM From: elmatador Respond to of 74559 Bush, Kerry On Ethanol (10/20/04 08:15) NCGA: The ethanol industry has undoubtedly been one of the most significant success stories in American manufacturing over the past quarter-century. Both Presidential candidates support a federally mandated Renewable Fuels Standard (RFS) that has been broadly supported during consideration of energy legislation during the past two Congresses. Currently, ethanol's dominant demand driver is the oxygenate standard for Reformulated Gasoline (RFG). Will your Administration support granting of waivers from the standard if the RFS is not enacted into law? Bush: During my Administration, ethanol production has more than doubled nationwide. One of the early decisions by my Administration was to deny California a waiver from the oxygenate requirements of the Clean Air Act. However, I recognize that the Nation's ethanol producers need a more stable and secure market for their product that does not rely on administrative determinations. That's why I support the enactment of a flexible cost-effective renewable fuels standard that would require up to 5 billion gallons per year of ethanol and biodiesel to be blended into motor fuel. Once enacted, this renewable fuels standard would create new markets for U.S. agricultural products, increase net farm income by $2 billion to $4 billion per year, and create new jobs. My Administration is taking aggressive steps to ensure that renewable energy, including ethanol, is a central part of our future energy strategy. Throughout my first term, I have asked Congress to enact more than $4 billion through 2009 in tax incentives for energy efficiency and renewables, including an extension of the ethanol excise tax exemption. The exemption provided increasing support for alternative fuels from a level of less than $1 billion in 2001 to an estimated $1.34 billion in 2005. Since 2001, ethanol production has doubled and 22 new ethanol plants have been built and 9 are now under construction. Whether through the renewable fuels standard, the existing Reformulated Gasoline (RFG) program, or other federal programs, I will continue to be a strong supporter of ethanol and biodiesel as part of my National Energy Policy. Kerry: I support the Renewable Fuels Standard (RFS). With new leadership in the White House we will be able to enact the RFS, and I believe go beyond its 5 billion gallon mark. Ethanol is moving rapidly into markets where MTBE was the dominant oxygenate. And ethanol production - increasingly from farmer-owned ventures - is growing rapidly to meet the greater demand, thus weakening the arguments of waiver proponents. With the RFS as the preferred solution, I would not see a justification for waivers of the oxygenate standard. hpj.com