U.S. Senate and House of Representatives lawmakers negotiating an energy bill have been urged by the Bush administration to include language that would triple the amount of ethanol-blended gasoline and biodiesel used each year to power vehicles in the U.S.
California and New York lawmakers are wary of the corn-based ethanol and soybean-made biodiesel, citing fears of difficulty in shipping resulting in higher gas prices. Alternatively, farm state lawmakers support the fuel because it reduces gasoline pollution and benefits their constituents.
The U.S. energy policy is being reviewed for the first time in a decade, and this renewable fuels requirement is predicted to be one of the most contested.
While it is said that the Bush administration supports the use of ethanol, a recent administration internal document reported that an increase in ethanol consumption might hike gasoline costs and even create fuel supply shortages in some areas.
Originally posted on Fleet Financials