Thursday, March 01, 2007

New Coalition Promotes Ethanol

A 400 member coalition of farm groups, hunters, businessmen and environmentalists have formed a new coalition called the 25X25 Renewable Energy Alliance and they are lobbying to get $64.5 billion in new federal incentives to expand the use of ethanol. The group wants to produce 25% of the nation's energy from farm and ranch products by 2025.

The group wants to protect ethanol from a possible drop in oil prices by having the tax incentives to rise for ethanol-fuel blenders when oil prices drop and when oil prices rise, the tax credits would shrink. This system would be installed when the current 51-cent-per-gallon ethanol subsidy expires in 2010. Group members range from the American Farm Bureau to General Motors and the National Wildlife Federation.

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