09/24/2009
The Senate could complete work today on the Interior-Environment Appropriations bill for Fiscal Year 2010, which was amended today to include increased support for ethanol. The ethanol amendment, offered by Sens. Ben Nelson (D-Neb.), Chuck Grassley (R-Iowa), John Thune (R-S.D.), Tim Johnson (D-S.D.) and Mike Johanns (R-Neb.), would require the EPA to approve an up to 15 percent ethanol blend (E15) in gasoline, a decision that the US industry has promoted for months. According to the amendment, the Environmental Protection Agency (EPA) would be required to announce that it will grant the use of E15 by Dec. 1—but the timing of its actual implementation is still unknown.
Majority Leader Harry Reid (D-Nev.) filed cloture on the measure on Tuesday, Sept. 22—a maneuver that would limit debate and set up final votes no later than Thursday, Sept. 24. With debate now limited on this bill, chances have increased that the requirement that the EPA approve the up to 15 percent ethanol blend certainly has improved. However, Congress historically does not like to legislate policy on a spending/appropriations bill. Also keep in mind that once this bill passes the Senate, it still faces reconciliation with the House-passed Fiscal Year 2010 Interior-Environment Appropriations bill. Thus, this issue is far from over.
Even if the Senate approves this amendment as part of the Interior funding bill, the possibility exists that some groups and/or companies might seek court action to halt this move to increase the ethanol blend rate of up to 15 percent.
However, the filing of this amendment is a clear signal that is being sent to the EPA that the support exists in Congress for a blend rate increase. The increase in the blending rate will augment the total supply of liquid fuels available to the US marketplace.