Despite failing to pass an energy bill in 2003, House and Senate leaders have committed their support to change the existing ethanol tax incentive program so that Highway Trust Fund (HTF) revenues are not reduced due to ethanol use.

Lawmakers want to repeal the existing program and replace it with a Volumetric Ethanol Excise Tax Credit (VEETC) that ensures all fuels draw the full gasoline excise tax. Blenders would be reimbursed from the general fund. The 2.5 cents per gallon that are currently collected on ethanol-blended fuels for deficit reduction would be redirected to the HTF.

"I pledge to work closely with Chairman [Don] Young and Chairman Bill Thomas of the Ways and Means Committee to make certain that the 2.5 cents that currently goes into General Fund from the gas tax, and the proceeds from repealing the 5.2 cents from the ethanol tax exemption, be credited to the Highway Trust Fund," House Speaker Dennis Hastert, R-Ill., said.

House Transportation and Infrastructure Committee Chairman Young, R-Ark., said he looked forward to working with Hastert and others to provide the nation "with a substantial highways and transit reauthorization early next year."

RFA welcomes new member
The Renewable Fuels Association (RFA) is pleased to announce the National Grain Sorghum Producers (NGSP) as its newest associate member. The NGSP represents the producers and processors of grain sorghum, which plays a large part in ethanol production.

VeraSun Energy begins production
VeraSun Energy Corporation has begun production at its ethanol plant near Aurora, S.D. The 100-mmgy facility is the largest plant to be built in the United States in more than a decade.

"The VeraSun Energy plant makes a profound statement about the ability of the ethanol industry to grow and meet new market demands," said Bob Dinneen, RFA President. "This plant will generate an enormous positive impact on the surrounding economy. When you look at VeraSun's plant, you are looking at the future of value-added economic development in rural America."

For a full feature about VeraSun's new facility, see page 40.

Leavitt sworn in to lead EPA
Former Utah Gov. Mike Leavitt has taken his position as the Administrator of the Environmental Protection Agency (EPA), a position appointed to him by President George W. Bush.

"We need to balance the needs of the environment and the needs of humanity … balance the needs of this generation and the next," Leavitt said.

Leavitt, a Republican, succeeds former New Jersey Gov. Christine Todd Whitman, as head of the EPA. EP