15 June 2001: The first 'renewable' fuel bill of its kind is being introduced in the US.
It is designed to help reduce US dependence on foreign oil imports, but could act as a catalyst for global legislation as the drive to curb use of fossil fuels gathers pace.
The legislation requires petrol to contain a small portion of renewable fuels.
The new levels would be phased in over time. For example, the new standards would require the renewable fuel to account for 2 percent of each gallon by 2008 and 5 percent by 2016.
The bill would require all motor fuels sold in the United States to contain either biodiesel or ethanol from corn or biomass. Biodiesel is a diesel engine fuel made from vegetable oil, animal fat or algae. Biomass is made from crops, trees or even landfill gases.
Ethanol is the most widely used biofuel and its production has increased sharply since 1980, rising from 200 million gallons a year to 1.9 billion gallons.
As an inducement to develop the home-grown fuel, ethanol already has an excise tax exemption worth 5.3 cents a gallon at the pump. Ethanol is distilled from corn and used in a 9-1 blend with gasoline.
Ethanol production could reach a record 2 billion gallons this year, according to the industry's trade group. The Renewable Fuels Association said two dozen ethanol plants went into production in the past two years and 40 more were scheduled for construction over the next two years. CFC
