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This fall I had the honor of attending grand opening ceremonies for Standard Ethanol's newly expanded ethanol production plant in Madrid, Nebraska. It is plants like this that are proving to be such a great benefit not only to Nebraska and our economy but to America and our battle for energy independence and cleaner air.
Nebraska has come a long way in the production of alternative energy. When I became governor there was just one ethanol plant in the state. Today, Nebraska has 18 ethanol production facilities employing 1000 people directly and another 1500 indirectly.
The 18 plants produce more than 1.1 billion gallons of ethanol each year using 300 million bushels of grain in the process. We are now the second largest ethanol producing state in the nation having just passed Illinois. Only Iowa ranks ahead of Nebraska.
The renewable fuels industry will grow even more if Congress enacts an expanded Renewable Fuels Standard (RFS). The Senate included the expanded RFS when it passed its version of the energy bill earlier this year but the House resisted efforts on the RFS and the energy bill stalled. Because the RFS is so important, I went looking for another way to get an expanded RFS passed.
I have worked with several other senators on a bi-partisan amendment that would include the expanded RFS standard in the Food and Energy Security Act of 2007.
Our amendment would require oil companies to mix at least 36 billion gallons of ethanol and other biofuels with gasoline by 2022. By that year, 21 billion gallons of the biofuel would have to be made from cellulose. This puts the country on a path toward not only energy independence but also economic growth, investment in our own farmers and production facilities, creation of jobs in rural areas and diversion of billions of dollars from foreign regimes to the American market.
The amendment encourages biofuels production from a wider range of feed stocks than just corn, which will create opportunities for every region of the U.S. to contribute to the production of homegrown fuels.
My strategy is to move forward on an expanded RFS any way I can. The two bills described above - the farm bill and the energy bill - both represent opportunities to pass this important measure.
But neither is foolproof. The farm bill has now become bogged down by petty partisan politics, with some senators seeking to attach amendments that have nothing to do with farming or energy. And the House-passed energy bill has been blocked in the Senate.
However, these roadblocks don't have to be dead ends. I am confident that Senate and House negotiators can work out their differences and we will soon pass a revised energy bill that includes the expanded RFS. Additionally, an agreement has been reached on amendments to the farm bill and the Senate has finally returned to considering the Food and Energy Security Act.
We still face some challenges, but as we watch oil prices move towards $100 a barrel and gas prices continue to climb, I hope that my colleagues in the Senate will put partisan politics aside and pass this important legislation and I hope the President will do likewise and sign it into law.
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