Wednesday, May 21, 2008

US ethanol policy under siege

by Staff Writers
Washington (AFP) May 21, 2008
Amid a surge in food prices blamed in part on US expansion of corn-based ethanol production, lawmakers, experts and industry officials are urging the government to rethink a new law mandating alternative fuels.

The United States is the world's top producer of corn-based ethanol, which the administration of President George W. Bush sees as a way of reducing dependence on foreign oil and curb fossil-fuel emissions, the main source of man-made global warming.

Politicians are under mounting pressure to look again at the effects of a landmark energy law enacted in December that raised vehicle fuel-efficiency standards for the first time in three decades and offered broad support for ethanol production.