[StBernard] Ethanol bill gets Senate OK

[Westley Annis]

Ethanol bill gets Senate OK

Policy would raise price of gasoline

By MARK BALLARD
Capitol news bureau 
Published: May 25, 2006 

    
The Senate voted Wednesday to require that a percentage of fuel for vehicles
sold in Louisiana contain renewable fuels such as ethanol - a policy that
would at least temporarily raise the price of gasoline.

Gov. Kathleen Blanco said she will sign the legislation because it would
give farmers a second market for their crops.

"This will spur our farm economy," Blanco said. "I also think that in the
long haul it can help with the price of gasoline."

Blanco counseled patience as the cost of producing ethanol increases the
price of gasoline about half-a-dollar per gallon.

The legislation would entice businesses to build plants that would turn
plant matter - such as, sugar cane, corn and soybeans - into an additive for
gasoline called ethanol, she said.

As more production facilities open and more ethanol becomes available, the
price should go down, she said.

Opponents said the bill mandates ethanol-laced gasoline without fully
considering the details of the manufacturing and delivery system, all of
which could saddle Louisiana drivers with high prices at the pump.

"We're fixing to shove this down the consumer's throat," said Sen. Walter
Boasso, R-Arabi.

"I have not had one person yet tell me they want to pay 50 cents more to
save the environment if they can buy gasoline cheaper," Boasso said.

The bill returns to the House for final approval of amendments added by the
Senate. Then it can go to Blanco for signing into law.

"This could be the greatest thing that ever happened to this state," said
Sen. Ben Nevers, D-Bogalusa, who is handling House Bill 685 in the Senate.

But some lawmakers said the legislation would give Commissioner of
Agriculture Bob Odom, its primary proponent, too much power.

Blanco responded, "Bob Odom is not going to be agriculture commissioner for
life" then correcting herself, said, "forever."

Sen. Robert Barham, R-Oak Ridge, sought changes in the measure that
challenged Odom, who has aggressively pushed the legislation.

Nevers rose to object. Nevers said changes would delay when the ethanol
requirement would take place.

"He's going to object to anything" being added to the wording of HB685,
Barham said. "He doesn't want the bill amended at all because that's not
what Bob wants."

The Senate shot down most of the 24 amendments Barham and others sought.

The measure, which passed the House earlier this month, would require
gasoline or diesel to contain at least 2 percent ethanol once statewide
production reaches 50 million gallons of ethanol or 10 million gallons of
biodiesel.

While the measure requires the gasoline blended with ethanol to be made and
sold, it does not require retailers to sell it to drivers.

"We're giving the retailers in this state the choice to sell ethanol or
not," Nevers said.

Gasoline laced with ethanol presently costs more than pure gasoline. But
Nevers said the legislation ultimately would help drive down the price.

Louisiana drivers purchase about 2.3 billion gallons of fuel per year. That
means about 46 million gallons of ethanol would have to be mixed into the
gasoline.

The additive would stretch the supply of gasoline, which is made largely
from oil imported from other countries.

Nevers said one tanker truck with about 8,000 gallons of ethanol would
supply 400,000 gallons of gasoline.

The Senate voted 32-4 to approve HB685.

Voting against the measure were Sens. Robert Adley, D-Benton, Clo Fontenot,
R-Livingston, Max Malone, R-Shreveport, and Chris Ullo, D-Harvey.