37 Governors Push for New Federal Rule on Ethanol

In another sign of the front-burner status of global warming in state capitals across the US, 37 state governors are pushing the White House for a new federal rule requiring greater use of ethanol. The new standard would also include new tax incentives for the production of cellulosic ethanol.

The Wall Street Journal reports [subscription required]:

The proposal would require fuel sellers to increase the use of ethanol to 12 billion gallons a year by 2010, eclipsing an earlier federal mandate, contained in the 2005 Energy Policy Act, of 7.5 billion gallons by 2012. The new standard calls for the use of 15 billion gallons by 2015 and around 37 billion gallons by 2025, which means ethanol could displace about 25% of the nation's expected gasoline use.

Like the new California fuel standard just announced by Governor Schwarzenegger, the proposed federal rule would mandate E85 pumps at major service stations and include incentives for carmakers to produce more ethanol-capable flex-fuel vehicles.