The White House report suggested a tax credit for use of methane gas from landfills. Senate Democrats called the linkage of Arctic refuge drilling fees with renewable fuel research an obvious attempt to defuse opposition to opening the refuge to exploration. He said the proposal effectively would convert fossil fuels into alternative fuels in coming decades. The two most common biofuels, the report said, were ethanol and biodiesel, a diesel-engine fuel that can be made from vegetable oils, animal fat or algae. Backers say ethanol can play a useful role by increasing the oxygen content of fuels and reducing harmful carbon monoxide emissions.
Critics say it can add to ozone pollution.
Ethanol production could reach a record 2 billion gallons this year, an industry trade group said. 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. Earlier this week, Sen. Tom Harkin, Iowa Democrat, introduced a bill to phase out MTBE in three years and maintain the federal requirement to use oxygenated fuels in smoggy areas. Ethanol plants consume more than 650 million bushels of corn a year, a tiny percentage of the nearly 10 billion bushels of corn grown by American farmers.