The ethanol industry will now have the time needed for research and investment so that it may stand on its own. Thanks to the work of many members, especially the Speaker of House Newt Gingrich, the ethanol tax incentive has an excellent chance of being extended through 2007. The reduction in the excise taxes on ethanol-blended fuels was passed by Congress to enable the fledgling ethanol industry to develop. Ethanol is good for farmers and city dwellers.
Ethanol is good for America's independence from foreign oil.
Ethanol is good for the environment. Greater levels of greenhouse gases, principally carbon dioxide, in the atmosphere are cited as the cause of global warming. The study concluded that the production of ethanol produced a net energy gain. The study considered a complete life cycle analysis of ethanol production including all energy used to plant, cultivate, harvest, transport, and process corn and deliver ethanol to service stations. Equally important, all of the carbon released in ethanol production or combustion is completely recaptured in the growing process.