Gulf oil spill may boost ethanol in nation's energy debate

With regulators and legislators poised to decide issues that will shape ethanol's future for years to come, the ethanol lobby is increasingly making the scene unfolding in the Gulf of Mexico — with tens of thousands of barrels of crude still flowing daily from BP's deepwater well — a backdrop for the nation's energy debate. "The choice between the dangers of our addiction to oil and the promise of American renewable fuels is as clear today as the contrast between the blackened estuaries of the Gulf Coast and the sparkling green fields of rural America," said Robert Dinneen, president of the Washington-based Renewable Fuels Assn. Now producers and corn growers are looking to expand their market by increasing the level of ethanol in gasoline to 15%. The Environmental Protection Agency is weighing a waiver request to allow billions more gallons of corn-based fuel in the nation's gas tanks. A decision is expected this summer. The ethanol industry is also lobbying Congress to extend a tax credit for blending ethanol with gasoline and maintain a tariff on imported ethanol — measures implemented years ago to help a fledgling industry grow. Both the tax credit and tariff are set to expire at the end of the year...more

Using a crisis to suckle even more at the government teat - and the D.C. deep thinkers will probably go for it.