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White house renews support for ethanol

Investors will be pleased to hear that President Bush renewed his support for ethanol today at the Washington International Renewable Energy Conference. Below is what he had to say:

"The vast majority of [our] ethanol is coming from corn, and that's good. That's good if you're a corn-grower. And it's good if you're worried about national security...Corn ethanol holds a lot of promise, but there's a lot of challenges. If you're a hog-raiser in the United States, you're beginning to worry about the cost of corn to feed your animals. I'm beginning to hear complaints from our cattlemen about the high price of corn. The high price of corn is beginning to affect the price of food...I look forward to the day when people in the parts of our country that have got a lot of forests are able to convert wood chips into fuel...The job of the federal government is to expedite [this] arrival."

Futhermore, the House approved an $18 billion tax package today that would repeal a tax break for the country's five largest oil companies. The money, which would be collected over 10 years, would be used to provide tax breaks for alternative energy sources such as wind, solar, and cellulosic ethanol. But, as President Bush is against the bill, there are some problems that need to be resolved.