    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book II)]
    [July 31, 1997]
    [Page 1031]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement on Renewable Fuels Tax Incentives
    July 31, 1997

        I am very disappointed that the tax incentives for renewable fuels
    were not extended in this budget agreement. By now, all Americans should
    be aware of the important role ethanol plays in cleaning our air and in
    providing economic development for rural America.
        In the last two decades, ethanol has grown from a fledgling industry
    to make a real contribution to our environment, our national economy,
    and our efforts to wean ourselves from foreign sources of energy. As the
    Nation moves toward cleaner reformulated gasoline in 2000, it will be
    crucial to have a number of options for making this fuel. Specifically,
    Americans will need a choice of oxygenated fuels to meet their clean air
    needs, including ethanol and its ether, ETBE, which has properties that
    make it particularly beneficial to the environment. Having a broad range
    of oxygenated fuels from which to choose will help increase competition
    in that market, lowering prices for consumers.
        To continue the progress made so far, and to provide Americans with
    a choice of oxygenated fuels, it is critical that we extend these tax
    incentives beyond 2000. Only by extending these incentives until 2007
    will farmers and renewable fuels producers have the certainty they need
    to invest in new ethanol plants and thus to further expand our domestic
    renewable fuels industry.
        I have included a 7-year extension of the renewable fuels tax
    incentives in the NEXTEA legislation I sent to Congress earlier this
    year, and I urge Congress to enact this proposal as part of the
    reauthorization of the transportation bill.