Alcohol Fuels Program Statement Concerning New Initiatives

This administration's program to accelerate dramatically America's production and use of gasohol is yet another important front on which we will be waging—and winning—our energy war. Farms and businesses all across the Nation can now take part in one of the most exciting endeavors of this new decade. By using American resources, we are enhancing the international, economic, political, and military strength of the United States.

Overall, my administration is committed to a program which will provide between $8.5 billion and $13 billion of assistance to stimulate production of alcohol fuels over the coming decade. We will quadruple current gasohol production capacity by the end of this year. During 1981 we should be capable of producing ethanol at an annual rate of 500 million gallons—more than six times the current rate. If this amount of ethanol were all turned into gasohol, it would replace almost 10 percent of our anticipated demand for unleaded gasoline in 1981.

Our overall gasohol program will spur the investments that we, together, must make for a more secure energy future. We will create new markets for our farmers. We will no longer have to throw away waste materials which can be turned into profitable, essential fuels.

Our Nation's enormous agricultural and fiber resources can be used to help provide a secure source of energy for our future. By producing gasohol from fiber and agricultural byproducts, we can meet fuel needs for millions of Americans, including our farmers.