Martin Andreas of the Archer Daniels Midland Co. told Agweek that he sees the 3-to-1 House floor vote in early August against a measure to exempt California from its oxygenate standard as the start of a period in which supporters of ethanol can win other legislative battles.

"The House has never been that high on ethanol," said Andreas, who was attending the American Sugar Alliance symposium.

The 300 to 125 vote requiring California to live up to the Clean Air Act requirements means "this country wants a large ethanol industry," he added. Andreas cited two pieces of pending legislation, one to increase ethanol production from 2 billion to 6 billion gallons per year and another to increase production from 2 billion to 7 billion or 8 billion gallons, as potential aids to the industry.

Andreas also said the United States should continue expanding the ethanol industry because other countries look toward the United States as the leader in environmental policy. "We are flooded or drowning in food oil worldwide," Andreas said, noting that ethanol production could absorb excess production of sugar and other crops that can be used to make ethanol. But Andreas said Brazil, the European Union and other countries are showing an increased interest in ethanol and said the United States could be in danger of losing its innovative edge.

The growers are particularly worried about an excess of sugar production in Mexico and U.S. commitments under the North American Free Trade Agreement to import more Mexican sugar. Mexican President Vicente Fox has discussed the development of an ethanol industry with President Bush. John Nichols, the president of an ethanol plant in Guadalajara, Mexico, told the growers they should "be realistic" and warned them that manay officials at Pemex, the state-owned Mexican oil company, oppose ethanol and that "shipping sugar to the United States will always trump ethanol" on price.