Sen. Richard Lugar (R-IN), Chairman of the Senate Agriculture Committee, has 
officially agreed to sponsor legislation drafted by Sen. Tom Daschle (D-SD) 
-- titled the "Renewable Fuels Act".  A summary is attached.   The two 
Senators are planning to introduce the bill attached) in the next few days, 
and then selectively pursue co-sponsors.  Senators Lugar and Daschle are 
expected to meet with Senate Environment Committee Chairman Bob Smith (R-NH) 
in the near future.  

I met with Senate Environment Committee staff yesterday, who indicated that 
they would like to hold a May 25 Committee mark up of S. 1886 
(Smith-Inhofe-Feinstein bill), which they consider the "primary" vehicle for 
considering RFG and MTBE issues.   Chairman Smith will not likely endorse the 
Daschle/Lugar bill, but will open the door for dialogue "with the ethanol 
interests."    One of the primary issues that Committee staff have not been 
able to resolve is how to get ethanol support for oxygenate waiver 
legislation.   Lugar and Daschle will likely have a great deal of impact on 
how much of their bill is considered along with S. 1886 at the May 25 markup.

Pro-ethanol provisions may not see much support at the Senate Environment 
Committee level, but if the legislation moves to the Senate floor, there 
could be much more support for some of Lugar's/Daschle's proposals.

I will keep you posted as the legislation develops and as our efforts to find 
support for MTBE producer "incentives" continues.



Jeff Keeler
Director, Environmental Strategies
Enron
(202) 466-9157
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