|
|  |
 |
| John
Urbanchuk addresses the media at the press conference announcing
the findings of his study detailing impacts the RFS will have
on consumers. Pictured with Urbanchuk, left to right, are Sen.
Mark Dayton (D-Minn.), Sen. Norm Coleman (R-Minn.), John Urbanchuk
(speaking), Sen. Dick Durbin (D-Ill.), NCGA Ethanol Committee
Co-Chair Theresa Schmalshof and Ethanol Committee Chair Duane
Adams. |
NCGA
Releases RFS Consumer Impacts Study
(6-3-03)
The National Corn
Growers Association (NCGA), joined by key U.S. Senators, today released
important findings supporting a renewable fuels standard (RFS). Consumer
Impacts of the Renewable Fuels Standard, a study by agriculture expert
John Urbanchuk, analyzes positive impacts and significant savings
the RFS will have for consumers and the U.S. economy.
Sens. Richard
Durbin (D-Ill.), Norm Coleman (R-Minn.), Jim Talent (R-Mo.), joined
NCGA Ethanol Committee Chair Duane Adams and Co-Chair Theresa Schmalshof
to advocate the RFS provision, which is being debated in the Senate
as part of a comprehensive energy bill.
“The renewable
fuels standard provides substantial positive benefits for Americans:
consumers, farmers, rural communities and taxpayers,” said Urbanchuk.
“Increased use of renewable fuels, such as ethanol and biodiesel,
will benefit the environment and increase America’s energy self-sufficiency,
which will help improve our trade balance and thereby bolster the
sagging U.S. dollar.”
According to the
study’s findings:
• Blending
ethanol with gasoline at a 10 percent level will reduce the retail
price of conventional regular gasoline by 5 percent, or 6.6 cents
per gallon based on national average 2002 prices. This translates
to an annual savings to consumers of $3.3 billion.
• Using corn and other grains to produce the 5 billion gallons
of ethanol stipulated by the RFS will have an insignificant impact
on consumer food prices.
• America’s highways will be protected by proposed changes
in the structure of the excise tax exemptions granted to ethanol.
• Taxpayers will benefit because improved demand and prices
for grains will reduce the amount of taxpayer dollars needed for
direct government payments to farmers.
The report will give ethanol supporters more firing power, noted Durbin,
a member of the Senate Agriculture Appropriations Committee. "Ethanol
makes sense for the environment, for our nation's energy security and
for farmers, taxpayers and consumers all across the country. To me,
it is hard to argue against that case," he said. "As momentum
for a renewable fuels standard and the use of ethanol builds, I hope
this report will convince our critics once and for all."
Coleman, a member
of the Senate Agriculture Committee, said, “The list of reasons
why the renewable fuels standard is critical to our energy future
keeps on growing. Renewable fuels are essential because they promote
the 3 E’s (of ethanol) of economic development, energy independence
and environmental protection,” he said. “And now add to
the list another benefit: lower fuel prices at the pump.”
The study reiterates
what NCGA has known all along — the RFS is good for consumers,
said Adams, a Cosmos, Minn., corn grower. “The ethanol industry
in Minnesota has certainly contributed to the economic development
of communities that have been fortunate enough to have a plant located
in their area,” he explained. “We need to process as much
of our own product to not only maintain economic stability and prices,
but also stability in rural America.”
Schmalshof of
Adair, Ill, agreed. “There are five plants producing ethanol
in Illinois and three in various stages of construction. Six others
are in the planning stages,” she said. “Ethanol plants
are a way we can improve our rural economy. We are excited about the
benefits the RFS will have on rural America.”
Talent described
ethanol’s benefits outlined in the study. "This report
affirms what producers in Missouri and around the country have known
for years, ethanol is not only good for the environment and our national
security, it will have enormous benefits for consumers through reduced
gasoline prices," said the Senate Energy and Natural Resources
Committee member and is Senate Bio-Fuels Caucus co-chair. "Additionally,
California's MTBE ban has proven that renewable fuels will not disrupt
the market as a few have suggested. In fact, it will have the opposite
effect, producing jobs and growth to help get our economy moving again.
This overwhelming evidence more than makes the case for an RFS and
the use of ethanol. I appreciate the NCGA for their steadfast leadership
on this important issue."
Also on hand at
the event were Sens. Byron Dorgan (D-ND), Mark Dayton (D-Minn.) and
Tom Harkin (D-Iowa).
Click here
to read the report in its entirety.
Last
reviewed June 3, 2003
|