NCGA News














States Consider Increased Ethanol Usage as Alternative to High-Priced Gasoline (10-4-05)

As gasoline prices remain at unprecedented highs, many states across the country are emphasizing the use of ethanol as a way to reduce pump prices and decrease dependence on foreign oil, notes the National Corn Growers Association (NCGA).

Just last week, California Gov. Arnold Schwarzenegger signed into law a bill that will advance the state’s usage of renewable energy such as ethanol, while aiding in reducing its dependence on foreign oil. Minnesota, Montana and Hawaii already have legislation on the books that requires ethanol to make up at least 10 percent of the respective states’ gasoline pool. Earlier this year, Minnesota passed a law that will require renewable fuels to constitute 20 percent of transportation fuel demand by 2012.

Wisconsin, Iowa, Missouri, Idaho, Oregon and Colorado are among the other states that are considering measures to increase statewide ethanol use.

The California bill, A.B. 1007 will require development and adoption of a state plan to increase the use of renewable fuels by 2007. The bill is expected to positively influence California's consideration of increasing the state gasoline pool's ethanol content from 5.7 percent to 10 percent. Such an increase would create an additional market for roughly 630 million gallons of ethanol per year.

Along with the consumer benefits offered by renewable fuels comes increased economic vitality for states involved in ethanol production and usage, according to Bruce Noel, a Michigan farmer and chairman of NCGA’s Ethanol Committee.

“Growers will tell you they have seen firsthand what the renewable energy industry has done economically for their states,” Noel said. “I know in my state of Michigan, we have grown from one ethanol plant to five ethanol plants coming online by the end of 2005. We are also expecting a biodiesel plant within the next year. With continued strong advocacy at the state level, other states will begin to recognize the benefits we are already seeing.”

Within the last month, Wisconsin has been considering a 10 percent ethanol requirement; Iowa’s Senator Jim Nussle (R-Iowa) has called for a 20 percent renewables mandate for that state; Colorado lawmakers are considering a plan that would require all gasoline stations in the state to offer fuels with ethanol with state Sen. Brandon Shaffer proposing a 7 percent mandate by 2007; gradually increasing by 20 percent by 2013 and Gov. Tim Pawlenty of Minnesota issued a challenge to the nation’s governors at the recent Governors Ethanol Coalition meeting to move to a 10 percent ethanol mix in gasoline by 2010.

 

Last reviewed October 4, 2005



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