Ten Percent Ethanol Standard Headlines Testimony in Missouri Capitol (1-27-06)

Addressing the ongoing debate on ethanol and corn supply, Missouri Corn Growers Association (MCGA) President Terry Hilgedick, and National Corn Growers Association (NCGA) Director of Public Policy Samantha Slater testified this week before Missouri State Legislature Agriculture Committees, which are currently considering legislation requiring a 10 percent ethanol standard.

Hilgedick and Slater, testifying before the House and Senate Committees on Agriculture Policy, spoke to the members regarding House Bill 1270 and Senate Bill 569. Missouri Gov. Matt Blunt is advocating a plan that would require all gasoline sold in Missouri to contain 10 percent ethanol. Missouri is one of several states currently taking up legislation requiring the use of the renewable fuel.

Hilgedick, a third generation corn grower, emphasized the importance of ethanol on Missouri’s economy, in addition to the growth potential of the ethanol industry. He stated that farmer investment in ethanol production facilities in Missouri have totaled $250 million to date and has the potential to exceed that. “With the passage of the Missouri ethanol requirement, in-state investment is expected to grow by as much as $400 million by 2009,” he said.

He also pointed out that the economic benefits to farmers, local communities and the state and federal government are enormous. He said that Missouri has an opportunity to create more jobs and strengthen local prices for corn growers and rural communities’ economies by passing state ethanol legislation.

Slater, who was in Missouri discussing ethanol with MCGA members, testified on the net energy balance of ethanol, which continues to be a hot debate throughout the country. NCGA touts that a wealth of information exists to rebut the outdated information that ethanol nets a negative energy balance, citing recent studies by the U.S. Department of Agriculture’s Office of the Chief Economist, Hosein Shapouri, Michael Wang, Center for Transportation Research, Argonne National Laboratory among others that conclude ethanol has a positive energy balance - generating 67 percent more energy than it takes to produce..

“Those who claim that ethanol production is a net energy loser are using outdated information, old technology, and conveniently forgetting to mention that no fossil fuel can have a positive energy balance,” she said.

In addition, Slater discussed with committee members on both sides of the chamber, the federal renewable fuels standard (RFS) included in the Energy Policy Act of 2005, as well as ethanol’s other benefits including reduction of greenhouse gases and imported oil.

Slater said, “The RFS agreement includes provisions assuring that as the oxygen content provision is removed, air quality will not suffer. The new energy law requires refiners to meet the same emissions benefits achieved when using oxygenates. Refiners have successfully blended ethanol in reformulated gasoline in (RFG) the Chicago/Milwaukee and California markets,” she said.