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NCGA Sponsored Study Proves Energy, Economic Benefits of Renewable Fuels
Standard
December
5, 2001
FOR
IMMEDIATE RELEASE
Contact:
Gary Bradley, bradley@ncga.com;
636-733-9004, ext. 139;
Cory Gardner, 202-628-7001
WASHINGTON
(December 5, 2001) -- A study sponsored in part by the National Corn
Growers Association (NCGA) has concluded that increasing the total gallons
of renewable fuels contained in motor vehicle fuels, such as ethanol
or biodiesel, from current levels to 4 percent by 2016 would provide
energy security and economic benefits to the United States.
"A
renewable fuels standard as proposed by Sens. Chuck Hagel, R-Neb., and
Tim Johnson, D-S.D., would reduce our dependence on foreign oil, improve
our trade deficit, boost farm income, create new opportunities for rural
businesses, and reduce farm program costs," said John McClelland,
director of energy and analysis for NCGA.
McClelland
noted that, in addition to Hagel and Johnson, similar RFS bills have
been introduced by Sen. Tom Daschle, D-SD, Sen. Tom Harkin, D-IA, and
Rep. John Thune, R-At Large SD.
The
analysis by John Urbanchuk of AUS Consultants shows that implementing
such a renewable fuels standard (RFS) would lead to the annual use of
7.6 billion gallons of ethanol in 2016.
"That
level of ethanol use could reduce crude oil imports by 2.9 billion barrels
by 2016, an average of 302 million barrels annually," said McClelland.
"That equates to approximately one oil supertanker a day for the
next 15 years."
He
added, "These reductions in imports would lower America's dependence
on imported oil to 65 percent compared to the 70 percent projected by
the U.S. Department of Energy in 2016."
McClelland
said the study cited other benefits that could be achieved by 2016:
- The decrease
in oil imports can reduce the U.S. trade deficit by $63.4 billion
- Create 300,000
new American jobs
- Increase U.S.
household income by $71 billion.
The
projected the benefits to agriculture and rural economy include:
- Use 2.5 billion
bushels of corn for ethanol production by 2016. Current U.S. corn
production is 9.4 billion bushels of which 650 million bushels are
used in ethanol production
- Corn prices will
increase an average of 28 cents per bushel. Net farm income will increase
an average of $6.6 billion annually. That could reduce direct government
payments to farmers $7.8 billion through 2016 § $10.5 billion
in new rural economic investments by 2016 to build or expand the renewable
fuel production facilities. Much of this new investment would be through
farmer-owned, value-added businesses
The
NCGA, the National Biodiesel Board and the Renewable Fuels Association
sponsored the study. The report is available on the NCGA website at
www.ncga.com.
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