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Ethanol Deal Carries From Negotiating Table to Senate Floor
March
5, 2002
FOR
IMMEDIATE RELEASE
Contact:
Gary Bradley, NCGA, 636-733-9004, ext. 139
John McClelland, NCGA, (202) 628-7001
(ST.
LOUIS) March 5, 2002 -- The National Corn Growers Association (NCGA)
is cheering the inclusion of a renewable fuel standard (RFS) in the
Senate energy bill. The RFS was introduced on the floor of the U.S.
Senate today by Senate Majority Leader Tom Daschle and inserted into
the Senate energy package in place of current language.
The breakthrough
on the RFS came late last night as a result of several weeks of negotiations
among Senate leaders headed by Daschle and a coalition of key ethanol
industry, oil, and agricultural associations, including the NCGA, the
renewable Fuels Association, and the oil industry represented by the
American Petroleum Institute.
"This is an
amazing development, but one that we have worked very hard to achieve.
However, there is still much work to be done. While we have won a hard-fought
victory with the inclusion of this RFS amendment in the Senate's energy
legislation we need to pass an energy bill and move on to the Conference
Committee," said NCGA President Tim Hume, a grower from Walsh,
Colo. "We thank the Senate leaders for their insight into the overall
benefits that a renewable fuels standard will provide."
Hume outlined some
of the details of the agreement:
- A renewable fuel
standard in which part of the United States' fuel supply, growing
to 5 billion gallons by 2012, is provided by renewable, domestic fuels
such as ethanol and biodiesel in exchange for eliminating the oxygen
requirement in reformulated gasoline;
- Creating a flexible
market-based program;
- Phasing down
the use of MTBE in the U.S. gasoline market over four years;
- Protecting the
air quality gains of the RFG program.
"These provisions
will promote more U.S.-sourced energy, reduce oil imports, protect the
environment and stimulate rural economic development through increased
production and use of domestic, renewable Fuels," Hume said.
While Hume praised
inclusion of the RFS amendment in the Senate's energy package, he said
NCGA does have some concerns about the bill. "We do not think the
ethanol demand is large enough in the short-run," he explained.
"However, given the language we started with in the underlying
bill, we believe this is a very good compromise that will greatly enhance
the role of ethanol in the U.S. gasoline pool."
The NCGA has set
a goal of tripling the use of corn in ethanol production within 10 years.
"We worked along with the other members of the RFS coalition who
have taken the lead as proponents of a renewable fuel standard in national
energy legislation. I am proud of the leading role NCGA has taken and
continues to take on the RFS in the Senate," Hume said. This could
be the breakthrough we have been working for so many years."
The National Corn
Growers Association mission is to create and increase opportunities
for corn growers in a changing world and to enhance corn's profitability
and usage. NCGA represents more than 32,000 members, 25 affiliated state
corn grower organizations and hundreds of thousands of growers who contribute
to state checkoff programs.
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