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Corn Growers Stunned by California Governor's Decision to Extend MTBE
Phase-Out
March
19, 2002
FOR
IMMEDIATE RELEASE
Contact:
Gary Bradley, NCGA, 636-733-9004, ext. 139
John McClelland, NCGA, (202)628-7701
(ST.
LOUIS) March 19, 2002 -- The National Corn Growers Association (NCGA),
long a proponent of ethanol as a replacement for MTBE, today expressed
its extreme disappointment in a decision by California Gov. Gray Davis
reversing his decision taken three years ago to eliminate MTBE from
California gasoline by Jan.1, 2003.
In
a statement released Friday, Davis extended the time refiners have to
remove MTBE from gasoline sold in California by up to one year.
An
angry NCGA President Tim Hume said Davis has made it clear that he would
rather rely on foreign sources of MTBE than U.S. farmers.
"The
governor's decision is based on unwarranted fear that banning MTBE and
switching to ethanol will cause gasoline prices to reach $3 per gallon,"
said Hume, a corn grower from Walsh, Colo. "This view illustrates
the complete lack of knowledge of the ethanol market and the U.S. transportation
system in California government."
Hume
noted that many cities, including Chicago, Milwaukee, St. Louis, Minneapolis,
Cleveland and Denver use ethanol and maintain gas prices at or below
the national average.
"There
is no economic rationale that supports Gov. Davis' assertion that using
ethanol will increase gasoline prices in California," Hume continued.
"The supply is there and there is adequate transportation to deliver
ethanol to the California market."
Farmers
throughout the Midwest and in other areas of the United States have
been engaged in meeting the additional demand for ethanol that was expected
when Gov. Davis made his original decision, explained Hume noting that
in the past three years, nearly 1 billion gallons of additional ethanol
capacity have come on line.
"Much
of that additional capacity is farmer-owned cooperatives that took the
challenge set forth by Gov. Davis on March 25, 1999 and built the ethanol
production capacity to serve the California market," said Hume.
While
Gov. Davis and members of his Cabinet have questioned the ability of
the ethanol industry to produce enough ethanol to meet the market demand
in California they have also questioned the ability of the California
refining and distribution industries to be ready to use ethanol by Jan.
1, 2003, stated Hume. However, California refiners and distributors,
in filings made under the California Environmental Quality Act (CEQA)
have demonstrated their readiness to use ethanol in California gasoline
now.
The
NCGA president concluded: "While the governor shows a disregard
for the decisions by thousands of individuals and businesses and the
clear and compelling facts about the continued danger of using MTBE
in California gasoline, it is not too late for California refiners and
gasoline distributors to do the right thing and begin using ethanol
now."
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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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