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FOR
IMMEDIATE RELEASE
NCGA Releases Key Findings:
Consumers to Realize Significant Savings with RFS
Key U.S. senators join corn growers to advocate renewable fuels package
June
3 ,
2003
Contacts:
Tracy Taylor Grondine, NCGA, (202) 628-7001
Mimi Ricketts,
NCGA, (636) 733-9004
WASHINGTON (June
3, 2003) — The National Corn Growers Association (NCGA), joined
by key U.S. Senators, today released important findings supporting a
renewable fuels standard (RFS). Consumer Impacts of the Renewable Fuels
Standard, a study by agriculture expert John Urbanchuk, analyzes positive
impacts and significant savings the RFS will have for consumers and
the U.S. economy.
Sens. Richard Durbin
(D-Ill.), Norm Coleman (R-Minn.), Jim Talent (R-Mo.), joined NCGA Ethanol
Committee Chair Duane Adams and Co-Chair Theresa Schmalshof to advocate
the RFS provision, which is being debated in the Senate as part of a
comprehensive energy bill.
“The renewable
fuels standard provides substantial positive benefits for Americans:
consumers, farmers, rural communities and taxpayers,” said Urbanchuk.
“Increased use of renewable fuels, such as ethanol and biodiesel,
will benefit the environment and increase America’s energy self-sufficiency,
which will help improve our trade balance and thereby bolster the sagging
U.S. dollar.”
According to the
study’s findings:
- Blending ethanol
with gasoline at a 10 percent level will reduce the retail price of
conventional regular gasoline by 5 percent, or 6.6 cents per gallon
based on national average 2002 prices. This translates to an annual
savings to consumers of $3.3 billion.
- Using corn and
other grains to produce the 5 billion gallons of ethanol stipulated
by the RFS will have an insignificant impact on consumer food prices.
- America’s
highways will be protected by proposed changes in the structure of
the excise tax exemptions granted to ethanol.
- Taxpayers will
benefit because improved demand and prices for grains will reduce
the amount of taxpayer dollars needed for direct government payments
to farmers.
The report will give ethanol supporters more firing power, noted Durbin,
a member of the Senate Agriculture Appropriations Committee. "Ethanol
makes sense for the environment, for our nation's energy security and
for farmers, taxpayers and consumers all across the country. To me,
it is hard to argue against that case," he said. "As momentum
for a renewable fuels standard and the use of ethanol builds, I hope
this report will convince our critics once and for all."
Coleman, a member
of the Senate Agriculture Committee, said, “The list of reasons
why the renewable fuels standard is critical to our energy future keeps
on growing. Renewable fuels are essential because they promote the 3
E’s (of ethanol) of economic development, energy independence
and environmental protection,” he said. “And now add to
the list another benefit: lower fuel prices at the pump.”
The study reiterates
what NCGA has known all along — the RFS is good for consumers,
said Adams, a Cosmos, Minn., corn grower. “The ethanol industry
in Minnesota has certainly contributed to the economic development of
communities that have been fortunate enough to have a plant located
in their area,” he explained. “We need to process as much
of our own product to not only maintain economic stability and prices,
but also stability in rural America.”
Schmalshof of Adair,
Ill, agreed. “There are five plants producing ethanol in Illinois
and three in various stages of construction. Six others are in the planning
stages,” she said. “Ethanol plants are a way we can improve
our rural economy. We are excited about the benefits the RFS will have
on rural America.”
Talent described
ethanol’s benefits outlined in the study. "This report affirms
what producers in Missouri and around the country have known for years,
ethanol is not only good for the environment and our national security,
it will have enormous benefits for consumers through reduced gasoline
prices," said the Senate Energy and Natural Resources Committee
member and the Senate Bio-Fuels Caucus co-chair. "Additionally,
California's MTBE ban has proven that renewable fuels will not disrupt
the market as a few have suggested. In fact, it will have the opposite
effect, producing jobs and growth to help get our economy moving again.
This overwhelming evidence more than makes the case for an RFS and the
use of ethanol. I appreciate the NCGA for their steadfast leadership
on this important issue."
Also on hand at
the event were Sens. Byron Dorgan (D-ND), Mark Dayton (D-Minn.) and
Tom Harkin (D-Iowa).
The report in its
entirety can be viewed at www.ncga.com.
# # #
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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