FOR IMMEDIATE RELEASE: June 28, 2005

National Corn Growers Association Hails Passage of Energy Bill in Senate

ST. LOUIS (June 28, 2005) -- The National Corn Growers Association (NCGA) applauds the U.S. Senate for demonstrating the political will today to pass vital national and energy security legislation that includes an 8-billion-gallon renewable fuels standard (RFS).

In a vote of 85 to 12, the Senate passed S. 10, the Energy Policy Act of 2005. “The Senate has taken America one step closer to a more energy-secure future that uses domestic, renewable fuels to lessen our dangerous dependence on imported oil,” said Leon Corzine, NCGA president. “We are hopeful that the Senate and House conference will yield a national energy policy and get it to the president’s desk soon.”

S. 10 includes language giving the Federal Energy Regulatory Commission jurisdiction over Liquefied Natural Gas facility siting. The bill also includes a provision reflecting the administration’s comprehensive, voluntary approach to addressing the issue of climate change, both domestically and internationally, focusing on the role of private-public partnerships, technology, and developing countries in reducing greenhouse gas emissions.

S.10 includes the bipartisan RFS requiring refiners to blend 8 billion gallons of ethanol into the nation’s gasoline by 2012. “The ethanol industry has been proven to be a job-growth and economic engine for this nation and will continue to be,” Corzine said. “More than 200,000 direct and indirect jobs, rural development, reduced gasoline prices, lowered crude oil imports, increased farm income and reduced greenhouse gas emissions can be attributed to economical and environmentally friendly ethanol.

“Senator Pete Domenici has been a stalwart supporter of the renewable fuels standard and has worked with members on both sides of the aisle to make S.10 a reality,” he added. “Corn growers are thankful to him for his efforts to help strengthen the economy through sound energy policy that keeps America’s energy dollars within its borders.”

The $18 billion tax title in S. 10 includes provisions to: extend the biodiesel tax incentive through Dec. 31, 2010; expand ethanol plant size to 60 million gallons to qualify for the small ethanol producer tax credit; and, create a small agri-biodiesel producer tax credit. The tax title also includes an investment tax credit for alternative fuel refueling property, expanding the definition of alternative fuel to include fuel at least 20 percent biodiesel.

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The National Corn Growers Association’s mission is to create and increase opportunities for corn growers. NCGA represents nearly 33,000 members, 45 affiliated state organizations and hundreds of thousands of growers who contribute to state checkoff programs. For more information, log on to www.ncga.com.

ST. LOUIS OFFICE

WASHINGTON D.C. OFFICE