Governor’s Column - February 15, 2008
by Governor Matt Blunt
Growing Missouri's Renewable Fuel Industry
I pledged that my administration would renew our state's commitment to agriculture so that Missouri's next generation of farm families will have the opportunities they need to prosper and continue providing our country with the safest and most affordable food supply in the world.
Our state has great potential in the emerging renewable fuels industry, and if the fields of Missouri's farm families are to become the oil fields of the 21st Century, we need to enact policies that allow us to position ourselves at the forefront of this thriving industry which is good for our farmers and our environment.
I want Missouri to be a leader in the country and in the world in producing and using renewable fuels and that is why I have proposed that all diesel fuel sold in the state contain no less than 5 percent biodiesel (B5) fuel.
A B5 Standard is good for Missouri's environment and will build on the ten percent ethanol standard we enacted further establishing Missouri as a national leader in the renewable fuels.
Biodiesel from soybeans has proven much more environmentally-friendly and better for our air quality than regular diesel. Research has shown that it cuts carbon dioxide and cancer-causing emissions by more than 75 percent. Adopting a B5 standard will reduce particulate matter emissions by 15.4 million pounds and carbon monoxide emissions by 168 million pounds. Just as important, research has shown that it performs just as well as traditional diesel fuel.
On New Years Day our plan went into effect requiring all gasoline offered for sale in Missouri to contain at least 10 percent ethanol (E-10), ensuring the state has access to ethanol's benefits to our farmers and our environment. With the support of elected representatives I signed legislation in 2006 enacting this E-10 standard. Our action made Missouri just the third state in the country to implement a broad ethanol requirement.
Ethanol is a cleaner burning alternative to petroleum based gasoline and is more efficient to produce. It contains more oxygen, which results in better combustion and fewer carbon dioxide, carbon monoxide and carcinogenic emissions.
To help further enhance the use of alternative fuels in Missouri, I have called for new tax credits to help ensure that Missourians who own vehicles capable of running on alternative fuels have access to this cleaner burning, home grown renewable fuel. The proposed tax credits will help to offset the cost of installing or modifying pumps capable of dispensing fuel that contains 85 percent ethanol (E-85). I have also proposed income tax deductions for Missouri drivers who purchase a qualified hybrid vehicle and tax credits for the purchase of E-85 gasoline to increase consumption of alternative fuels in our state.
I have taken very significant steps since 2005 to recommend full funding for the Ethanol Producers Incentive Fund and Bio-Diesel Incentive Fund, and pay the back payments owed to Missouri farm families. This year there is, again, full funding for the Ethanol Incentive Fund and for the Bio-Diesel Incentive Fund in my budget.
With the support of your elected leaders in the General Assembly, Missouri can continue being a leader in ethanol, biodiesel and the renewable fuels industries while protecting the quality of our environment.