Wednesday, July 5, 2006
Contact: Jessica Robinson, 573-751-0290
Blunt Enacts 10 Percent Ethanol Standard; State, Consumers to Recognize Renewable Fuel Benefits
JEFFERSON CITY–Gov. Matt Blunt today signed legislation requiring gasoline sold in Missouri to contain 10 percent ethanol (E-10) by 2008. The new law ensures the state has access to E-10's many economic and environmental benefits.
“I am pleased to sign this bill giving Missourians access to the affordable, homegrown gasoline they want and that they can be proud to use when they fill their tanks,” Blunt said. “This renewable fuel standard benefits consumers, our economy, the environment, and Missouri farmers.”
“It means Missouri corn fields will be the oil fields of the 21st century, contributing $348 million annually in value added income to Missouri’s economy and generating $726 million annually in economic activity. I am pleased the general assembly answered my call to make this important legislation a priority for this session.”
House Bill 1270, sponsored by Rep. Bob Behnen, establishes the Missouri Renewable Fuel Standard Act, which requires most Missouri gasoline to contain at least ten percent ethanol by January 1, 2008.
The legislation ensures lower gasoline costs by lifting the E-10 standard when ethanol is more expensive than petroleum based gasoline. This ensures consumers only benefit from the proposal. Consumers will also continue to have a choice when they buy gas, as premium grade fuels will be exempt from the E-10 standard.
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. Studies have shown that 10 percent ethanol blends reduce particulate matter by 50 percent, reduce carbon monoxide emissions by up to 30 percent, and reduce emissions of toxic compounds by 13 percent. In addition, according to a 2002 study by the U.S. Department of Agriculture, ethanol yields 34 percent more energy than it takes to produce, including growing the corn, harvesting it, transporting it, and distilling it into ethanol.
Missouri currently has three operating ethanol plants, in Macon, Malta Bend, and Craig, that produce about 115 million gallons of ethanol annually. A fourth ethanol plant in Laddonia will begin operations later this year. Anticipated growth in Missouri's ethanol industry will produce more than enough fuel to meet the new E-10 standard.
An economic impact study by the University of Missouri estimated that ethanol production at Missouri plants is projected to reach an annual capacity of 350 million gallons, creating $348 million dollars annually in value-added income to Missouri's economy and generating $726 million annually in economic activity.
The first four ethanol plants in Missouri will consume approximately 55 million bushels of corn annually and raise the value of Missouri's corn by $41 million at the farm level annually. Estimates indicate that farmers can expect a five to fifteen cent per bushel price increase for corn as the demand for ethanol increases.
Blunt is the first Missouri Governor to recommend full funding for the Ethanol Incentive Fund in his budget to the General Assembly. Since taking office Blunt has directed $16.5 million to the fund.
The governor signed the bill at stops in Webb City, St. Joseph, Kirksville, Palmyra, and St. Louis today and will sign the bill in Laddonia, Macon, and Malta Bend tomorrow.
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