The National Corn Growers Association (NCGA) on March 11 applauded Sen. John Thune (R-SD), Senate Environment and Public Works Committee Chair James Inhofe (R-OK) and Sens. George Voinovich (R-OH) and Kit Bond (R-MO) for introducing legislation that establishes a Renewable Fuels Standard (RFS) requiring 6 billion gallons of renewable fuels be blended into the nation's fuel supply annually by 2012. The measure would significantly increase the contribution of ethanol and biodiesel to the U.S. fuel supply.

"NCGA congratulates the senators and their diligent staffs for beginning the debate on the RFS at 6 billion gallons, a 20 percent increase over the last Congress' RFS number," said Leon Corzine, NCGA president. "We recognize this is only the first step in the lengthy legislative process to get a comprehensive energy bill to the president's desk this year. We will work to ensure that RFS legislation is successfully passed out of the Senate Environment and Public Works Committee (EPW).

"Introduction of the RFS is proof our legislators are getting serious about this nation's energy crisis," Corzine added. "Consumers are frustrated with higher gas prices and the worsening air quality that results from increased oil consumption. This is an important step toward remedying these problems, and we're hopeful Congress will finally be able to send an energy bill to the president this year."

NCGA Ethanol Committee Chair Daryl Haack noted the senators have started the process on a positive note by increasing the RFS number and advancing the implementation schedule. Yet, much work remains to be done, he said.

"Congress has acknowledged that the U.S. ethanol industry's production capacity is growing at a pace that could not have been imagined in 2001 when the original RFS agreement was reached," Haack said. "NCGA will continue to push for a higher number on the Senate floor and in conference with the House to further reflect the extraordinary growth of our domestic corn-based ethanol industry."

NCGA will work with the senators and others to make additional improvements to the bill.

"Our first goal is to ensure a bill is successfully passed out of the Senate Environment and Public Works Committee, but that isn't our end goal," said David Gillen, a South Dakota grower and member of NCGA's Public Policy Action Team. "Our end goal is to secure final passage by Congress of a comprehensive energy bill that includes an RFS, and get the bill to the president's desk this year. With oil and natural gas prices rising so dramatically, our nation must have sound energy policy enacted into law."

Reports by the Energy Information Agency note the ethanol industry produced a record 3.4 billion gallons in 2004, created more than 200,000 direct and indirect jobs, reduced gasoline prices, cut crude oil imports, increased farm income, and reduced greenhouse gas emissions.

Date: 3/24/05