Missouri House passes ethanol standards bill

The Missouri House of Representatives recently OK'd a bill that would change the statewide standards in ethanol blended fuels sold in the state. The Missouri Renewable Fuel Standards Act, is advocated by Missouri Corn Growers Association, a grassroots organization representing more than 20,000 Missouri corn farmers.

More use of alternative to petroleum fuels can't come soon enough for consumers, some of whom are hoping something -- like greater use of renewable fuels -- will help ease the squeeze on their pocketbooks from the rising cost of fuel. A customer purchasing fuel blended with ethanol at a Harrisonville station on Tuesday, who identified himself only as Richard, said, "I hope, when they start using more ethanol, that these prices will go down." He shook his head and gestured at the price on the ethanol blended fuel. Although it was less expensive by a few cents than the other fuels available at the station, the pump still read $2.55 per gallon.

The bill will increase ethanol use and boost the local economy, so the MCGA says. It is also said to boost air quality while lessening dependence on foreign oil. The bill requires Missouri sold gasoline to contain 10 percent ethanol even when the price of ethanol is the same or lower than regular unleaded gasoline. State Representative Barney Fisher, R- 125th District, said that currently, 40 percent of all fuel sold in Missouri is an ethanol blend, noting that about 1 in 5 gas stations in Missouri already carry fuels with a 10-percent ethanol blend.

The legislation was championed by Rep. Bob Behnen, R- Kirksville, with amendments offered by Rep. Peter Myers, R- Sikeston, and Rep. Brian Munzlinger, R- Williamstown.

MCGA CEO Gary Marshall said, "This innovative statewide ethanol standard will help position our state as a leader in renewable fuels and offer a "Missouri Model" for other states to follow."

Proponents of the bill believe strongly that it will reduce our dependence on foreign oil, utilizing a cleaner burning fuel as well as invigorating the states economy. The increased ethanol output is expected to generate $63 million in tax revenues and inject an estimated $726 million into the state's economy. In order to allow time for this change, the measure will not go into effect until Jan. 1, 2008.

There will also be exemptions allowed for motor boats, antique vehicles and aviation fuel.

"We can either utilize a crop that is grown in our backyard or we can continue to support costly crude oil from foreign lands, said Terry Hilgedick president of MCGA, "To me the choice is clear."

Proponents also advocate that standard, which is 10 percent ethanol will correspond well with all motor vehicles manufactured since the 1970s. Ethanol is a clean burning, renewable and a more efficiently burning fuel.

Fisher said, "Missouri has a great start down the road to being energy self- sufficient."

The Missouri Renewable Fuel Standard will require most marketers to use ethanol blends whenever prices are competitive with gasoline.

It is aimed to prevent major oil companies from blocking marketers from blending ethanol. The bill also provides exemptions for aviation fuel, premium gasoline, bulk transfers between terminals and any other specific exemptions declared by the United States Environmental Protection Agency and air quality waivers issued by the governor. The bills also will require infrastructure to be built in the few areas not already prepared to use ethanol and help to ensure the lower prices for wholesalers which marketers should be able to pass along to consumers.

Hilgedick said "We applaud Missouri legislators for crafting a bill that provides a price safeguard for consumers while securing a strong foothold for ethanol in tomorrow's marketplace."

Currently, Missouri has three ethanol plants in production, two are currently under construction and several others in the drawing board. MCGA expects ethanol production in the state to reach at least 350 million gallons by 2008 which easily surpasses the 280 million gallon market that would be created.

Recently, the University of Missouri conducted a study that said this increased industry growth would inject an estimated $726 million into the states economy whereby creating 5,316 Missouri jobs and utilizing 124 million bushels of corn a year.

The bill will now be brought to the Senate for further action, and if it passes, Missouri will be the fifth state in the union to have a statewide ethanol standard.

Currently Washington, Hawaii, Montana and Minnesota all have statewide ethanol standards.