Durbin: Ethanol and E-85 to Benefit from Legislation Pending in Congress

DURBIN: ETHANOL AND E-85 TO BENEFIT FROM LEGISLATION PENDING IN CONGRESS

U.S. Senator Dick Durbin (D-IL) was in Rockford, Rochelle and Yorkville today to promote the provisions in the recently-passed Senate energy bill that would expand Illinois' ethanol market and help begin to reduce the nation's dependence on foreign oil.

"Renewable fuels provide for a dependable domestic source of energy that increases fuel supplies, reduces our reliance on foreign oil, and enhances our ability to control our own security and economic future - while helping our farmers by increasing demand for their crops," Durbin said.

"Illinois farmers stand ready and willing to contribute to America's energy security and independence," Durbin said. "Replacing Mideast oil with Midwest ethanol is a winner for everyone but the oil sheiks. When we can use our Illinois agricultural expertise to reduce our dependence on foreign suppliers, the whole nation benefits."

Durbin voted in favor of the Senate energy bill, which passed on June 28. The energy bill is now in a Conference Committee where Senate and House conferees will work toward an agreement.

Included in the Senate bill is the Renewable Fuels Standard (RFS), a provision that will create a nationwide standard for the use of domestically-produced renewable fuels, like ethanol, and increase the use of those fuels to 8 billion gallons by 2012. The RFS passed by the Senate could reduce oil imports by 2.5 million barrels per day in 20 years. The House of Representatives passed an energy bill in which the RFS number is lower at 5 billion gallons. Today, Durbin sent a letter to the members of the energy bill House/Senate Conference Committee urging them to retain the renewable fuels provisions included by the Senate.

According to an analysis completed by economist John Urbanchuk of LEGC, Inc., an RFS that grows to 8 billion gallons of ethanol by 2012 would have a significant impact on both the farm and overall economy throughout the next decade:

*** Reduce crude oil imports by 2 billion barrels and reduce the outflow of dollars largely to foreign oil producers by $64 billion; *** Create 234,840 new jobs in all sectors of the U.S. economy;

*** Increase U.S. household income by $43 billion;

*** Add $200 billion to GDP between 2005-2012;

*** Create $6 billion in new investment in renewable fuel production facilities; and

*** Result in the spending of $70 billion on goods and services required to produce 8 billion gallons of ethanol and biodiesel by 2012.

In Illinois, roughly one in every six rows of corn (approximately 280 million bushels) is the source for ethanol. Illinois ranks second in the nation in corn production, with more than 1.5 billion bushels produced annually, and is the nation's leading source of clean-burning ethanol. Illinois currently has five ethanol plants, with two other plants in production. Corn grown in Illinois is used to make 40% of the ethanol consumed in the United States. More than 95% of the gasoline sold in the Chicago area contains 10% ethanol.

Investment in the ethanol industry in Illinois exceeds $1 billion, generating 800 jobs in plant operations and 4,000 jobs in the industry-related service sector. In fact, Illinois ethanol production alone has increased the national market price for corn by 25 cents per bushel.

Earlier this year, Durbin cosponsored Senate legislation which provides a tax incentive for the installation of alternative fuel refueling stations (including E-85 stations) that dispense fuels such as ethanol, natural gas and hydrogen. The provision was included in the transportation reauthorization bill, which is currently in a House/Senate Conference Committee. In Illinois, 49 cities stock E-85 at their pumps.

"Increased use of E-85 benefits both Illinois' air quality and economy, while enhancing energy security," said Illinois Environmental Protection Agency Director Doug Scott. "We appreciate Senator Durbin's strong support for ethanol on the federal level that has complemented Governor Blagojevich's multi-faceted state initiatives to increase availability of ethanol fuel and compatible vehicles, coupled with research and support for Illinois ethanol production."

http://durbin.senate.gov/record.cfm?id=240293&&