Ethanol standard bill passes House

House Bill 1279 and 1027 now is on its way to the Senate. If passed, Missouri would be the fifth state to have a statewide ethanol standard, joining Minnesota, Montana, Hawaii and, most recently, Washington. The standard would go into effect 2008.

The ethanol discussion has been widespread in Missouri this year and picked up speed in February when Gov. Matt Blunt announced his support for the required standard. Blunt’s 32-member Governors’ Ethanol Coalition and the Missouri Corn Growers Association have since been touring the state to shed light on the advantages of ethanol.

Supporters say the standard could save the environment and boost Missouri’s economy by beefing up in-state corn production. Meanwhile, gasoline retailers worry that the cost of transitioning to an ethanol standard could translate into higher gas prices for customers.

The state has committed $5.3 million toward ethanol production in its fiscal year 2006 budget.