Opinion: Legislation would cut foreign-oil dependence

Members of the Missouri House and Senate Agriculture committees have marked 2008 as the implementation date in order to allow time for the petroleum industry to plan accordingly and the Missouri ethanol industry to build accordingly. And the industry is building.

By the time the Missouri Renewable Fuel Standard goes into effect, Missouri farmers will be producing an estimated 350 million gallons of ethanol – providing an abundant supply to meet the 300 million gallon market.

While 129 ethanol plants are operating or under construction nationwide, no gasoline refineries have been built in the last 29 years. Missouri farm families are prepared once again rise to the occasion. By investing hundreds of millions of dollars in Missouri to ensure an adequate ethanol supply, we can continue to count on our farmers to fill the need for renewable fuel.

On the other hand, Missouri has minimal oil production and no gasoline refinery capacity. Certainly the question of gasoline supply for Missouri is more pertinent than the issue of ethanol supply.

Minnesota knew better than to let supply concerns stand in the way of progress when they implemented a 10 percent ethanol standard nearly a decade ago. The risk Minnesota took in implementing the nation’s first statewide ethanol requirement has reaped huge rewards. Today, Minnesota’s ethanol production has climbed to more than 450 million gallons annually and is home to 14 ethanol plants.

In that time, there has been no shortage of affordable ethanol and no need to revoke or suspend the requirement. Minnesotans have also been rewarded with improved air quality and adequate supplies of affordable fuel for the last 10 years, experiencing a drop of 2-5 cents per gallon in the average cost of gasoline since the program began.

We all received a wake-up call in the form of $3 gasoline. Yet while consumers suffered from the tight fuel supplies, the oil companies enjoyed record-breaking profits. Is it any wonder Big Oil is using scaremonger tactics in an attempt to tank the Missouri Renewable Fuel Standard?

The reality is that 10-percent ethanol blends cost less than conventional gasoline 95 percent of the time. When you factor in our state’s lower gas taxes, Missouri petroleum marketers enjoy a decided advantage over surrounding states. If the oil industry passes along the savings, this standard will not negatively impact Missouri’s competitive advantage. In fact, the MoRFS will enhance competition by releasing the stronghold currently monopolizing today’s market.

There are no drawbacks to this statewide ethanol standard. As part of the reformulated gasoline program to improve air quality, the St. Louis area has been using ethanol in its fuel supply for several years.

Ethanol-blended gasoline reduces tailpipe fine particulate emissions by 50 percent and reduces greenhouse gas emissions by up to 19 percent. The result has been cleaner air for millions of Missourians. With the passage of the ethanol standard, everyone in the state will contribute to a better environment.

Energy independence through increased ethanol use is in the best interest of national security and the economy of our state. The MoRFS will enable Missourians to do their part to help our nation decrease its dependence on imported oil – not to mention that such a policy would jumpstart economic growth in rural areas and reduce vehicular greenhouse gas emissions.

A challenge has been issued to reduce our dependence on foreign oil, clean up the air and stimulate the economy. Missouri has a chance to be one of the first states to answer the call.

One of our state’s favorite sayings is “Show Me!” Well, Minnesota has shown us. Now it is time for Missouri to say no to Middle East oil and yes to Missouri ethanol.

Let’s work together to drive economic development, cleaner air and a market for this affordable fuel here at home. Ethanol fits the bill. Please encourage our elected officials to pass the Missouri Renewable Fuel Standard today for a better tomorrow.

Gary Marshall is chief executive officer of the Missouri Corn Growers Association in Jefferson City.