JEFFERSON CITY, Mo. -- A House committee will consider whether to repeal Missouri's four-month-old ethanol mandate, reported the Associated Press. A law passed in 2006, and which went into effect on January 1, requires most Missouri gasoline to be blended with 10% ethanol whenever E-10 is cheaper than regular gasoline.
Critics blame the ethanol requirement for driving up the price of livestock feed, which uses corn that now costs more because ethanol plants bid up the price of corn. Critics also cite that as reason to reject a proposed biodiesel mandate. Biodiesel includes oil from soybeans [image-nocss] and animal byproducts.
The state House Transportation Committee was scheduled to hold a hearing on H.B. 25366 yesterday. State representative Dethrow (R) introduced the bill on March 31. Its chance of passing this session is likely small since it came up so late in the session and is just now getting a hearing, said AP. The session ends May 16.
Governor Matt Blunt on Monday highlighted a study that shows the state's 10% ethanol standard is helping Missouri drivers save nearly 10 cents per gallon when they fill up their vehicles at Missouri gas stations.
The study, "Impact of Ethanol on Retail Gasoline Prices in Missouri," was performed by John Urbanchuk with the economic consulting service LECG and paid for by the Missouri Corn Merchandising Council.
"Gas prices are too high and these rising costs drive home the point that we need to reduce our dependence on foreign oil," Blunt said in a statement. "That is part of why I am a strong supporter of plant-based renewable fuels and am pleased to see that increasing ethanol use in our state is saving Missouri drivers money at the pump. Our state has great potential in the emerging renewable fuels industry, and if the fields of Missouri's farm families are to become the oil fields of the 21st Century, we must continue to support policies that allow us to position ourselves at the forefront of this thriving industry, which is good for our farmers, our environment and Missouri families' pocketbooks."
Blunt pointed to a study by consultant John Urbanchuk that shows Missouri drivers are benefiting from the increased use of ethanol in gasoline. In 2007 the use of E-10 saved Missouri drivers 7.7 cents per gallon at the pump for a total savings of $158.2 million, or $40 for each licensed driver in the state, the study said. This year, the use of ethanol is estimated to save Missouri drivers 9.8 cents per gallon or $72.80 per driver, which will add up to more than $285 million in savings for 2008.
Missouri is the third state to implement an E-10 standard.
Over the past several months, gasoline distributors have been working, with assistance from the Missouri Department of Agriculture, to complete the transition from petroleum-based gasoline to an E-10 blend.
Over the last three years, Blunt's administration has worked to pay back the incentive payments that were promised to the Missouri farm families that invested in ethanol cooperatives, but were not made before he took office.
Click hereto view the full study.
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