NCGA to House Ag Subcommittee: Time is Now for Renewable Fuels (5-22-06)

With gasoline prices at record levels, petroleum imports rising, and domestic energy production declining. Bruce Noel, National Corn Growers Association (NCGA) Ethanol Committee chairman, told members of the House Agriculture subcommittee field hearing in Rochester, Mich., now is the time to maximize the production and use of domestic renewable fuels.

Noel testified today before the subcommittee on department operations, oversight, dairy, nutrition, and forestry aimed at reviewing the future of renewable fuels, flex-fuel vehicles (FFV) and E85 fuel.

He told members there is no single answer for this country’s dependence on foreign oil imports, and he highlighted the important role ethanol plays in the nation’s overall energy policy and our nation’s long-term energy solution.

“The renewable fuels standard (RFS) establishes a floor for ethanol production, ensuring a solid market for corn, including increased production of ethanol plants and infrastructure across Michigan,” Noel said. “Corn growers have proudly invested in this growing ethanol industry that is doing good things for America. The ethanol market is the single most successful and fastest growing value-added market for farmers. Nearly 50 percent of all U.S. ethanol plants are farmer-owned.”

A growing ethanol market shows benefits at the national and state level. According to the testimony, on the national level production is skyrocketing and investments continue to grow for new facilities. Michigan has one ethanol plant in operation, three plants under construction and another plant in the final permitting stages. Ethanol production levels in Michigan can potentially reach close to 250 million gallons.

Noel noted the outlook for Michigan ethanol production looks to meet in-state consumer demand, as well as potential markets in the Northeastern United States. “Market demand for ethanol in the Northeast is already high and is projected to increase in the future,” he said. “Michigan is uniquely positioned to supply the clean-burning additive – ethanol – to replace MTBE to this region.”

“A major hurdle to increase the use of E85 is availability and infrastructure,” Noel said. “There are more than 6 million FFVs capable of running on E85 fuel on the roads today. Over the past year, many of the automobile manufacturers have launched aggressive advertising campaigns to help inform consumers about FFV models and ethanol as a fuel option.”

Noel also stated Michigan fuel suppliers are realizing the growing demand for E85 and are working to make the fuel available to the consumers. Michigan’s first E85 pump opened in September 2005 and several more pumps have opened throughout the state in early 2006. Michigan has five E85 pumps, with at least 20 pumps scheduled to be built.

The House Agriculture Committee has posted a farm bill feedback form on its Web site, http://agriculture.house.gov/.  Opinions on current farm policy and future policy choices will be accepted.

To view Noel's testimony, click here.