RFA Responds to State of the Union Energy Initiatives

Washington, DC - The following is the response of the Renewable Fuels Association (RFA) to the energy initiatives as outlined in the State of the Union Address by President George Bush.

RFA President Bob Dinneen:  "Recognizing the potential of our nation's ethanol industry, President Bush used the unique forum of the State of the Union Address to elevate the significance of ethanol and renewable fuels to our nation's energy future by calling for 35 billion gallons of alternative fuel use by 2017.  With consistent and focused policies, this is an eminently achievable goal.  It will stimulate new investment in cellulosic ethanol technologies and drive market opportunities for ethanol beyond existing blend levels.  It is a goal that makes sense for America.

"By proposing such an ambitious goal, President Bush is seeking to maximize the economic, environmental and energy benefits ethanol and other alternative fuels offer.  The vast majority of Americans agree.  By relying on American know-how, our nation can act to counter the costly volatility that defines the world oil market and achieve the reductions in gasoline consumption the president is seeking.  The U.S. ethanol industry stands behind President Bush and this Congress in their commitment to taking the bold steps necessary to realize the full potential of American agriculture and this industry.

"The production of nearly 5 billion gallons of ethanol in 2006 sent a signal to the world that America is serious about ending its addiction to foreign oil.  The use of those 5 billion gallons reduced the need for some 170 million barrels of imported oil, ensuring more than $11 billion stayed here at home instead of being sent to places like Iran and Venezuela.  This record production also means new jobs and new economic activity, increased tax revenue for school improvements and first responders, and the opportunity for young people in small communities to stay home or move back because a good paying job now exists.  The rise of ethanol is truly spurring a rural renaissance in small communities that has not been seen in more than a generation.

"Increasing domestic ethanol production and use is a winning proposition for the entire country.  It helps revive rural communities, reduce dangerous greenhouse gas emissions, and lessen our reliance on a volatile world oil market and often-hostile oil producing nations.  Our industry applauds President Bush for his recognition of ethanol's importance and looks forward to working with him on an agenda that takes this industry to a bold new horizon."

Vital Ethanol Statistics:

111 ethanol biorefineries are in operation in 19 states with a capacity to produce more than 5.4 billion gallons annually.

78 ethanol biorefineries are under construction and 7 are expanding that will add more than 6 billion gallons of new capacity by the middle of 2009.

Ethanol is blended in more than 46% of the nation's gasoline.

Ethanol production in 2006 reached a record high of an estimated 4.9 billion gallons.

Tax revenue generated by the construction and operation of the nation's ethanol biorefineries outpaced federal spending on the ethanol tax incentive.  Additionally, USDA projects farm program savings of nearly $6 billion because of the increased demand for corn generated by ethanol production. 

Ethanol production yields 2.8 gallons of ethanol per bushel of grain.

Ethanol production yields 17 pounds of distillers grains, a high protein animal feed, per bushel of grain.

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More information is available at www.EthanolRFA.org.