Friday, Jan. 13

Bipartisan effort boosts renewable fuels

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[JAN. 13, 2006]  SPRINGFIELD -- Legislation that will move Illinois into the next generation of renewable fuels production and invest in the state economy was introduced in the Illinois Senate on Wednesday, according to Sen. Bill Brady, R-44.

Senate Bill 2236 is an initiative of the Illinois Corn Growers Association, the Illinois Farm Bureau and the Illinois Soybean Association. The bipartisan effort to invest in crop-based fuels will help the state's farmers and help put Illinois at the forefront of a growing technology.

"Our proposal expands and invests in Illinois' leading industry: agriculture," said Sen. Deanna Demuzio, D-49. "This legislation will further our efforts to become independent from foreign oil. It will provide construction jobs and boost Illinois' economy by increasing the use of crops for renewable fuels. It will also increase consumer awareness that they do have a choice at the pump."

Brady says such incentives are important to the Illinois economy.

"Agriculture is our state's number one industry, and its successes and failures have a ripple effect on the entire economy. We are not just talking about the 76,000 men and women who operate farms," Brady said. "We are talking about companies that produce value-added products, like ADM in Decatur. We are talking about businesses that build farm machinery, like Caterpillar in Peoria and John Deere in Moline. The strength of the farm even influences business at the Chicago Board of Trade and the Chicago Mercantile Exchange."

"Throughout our state and our nation, consumers are concerned with high gasoline prices," said Sen. John Sullivan, D-47, chair of the Agriculture Committee. "Iowa and Illinois currently lead renewable fuels production in the nation. The legislation provides $3 million for research and support efforts conducted by the Illinois Corn Grain to Fuel Research Consortium. Western Illinois University would benefit from these funds, as well as other consortium members."

As gasoline prices have fluctuated wildly over the past several years, the use of renewable fuels continues to grow. At the end of 2005, 30 models and 4.5 million vehicles on American roads were "flexible fuel vehicles." Automobile manufacturers have embraced this technology and added it to the most popular vehicles in their fleet. DaimlerChrysler, Ford, General Motors, Isuzu, Mazda, Mercedes-Benz, Mercury and Nissan all have vehicles compatible with E85.

"This legislation is good for consumers, good for farmers, good for national security and good for the environment," said Sen. John O. Jones, R-54. "Ethanol is cheaper than regular gasoline and will save consumers money. Certainly, increasing ethanol use will create a greater demand for ethanol, which will boost Illinois' agriculture industry. The use of ethanol also reduces our dependence on foreign oil, which is important to our national security. And finally, ethanol is a renewable source of fuel, and it does not pollute our water or our air."

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"This legislation will build 10 more plants for the first two years and make up to a $42 million annual investment in the industry and would leverage many millions more in private investment," said Senate Democratic Leader Debbie Halvorson, D-40. "The $25 million provided for the construction of the new plants will generate $150 million in private investment."

"As we have seen, fuel has remained quite expensive -- and it doesn't appear that the cost will decrease dramatically any time soon," said Sen. Gary Dahl, R-38, Republican spokesman on the Senate Agriculture Committee. "By establishing standards for renewable fuels in Illinois and providing state sales tax incentives for petroleum companies who mix ethanol and soy diesel into their fuel, we are trying to maintain Illinois' position as a leading ethanol producer and reduce America's dependence on foreign oil."

In 2004, the U.S. industry created 147,000 jobs in the United States and brought an additional $1.3 billion in tax revenue to the federal government and $1.2 billion to state and local governments. Illinois' six ethanol plants have the capacity to produce nearly 900 million gallons of ethanol, or about one-fifth of all ethanol produced in the U.S., according to the Renewable Fuels Association.

"The Illinois Corn Growers Association is proud of its long history in supporting ethanol and is lending its full support to the proposed Illinois Renewable Fuels Standard," said John Kuhfuss of Mackinaw, president of the association. "With an Illinois RFS in place, the ethanol industry would contribute more than $764 million from tax revenue and spending for new construction, 22,000 permanent jobs, and $390 million to state and local government treasuries,"

"Illinois Farm Bureau is proud to be here today supporting this legislation strengthening home grown renewable fuels," said Mark Reichert, vice president of the Sangamon County Farm Bureau. "We appreciate the leadership of these legislators today in making sure that Illinois farmers have somewhere to market their grain locally. What better way to ensure that agriculture remains the number one industry in Illinois [than] by giving it a shot in the arm by having legislation that will allow more Illinois corn and soybeans to be made into ethanol and biodiesel and reducing our reliance on imported oil."

"Building new biodiesel plants, creating more efficient ways to distribute biodiesel and ensuring a consistent, high-quality product are our immediate goals within the biodiesel industry," said Steve Scates, Illinois Soybean Association chairman, of Shawneetown. "Locating these plants here and creating new jobs and revenue as a result are our immediate goals for Illinois. This legislation will help us achieve all of these goals, and we are grateful to the Senate leadership for their interest and work to ultimately pass this legislation."

[News release from Illinois Senate Republicans]

         

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