FOR IMMEDIATE RELEASE: June 12, 2001  Contact: Fred Stemme at (800) 827-4181

The Missouri Corn Growers Association (MCGA) applauds the Bush Administration for denying California’s request for a waiver from the oxygenate provisions of the Clean Air Act today. The decision means that nearly 600 million gallons of clean-burning ethanol could be used annually in California. Estimates from the National Corn Growers Association show that about 230 million bushels of corn will be used to produce the ethanol needed by California motorists, and could boost the value of the nation’s corn crop by as much as $1 billion annually.

"The decision by President Bush is a tremendous victory for clean air, consumers and corn farmers," says Gary Marshall, MCGA CEO. "California will start using clean-burning ethanol as they phase out of MTBE, which has fouled their drinking water. Consumers will benefit through lower prices at the pump because ethanol has twice the oxygen content of MTBE. Corn farmers will benefit through a boost in ethanol production in farmer-owned plants, and an increase in the overall value for our crop."

The Administration’s decision to deny the waiver is a milestone victory for the National Corn Growers Association, Missouri Corn Growers Association, other state corn grower organizations, and ethanol supporters. "The coalition has maintained an intense lobbying effort over the past six months, convincing two Presidents to allow ethanol to meet California’s needs for clean air. We appreciate our grassroots members who made telephone calls and sent emails to Congress. We also appreciate Senator Bond, Senator Carnahan, Minority Leader Gephardt, Representatives Akin, Blunt, Emerson, Graves, Hulshof, and Skelton, and Governor Holden for their extraordinary efforts to convince Presidents Clinton and Bush to make the right decision for ethanol."

Don Fischer, MCGA President and Corder, Missouri farmer, says: "The Administration’s denial of the waiver sends a clear message: The oxygenate provisions are working and are necessary for clean air. Corn growers have received the ‘green light’ they have been waiting for, and are ready to make the investments needed to expand ethanol production."

"The ethanol industry is ready to supply the California oxygen market," explains Gary Marshall. "We have two farmer-owned ethanol production facilities in Missouri that join with 54 other facilities nationwide to produce over 2 billion gallons of ethanol annually. MCGA and local farmer-groups are studying the feasibility of additional ethanol plants in Missouri currently. According to industry experts, U.S. annual ethanol capacity is expected to increase to 3.5 billion gallons per year by the end of 2003. Corn growers are excited about helping meet the nation’s needs for clean air and energy independence."

-30-

Editor’s Note: For recorded comments on this subject, please contact the MCGA actuality line toll-free at (800) 827-4181, extension 200.