FOR IMMEDIATE RELEASE: July 5, 2006

CONTACT: Becky Grisham, Missouri Corn Growers Association, (573) 893-4181

GOVERNOR BLUNT SIGNS HISTORIC ETHANOL LEGISLATION
Missouri Farmers Recognized as Leaders in Renewable Fuels

(JEFFERSON CITY, Mo.)— Grower-leaders of the Missouri Corn Growers Association (MCGA) applauded as Governor Matt Blunt signed the Missouri Renewable Fuel Standard (MoRFS) into law. The statewide standard will boost the availability and use of biofuels by requiring all gasoline sold in Missouri contain 10 percent ethanol by 2008.

"This is a great day for corn farmers across the state," said MCGA CEO Gary Marshall. "Never in the history of the Missouri Corn Growers Association has there been such monumental legislation passed. By creating market access for a high-octane, cleaner burning fuel made from corn, the Missouri Renewable Fuel Standard provides the opportunity for farmers to strengthen the rural economy, while improving the air we breathe and reducing our dangerous dependence on foreign oil."

The MoRFS, included in House Bill 1270 & 1027, was sponsored by Representative Bob Behnen (R-Kirksville) and Representative Martin Rucker (D-St. Joseph). The historic legislation requires marketers to use ethanol blends after Jan. 1, 2008 whenever price is competitive with gasoline. This cost component helps ensure a lower price, which marketers should then pass along to consumers. Premium grade gasoline is exempted from the ethanol standard.

"There was a lot of time and effort devoted to making this legislation as effective as possible," said MCGA President Terry Hilgedick, a corn producer from Hartsburg, Mo. "The result is model legislation which ensures availability for a homegrown fuel and a market for the corn we produce."

"This statewide standard would not have been possible without the commitment of over 2,500 farm families that have invested in the ethanol industry and the thousands of others that are working together to strengthen and revitalize our rural communities. This team effort in a rapidly developing industry is something that benefits everyone," Hilgedick said.

Missouri currently has three ethanol plants in production, two under construction and several others under development. MCGA expects ethanol production in the state to exceed 350 million gallons by 2008, easily surpassing the market created by this landmark legislation. According to a recent University of Missouri study, this increased industry growth will inject an estimated $726 million into the state's economy, create 5,613 Missouri jobs and utilize 124 million bushels of corn each year.

"Matt Blunt made a campaign promise to this state's farmers and consumers that he would push for a 10 percent ethanol standard. Governor Blunt stuck to his word and today we can all celebrate as Missouri takes a major step towards securing our energy future," Marshall recounts. "We appreciate the work he has done and the overwhelming support shown in the General Assembly. The positive effects of Missouri's growing ethanol industry will be felt throughout our communities, our state and our nation as a whole."

The governor is signing the bill and touring ethanol plants across the countryside today and tomorrow to mark the passage of the MoRFS. Stops are planned in Webb City, St. Joseph, Kirksville, Palmyra, St. Louis, Laddonia, Macon and Malta Bend.

Missouri joins a handful of states that have successfully passed a renewable fuel standard. Minnesota and Hawaii are the only other states yet to have implemented a 10 percent ethanol standard. Montana has passed a 10 percent requirement that takes effect when the state produces 40 million gallons of ethanol. Iowa passed ethanol legislation this spring requiring 10 percent of the state's fuel supply be ethanol by 2009, increasing to 25 percent by 2019. Washington and Louisiana also signed legislation this year requiring two percent biofuel blends. As of Jan. 1, 2008, Missouri will most likely be the third state in the nation to implement a 10 percent ethanol standard.