Testimony of Governor George H. Ryan

Senate Agriculture Subcommittee on

Research, Nutrition, and Legislation Field Hearing

April 18, 2000

Good morning.

First, let me thank Sen. Peter Fitzgerald for calling this hearing and providing a forum for us to once again weigh-in on this important public policy issue.

We are here today to stand with Sen. Fitzgerald in support of his efforts on the federal level to promote and protect the ethanol industry.

I want to begin by expressing my wholehearted and enthusiastic support of Sen. Fitzgerald's bill, S. 2233, the MTBE Elimination Act.

Co-sponsored by Sen. Durbin, this legislation would phase out the use of the fuel oxygenate MTBE over three years.

It also calls for pump labeling to ensure that consumers know when they are subjected to MTBE.

As you know, MTBE has proven harmful to the environment and to our public water supplies.

Here in Illinois, even though MTBE has not been widely used as compared with some other states, we have detected MTBE in 26 public water supplies.

Already, the Illinois General Assembly has approved similar pump labeling legislation, and I intend to sign that into law soon.

In Illinois, we have done and will continue to do everything in our power to encourage President Clinton and his Administration and the members of Congress to fully recognize the many benefits of ethanol.

On the state level, we have pledged planning and construction funds that will be used to supplement any federal dollars the state would receive for a proposed ethanol research pilot plant.

Also, we have budgeted funds to encourage construction of a new ethanol processing plant.

All in this upcoming fiscal year.

The bottom line is that ethanol is of critical importance as an environmentally-friendly alternative energy source and as a viable market for American farmers.

Recently, the US EPA and the US Department of Agriculture outlined a plan to significantly reduce the use of MTBE in gasoline.

That's a good first step.

And I want to recognize US EPA Administrator Browner and US Department of Agriculture Secretary Glickman for acknowledging the harmful effects of MTBE.

I also applaud their commitment to renewable fuels such as ethanol.

But I must also express my concerns regarding the possible elimination of the oxygenate requirement from the Clean Air Act Amendments of 1990.

The oxygenate requirement has helped clean the air in our urban areas, both in Chicago and the Metro-East area.

Eliminating the oxygenate requirement will adversely impact the use of ethanol and potentially increase the amount of toxins released into the air we breathe.

Sen. Fitzgerald's proposed legislation properly addresses these concerns.

In a recent letter to President Clinton, I voiced concerns about any effort to eliminate the oxygenate requirement and encouraged the President to support Senator Fitzgerald's legislation.

Mr. Chairman, I would ask that a copy of that letter be placed in the record.

There are also substantial economic concerns surrounding this issue.

The use of ethanol is crucial to the economic vitality of Illinois farmers.

Currently, approximately 600 million bushels of corn are used in the production of ethanol throughout the United States.

In Illinois, we produce more than 600 million gallons of ethanol, making us the nation's leading producer of ethanol.

In fact, approximately 17% of Illinois' total corn crop is used to make ethanol.

That demand increases the price of corn between 30 and 48 cents per bushel.

If that demand is lost, Illinois farmers and producers will suffer severe economic hardships.

With today's commodity prices, our farmers simply cannot afford further setbacks.

This legislation would protect and perhaps increase that demand.

Obviously, ethanol is an issue of particular importance here in Illinois and in other agriculture-based states.

But the fact of the matter is that clean air, clean water, and a healthy agriculture economy are important to everyone.

I am one of 23 governors on the Governors' Ethanol Coalition.

In fact, I chair the Environmental Committee of that coalition, and I know that the entire Coalition strongly believes that America needs to say no to MTBE and yes to ethanol.

And I think implementing the MTBE Elimination Act is the best way to do that.