January 20, 2005

ERPENBACH AND DAVIS CO-SPONSOR RENEWABLE FUEL BLEND LEGISLATION

MADISON -- State Senator Jon Erpenbach (D-Middleton) and State Representative Brett Davis (R-Oregon) joined forces with a bipartisan group of legislators in support of “E10” legislation, which would require all automotive gasoline to contain 10% ethanol.

“Ethanol blend fuels are more environmentally friendly, and their production will help our agricultural economy here in Wisconsin” Erpenbach stated. “This proposal will create jobs, boost economic growth, especially in rural areas, and reduce dependence on foreign oil,” said Davis.

The E10 plan models the Minnesota law that requires not less than 9.2% nor more than 10% ethanol in automotive gasoline. A study of the Minnesota Department of Agriculture shows the ethanol industry contributes over 2,500 jobs and $600 million to that state’s economy.

Currently, Wisconsin has three ethanol plants operating in Wisconsin, and a fourth is under construction. If the bill passes, it is believed that as many as ten plants could be operating as a result. The WI Department of Administration has determined that the construction of one 40-million gallon ethanol plant would create 41 full time jobs, increase household income of the community by $19.6 million a year, and boost state and local tax receipts by an average of $1.2 million.

As a renewable and domestic source of energy, ethanol reduces the need to import almost 130,000 barrels of oil a day. “We need to reduce our dependence on foreign oil,” said Erpenbach. “The Minneapolis – St. Paul metro area now meets the EPA’s carbon monoxide standard by achieving their attainment status,” said Davis, “this was due in large part to the use of ethanol blended fuel.”

Both legislators represent Monroe and Green County, home of the Badger Ethanol Plant. “This legislation will help the long-term stability of the Ethanol market, which means job security for many workers in south central Wisconsin,” said Davis. There is also the benefit from the distillers grain, a co-product of ethanol production, which is a valuable and economical feed for livestock. “It helps the farmers growing corn to have a market for their product,” said Erpenbach, “ as well as the farmers raising livestock – this is a win-win.”

The legislation has been introduced in both houses of the Legislature as companion bills. Senator Harsdorf is the lead Senate author of Senate Bill 15, and Representative Freese is the Assembly author of Assembly Bill 15.