Corn growers hail administration's intention to deny the California waiver

The National Corn Growers Association (NCGA) today welcomes the apparent decision by the Bush Administration to deny California's request to opt out of the federal RFG (reformulated gasoline oxygen requirement).

WASHINGTON, June 11, 2001 — The National Corn Growers Association (NCGA) today welcomes the apparent decision by the Bush Administration to deny California's request to opt out of the federal RFG (reformulated gasoline oxygen requirement).

Although no official announcement has been made, NCGA believes the denial will be unconditional.

The administration's decision to deny the waiver is a milestone victory for the ethanol industry and for corn producers. NCGA's technical analysis — which provided the factual data to help secure this win — resulted from the cooperation between state corn grower checkoff boards and NCGA. The returns on that investment are apparent in this decision.

NCGA asserts this decision is an unequivocal validation of the technical arguments it has provided to the EPA during the last 18 months. NCGA's analysis determined that adding ethanol to California's gasoline would improve air quality and protect water resources. Demand for ethanol in California will be approximately 580 million gallons annually. About 230 million bushels of corn will be used to produce the ethanol needed by California motorists. That amount of corn grind will boost corn prices by 10 to 15 cents per bushel, increasing the value of the nation's corn crop by as much as $1 billion.

Tim Hume, NCGA President-elect and a Walsh, Colo., farmer, said: "The administration's denial of the waiver sends a clear message: The oxygen requirement is working and is 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 National Corn Growers Association mission is to create and increase opportunities for corn growers in a changing world and to enhance corn's profitability and usage. NCGA represents more than 30,000 members, 25 affiliated state corn grower organizations and hundreds of thousands of growers who contribute to state checkoff programs.

For more information about NCGA and this issue see www.ncga.com .

SOURCE: National Corn Growers Association

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