Contact: Ernie Blazar 202.224.7627 Shana Stribling 202.224.0309
Friday, August 1, 2003

WASHINGTON - Senator Kit Bond today applauded the Senate's passage of legislation late yesterday that protects jobs while also boosting the use of renewable fuels.

"Energy legislation will be good for Missouri's farmers and our state's economy," said Bond, who has lead the fight to enact a strong renewable-fuel standard in the energy package. "This is a huge step forward in developing a new source of domestic fuel while also boosting the fuel efficiency of existing vehicles through sound science."

The renewable-fuel standard adopted by the full Senate will reach five billion gallons per year by 2012. That goal could create as many as 300,000 new American jobs, boost farm net income by $6.6 billion and reduce farm program payments by $7.8 billion. According to one agriculture expert, the renewable-fuel standard could create the demand for as much as 13.1 million additional acres of corn – almost one-fifth as much corn acreage planted last year. Today, only about six percent of today's corn acreage is devoted to ethanol production.

The Senate-passed legislation must now be reconciled with the version approved by the U.S. House of Representatives before a compromise version is sent to the President for his signature.

"In Missouri, that means corn farmers may realize a 12-cent per bushel boost in prices over the next ten years," said Bond. "We also hope to see similar benefits among soybean farmers as biodiesel use increases."

Bond also hailed the Senate's decision to embrace his amendment to boost fuel efficiency for light trucks and cars by setting goals based on sound science, not arbitrary numbers plucked out of thin air by politicians. Bond's amendment directed the experts at the National Highway Traffic Safety Administration (NHTSA) to consider key elements such as technological feasibility, cost, safety, emissions controls, consumer choice and effects on American jobs.

Bond also applauded his colleagues for approving plans to build a natural gas pipeline to the "lower 48" from the North Slope of Alaska. Not only will this pipeline increase access to domestic supply, but it will create as many as 400,000 job years for American workers.

In the last ten years, demand for natural gas has increased by 19 percent. It is projected to grow over 50 percent in the next quarter century. Absent a new supply of natural gas, a gap of 15 billion cubic feet per day or 6 trillion cubic feet per year is likely in the next decade with disastrous impact on budgets of families heating with natural gas and industries depending upon it for creating their product.