As a senator representing the number one ethanol producing state, I have been, and will continue to be, a strong advocate of ethanol use. Ethanol not only encourages our nation's rural economy by bolstering the farm economy by approximately $4.5 billion per year in commodities, but also encourages the reduction of greenhouse gases and particulate emissions produced by automobiles.
Additionally, in my capacity as a member of the Senate Energy and Natural Resources Committee, I have become increasingly aware of the problems that our reliance on foreign oil has caused this country. I believe this is a dependence that can be substantially alleviated by increasing ethanol and biofuels research, production and use in energy markets across the country.
Despite the many tangential subjects that the reformulated gasoline debate has spawned this year in Congress, the reason we are here today is to talk about ethanol. I find it curious that public scrutiny of ethanol has been sparked almost entirely by congressional and administrative attention to the need to eliminate methyl tertialry butyl ether (MTBE) from commercial use.
The elimination of the use of MTBE in reformulated gasoline should not mean the removal of the oxygenate requirement set forth under the Clean Air Act of 1990 which requires reformulated gasoline to contain two percent oxygen by weight. I believe it to be reasonable for our nation to expect both clean air and clean water, without having to eliminate the reformulated gasoline market or sacrifice our national health.
According to a U.S. Department of Agriculture study entitled "Economic Analysis of Replacing MTBE with Ethanol in the United States," replacing MTBE with the corn-based oxygenate additive ethanol would create approximately 13,000 new jobs in rural America and reduce farm program costs and loan deficiency payments through an expanded value-added market for grain. Furthermore, the U.S. Department of Agriculture has concluded that within three years, ethanol can be used as a substitute oxygenate for MTBE in nationwide markets without price increases or supply disruptions.
Ethanol has proven to be a viable, environmentally-friendlier alternative to MTBE. The use of ethanol in reformulated gasoline significantly reduces exhaust emissions of hydrocarbons and carbon monoxide, reduces particulate emissions, reduces the occurrence of aromatics in gasoline, and also reduces overall greenhouse gas emissions. The Chicago reformulated gas program (RFG) has used ethanol for years, and according to the American Lung Association, Chicago has established one of the most successful RFG programs in the country. Ethanol is vitally important to my home state, since Illinois is the number one producer of ethanol in the nation. Each year, 274 million bushels of Illinois corn are used to produce about 678 million gallons of ethanol. At a time when agricultural prices are at depression-era lows, this increased demand is sorely needed.
Mr. Chairman, I believe that Congressional action is absolutely necessary in the oil industry. Skyrocketing prices and widespread pollution have taken an enormous toll on our country's well-being and security. I am also very aware of the potential for Congress to act rashly and pass serious mandates without proper deliberations.
As you are aware, I have proposed legislation (S. 2233) to phase out MTBE use across the United States over the next three years, ensure proper labeling of all fuel dispensaries containing MTBE-enriched reformulated gasoline, provide grant awards for MTBE research, and express the sense of the Senate that the Administrator of the Environmental Protection Agency should provide assistance to municipalities to test for MTBE in drinking water sources, as well as provide remediation where appropriate. This bill represents an important first step toward safer and healthier drinking water throughout the nation.
Mr. Chairman, the oxygenate requirement is not the problem with our gasoline, the problem is MTBE. Ethanol is not only in the best interests of my state of Illinois, but also in the best interests of our entire nation's environment, and our nation's energy security. Again, thank you for allowing me time to share with the committee my views on the benefits of ethanol in our nation's gasoline supply.