ETHANOL INFORMATION OVERVIEW

 CONSUMER BENEFITS:
· Consumers use more than 15 billion gallons of high performance, cleaner 
  ethanol blended gasoline each year.
· Ethanol and ethyl tertiary butyl ether (ETBE) increase oxygenated supplies,
  reducing the need for methyl tertiary butyl ether (MTBE) imports and help
  to reduce consumer costs.
· Ethanol is a high octane blending component used by many gasoline
  marketers -- creating competition for the major oil companies.  
· Ethanol blends can be used in virtually all gas engines without any engine
  or mechanical revisions. 
· Ethanol guards against gas line freeze by absorbing moisture that may 
  get in the tank during cold weather. 



TAXPAYER BENEFITS:
· The partial excise tax exemption for ethanol blends that are available to 
  gasoline marketers saves money.  A GAO study has shown that reduced 
  farm program costs and increased income tax revenues offset the cost of the 
  incentive.
· The economic activity caused by the ethanol industry will generate $3.5 
  billion in additional income tax revenue over the next five years -- $1 
  billion more than the cost of the exemption.
· The U.S. ethanol industry will create a net gain to taxpayers of almost
  $4 billion over the next five years.



ECONOMIC BENEFITS:  
· More than $3 billion has been invested in 60 ethanol production facilities
  operating in 20 different states across the country.
· The ethanol industry is responsible for more than 40,000 direct and indirect 
  jobs, creating more than $1.3 billion in increased household income annually, 
  and more than $12.6 billion over the next five years.
· The ethanol industry directly and indirectly adds more than $6 billion to the
  American economy each year.
· As the economic activity created by the ethanol industry ripples through the
  economy, it will generate $30 billion in final demand between 1996 and 2000.
· Increases in ethanol production offer potential for economic growth in small
  rural communities.  USDA has estimated that a 100 million gallon ethanol 
  plant could create 2,250 local jobs.
· Each gallon of ethanol produced domestically displaces seven gallons of
  imported oil.
· The demand for grain created by ethanol production increases net farm income
  more than $12 billion annually.
 


AGRICULTURAL BENEFITS:
· Industrial corn use, which includes ethanol and sweetener production, is now the
  second largest consumer of corn in America.  Each $1 of up-stream and on farm
  economic activity generates $3.20 in downstream economic stimulus attributable
  to ethanol processing, compared to just $0.31 when corn is exported.
· Ethanol production consumed 535 million bushels of corn in 1994 (5.3% of the
  record 10 million bushel corn crop).
· The demand for corn created by the ethanol industry increases crop values
   -- accounting for approximately $0.14 of the value of every bushel of corn
  sold last year, or $1.4 billion.
· If the market for ethanol did not exist, corn stocks would rise and net income
  to American corn farmers would be reduced by $6 billion over the next five
  years, or about 11%.
· Many farmers now own and operate ethanol plants, allowing them to add value
  to their own corn.



ENERGY/TRADE BENEFITS:
· Domestic ethanol and ETBE production reduces demand for imported oil and MTBE
  which drains our economy -- oil and MTBE imports now represent almost 80%
  of the U.S. trade deficit.
· Currently, imported oil accounts for 53% of oil used.
· Today, ethanol reduces the demand for gasoline and MTBE imports by 98,000 
  barrels per day.  A 98,000 barrel/day replacement of imported MTBE would represent
  a $1.1 billion reduction to our annual trade deficit.
· Ethanol production generates exports of feed co-products, such as corn gluten,
  further decreasing our balance of trade. 
· Ethanol production is energy efficient, with a positive energy balance of 125%
  compared to 85% for gasoline.
· Ethanol production is the most efficient method of producing liquid 
  transportation fuels.  According to USDA, each BTU used to produce a BTU
  of gasoline could be used to produce 8 BTUs of ethanol. 



ENVIRONMENTAL BENEFITS:
· 10% ethanol blends reduce carbon monoxide better than any reformulated gasoline
  blend - more than 25%.
· Ethanol is low in reactivity and high in oxygen content, making it an effective
  tool in reducing ozone pollution.
· Ethanol is a safe replacement for toxic octane enhancers in gasoline such 
  as benzene, toluene, and zylene.


(The facts above are reprinted with permission from the American Coalition for
Ethanol)



IOWA FACTS:
· Ethanol demand boosts Iowa's state and local tax receipts by $111 million -- the
  biggest increase of the top 10 corn-growing states.  
· Iowa has the processing capacity to manufacture 440 million gallons of ethanol.
· In 2000, 779 million gallons of ethanol blended fuel were sold in Iowa.
· More than 50 percent of all gasoline sold in Iowa is a 10% ethanol blend.
· Since ethanol's inception in 1978, more than 1.85 billion bushels of Iowa corn 
  have been processed into ethanol. 
· Approximately 175 million bushels of Iowa corn are processed annually into
  ethanol.
· More than 13,000 Iowa jobs are affected by ethanol, including 2,550 directly 
  related to ethanol production.
· Ethanol production keeps Iowa's economy on the grow -- generating more than
  $1.7 billion in economic activity and adding approximately $730 million to the
  value of the state's corn crop.

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