GOVERNOR HIGHLIGHTS ETHANOL AGENDA
GOVERNOR JOHANNS COMMENTS ON MTBE PANEL FINDINGS;
NEBRASKANS BRIEF CALIFORNIANS  ON CLEAN-BURNING ETHANOL;
GOVERNOR REMINDS STATE EMPLOYEES OF ETHANOL PREFERENCE;
UNL TRUCK COMPETES IN NATIONAL ETHANOL VEHICLE CHALLENGE

Lincoln, NE – Nebraska Governor Mike Johanns made four ethanol-related announcements at his weekly news conference today.

First, the Governor commented on an EPA study released yesterday critical of MTBE – ethanol’s chief competitor.  Then he thanked a group of Nebraskans who recently traveled to California to brief that state’s officials and agricultural interests on the positive economic and environmental aspects of ethanol.  Next, Johanns signed a memorandum reminding state employees of the state’s commitment to using ethanol in state vehicles.  Finally, the Governor recognized a group of University of Nebraska-Lincoln students for their participation in a national ethanol vehicle competition.

“Ethanol is one of the keys to the future of Nebraska agriculture and a key component in future clean-burning gasoline supplies,” said Governor Johanns.  “More than one out of every seven bushels of Nebraska corn were used in the production of ethanol in 1998 alone.  This renewable resource helps to reduce pollution by motor vehicles, adds value to Nebraska grains, and provides jobs at seven ethanol plants across Nebraska.  It’s a win, win, win situation for agriculture, job creation in several Nebraska communities, and the environment.”

Governor Comments on U.S. EPA MTBE Panel Report

On Tuesday, a U.S. Environmental Protection Agency panel issued a report critical of the motor fuel additive MTBE.  The panel’s report indicated that MTBE contaminates drinking water and urged that its usage be reduced.  Governor Johanns said he expected the panel’s findings and that the report is a significant opportunity for Nebraska’s ethanol industry and Nebraska agriculture.   Corn, and in some instances grain sorghum, is used in the production of ethanol.

“The panel’s finding that MTBE use in gasoline should be sharply curtailed should certainly not surprise the petroleum industry.  This decision became obvious as reports of water contamination by MTBE began to mount,” Johanns said.   “However, the panel’s report was clear:  if MTBE is removed, don’t replace a bad toxic with an untested and even more toxic one.  That’s why I believe ethanol should, and must, replace MTBE.  Ethanol is a proven, environmentally sensitive additive that can reduce gasoline’s toxic effects.”

Johanns said he saw nothing but opportunities for ethanol in the future.  “With each year, the ethanol industry has grown more diverse and efficient while the environmental and policy benefits of ethanol have become better known.  In 1999, the ethanol industry will set yet another production record,” the Governor said.  “And now, ethanol and agriculture have significant opportunities for future growth.”

June Mission to California by Nebraska Representatives in Support of Ethanol Announced

In late June, a delegation of high-level Nebraska officials traveled to California to discuss ethanol as a replacement for MTBE with California officials.  Earlier this year, California Governor Gray Davis signed an executive order phasing out the use of MTBE over the next several years but without defining the alternative necessary for California to meet stringent air quality standards.  The most obvious alternatives are use of ethanol or a loosening of clean air standards.

“California has resolved to eliminate MTBE, an additive, from gasoline in the state because the additive has polluted water supplies,” said Governor Johanns.  “Right now, officials and scientists are determining what replaces that additive in gasoline – ethanol, something else or nothing.  We want to make certain ethanol is fairly considered.”

The Governor said small amounts of ethanol have been produced and used in California since 1990.  Johanns predicted an increase in ethanol used in California in the near future.  The Governor said the Nebraskans who traveled to California provided specifically-tailored and timely information on ethanol’s economic and environmental benefits in California.

“When ethanol use in California increases, Nebraska plants will benefit because of our proximity to the West Coast,” said the Governor.  “Increasing ethanol production is one sure way we can add value to Nebraska’s agriculture crops and do what we can to improve grain prices.  Ethanol is a key value-added agriculture effort of my administration.”

According to the Governor, those meeting with the Californians included representatives from his administration, the Legislature, and agricultural and ethanol groups:  Merlyn Carlson, Director of the Nebraska Department of Agriculture;  Don Hutchens, Nebraska Corn Development and Marketing Board;  Barb Kliment, Nebraska Grain Sorghum Board;  Roger Patterson, Director of the Nebraska Department of Water Resources;  Larry Pearce, Governor’s Energy Office;  Dennis Scamehorn, Nebraska Corn Growers Association;  Todd Sneller, Nebraska Ethanol Board;  and Randy Stovall, State Senator Ed Schrock’s office

According to the Governor, the Nebraska group as well as others in the 22-state Governors’ Ethanol Coalition, of which Nebraska is a member, will continue to work with and provide information to California officials over the next several months as key fuel additive decisions are made.

Johanns Reaffirms State Commitment to Using Ethanol in State Vehicles

The Governor also announced that he had reaffirmed a state policy that’s been in effect since 1981:  reminding all state employees they are obligated to use ethanol blended fuels in state vehicles.  The state maintains ten and 85 percent fuel blends at Department of Roads facilities across the state and employees can purchase ethanol blended fuels at service stations all across Nebraska.

“Reaffirming our commitment to ethanol is one small way that government can make a difference,” said Governor Johanns.  “Each bushel of grain that is converted to ethanol puts an extra nickel or dime in a farmer’s pocket.”

Johanns issued a memorandum to all state agencies, boards, and commissions reaffirming the ethanol policy that dates back to the days of Governor Charles Thone.

UNL Competes in Second National Ethanol Competition

Governor Johanns presented the Nebraska team members who competed in the 1999 National Ethanol Vehicle Challenge with a set of prestige license plates reading EVC 1 and EVC2.  The Challenge is an annual event among participating college and university teams who compete in a number of areas in modifying cars and trucks to operate at maximum efficiency on 85 percent ethanol and 15 percent gasoline. This year’s University of Nebraska-Lincoln team received awards for the best ethanol conversion and the most innovative component.  Because of the creativity the engineering team showed, General Motors kept the Nebraska modified truck for several weeks to examine it.

“I want to single-out UNL’s College of Engineering, Bill Wiens, and the students for continuing to excel in this automotive engineering competition,” said the Governor.  “We have just learned the Challenge will be held again next year, and I want to be the first to confirm the state will have an entry.”

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Note to Media attending the News Conference:  Photo opportunity immediately following news conference.  The UNL Ethanol Truck and the 1997 entry – a Chevy Malibu -- and team members and sponsors – will be located in front of the Governor’s Mansion.

Click HERE to view the actual website for Governor Johanns' Press Releases