TOPEKA, KS - The 22-state Governors' Ethanol Coalition today commented on a legislative proposal requiring a very small percentage of the nation's gasoline to come from renewable resources by January 2001 and establishing procedures for states to ban MTBE from gasoline sold within their borders.

According to Kansas Governor and Coalition Chairman Bill Graves, the legislative proposal would do more than just boost ethanol use nationwide. "The bill being proposed has been in development for months," Graves said. "Senator Daschle, one of the bill's authors, asked Coalition members to review it and give him our thoughts. The legislation allows states maximum flexibility to meet the nation's gasoline needs, water pollution concerns and air pollution problems."

The bill, as presently written, would require a nationwide average of 1.3 percent renewable content in 2001 and rise to 2.1 percent by 2009. The Governor said the group also emphasized the need to ensure that ethanol plays a vital role in the upcoming Phase Two of the Clean Air Act's Reformulated Gasoline Program.

Iowa Governor and Vice Chairman Tom Vilsack said the impetus for action came because of mounting concerns over MTBE pollution of water supplies in California and elsewhere. "Individual states need to have the ability to provide their citizens clean and safe drinking water without the side effects of MTBE in the fuel," Vilsack said. "However, this concern should not prevent us from tapping into the advantages of retaining a minimum oxygen standard. The environmental benefits of ethanol-blended gasoline have been proven, and the economic impact of increased ethanol production will boost our nation's agricultural industry at a time when farmers need it the most."

Under this proposal, states would still have the option to keep or eliminate MTBE from gasoline, and gasoline makers would be allowed flexibility in meeting the new fuel formulas.

The 22-state Governors' Ethanol Coalition supports the increased use of ethanol, a decrease in the nation's reliance on imported energy resources, an improved environment and a strong national economy.