EPA's Blue Ribbon Panel on Oxygenates recently reported that MTBE was detected in 21 percent of the drinking water wells in RFG areas nationwide. This situation is serious and demands a comprehensive response by Congress, not one unique to California. Second, the U.S. farm economy is facing the toughest economic times in more than a decade. Some farmgate prices are the lowest they have been since the early 1970s. Excess supplies, decreased export markets, and significant competition in the world markets are testing the ability of farmers to survive.
Ethanol currently accounts for the largest industrial use of U.S. corn.
It increases the value of corn by 18-35 cents per bushel. We cannot allow this to happen. Third, the oxygenate standard was established for many reasons, including to improve air quality, increase energy security by decreasing imports of foreign oil, increase renewable fuel use, and promote rural economic development. We understand and want to work with the California delegation to address its desire to improve air quality on its own terms. There are many innovative ways to improve air quality.