|Dark green marks the states with enacted RFS and light green the states currently in legislative process.|
Missouri Gov. Matt Blunt today signed House Bill 1270—the Missouri Renewable Fuels Standard (MoRFS)—requiring gasoline sold in Missouri contain 10% agriculturally-derived ethanol (E-10) by 1 January 2008. (Earlier post.)
The legislation lifts the E-10 standard when ethanol is more expensive than petroleum-based gasoline. Consumers will also continue to have a choice when they buy gas, as premium grade fuels will be exempt from the E-10 standard.
Missouri currently has three operating ethanol plants, in Macon, Malta Bend, and Craig, that produce about 115 million gallons of ethanol annually. A fourth ethanol plant in Laddonia will begin operations later this year.
The Missouri Corn Growers Association (MCGA) expects ethanol production in the state to reach at least 350 million gallons by 2008, surpassing the 280-million gallon market that would be created by the MoRFS. In 2003, according to data from the Federal Highway Administration, Missouri used a total of 88 million gallons of ethanol in various gasoline blends.
The first four ethanol plants in Missouri will consume approximately 55 million bushels of corn annually and raise the value of Missouri’s corn by $41 million at the farm level annually. Estimates indicate that farmers can expect a five to fifteen cent per bushel price increase for corn as the demand for ethanol increases.