Georgia Farm Bureau's Leadership Alert - October 27, 2010

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October 27, 2010

www.gfb.org

Vol. 28 No. 43

VILSACK STRESSES ENERGY SECURITY DURING TOUR OF FUEL FACILITY Agriculture Secretary Tom Vilsack and Rep. Sanford Bishop (D-Ga.) got a first-hand look at the operation of First United Ethanol LLC (FUEL) in Mitchell County on Oct. 25 and used the visit to stress the importance of the United States generating its own fuel in the automotive and other sectors. Vilsack also discussed his intentions to assist the retail distribution sector of the fuel supply chain to help in the conversion to higher levels of blended ethanol in automotive fuels. FUEL, which converts corn into ethanol to be blended with gasoline, served as the backdrop for Vilsack to discuss energy and job-creation initiatives the United States Department of Agriculture (USDA) is pursuing. “At the end of the day it’s about putting people to work, it’s about improving the bottom line for farmers and ranchers and producers in this country,” Vilsack said. “It’s about making this country energy secure, so we’re not relying on someone else for our own fuel and energy.” Earlier in the day, Vilsack and Bishop met with the South Georgia Regional Information Technology Authority to discuss the development of broadband access in rural communities. Prior to the tour of the FUEL, Vilsack, Bishop and Krysta Harden, the USDA assistant secretary for congressional relations, met with FUEL Chairman Tommy Dollar and FUEL CEO Murray Campbell to discuss issues and opportunities within the ethanol industry. Campbell gave a presentation outlining the need for fuel alternatives to oil and the forecasts for ethanol production potential in the U.S. “I’ve been to a few ethanol facilities in my day, and it’s obvious that this is a team that understands the need to look ahead,” Vilsack said. Vilsack’s visit came two weeks after the United States Environmental Protection Agency (EPA) announced approval of increasing the ethanol content in gasoline to 15 percent for fuel to be used in vehicles from model years 2007 and newer. The EPA is waiting on the results of Department of Energy studies before approving the 15 percent blend rate for model years 2002-2006. Because nearly half the vehicles on the road in the U.S. are from model years 2002-2006, some analysts believe the retail fuel industry will be hesitant to spend the money to add tanks or pumps to accommodate the greater ethanol content. Vilsack said that while companies like FUEL are building production capacity, retail distribution also needs to be developed, and to that end he said the USDA needs to provide financial assistance to convenience store operators, petroleum marketers and others in the automotive fuel supply chain with the goal of adding 10,000 blender pumps over the next five years.


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