Ethanol Industry Sets Record Production in January

11 March 2000

    WASHINGTON - The Renewable Fuels Association (RFA) today announced that 
according to the latest data from the U.S. Energy Information Administration, the 
domestic ethanol industry set a new record for production during January, averaging 
over 107,000 barrels per day (b/d) for the month.  This tops the previous record of 
106,000 b/d set in October of 1999.  Over 139 million gallons of ethanol were 
produced in January -- enough to oxygenate 2.4 billion gallons of reformulated 
gasoline (RFG) or 77% of the RFG sold in January.

    "The ethanol industry is growing to meet the demand for clean burning
renewable fuels," said Eric Vaughn, President of the RFA.  "We're moving right
now to meet California's need for a clean air fuel that doesn't pollute water.
We can replace MTBE in California's gasoline today."

    The record high price of gasoline and record low price of corn is focusing
attention on renewable ethanol as a cost-efficient way to maintain clean air
standards while preventing further contamination of groundwater and drinking
water by an alternative oxygenate, MTBE.  MTBE has polluted water supplies
from California to New Hampshire.  California has banned MTBE by 2003 and
other states, as well as members of the U.S. Congress, are looking at a ban as
well.

    "The ethanol industry is proving it can meet the demand for a clean air
gasoline oxygen additive," said Vaughn.  "We are ramping up production in
anticipation of a greater role in providing Californians and others with a
safe, clean, renewable gasoline.  Californians' want clean air, clean water,
and an affordable, high performance gasoline.  Ethanol does all that and more.
As a domestic, renewable source of energy, it helps our farmers, saves tax
expenditures on farm programs, and reduces our dependence on foreign oil
cartels."

    For more information, visit the Renewable Fuels Association website at:
http://www.ethanolRFA.org.