The ethanol industry has empowered rural communities across this nation. These communities are now flexing their economic muscle with a keen eye to the future. The impact of ethanol has enabled these towns to maintain a sense of tradition and cohesiveness by offering economic opportunities to present and future generations.

Rural communities are no longer dependent on the "trickle down" effect of economic prosperity from state and federal investment. The economic engine created by the ethanol industry has created a ripple effect in the other direction, extending throughout America. The technology sector has been a major recipient of this growth spurt, as they provide software for sophisticated plant operations. Increased investments in the finance, real estate and insurance sectors are a result of the economic vitality of an ethanol plant.

Fact: When you purchase E85, a blend of 85 percent ethanol and 15 percent gasoline, 85 cents of each dollar stays right here in America.

Industry Capacity:

• Today, nearly 170 ethanol production plants, located throughout the U.S. have the capacity to produce more than 9.35 billion gallons of ethanol per year– and more plants are under construction to help meet consumer demand. One of the greatest challenges facing rural communities throughout America is the lack of resources available in enticing a company to invest in the area. Rural communities often struggle to maintain economic stability and look for ways to attract quality jobs to their area. The ethanol industry is an ideal solution for many of these communities and residents looking for good, high paying jobs.
  Source: Renewable Fuels Association

Trade Balance:

• America’s ethanol use will have the ability to displace 11.3 billion barrels of crude oil between 2008 and 2022. At the current average price of $130 per barrel, in 14 years we'll have saved more $1.4 trillion dollars due to ethanol production.
  Source: LECG, LLC
• The Energy Independence and Security Act of 2007 expands the Renewable Fuels Standard (RFS) by requiring 36 billion gallons of renewable fuel be used annually by 2022. Of particular note, 21 billion gallons of that goal must come from advanced biofuels including cellulosic ethanol.
  Source: The White House
• For the first time since the 1970's, dependence on foreign oil is dropping. Data from the Energy Information Administration shows that foreign oil dependency is expected to fall from 60 percent to 50 percent by 2015.
  Source: Energy Information Administration

Job Creation:

• The U.S. ethanol industry supported the creation of nearly 238,541 jobs in all sectors of the economy in 2007. More than 46,000 of these jobs were in the manufacturing sector—American jobs making ethanol from grain produced by American Farmers. By 2022 the creation of more than 1.1 million jobs will be possible due to ongoing production of ethanol and the construction of new capacity.
  Source: LECG, LLC
• New jobs are created as a direct result of increased economic activity caused by ethanol production. The increase in gross output resulting from the ongoing production of a 50 million gallon per year (MGY) ethanol plant will support the creation or more than 800 jobs in all sectors of the local economy and a 100 MGY plant will generate nearly 1,600 new jobs.
  Source: LECG, LLC

Economic Engine for Rural America:

• In 2006, 2.3 billion bushels of corn were used for ethanol production, representing 18 percent of total U.S. corn production. Ethanol is the third largest component of corn demand in the U.S. behind food production and exports. In 2007, farmers planted over 90 million corn acres. This was the largest crop in over 60 years with the least amount of land ever in production. U.S. farmers will meet the challenge of a diversified market: food, exports and energy.
  Source: National Corn Growers Association
• Ethanol production boosts America's economy through the combination of spending for annual operations, ethanol transportation and capital spending for new plants under construction or expansion. This combination added $47.6 billion to the nation's Gross Domestic Product (GDP) in 2007. The GDP is an indicator of the country’s economic health. A state's GDP is raised by $152 million for a 50 million gallon ethanol plant and $300 million for a 100 million gallon ethanol plant.
  Source: LECG, LLC

Tax Revenue for Local and State Economies:

• Ethanol industry operations and spending for new construction added approximately $4.6 billion of tax revenue for the federal government and $3.6 billion for state and local governments during 2006. These dollars are used for education, road improvements and emergency response programs.
  Source: LECG, LLC

Federal Ethanol Incentive Creates Economic Growth and Jobs:

• The federal ethanol program was established following the Organization of Petroleum Exporting Countries (OPEC) oil embargoes of the 1970s.
  Source: Biofuels Incentives: A Summary of Federal Programs
• The federal ethanol incentive, which is available to gasoline marketers and oil companies (not ethanol producers), returns more revenue to the U.S. Treasury than it costs, due to increased wages and taxes. It also reduces unemployment benefits and farm program payments. The incentive holds down the price of gasoline and helps the American farmer.
  Sources: American Coalition for Ethanol and Renewable Fuels Association
• The U.S. government has subsidized the oil industry since the early 1900s and continues to do so. In fact, according to the General Accounting Office in an October 2000 report, the oil industry has received more than $130 billion in tax incentives just in the previous 30 years–dwarfing the roughly $11 billion provided for renewable fuels. During that time, U.S. oil production has fallen while annual U.S. ethanol production has grown dramatically. This increased ethanol production helps reduce price at the pump.
  Source: United States General Accounting Office