Chevron, Corn Growers Talk Ethanol

December 28, 1999

Corn producer representatives met earlier this month in San Francisco with officials of Chevron Corp. The two sides differ on the 2% oxygen requirement for gasoline, but without a waiver of that requirement for California, refiners will have to gear up soon to begin using ethanol by 2003 when MTBE must be phased out.

Attending the meeting were Lynn Jensen, president, National Corn Growers Association, and CEO Chris Wehrman; Len Corzine, president, Illinois Corn Growers Association and Ken McCauley, chairman, Kansas Corn Commission

Chevron is the largest refiner and retailer of gasoline in California and has supported a federal waiver from the 2% oxygen requirement for the state either through congressional legislation or a decision by the Environmental Protection Agency. In fact, says NCGA, California refiners are not making investments now to use ethanol by 2003 because they expect a waiver from EPA or legislation from Congress.

"We think Chevron has a greater appreciation for our support for an oxygen requirement and why it is such a core principle for NCGA," says Jensen. "We also got a better understanding of their concerns for flexibility, because so much of their business is in California where the rules for making gasoline are very strict."