Officials Close to Decision on California Waiver

April 6, 2001

The National Corn Growers Association (NCGA), along with other ethanol supporters in Washington, DC, say they have confirmed rumors that the White House is in the process of making a decision on California's request for a waiver from the oxygen content requirement of the reformulated gasoline program, but agricultural interests are not involved in the process.

"We believe that the major oil companies marketing gasoline in California are attempting to convince the White House that there are insufficient quantities of ethanol to supply the California market as they phase out MTBE by the end of 2002," said NCGA Vice President of Public Policy Bruce Knight.

"The agriculture community is not being consulted on this decision. Low commodity prices and the nation's energy shortage are the basis for our opposition to the compromise. We need to make our voices heard," Knight added.

In a letter last month to President Bush, the Renewable Fuels Association (RFA) assured the administration that the ethanol industry can meet California's oxygenate demand today. The RFA further urged the Bush Administration to deny California's request for a waiver from the clean octane provisions of the Clean Air Act.

Even though the waiver may only be granted on air quality grounds, waiver proponents have attempted to support their argument almost entirely by raising concerns about the ethanol industry's ability to supply California, RFA said.

"I am writing to assure you the U.S. ethanol industry will absolutely meet California's oxygenate demand, providing clean air, clean water and clean fuels without increasing consumer gasoline prices," wrote Eric Vaughn, president of the Renewable Fuels Association. "Importantly, ethanol has twice the oxygen content of MTBE and so can replace MTBE with only half the volume. Thus, about 580 million gallons of ethanol will be needed to supply all of California's oxygenate needs."