December 12, 2000

The Renewable Fuels Association (RFA) and National Corn Growers Association (NCGA) again have called on the Environmental Protection Agency to deny California's request for a waiver from the federal reformulated gasoline (RFG) oxygen requirement. The RFA and NCGA forwarded to the EPA a new study that concludes ozone and particulate emissions will increase if the oxygen requirement is set aside.

"This new analysis demonstrates that if the California waiver is granted, refiners will most likely respond by replacing the lost octane and volume of MTBE with increased aromatics," said Eric Vaughn, president of the RFA. "Increased aromatics would have a negative impact on both ozone air quality and fine particulate formation. Forfeiting the exhaust hydrocarbon, carbon monoxide and fine particulate benefits of oxygenates is clearly counterproductive if reducing urban ozone and fine particulate formation is the goal. Ironically, granting California's request will clearly harm, not help, California's air quality. Their waiver request should be denied."

The study, Analysis and Refinery Implications of Gasoline Aromatic Limits in 2005 and the Impact on Ethanol Demand, conducted by PACE Consultants demonstrates that 1) the NOx benefit posited by California will not materialize because aromatics will be the most likely replacement for oxygenates; and, 2) higher aromatic gasolines will increase both ambient ozone and particulate formation when compared to fuels containing oxygenates

"Granting the California waiver will simply replace one problem, MTBE, with another, higher aromatics levels," said Vaughn. "People should remember that Congress included the RFG oxygen requirement in the Clean Air Act specifically to provide clean octane and to reduce aromatic levels. California has claimed that aromatic use would not go up as a result of the waiver. Yet, they are changing their own state rules to allow a higher percentage of aromatics in gasoline. The PACE report clearly shows grating the California waiver would lead to more aromatics and more ozone.