California urged not to delay MTBE phaseout in gasoline
Date: 12-Dec-01
Country: USA
The Renewable Fuels Association (RFA), which represents ethanol makers, wrote Davis this week to ask him to stick to the Dec. 31, 2002 date for ending MTBE use in California.
MTBE and ethanol are the two most popular so-called oxygenates that the federal government requires in reformulated gasoline that is sold in areas of high air pollution.
Adding oxygen to gasoline makes the fuel burn more cleanly, thus reducing emissions that cause smog.
However, California, New York and several other states have decided to stop using MTBE as it contaminates drinking water supplies when it leaks from storage tanks.
When Davis issued an executive order in March 1999 to phase out MTBE, ethanol producers began building more plants to eventually supply enough ethanol to replace MTBE.
"Consequently, the ethanol industry is alarmed by persistent rumors suggesting the state may yet delay the implementation of the MTBE phase out because of concerns about the potential impact of transitioning from MTBE to ethanol," wrote Bob Dinnen, RFA president.
About 675 million gallons of corn-based ethanol will be needed annually to replace MTBE in California's gasoline supplies.
Since Davis' executive order 10 new ethanol plants have been opened, increasing production by 550 million gallons.
Another 18 plants that would add 470 million gallons of production capacity are under construction and scheduled to begin operating before the December 2002 MTBE phaseout deadline, Dinnen said.
"The U.S. ethanol industry accepted the challenge to assist your efforts to provide both clean air and clear water without increasing fuel costs to California's consumers," Dinnen said.
"If the California market for which the new ethanol capacity was built does not materialize, that product will be forced to pursue alternative marketplace opportunities, potentially complicating California's ethanol supply situation when the state finally decides to impose its MTBE ban," Dinnen added.