States Trump EPA on Ethanol Issues

[Timber Loftis]

Today's BNA Reporter (Excerpt)

NINTH CIRCUIT OVERRULES EPA, ALLOWS OXYGENATE WAIVER FOR
CALIFORNIA

The U.S. Court of Appeals for the Ninth Circuit vacates and
remands an EPA decision denying California's request for a
waiver of a Clean Air Act requirement that gasoline sold in
the most-polluted areas of the country contain an oxygenate
additive. California contends that using an oxygenate such
as ethanol could actually interfere with its ability to
attain federal standards for ozone and particulate matter.
The court's decision could clear the way for other states to
seek such a waiver, specifically East Coast states that
argue like California that meeting air quality standards is
possible without requiring 2 percent oxygen in reformulated
fuel. Maine, Massachusetts, New Hampshire, and New York
filed friend of the court briefs in the case. . . .
______________________________________
Okay, let's get meta about this. It ain't about the Clean Air Act -- it's about business. States like Illinois lobbied long and hard to get ethanol requirements put in place. Currently in the US, 2-10% (based on where you live -- Chicago is 10%) of gas must be oxygenated. This supposedly cuts down on gasoline emissions. MBTE is a common oxygenate, but has contamination issues in the event of a spill. Ethanol does not have such an issue, and the ethanol industry -- including the "Board of Governors" (State governors supporting the industry) lobbies states and D.C. to get lots of subsidies (from the USDA of all places -- yes, this chemical manufacturing process is paid for by FARM subsidies) for the industry.

In the past decade, a whole industry has built up around this created market and subsidy assistance. It is not too difficult to convince rural communities to allow an ethanol plant in town, because farmers can be part of the plant's stockholders (via a cooperative) and it arguably raises the price of corn by 2-4 cents a bushel.

States like California and east coast states don't grow corn and, ergo, don't like the rules, which benefit corn and grain-growing areas. On the other hand, plains states have been enjoying the created market.

So what's your point, TL?

Well, it's simply that this ain't about clean air or oxygenate in gas, it's about states vs. states and it's about the federal gov't choosing a side and now being told to back down by the courts. As always, it's all about money.

[ 07-18-2003, 09:51 AM: Message edited by: Timber Loftis ]

[Azred]

That is the one flaw in capitalism, at least in its purest form: in the absence of any other guiding principle, all efforts are designed to accumulate as much money as possible regardless of the consequences.