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Posted on  

July 19, 2001

AFBF, NCGA, RFA Letter Says Amendment Will Lead to Fuel Shortages and Price Spikes

In a joint letter from the American Farm Bureau Federation, National Corn Growers Association, and Renewable Fuels Association, the group today urged members of the House Energy and Commerce Committee to oppose efforts led by California Representatives Henry Waxman and Chris Cox
to allow Governors to unilaterally waive the oxygenate standard in reformulated gasoline. If the Waxman/Cox amendment were attached to the
Energy Advancement and Conservation Act of 2001, it would result in increased pollution, fuel balkanization, and higher consumer gasoline
prices.

"We are writing to urge you to vote against the Waxman/Cox amendment to eliminate the oxygen content requirement in the federal reformulated
gasoline (RFG) program," the letter stated. "If adopted, the Waxman/Cox amendment would further balkanize the U.S. motor fuels market, increase
consumer gasoline costs and result in increased pollution. If one Governor petitions EPA for a waiver while others do not, RFG markets will become even more balkanized, further complicating gasoline production and distribution
systems, limiting supply and increasing consumer costs."

"The Waxman/Cox amendment will sacrifice air quality without doing anything to reduce MTBE water pollution," the letter continued. "The amendment is motivated by the increasing water contamination problems caused by the
petroleum-derived oxygenate, MTBE. But the amendment allows MTBE use to continue without federal controls. At the same time, the amendment fails to adequately preserve the air quality benefits of RFG with oxygen. Indeed,
the Waxman/Cox amendment completely ignores the ozone, carbon monoxide, particulate emissions and greenhouse gas benefits of oxygenates. Air
quality will worsen if this amendment passes."

The Waxman/Cox amendment requires EPA to waive the federal RFG oxygen content requirement upon a petition by a Governor. No finding of fact is
required to obtain the waiver, meaning that EPA must grant the waiver regardless of the air quality, energy, or economic impact of such action.

In a separate letter to the Committee, the EPA also "strongly opposed" the proposed amendment. Administrator Christine Todd Whitman cautioned Members that approving the amendment would "further proliferate the patchwork of
different fuel requirements, which in turn could lead to fuel shortages and price spikes."
 

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