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U.S. EPA Denies Georgia’s Request for RFG Waiver, Ethanol Market Will Meet Needs, Notes NCGA (10-04-04)

Late last week, the National Corn Growers Association (NCGA) welcomed the U.S. Environmental Protection Agency’s (EPA) denial a Georgia Department of Natural Resources (DNR) request for a waiver from the Clean Air Act reformulated gasoline (RFG) requirement.

“This is a major victory for the ethanol market,” said NCGA Ethanol Committee Chairman Darryl Haack. “The ethanol market has doubled in the past three years showing that American consumers want renewable fuels to play a major role in securing our country’s energy policy. As an Iowa corn grower and ethanol producer, I can say we are ready to meet the growing demand of America’s energy needs.”

Georgia’s request for a waiver stated that the use of RFG in the Atlanta area would actually increase--not decrease--nitrogen oxide (NOx) emissions. This adverse environmental impact, according to Georgia, would have a significant economic cost, and would create supply and distribution problems.

The EPA conclusions were based on the legal and technical merits of Georgia’s request, and the agency therefore did not grant the waiver request. According to the Renewable Fuels Association (RFA) analysis, Georgia failed to accurately outline the legal grounds to grant such a waiver, made unreasonable assumptions regarding the sulfur levels for RFG sold in the area and ignored the substantial reductions in ozone levels that will be achieved through a reduction in carbon monoxide emissions that come from oxygenated RFG.

NCGA Chairman Dee Vaughan in a letter sent to the EPA last Wednesday urged the agency to continue to uphold the Clean Air Act statutes and deny Georgia’s request for a waiver from the RFG requirement. NCGA noted that ethanol not only provides benefits to our environment by reducing pollution leading to cleaner air, it also plays a major role in contributing to our nation’s long-term energy security and creating new business opportunities for corn growers across America.

With the implementation Jan. 1, 2005 of the RFG requirement, the ethanol market in the Atlanta region is expected to reach 250-300 million gallons per year, which represents approximately $1 million of ethanol sold per day.

 

Last reviewed October 4, 2004



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