NCGA
Welcomes Federal Ruling on Waiver Request Denial (10-07-04)
The National
Corn Growers Association (NCGA) welcomes the Atlanta Federal District
Court
decision today to uphold the Clean Air Act
by denying Georgia’s request for a preliminary injunction
to stop the implementation of the federal reformulated gasoline
(RFG) program in Atlanta. The Clean Air Act requires the Atlanta
region to use cleaner-burning RFG.
A requirement of RFG is that an oxygenate such as ethanol is added
to make gasoline burn cleaner. In all likelihood 10 percent ethanol
will be blended to meet the RFG requirement. The decision means
RFG will be required beginning in January 2005 in the Atlanta region.
“Today’s ruling is another positive step for ethanol,” said
NCGA President Leon Corzine. “It’s like every other
new market where ethanol has entered. The end result is that ethanol
is a win for consumers and a win for the environment. Consumers
in Atlanta will not only breathe easier with reduced smog and cleaner
air but will have lower prices at the pump due to the decreased
costs involved with ethanol.”
Last week, NCGA and
the Renewable Fuels Association sent letter to the EPA urging
the agency to continue to uphold the Clean Air
Act statutes and deny Georgia’s request for a waiver from
the RFG requirement. The agency denied the Georgia Department of
Natural Resources (DNR) request for a waiver from the Clean Air
Act RFG requirement.
The ethanol market has doubled in the past three years, indicating
consumers want renewable fuels to play a major role in U.S. energy
policy. Once the RFG is implemented in 2005, 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.