OFA Court Challenge to California MTBE Phase-Out is Baseless

      'The Switch From MTBE to Ethanol Has Begun and is Going Smoothly,'
                      Says Renewable Fuels' Eric Vaughn

    WASHINGTON, Jan. 24 Eric Vaughn today announced he was
disappointed but not surprised by the Oxygenated Fuels Association's (OFA)
federal court challenge to the state of California's 2-year old phase-out of
the toxic gasoline additive MTBE.  Filed today in Sacramento, the OFA
challenge is based on the groundless notion that by moving to protect its
drinking water from further MTBE pollution, California violated the federal
Clean Air Act.
    "The OFA, an MTBE producer front-group, is clearly concerned about the
ongoing switch from MTBE to safe ethanol in California," said Eric Vaughn,
president of the Renewable Fuels Association (RFA).  "They held their breath
for more than two years, but now when Tosco Corporation, the largest
independent gasoline refiner and marketer in the country, is successfully
switching from MTBE to ethanol they are pulling out all the stops.  This
lawsuit flies in the face of Governor Davis' leadership in banning MTBE to
protect water quality and Tosco's leadership in making the ban a reality.
    "The switch from MTBE to ethanol has begun and is going smoothly.  Tosco
is proving that switching to ethanol is the right thing to do -- for
consumers, the environment, and the company's bottom line.  Lawsuits and scare
tactics won't stop the inevitable from happening.  MTBE should be thrown on
the ash heap of history and OFA's members should find a product that doesn't
threaten our precious water supplies."
    Ten states and the City of Chicago have already banned or enacted phase-
outs of MTBE.  The states are Arizona, California, Colorado, Connecticut,
Iowa, Michigan, Minnesota, Nebraska, New York, and South Dakota.  Several
other states are considering banning MTBE this year.  There are also bills
pending in the U.S. Congress that would phase-out and ban MTBE nationwide.
    "The OFA's contention that federal clean air law prohibits state action to
protect drinking water is baseless and flies in the face of over 200 years of
precedent.  States have always been able to exercise their 'police powers' to
protect the health and welfare of their citizens unless specifically limited
by federal law.  There is no limit on state action here."
    Section 211 of the Clean Air Act does limit the ability of states to
regulate fuel characteristics "for the purpose of motor vehicle emission
control."  The section also defines parameters on the content of oxygenates in
reformulated fuels.  However, it is the class of oxygenates that is regulated,
not the individual chemicals that make up the class, such as MTBE.
    "MTBE is not mentioned, regulated or protected by the Clean Air Act," said
Vaughn.  "Even if someone drew that incorrect conclusion, MTBE could still be
regulated by states for purposes other than emission control.  The Clean Air
Act lays this out very clearly.  And California enacted the MTBE phase-out to
protect its water.  California's phase-out of MTBE is not only legal, but in
the best interests of its citizens."
    In announcing their far-fetched lawsuit, the OFA also sought to mislead
the public on critical facts concerning MTBE and ethanol.
    "MTBE contamination from underground storage tanks, pipeline spills, car
wrecks, and recreational watercraft is a national nightmare," said Vaughn.
"While the OFA is long on rhetoric, it's often short on facts.  The OFA
lawsuit seeks only to delay the switch from toxic MTBE to safe ethanol, expand
the spread of MTBE water pollution, and increase the burden on taxpayers to
clean up this disaster."
    Ethanol, a safe replacement for MTBE, does not pollute water and maintains
the clean air gains of reformulated gasoline with oxygen.  The OFA made
several inaccurate statements concerning ethanol.  The facts are as follows:

    *     Ethanol costs much less than MTBE.  According to Octane Week, the
          price for MTBE is $1.40 per gallon while ethanol is only $1.12 per
          gallon.

    *     The USDA has determined there are no logistical or transportation
          hurdles for ethanol to replace MTBE nationwide.

    *     Replacing MTBE with ethanol as the oxygenate in reformulated
          gasoline would decrease emissions of smog-forming pollutants.  While
          ethanol would meet the same VOC (evaporative) standard as MTBE,
          ethanol further reduces carbon monoxide tailpipe emissions -- a
          major contributor to smog according to the National Academy of
          Sciences.

    For more information, visit the Renewable Fuels Association website at:
http://www.ethanolRFA.org.