California One Step Away From Allowing Ethanol

Two bills that will help ethanol compete with MTBE in California's cleaner burning gasoline program were passed unanimously by both the State Assembly and Senate and are awaiting Governor Pete Wilson's signature. The first bill, AB 1642, would lift the cap on the state's oxygen content and allow the use of ethanol in California cleaner burning gasoline. The Legislature also approved AB 1650, a bill that would remove the pump labeling requirement for ethanol, the only oxygenate that must currently be labeled.

California Assemblywoman Debra Bowen
  California Assemblywoman
  Debra Bowen
Introduced by Assemblywoman Debra Bowen, chair of the Assembly's Natural Resources Committee, AB 1642 would allow the use of 10 percent ethanol blends. "Ethanol is a proven alternative to MTBE that has been consistently endorsed by the Legislature and was widely used in California before the implementation of California Air Resource Board's regulations," wrote Bowen in a letter to Governor Wilson urging him to sign the bill into law. "Given the serious concerns about MTBE, it is appropriate to aggressively pursue alternative fuel blends that do not pose as great a threat to water quality and public health," Bowen added.

The legislation enjoys broad-based support from municipal governments and environmental and agriculture organizations, including the National Audubon Society, the City of Gridley, Santa Clara Valley Water District, California Public Interest Group, Planning and Conservation League, California Farm Bureau, Community Alliance with Family Farmers, Californians Against Waste, Quincy Library Group, California Biomass Energy Alliance, Silicon Valley Toxics Coalition, California Renewable Fuels Council, and the California Rice Industry Association. The City of Gridley and Quincy Library Group are both working on potential rice straw-to-ethanol projects that would create jobs and alleviate the open field burning of rice straw by converting it to a renewable, clean burning fuel.

Coalition Chairman and Indiana Governor Frank O'Bannon also wrote to California Governor Wilson encouraging him to sign both legislative bills, "...this bill will encourage increased ethanol production and use in California."



September 9,1998

The Honorable Pete Wilson
Governor of California
State Capitol
Sacramento, California 95814

Dear Governor Wilson:

I would like to take this opportunity to encourage your support for AB 1642, legislation recently approved by the California legislature to lift the state's cap on oxygen content in the Cleaner Burning Gasoline (CBG) program. With your approval, this bill will encourage increased ethanol production and use in California. It will also provide a potential solution to concerns about the existing CBG program and will stimulate California's agricultural economy.

As you know, the existing state regulations for CBG make it extremely difficult to use ethanol blended gasoline. Consequently, virtually every gallon of CBG in California is currently blended with MTBE, a methanol-derived chemical that is increasingly imported. Nearly 100,000 barrels of MTBE are used each day in California's CBG program. California's exclusive use of MTBE as an oxygenate has increased the cost of CBG because of the lack of competition among oxygenates. AB 1642 lifts certain regulatory barriers to ethanol use, providing consumers with a choice of oxygenates at the pump.

The Governors in the Coalition can all attest to the significant rural economic development and environmental benefits derived from ethanol production. Such could be the case in California as well. As you may know, there is a broad coalition of farmers, environmentalists, consumer groups, and forestry officials who are intent on developing California's ethanol industry. Ironically, ethanol currently produced in California from food and beverage waste products must be exported because of the state's regulatory barriers. Several new projects are underway, including one in the City of Gridley, that would convert rice straw into ethanol, helping alleviate the environmental concern posed by the conventional disposal method of burning the straw in the field, while creating jobs and reducing the need to import energy.

Since many of us represent U.S. E.P.A. non-attainment areas, we can also attest to the air quality benefits of ethanol. Ethanol reduces harmful emissions from vehicles of carbon monoxide, toxins, particulate matter, hydrocarbons, and volatile organic compounds. Because ethanol is produced from renewable feedstocks, it also reduces carbon dioxide en-emissions. Ethanol is quickly biodegraded in water, thereby reducing any threat of water contamination. Thus, just as it has been in each of our states, ethanol could be a tremendous asset to your air quality programs.

We support ethanol because we know what it can do for our states' economies and air quality. We strongly urge you to approve AB 1642. A competitive oxygenate market will reduce costs, provide consumer choice, reduce the risk of water contamination, and stimulate value-added agricultural processing throughout California.

Sincerely,
Signature
Frank O'Bannon, Chair
Governor of Indiana


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