The Renewable Action Project, a national coalition of environmental groups, agricultural interests, local governments and ethanol producers hailed the EPA's decision on the waiver request as an important step in the fight against global warming.

The group estimates that the use of ethanol in place of MTBE in California's gasoline can reduce annual carbon emissions by over 529,540 tons -- or 35 percent. The group believes critics of the EPA's decision have grossly overlooked the carbon dioxide impacts of this decision. "We need to look at the big picture,'' said Carol Werner of the Environmental and Energy Study Institute. "Climate change is both an air quality issue and the ultimate sustainability issue. We are missing the boat if policy decisions overlook the carbon dioxide ramifications."

According to the group, more than 3.1 million tons of carbon could be removed from the atmosphere each year if all reformulated gasoline areas used ethanol as the oxygenate. "Biomass streams are available throughout the nation," added Werner, "and 3.1 million tons could go a long way towards fulfilling our obligation to curb carbon dioxide emissions."