-Caveat Lector-

(Bush agrees with the conserva-nazis:  politics, not science should drive
public policy. --SW)

Bush moves to block California ethanol request

By SCOTT LINDLAW, Associated Press

CRAWFORD, Texas (June 9, 2001 07:09 p.m. EDT) - In what some are
calling a purely political decision, the Bush administration opted not to
exempt California from a rule requiring that gasoline contain clean-burning
additives such as corn-based ethanol.

The Environmental Protection Agency was expected to issue the decision
as early as Tuesday, three administration officials said Saturday.

Rep. Henry Waxman, D-Calif., who chaired a House subcommittee that
helped draft the Clean Air Act in 1990, said Saturday he was stunned by
the decision since requiring an oxygenate in the fuel could harm consumers
and the environment.

"It really is an unbelievable decision. It's incomprehensible to me, because
if the waiver had been granted it wouldn't have any environmental
consequences because the Clean Air (Act) requirements would still have to
be met," he said.

"President Bush's actions can lead to higher prices for gasoline and
possible shortages in California," he said. "At some point, the president is
going to have to decide whether he's president for the entire country or just
for those states that voted for him."

Bush gave strong hints about the decision during a trip Friday to Iowa, his
third to the state since taking office.

"I still strongly believe that ethanol is important, not only to reduce
dependency upon foreign sources of energy, but also as a source and a
way to clean the air," said Bush, who was spending the weekend at his
Texas ranch.

The request came from Democratic Gov. Gray Davis of California. Bush,
who lost the state in the presidential election, also has rejected Davis'
request for federal price caps to ease California's power crisis.

Davis spokesman Roger Salazar said he could not comment directly on
the decision because the governor had not been notified of it officially. But
he said rejection of the waiver request could increase the cost of producing
gasoline with enthanol and drive pump prices up. "In the short term,
oxygenates do nothing to improve air quality," Salazar added.

Two years ago, Davis banned the use of MTBE, which adds oxygen to help
fuel burn more cleanly but has tainted water supplies. He ordered that the
additive be phased out after 2002. That would leave gasoline refiners to
meet the federal requirement with the other widely available oxygenate,
ethanol.

Davis asked the Clinton administration to waive the federal oxygenate
requirement entirely, arguing that California no longer needed an additive
because refiners had other ways to make gasoline blends cheaper and
cleaner.

Chevron already makes such a gasoline blend but cannot sell it in the 70
percent of California that falls under the oxygenate rule because of air
pollution.

California officials also argued that the current requirement could raise gas
pump prices as much as a nickel a gallon, once MTBE was phased out.

But the EPA, after consultations with the White House, rejected Davis's
plea, concluding the environmental benefits of the oxygenate rule were too
important, said an administration official, speaking on condition of
anonymity.

Davis's fuel waiver request had languished until now, complicated by
political factors and the change of administrations.

Bush is assiduously courting Iowa, a major supplier of corn, looking ahead
to the 2002 and to his own re-election in 2004. He lost the state to
Democrat by fewer than 5,000 votes to Democrat Al Gore in November.

Farm groups and their ethanol-producing partners have lobbied intensely
against the waiver, reminding administration officials that corn-producing
states in the Midwest were generally behind Bush in the election.

One of the biggest ethanol producers, Archer Daniels Midland, contributed
more than $500,000 to Republicans during the past two years, including
$100,000 to Bush's inauguration.

The stakes are immense for corn-producing states: An estimated 580
million gallons of ethanol a year will be needed to supply California alone
under the oxygenate rule.

Sen. Charles Grassley, R-Iowa, is among those who has been seeking a
decision from Bush.

In an interview aboard Air Force One on Friday, Grassley said Bush had
told him recently: "I don't know how I'm going to do it, or when I'm going to
do it, but I think you'll like what we're going to say."

Petroleum companies, also historical allies of Bush, a Texas oil man
himself, have pushed for the waiver. They contended the oxygenate
requirement has contributed to difficulties that come with making
"boutique" fuels for different regions, adding to supply and distribution
problems.

In its national energy strategy issued last month, the administration echoed
that call for a simplification of the patchwork of fuel requirements around the
nation.

If California, with the country's toughest air pollution requirements, were
exempted from having to use an oxygenate in gas, other states, led by a
group in the Northeast, almost certainly would have sought seek similar
help.

Because of concern about MTBE water contamination, 11 states have
banned the additive, although most of the prohibitions will be phased in.

Environmentalists said the administration was preventing California from
deciding for itself how best to protect the public health and clean air and
drinking water supplies.

"Granting the waiver would help consumers and help air quality, yet the
Bush administration seems to be making a decision based on the MTBE
manufacturers and the oil industry," Alys Campaigne, legislative director for
the Natural Resources Defense Council, said Saturday. "It's imposing an
unnecessary federal mandate which seems out of keeping with Bush's
tendency to give states a prominent role in decision-making."


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