California Backpedaling on MTBE Ban?02/25/02 08:50 Ethanol production hit a new record again in January, but reports that California Governor Gray Davis (D) might try to postpone rules that would increase ethanol consumption in that state are raising concern about future ethanol demand.
January ethanol production was reported at 128,000 barrels a day. The industry has been building stocks ahead of a ban on the fuel additive MTBE in California, anticipated at the end of the year. Here's the problem: A study released last week by the California Energy Commission recommended that the start of the ban be delayed until 2005. The recommendation is based on concerns about the logistics of getting adequate supplies into southern California by the end of the year, and about the impact of the changes on gasoline prices, not on worries about the availability of enough ethanol. As usual, there's a big element of politics in all this: a crisis, if it were to occur, could come just as elections are held, and Gov. Davis is expected to be in a tight race for re-election. Some analysts say Davis may try to delay the implementation of the rules on MTBE because of election year politics. Press sources indicate Davis is expected to announce a decision in the next 40 days. DTN AgDayta subscribers can see details in MARKET NEWS, DTN Ag News. Just thought everybody would like to know George [EMAIL PROTECTED] wrote: > http://www.marketwatch.com/news/yhoo/story.asp? > source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7B3CD930A1%2D1B53%2D4210% > 2D9E78%2DA74664259B5C%7D > > In a conversation I had last fall with the CAlepa which supposedly > advises the governor, it had sounded to me like they were convinced > of some of the advantages of RFG, but that they might look for a > middle ground of 200 million gallons or so per year, given that > ethanol did have some of the claimed advantages. > > Just passing these issues on. I for one tend to think the supposed > price spikes would be largely abated by oil industry preparation > rather than messing around. > > > Yahoo! Groups Sponsor > ADVERTISEMENT > <http://rd.yahoo.com/M=178320.1903454.3396448.1261774/D=egroupweb/S=1705083269:HM/A=879172/R=0/*http://www.fastweb.com/ib/yahoo-75f> > > > > > Biofuel at Journey to Forever: > http://journeytoforever.org/biofuel.html > Please do NOT send "unsubscribe" messages to the list address. > To unsubscribe, send an email to: > [EMAIL PROTECTED] > > Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service > <http://docs.yahoo.com/info/terms/>. ------------------------ Yahoo! Groups Sponsor ---------------------~--> Buy Stock for $4. No Minimums. FREE Money 2002. http://us.click.yahoo.com/BgmYkB/VovDAA/ySSFAA/FGYolB/TM ---------------------------------------------------------------------~-> Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Please do NOT send "unsubscribe" messages to the list address. To unsubscribe, send an email to: [EMAIL PROTECTED] Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
