Oil Analysts Confused on Gasoline Policy

The two oil analysts who predicted wartime gas prices of $4 a gallon in “State Could Face Gasoline Price Hikes” (Nov. 18) unfortunately confused foreign and environmental policy and inappropriately used out-of-date information.

The state government’s policies are designed to ensure the cleanest-burning gasoline at the lowest possible price. No one can say for sure what will happen to the global price of crude oil in unsettled times. But this much is certain: the state’s deadline for removing MTBE from gasoline does not occur in the next few months. It is Dec. 31, 2003.

When that deadline was set, the oil companies were given a full extra year in order to prevent high gas prices. In his executive order, Gov. Gray Davis specifically referred to his commitment to prevent a price spike as the reason he postponed the mandatory removal of MTBE. (The ban is needed because MTBE pollutes ground water.)

To be clear: No new environmental rule is being introduced in January. With California’s clean fuel and advanced vehicles, ethanol is no longer a “clean air additive” except in limited, specific circumstances. It is renewable, may be made in the U.S. and is a volume extender. It should be accepted or rejected based on those merits.

Unfortunately, the federal administration is rigidly enforcing obsolete requirements for ethanol. If California is forced to put ethanol into virtually every gallon of gas, that will be because of decisions made in Washington.

Sacramento will continue to advocate maximum flexibility for our refiners, in most cases producing clean burning gasoline (with or without ethanol) in the manner that best fits their circumstances.

Winston H. Hickox

California Environmental

Protection Agency

Sacramento