US District Court rejects producer request to strike down MTBE ban

Dec. 8, 2003
The US District Court for the Northern District of New York Nov. 21 rejected a request by methyl tertiary butyl ether producers to strike down an impending ban on the clean fuel additive.

The US District Court for the Northern District of New York Nov. 21 rejected a request by methyl tertiary butyl ether producers to strike down an impending ban on the clean fuel additive. The Oxygenate Fuels Association (OFA), the trade group representing MTBE producers, told the court that replacing MTBE with ethanol would harm local air quality and creates higher gasoline prices.

But Judge Norman Mordue said, OFA did not prove its case on either count. Because of water contamination concerns, New York and Connecticut plan to ban MTBE next year; several other Northeast states are poised to follow them.

OFA warned that allowing the ban to go forward could mean gasoline price spikes because the state will be forced to rely on fuel ethanol to meet the 2 wt % oxygenate mandate under the federal clean fuels rules.

A proposed energy bill now stalled before the US Congress would have lifted the oxygen requirement and eventually banned MTBE, although on a much slower timetable. It also installed a nationwide ethanol mandate but gave fuel suppliers a credit trading option.

"Because only ethanol can satisfy the oxygen standard without the presence of MTBE in the marketplace, and because the oxygen standard has no trading program like the proposed energy legislation did, New Yorkers can look forward to consuming massive amounts of ethanol in the very near term," warned OFA spokesman Frank Maisano.

Ethanol producers dismissed OFA's claims, saying using their product does not promote smog and does not generate higher fuel prices.

"The assertions from anti-ethanol groups such as OFA that ethanol will lead to increased smog or higher gas prices was roundly dismissed by the court," said Renewable Fuels Association spokesman Monte Shaw. "While these claims will no doubt continue to be made, there is simply no evidence to back them up.