Thanks to an Appeals court halt, Baton Rouge area motorists willnot have to use more expensive reformulated gasoline, at leasttemporarily.
The Fifth U.S. Circuit Court of Appeals in New Orleans hastemporarily stopped the implementation of “cleaner” burning fuel,as local officials make legal arguments to the EnvironmentalProtection Agency against the fuel.
Bob Hannah, special assistant to Department of EnvironmentalQuality Secretary Mike McDaniel, said McDaniel is meeting with EPAofficials this week to discuss how RFG will not help BatonRouge.
In a June 10 Reveille article, DEQ Communications Director,Rodney Mallett said the RFG would be beneficial in a city with muchmore traffic, such as Los Angeles, but not in Baton Rouge.
Instead, city officials and Mallett said the additional cost ofthe ethanol-based gasoline would be harmful to Baton Rouge’seconomy.
But many gas stations in the five-parish area already havestarted using RFG in preparation for the original Wednesdaydeadline, and prices have not risen as predicted.
Richard Metcalf, environmental coordinator of LouisianaMid-Continent Oil and Gas Association said residents have not seena jump in prices because crude oil prices are already high rightnow, and most estimations were made one year ago when crude oil wasnot as expensive.
Metcalf also said oil companies receive a five-cent tax breakper gallon when they use the ethanol blend.
“When the crude oil price is higher, the ethanol becomessomewhat economic,” Metcalf said.
Many gas stations already have signed contracts and are preparedto use the gasoline.
Most gas stations that have negotiated contracts, that mayinclude discounted RFG prices, will continue to use thepre-purchased gas.
“While there is probably an increase in the raw price ofethanol-based, right now, ethanol is competitively priced,” Metcalfsaid.
Metcalf said while they do not want RFG in the big picture, inthe short term, it is keeping things more stable.
Despite this, the DEQ still says they are hoping to either get aclear waiver from the EPA, or another delay that would last untilnext year.
“We think the EPA has the authority to give a waiver,” Hannahsaid.