Steven Miloy has an opinion piece on Fox News about the role of the environmentalists in our era of high gasoline prices. I agree with him on everything, but he tends to suggest drilling will solve the woes, when really the issue is refinement. He does a wonderful job explaining the 'botique' of fuel blends that are required in different parts of the country.

'Green' Politicians Add to Gas Price Woes

Environmentalists helped pressure Congress in 1990 to require “reformulated” gasoline (RFG) supposedly to reduce the formation of ground-level ozone or smog. The RFG process requires use of additives such as ethanol or MTBE.

The RFG requirement raised the price of gasoline not only because of the cost of the additives but because different areas of the country require different blends of fuel to address different air quality circumstances. The 17 so-called “boutique” fuels used around the country make the national gasoline supply less fungible, which causes supply bottlenecks.

And for all this pain, there appears to be little gain from RFG. A 1999 report from the National Research Council reported that, “the net impact of RFG on ambient ozone concentrations...is a few percent. For this reason, it is difficult to quantify the specific contribution of the RFG program to the apparent downward trend in ozone.”

The final kick-in-the-teeth to consumers from the RFG program came last year when environmental groups like the Natural Resource Defense Council pressured Congress to not provide legal liability protection for MTBE makers, who will stop using the additive in gasoline on May 1. (MTBE from leaking underground storage tanks had been detected in groundwater around the country, raising the specter of lawsuits against MTBE manufacturers). Gas prices will soon jump again in many parts of the country as refiners try to avoid future MTBE-related legal liability by switching to the more expensive ethanol additive.