Cowboyjwc,
Your comment brings up a good point. If that is true, then there is no reason for anything to be listed in the first place. If all AHJ's potentially have the authority to make a determination of application, performance, or functionality for a product, then why do manufacturers need to bother to have a listing on product?
This was the subject of one of my previous threads in which there was a rumor that some AHJ's were insisting on UL only listing. They would not accept ETL, CSA or any other - equivalent - third party listing. Since I have studied 110.2 & 110.3 A & B, I cannot imagine that any state or local AHJ would think that they have the authority to pick and choose whether or not products need to be listed and by whom.
There has to be some rule or guideline, somewhere, that prohibits an AHJ from making unqualified judgements as to the validity of a product used in a certain application. As a manufacturer of electrical products (and in this particular instance), I could not imagine trying to make the determination if a ground rod type/construction/size is suitable for the installed application. As an AHJ, my only frame of reference would be a third party listing and the ability to see the details of the listing to help make a determination.
In any case, barring any cited section from the NEC, the AHJ would have no evidence to back up his rejection of the rods.