CLEAN AIR AMENDMENTS DRAW INDUSTRY FIRE

Oct. 29, 1990
Congressional conferees agreed on a U.S. Clean Air Act reauthorization last week, clearing the way for House and Senate votes on the bill before adjournment. The petroleum industry blasted the measure, warning of "substantial" increases in the cost of gasoline with little environmental benefit even if the required volumes of motor fuel can be made. Aides pointed out any senator can kill the bill with a filibuster, which happened to similar legislation in 1976.

Congressional conferees agreed on a U.S. Clean Air Act reauthorization last week, clearing the way for House and Senate votes on the bill before adjournment.

The petroleum industry blasted the measure, warning of "substantial" increases in the cost of gasoline with little environmental benefit even if the required volumes of motor fuel can be made.

Aides pointed out any senator can kill the bill with a filibuster, which happened to similar legislation in 1976.

On reformulated gasoline, the conference measure contains a program that requires cities with carbon monoxide nonattainment to use gasoline containing 2.7 wt % oxygenates starting in 1992.

Waivers can be sought if the Environmental Protection Agency administrator determines there is not enough supply or distribution capacity. If the administrator determines neither is available on an area by area basis, EPA can delay the requirement for as long as two 1-year periods. Another provision requires reformulated gasoline to be sold in the nine worst ozone nonattainment cities beginning 1995.

The bill requires reformulated gasoline to reduce volatile organic compounds and toxic emissions by 15%. In 2000, the reduction would be increased to the level EPA determines is technologically feasible--at least 20%--taking the cost into account. Reformulated gasoline also must contain 2% oxygenates.

The bill requires EPA to issue a rule within 1 year setting standards for onboard systems to control refueling emissions. Canisters would be required on all passenger cars beginning the fourth year after the standards are issued. Vapor recovery equipment also would be required at service stations.

The bill requires tighter tailpipe emissions standards for cars and trucks in phases between 1994 and 1998 and establishes a pilot program in California to promote the use of clean fueled vehicle fleets.

The bill also forces Minerals Management Service to hand over to EPA authority to regulate OCS emissions except in the Gulf of Mexico.

INDUSTRY REACTIONS

The American Petroleum Institute said the oil industry will try to meet the CAA objectives but questioned whether it is technically feasible to meet the emissions reduction targets, whether the fuel can be supplied in the time provided, and what the fuel would cost.

"Given existing technology, refineries do not know how to achieve the 15% emissions reductions required by 1995, much less the larger reductions required later," API said.

"While we will search diligently for solutions, it is not yet clear whether changes in the hundreds of gasoline components will result in such significant emissions reductions. It is especially unclear whether a fuel meeting the requirements set for benzene, aromatics, and oxygen content can also meet the emission reductions targets."

It said Congress should have made the law flexible to ensure adequate supplies of gasoline at reasonable prices, and noted "if the emission reduction target cannot be met, gasoline cannot be sold in these cities."

API also complained about the 4 year deadline on emissions targets.

"Within that time, refiners will not only have to determine how to change their gasoline but also will have to get EPA's approval of these changes. That means complying with a myriad of regulations that EPA has not begun to write."

API said big hikes in oxygenate capacity and major changes in supply and distribution systems will be needed to accommodate oxygenated fuels.

Copyright 1990 Oil & Gas Journal. All Rights Reserved.