EPA OUTLINES REFORMULATED GASOLINE REGS.

The Environmental Protection Agency has proposed rules setting parameters for reformulated gasoline and proposed guidelines for oxygenated gasoline sold in U.S. cities with air pollution problems. The 1990 Clean Air Act amendments require the changes for cities not meeting national air quality standards for carbon monoxide and ozone. For the first time EPA would regulate toxic emissions, other than lead, associated with gasoline use.

June 17, 1991

4 min read

The Environmental Protection Agency has proposed rules setting parameters for reformulated gasoline and proposed guidelines for oxygenated gasoline sold in U.S. cities with air pollution problems.

The 1990 Clean Air Act amendments require the changes for cities not meeting national air quality standards for carbon monoxide and ozone.

For the first time EPA would regulate toxic emissions, other than lead, associated with gasoline use.

William K. Reilly, EPA administrator, said, "The new fuels program is the most promising measure available for reducing ozone forming compounds, toxic emissions, and carbon monoxide in urban centers that have not yet attained air quality standards."

The American Petroleum Institute had no comment. It is reviewing the EPA proposal.

The National Petroleum Refiners Association said there is nothing much new in the proposed rules.

Urvan Sternfels, NPRA president, said EPA merely put forth "a compilation of options that don't settle anything or indicate where they are headed on all the issues that need resolution. EPA probably doesn't know what it wants or needs to do on a whole raft of issues addressing the basic way gasoline is made."

WHAT'S REQUIRED

The 1990 amendments require reformulated gasoline programs beginning in 1995 in the Baltimore, Chicago, Hartford, Houston, Los Angeles, Milwaukee, New York City, Philadelphia, and San Diego metropolitan areas. Collectively, those regions consume nearly 25% of the nation's, gasoline production.

Rhode Island has asked for inclusion in the reformulated gasoline program, and 86 other ozone nonattainment areas may join. If all those areas participated, EPA said, potentially 55% of U.S. gasoline consumption could be reformulated fuel subject to emissions reduction requirements.

Reformulated fuels for the targeted nonattainment regions must contain at least 2% oxygen, no more than 1 % benzene, and no heavy metals such as lead.

The toxic and volatile organic compounds of the gasoline mixture must each be reduced by 15% at first and 25% by 2000, compared with 1990 gasoline.

EPA said the program provides flexibility for gasoline refiners, blenders, and importers by allowing them to meet the emission performance standard through a variety of reformulations.

But oil companies will not be allowed to transfer benzene and other high polluting compounds removed from reformulated gasoline into conventional gasoline sold in other parts of the country.

EPA also set oxygenated fuels standards for the nation's 41 carbon monoxide nonattainment areas. The 1990 amendments require those areas to adopt a program, most of them only for winter months when carbon monoxide levels are higher.

During the control period, gasoline sold in those regions must contain 2.7% oxygen content, on average.

"The addition of this small amount of oxygenates in gasoline promotes more complete combustion, reducing carbon monoxide emissions up to 20% more," EPA said.

EPA also is proposing a program allowing companies to earn marketable credits for producing gasolines with higher oxygen content than required and sell them to companies selling fuel with a lower oxygen content. The credits could be used only within the control area and during the same period in which they are earned.

EPA said the credit system will allow refineries greater flexibility in meeting environmental standards, reducing the cost of the regulations.

It can grant nonattainment areas 1-2 year waivers if there is an inadequate supply of oxygenates in the region or difficulties with the fuel distribution system. By the winter of 1994, no waivers will be permitted.

EPA noted several states have oxygenated gasoline programs. Colorado started a program in 1988 and Phoenix Reno, Las Vegas, Tucson, and Albuquerque have programs.

The rules will require retail gasoline stations to label each pump regarding the oxygenate content.

EPA plans a July 15-16 hearing in Washington on the proposed rules, which total 600 typewritten pages. EPA is required to issue a final rule by November.

The agency has set up a regulatory advisory committee with representatives from the oil and auto industries, consumer groups, environmentalists, and state and local air pollution control agencies to negotiate many issues surrounding the fuels issues.

EPA stressed its regulatory actions do not reflect a consensus by members of that "negotiated rulemaking" effort.