It doesn't happen often, but the Environmental Protection Agency has gone to bat for refiners on a key issue.
EPA is requiring a shift to reformulated gasoline (RFG) in certain urban areas Jan. I but also pen-nits other regions of the country to opt in to the program.
Two areas that had opted in recently disclosed they were opting out immediately.
API'S COMPLAINT HEEDED
The American Petroleum Institute complained to EPA, noting that refiners already had shipped RFG to those regions in preparation for the Jan. I deadline. API argued refiners should be given a reasonable lead time to sell their RFG stocks and shift back to conventional gasoline.
EPA agreed. It will consider opt-out requests in an "orderly process" that gives refiners and marketers adequate notice. Until EPA says otherwise, RFG must be used.
New York decided to allow Jefferson County to opt out, and other New York opt-in counties were considering following suit. In Pennsylvania, 28 counties want to opt out. API said several Maine counties were considering quitting "and it is possible that other areas will follow suit if these opt-out requests are allowed."
An API official said, "At the time these people opted in, eve questioned if it made sense in some of those areas."
The association said it did not oppose opt-outs in principle, but just wanted adequate notice.
It said, "The industry has been required to invest billions of dollars and incur enormous costs associated with transportation and storage to insure that the fuel mandated by EPA's regulations is available by the deadline imposed by statute.
"Obviously, many of the costs associated with RFG result from the large number of opt-ins requested by state governments.
"Making precipitous changes at this time in the program will not only present logistical complications but will also cause significant economic losses for companies that have already incurred the higher costs of marketing and distributing RFG.
"If conventional gasoline can suddenly be marketed there, many companies will be unable to recoup their higher costs associated with RFG."
EPA'S RESPONSE
EPA recently called a press conference to herald the shift to RFG. The real purpose seemed to be to blunt public backlash when gasoline prices rise the expected nickel per gallon in RFG areas.
The agency stressed RFG's environmental benefits and said it would have no adverse effects on vehicle performance or engine life. Neither EPA nor API foresees shortages.
David Hawkins, a Natural Resources Defense Council attorney, used the occasion to pat refiners on the back.
"I want to compliment the petroleum industry for making this happen and making it happen on time. I don't get many chances to do that," he said.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
Issue date: 12/12/94
