The U.S. Environmental Protection Agency will not oppose New jersey's plan to switch to a lower oxygenate gasoline in the northern half of the state 2 months early, on Mar. 1, rather than May 1.
EPA required the state to sell gasoline with 2.7 wt % oxygen during the winter months, but Gov. Christine Whitman asked EPA for a waiver to 2 wt % to make the gasoline grade consistent with that sold in the southern half of the state.
New Jersey's goal is to reduce gasoline costs for consumers. A reduction to 2 wt % still will allow the state to comply with the reformulated gasoline (RFG) program in the northern part of the state.
EPA said New Jersey did not need immediate EPA approval to reduce the length of its wintertime oxygenated fuels program by 2 months.
The agency explained, "Since the area has had no carbon monoxide violations since 1991 in the months being dropped, the state can meet its clean air requirements with just a 4 month wintertime oxygenated fuels program.
"Also, during those dropped months, cleaner oxygenated fuel will still be required in New Jersey through the RFG program.
"New Jersey has coordinated these changes with the affected fuels industry to minimize disruption, and EPA encourages them to continue such efforts."
The agency noted, "New York City and parts of Connecticut also have a 7 month control season, and we do not know if they will continue with the current 7 month control season or adopt a shorter control season.
"EPA will work with these states to assure that air quality is maintained in the region while allowing flexibility to meet goals."
March gasoline futures fell on the New York Mercantile Exchange following New Jersey's announcement.
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