Although it has been in use for 5 months and makes up one third of the U.S. gasoline pool, reformulated gasoline (RFG) continues to generate controversy.
The Environmental Protection Agency suffered a setback Apr. 28 when a federal appeals court voided its rule requiring refiners to use renewable fuels-expected to be ethanol-for 30% of the oxygenates in RFG (OGJ, May 8, p. 32).
EPA Administrator Carol Browner recently disclosed the agency intends to ask the full circuit court for a rehearing. That is a prerequisite for an appeal to the U.S. Supreme Court.
But EPA first has to convince the Justice Department to file the appeal. Deadline to file the petition is June 12.
Browner also said she will propose that governors be allowed to ask EPA to raise the levels of oxygenates allowed in RFG during summer driving periods.
She said, "We no longer believe there is any good environmental reason for limiting the use of renewables in this manner. This action should immediately expand the market for ethanol."
OPT IN, OPT OUT
A House commerce subcommittee hearing touched on those issues last week, but the main focus was on how EPA should allow regions that have opted into the RFG program to opt out.
The refining industry complains that EPA was too quick last winter to allow opt-in regions in Pennsylvania, New York, and Maine to opt out, especially because RFG had already been shipped to the areas.
Browner recently approved a proposed rulemaking that would allow regions to opt out with only 30 days notice.
Charles DiBona, APT president, complained that doesn't provide companies nearly enough lead time to change fuels.
He said the public should be allowed to comment on opt-out requests, and EPA should evaluate the requests closely "rather than roll over to every political whim."
DiBona said, "Every opt-out decision should take into account the investment made by companies and the logistics of changing fuels. Companies must have time to adjust."
John Riggs, a Department of Energy official, said opt-outs have created market uncertainty, prompting the industry to reduce inventories and contributing to higher gasoline prices. He said a 30 day opt-out would add more uncertainty to the market.
Rep. Joe Barton (R-Tex.), who chaired the subcommittee hearing, said Congress plans changes in the 1990 Clean Air Act amendments (which imposed the RFG program) and may direct EPA to require more time for opting out.
DIFFERING RESULTS
Also at the subcommittee hearing, EPA Assistant Administrator Mary Nichols said a Wisconsin study of complaints about RFG use in Milwaukee found no widespread or serious harm to health.
The study found that while some Milwaukee citizens reported an increase in symptoms, no such increase occurred nearby in Chicago, which was using RFG from the same pipeline.
Copyright 1995 Oil & Gas Journal. All Rights Reserved.