U.S. refiners propose gasoline sulfur cuts

U.S. industry's low-sulfur gasoline proposal [109,786 bytes] The U.S. refining industry has offered to slash the sulfur content of gasoline by Jan. 1, 2004. The reductions would cost industry about $3 billion for refining investments. That could result in a 2¢/gal increase in the cost of gasoline, although pump prices would be determined by competition. No problems are foreseen for pipelines and storage systems, because the proposed low-sulfur fuels would replace existing gasolines.

March 30, 1998

4 min read

U.S. industry's low-sulfur gasoline proposal [109,786 bytes]

The U.S. refining industry has offered to slash the sulfur content of gasoline by Jan. 1, 2004.

The reductions would cost industry about $3 billion for refining investments. That could result in a 2¢/gal increase in the cost of gasoline, although pump prices would be determined by competition.

No problems are foreseen for pipelines and storage systems, because the proposed low-sulfur fuels would replace existing gasolines.

The American Petroleum Institute and the National Petroleum Refiners Association urged the U.S. Environmental Protection Agency to consider the new fuels when it drafts stricter tailpipe emission standards for the next generation of low-emission cars, beginning with model year 2004. EPA is to decide on that issue this summer.

API and NPRA recommend a gasoline with an average summertime sulfur level of 150 ppm for 17 states, mostly in the East, vs. the current 340 ppm.

Elsewhere in the U.S., including all or parts of states where there are minimal air quality problems, the refining industry proposed a conventional gasoline with a sulfur level average of 300 ppm. Those areas could petition EPA for the 150 ppm fuel if they demonstrate need.

80 ppm fuel

California would retain its low-sulfur (80 ppm maximum) gasoline.

The auto industry is recommending that EPA consider the California standard nationwide, but API said an 80 ppm fuel could cost 5-6¢/gal more.

It said, "Reducing sulfur this drastically nationwide is unnecessary to achieve or maintain good air quality, unnecessary to implement tailpipe emission requirements, and could result in consumers in some areas paying more for gasoline than necessary."

Jerry Thompson, Citgo Petroleum Corp.'s vice president for development, said, "The point is this: Why should drivers in clean air states like Iowa or Wyoming pay for California-style gasoline when they would be better served with a lower-priced, more conventional gasoline that still produces environmental benefits?"

Details

API said the low-sulfur fuels would reduce ozone-producing nitrogen oxide (NOx) emissions in 22 states where EPA says airborne ozone-precursors are "transported" from other areas: "Those states include major areas where there are problems with the airborne migration of smog but that do not need the more expensive reformulated gasoline (RFG), which is required for urban areas with the most significant smog problems and which now accounts for about one fourth of U.S. gasoline sales."

The oil groups proposed a fuel with 150 ppm of sulfur for 17 of the 22 states that need to reduce NOx emissions. They are: Alabama, Georgia, Illinois, Indiana, Kentucky, Maryland, Michigan, Missouri, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia, and Wisconsin.

API said the other five states-Connecticut, Delaware, Massachusetts, New Jersey, Rhode Island-and the District of Columbia already get RFG statewide because of ozone and other air quality problems.

Those five would get the next phase of federal RFG when it becomes available in 2000. That gasoline will average 150 ppm of sulfur.

API said that, in the 22-state region, the low-sulfur gasoline would cut NOx emissions by at least 38,640 tons for the summer season, which is equal to removing 15.9 million of today's vehicles from the road.

API Pres. Red Cavaney said, "These proposed improvements would be the next step in more than 2 decades of dramatically successful efforts by the oil refining industry to make cleaner-burning fuels. We are recommending that EPA adopt these changes for the next generation of vehicles."

NPRA Pres. Urvan Sternfels said, "The oil refining industry, recognizing its responsibility to contribute to improving the quality of air for future generations, is proposing to reduce the average level of sulfur in gasoline by as much as 50%.

"Based on industry-sponsored research, we are confident that automobile technology currently under development for the next century can meet anticipated emission standards when coupled with lower-sulfur, cleaner-burning gasolines that refiners today are pledging to produce."