WATCHING WASHINGTON 'REG-NEG' GASOLINE STANDARDS

With Patrick Crow The National Petroleum Refiners Association has accepted reformulated gasoline standards that are the outgrowth of a "regulatory negotiation" process involving industry, environmentalists, and government. The 1990 Clean Air Act amendments require the Environmental Protection Agency to issue parameters for reformulated gasoline and oxygenated gasoline sold in U.S. cities with air pollution problems (OGJ, June 17, p. 20).

Aug. 12, 1991

3 min read

The National Petroleum Refiners Association has accepted reformulated gasoline standards that are the outgrowth of a "regulatory negotiation" process involving industry, environmentalists, and government.

The 1990 Clean Air Act amendments require the Environmental Protection Agency to issue parameters for reformulated gasoline and oxygenated gasoline sold in U.S. cities with air pollution problems (OGJ, June 17, p. 20).

Lengthy "reg-neg" talks ended late in June with only general agreement in some areas-not the unanimous pact that was sought. But EPA continued to seek a consensus and July 25 offered a draft agreement.

DIFFERING EFFECTS

Urvan Sternfels, NPRA president, said most refiners could accept the package, but others said it "would end their participation in the gasoline business."

Sternfels said the draft proposes changes that will have an unprecedented effect on the refining industry, requiring fundamental changes in the refining process.

"Not only will there be monumental costs, there likely will be dramatic changes in the competitive posture of many of the refining companies," he said

The draft proposes a two step approach. During the next 51/2 years simple gasoline standards would allow refiners much leeway. Gasoline could contain no increase in nitrogen oxides, no more than 1 vol % of benzene, at least 2 wt % of oxygen, and no heavy metals. It and would have to meet varying volatility standards in the ozone season.

EPA will propose a rule by Nov. 30, 1992, to take effect Mar. 1, 1997, that will contain the specifics for more complex performance standards. Another industry-environmental working group will help EPA draft that rule.

NPRA said the draft agreement offers several advantages for industry over previous proposals: Refiners would have more lead time to make changes, it does not require a minimum reduction of toxins in gasoline, and refiners hit by "extraordinary circumstances" could get some relief from the rules.

On the negative side, the draft would require severe cuts in vapor pressure, force refiners to begin planning for gasoline manufacture before the complex gasoline model is available, and not prevent states from adopting more stringent gasoline standards.

Sternfels said NPRA will continue to work with EPA to improve the draft.

"This agreement has value for refiners in providing some certainty for investment decisions that must be made immediately in order to meet the strict deadlines contained in the law," he said.

"However, it is not a panacea for all causes of automotive pollution."

DIFFERING VIEWS

The major question now is whether the July 25 draft will gain enough support to make it to the rulemaking stage.

The American Petroleum Institute and Petroleum Marketers Association of America support it. Ethanol and renewable fuels groups and a few environmental groups oppose it. Other environmental groups have taken no stand.

Administration officials reportedly were meeting last week to discuss how to proceed.