EPA proposes changes to U.S. RFG program
The U.S. Environmental Protection Agency has proposed procedural changes to the reformulated gasoline (RFG) program to ensure a smooth transition with the program's second phase beginning in 2000.
In a related action, EPA also proposed a change to give states more flexibility to maintain their compliance with the federal ozone standard.
Current program problems
The agency's current Phase I procedures allow states to opt out of RFG programs 90 days after their request is approved.
For states relying on RFG ozone reduction credits in their air quality plans, opt-out approval is contingent on replacing RFG with a program to replace the lost credits.
EPA said continuing with the same process could potentially cause market uncertainty in the start-up of Phase II and reduce the cost-effectiveness of the program by limiting industry's investment, resulting in higher gasoline prices due to reduced RFG production.
It said, "Refiners planning to produce Phase II RFG will have to start preparing for the tighter requirements later this year. Substantial investments will have to be made in new technology to meet additional reductions in nitrogen oxides, volatile organic chemicals, and toxic emissions over the 1990 baseline levels."
EPA said the proposed rule would retain the petition process and its criteria for evaluating a request but would change the time period before the opt-out becomes effective.
By December 1997, states must decide whether to continue participating in the RFG program. If a petition is not received by then, the program would continue through 2003. If the choice is to opt out before Phase II begins in 2000, the state can select an effective date any time before Dec. 31, 1999, the end of the Phase I program.
EPA said that proposed change would ensure a cost-effective and flexible program for consumers, states, and fuel suppliers.
Easier opt-ins
EPA also proposed a rule change that would permit areas previously not in compliance with the ozone national ambient air quality standard-but now in compliance-to adopt the federal RFG program.
The proposed option would apply to areas that exceeded the ozone standard when the Clean Air Act amendments were signed in November 1990 or subsequently.
"This change would expand the number of areas eligible to opt into the RFG program and provide states the ability to use it as an option for continued compliance with the ozone air quality standard.
"Currently, about 30 additional areas could adopt the clean-fuels program. Several states have indicated they would like to have the flexibility to use RFG as a control measure in attainment areas, especially in those with ozone levels relatively close to exceeding the standard. These areas are vulnerable to experiencing violations in the future.
"The states also recognize that RFG is a cost-effective measure to employ. Reformulated fuel helps protect the public by reducing emissions of ozone and air toxicities by burning more completely and evaporating less than conventional fuel."
EPA said, RFG initially will reduce volatile organic compounds and toxic air pollutants by more than 15%. The Clean Air Act requires RFG in 10 areas with the highest levels of ozone but allows other regions exceeding the standard to opt into the program through a petition from the state's governor. Currently, 17 states have regions participating in the program.
EPA is accepting public comments on the two rule changes and will hold a public hearing if requested.