INDUSTRY SPLIT ON HOUSE CLEAN AIR MEASURE

U.S. oil groups oppose and gas groups support key elements of the Clean Air Act revision the House of Representatives has passed.

The legislation now goes to conference committee, which will attempt to merge House and Senate bills. That effort is expected to take most of the summer, even though the bills have much in common (OGJ, May 28, p. 39).

Charles DiBona, American Petroleum Institute president, said the oil industry wants passage of clean air legislation. "However, the legislation just passed by the House sets extremely stringent standards for reformulated gasoline. No one in the petroleum industry knows whether these standards could be met."

He added the bill does not require a government assessment of the technical feasibility of meeting reformulated gasoline standards or of supply of the required ingredients.

"Unless substantial changes are made in this legislation by a House-Senate conference committee, it may not be possible for the industry to continue to meet the fuel needs of consumers," DiBona warned. "In fact, the legislation absolutely prohibits delivery of gasoline to the nine areas of this country that have the most severe smog problems if the standards cannot be met. Those areas use about one fourth of this country's gasoline."

Texaco Inc. said, "The fuels required by this legislation have never been made and we do not have any research data that demonstrate that such radical new fuel formulations of gasoline could be made. And, even if such fuels could technically be made, they could not be available to consumers in the time frame mandated."

The American Gas Association and Interstate Natural Gas Association of America both praised the bill for its increased reliance on gas.

George Lawrence, AGA president, said, "The bill offers significant opportunities in areas as diverse as clean fuel vehicles and acid rain compliance."

AGA will oppose a provision that controls nitrogen oxide emissions from stationary sources. It would subject new gas pipelines to very expensive "lowest achievable emissions rate" and emissions offset requirements.

"In addition," AGA said, "this provision would be a significant barrier to new independent power production and cogeneration facilities, both of which offer major efficiency improvements over conventional electricity generation."

OFFSHORE EMISSIONS

The House accepted by a 411-5 vote a compromise that would subject offshore rigs and platforms within 25 miles of shore-except off Texas, Louisiana, Alabama, and Mississippi-to the same emission controls as onshore facilities.

The compromise, which the Bush administration opposed, transfers control of Outer Continental Shelf air emissions from the Minerals Management Service to the Environmental Protection Agency.

The EPA administrator could delegate to the coastal states authority to implement and enforce OCS emissions rules.

Within 1 year of enactment, offshore facilities would be governed by the same pollution standards for emissions controls and limits, off sets, permitting, monitoring, testing, and reporting as onshore facilities.

The bill requires the Interior Department to conduct a 3 year study of emissions on the Gulf Coast to determine if they are affecting onshore areas that may fail to meet the national ambient air quality standards for ozone or nitrogen oxide.

Proponents of the compromise complained that MMS has done a poor job of regulating offshore emissions.

But Rep. Jack Fields (R-Tex.) said, "The purpose of this amendment is to make future exploration and production off California and Florida more difficult, if not impossible."

Rep. Robert Lagomarsino (R-Calif.) responded, "As a practical matter, there is no offshore drilling taking place in California today where there has not been an agreement worked out on air quality."

REFORMULATED GASOLINE

The House voted 405-15 to accept a compromise pilot program to sponsor 750,000 alternative fuel cars in California by 1997.

EPA is to set standards for the fuels and determine which fuel will be sold in which areas. Refiners and service stations will be required to make them available.

The bill also requires cities with a population of 750,000 or more to switch to clean alternative fuels in new urban buses. And it increases limits on particulates from buses burning diesel fuel.

It requires that gasoline sold in states with moderate carbon monoxide nonattainment problems must contain at least 2% oxygen during high carbon monoxide seasons. But it allows EPA to waive that requirement under several conditions

The House bill does not dictate a formula for reformulated gasoline. But it does require such gasoline to be offered in the nine cities with the worst air quality problems. They must be capable of reducing pollutants 15% by 1995 and 25% by 2000.

To reduce volatile organic compound emissions, EPA is required to ban the sale of gasoline with a Reid vapor pressure greater than 9 psi during high ozone periods. The volatility of gasoline with ethanol can be 1 psi higher.

The bill requires the auto industry to install onboard canisters, with a 95% efficiency rate, to capture fuel vapors during refueling for new cars beginning in 1993. After EPA determines that canisters are in widespread use, it can waive requirements for Stage II refueling controls at service stations.