Fuel Trends Report: Gasoline 1995 - 2005 Executive Summary Compliance and Innovative Strategies Division Office of Transportation and Air Quality U.S. Environmental Protection Agency &EPA United States Environmental Protection Agency EPA420-S-08-001 January 2008 ------- This report presents 1995-2005 clean fuel programs implementation data collected and analyzed by the Environmental Protection Agency's (EPA's) Office of Transportation and Air Quality. The data show that significant changes in gasoline composition during this period resulted in emission reductions often substantially greater than regulatory requirements. Future reports on fuel trends will be issued periodically. As a result of the Clean Air Act (CAA) of 1990, EPA adopted clean fuel programs for gasoline. In 1995, EPA implemented the Reformulated Gasoline (RFC) program, designed to reduce emissions of ozone-causing volatile organic compounds (VOCs) and oxides of nitrogen (NOx), and air toxics such as benzene and formaldehyde. At the same time, EPA implemented an anti-dumping program, to protect the emission qualities of conventional gasoline (CG). In 2000, credit for early gasoline sulfur reduction was provided by EPA's Tier 2 gasoline sulfur program. These clean fuel programs required gasoline refiners and importers to analyze gasoline, measure certain emission-related parameters, and submit the data to EPA. These data have limitations, but in many respects, provide an unparalleled source of information about gasoline property trends since 1995.1 » Gasoline Sulfur Decreases-- Average annual sulfur content in all gasoline dropped from about 300 ppm in 1997 to about 90 ppm in 2005. » RFC NOx Reductions Exceed Requirements — RFC exceeded applicable NOx performance standards during both Phase I (1998-1999) and Phase II (2000 and beyond). » RFC Toxics Reductions Exceed Requirements — On average, Phase I RFC complied with Phase II standards, and toxic performance still improved with the transition to Phase II standards. » Conventional Gasoline NOx and Toxics Emissions Decreased — Between 1998 and 2005, the summer NOx emissions of conventional gasoline were reduced by 5.7 percent, while summer exhaust toxics were reduced by 4.7 percent. « Ethanol Use in RFC Increased and MTBE Use Decreased — In the summer of 1996, about 11 percent of the RFC sold contained ethanol while virtually all the remainder contained MTBE. By the summer of 2005, the ethanol share increased to about 53 percent, with corresponding decreases in MTBE. • - • As Figure 1 demonstrates, average annual sulfur content in all gasoline dropped from about 300 ppm in 1997 to about 90 ppm in 2005. Early decreases in overall gasoline sulfur content were primarily due to decreases in RFC sulfur content linked to the phase-in of increasingly stringent RFC NOx emission performance standards. These NOx emission performance standards did not mandate sulfur reduction, but lowering sulfur content was one of several property changes important to meeting the RFC NOx standards. Post-2000 decreases were also due to early Tier 2 sulfur reductions, applicable to both RFC 1 EPA lacks information about certain properties, and has only partial information on others. One important limitation of the trend analyses in this report is that, with the exception of certain oxygen and oxygenate analyses, they do not include California gasoline. in ------- and CG. Phase-in of Tier 2 sulfur reductions began in 2004, but credit generation for early sulfur reduction was allowed beginning in 2000. Annual Average Gasoline Sulfur Content- (parts per million) Estimated from EPA Reporting System Data 350 300 - 250 - 200 - 150 - 100 50 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year Figure 1 As Figure 2 demonstrates, RFC exceeded applicable NOx performance standards during both Phase I (1998-1999) and Phase II (2000 and beyond). The summer NOx performance of Phase I RFC exceeded the standard by as much as 3.5 percent, while the summer NOx performance of Phase II RFC exceeded the standard by as much as 4.1 percent. IV ------- NOx Performance of Summer RFG-Estimated from EPA Data (Based on Phase II Complex Model) | 12 8 re DI oj 10 - 8- 2000 2001 2002 2003 Year 2004 2005 "Phase I standard is an approximation based on the Phase II complex model Figure 2 .-" RFC also exceeded toxics performance standards. As Figure 3 demonstrates, the summer toxics performance of Phase I RFC exceeded the standard by as much as 15.1 percent, while the summer toxics performance of Phase II RFC exceeded the standard by as much as 12.8 percent. Winter RFC toxics performance also exceeded standards (See Figure 9 in the RFC Trends section). On average, Phase I RFC complied with Phase II standards, and toxic performance still improved with the transition to Phase II standards. Toxics Performance of Summer RFG - Estimated from EPA Data eline gasoline) CO CO .&. o en o re ssion Reduction (from o on o en 1 5 S o - (Based on Phase II Complex Model) s^y ' 1998 1999 2000 2001 2002 2003 2004 2005 — —Reporting Avg. — ^ Phs II Averaged 3d Phs I Averaged 3d * *Phase I standard is an approximation Year based on the Phase II complex model Figure 3 ------- !J V »' **' 'JCS As Figures 4 and 5 demonstrate, between 1998 and 2005, the summer NOx emissions of conventional gasoline were reduced by 5.7 percent, while summer exhaust toxics emissions were reduced by 4.7 percent. Winter emissions also decreased during this period (See Figures 3 and 5 in the Conventional Gasoline Trends section). These reductions were not required by EPA regulations; instead, they were a byproduct of Tier 2 sulfur regulation. a 1300 - 'f 1_ S.1280 - w 2 °>1260 1240 - 1220 - 1200 75 74 - 73 - g 72 - M7 J70H = 69- 68 - 67 - 66 NOx Emissions of Summer CG Estimated from EPA Reporting System Data 1999 2000 2002 2003 2004 2005 Year Figure 4 Exhaust Toxics Emissions of Summer CG Estimated from EPA Reporting System Year Figure 5 VI ------- The CM required that RFC contain two percent oxygen by weight. MTBE and ethanol were the primary oxygenates used. Figure 6 shows the increasing use of ethanol in RFC and the decreasing use of MTBE through 2005. In the summer of 1996, only about 11 percent of the RFC sold contained ethanol while virtually all the remainder contained MTBE. By the summer of 2005, the ethanol share increased to about 53 percent, with corresponding decreases in MTBE use. % of Summer RFC Oxygenated with Ethanol and Ethers (Including Federal RFC Areas in CA) •Ethanol BMTBE TAME other 1996 11% 89% 1997 10% 90% 1998 11% 89% 1999 12% 88% 2000 12% 88% 2001 15% 85% 2002 18% 82% 2003 37% 63% 2004 54% 46% 2005 53% 47% Figure 6 Gasoline oxygen content has been a topic of considerable interest. Concerns over groundwater contamination from MTBE resulted in various state laws banning or phasing out its use in gasoline. The Energy Policy Act of 2005 included a renewable content requirement for gasoline and eliminated the RFC oxygen content requirement. RFC data for 2006, while not analyzed for this report, show that RFC suppliers continued to use oxygen in RFC even after the requirement was removed in May of 2006, and that virtually all of this RFC was ethanol-oxygenated. MTBE use in RFC is currently at near zero levels. EPA finalized Renewable Fuel Standard program regulations in April 2007 to implement the Energy Policy Act renewable content requirement. Like RFC, these regulations include new recordkeeping and reporting requirements designed to track the volume of renewable fuel, including ethanol. vn ------- |