United States Air and Radiation EPA420-F-00-023
Environmental Protection June 2000
Agency
Office of Transportation and Air Quality
Regulatory
Announcement
Proposed Adjustment to
Reformulated Gasoline VOC Standard
The U.S. Environmental Protection Agency (EPA) is proposing to make
it easier for oil refiners to use ethanol in cleaner-burning, reformulated
gasoline (RFC), while maintaining the full air quality benefits of the
program. This proposed rule will fully recognize the environmental
benefits of ethanol and ensure that it will continue to play a significant
role in the cleaner burning gasoline program.
Background
The Clean Air Act requires that cleaner-burning RFG contain two
percent oxygen by weight. Ethanol has been used in reformulated gas
since 1995. Oil refiners can choose which oxygenate to use to meet the
law's requirements. There are two primary options: ethanol or MTBE.
If gasoline containing MTBE leaks or is spilled into the environment, it
can enter the groundwater and render water supplies undrinkable due to
taste and odor impacts. The Administration has called on Congress to
pass legislation that will significantly reduce or eliminate the use of
MTBE.
EPAs proposal grew out of the ethanol industry's request that EPA give
ethanol blended RFG credit for the additional carbon monoxide (CO)
reductions that occur from using ethanol. In response, EPA asked the
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National Academy of Science (NAS) to study the impact of CO reduc-
tions on ozone formation. The NAS report last year concluded that the
contribution of CO to ozone formation should be recognized as part of
the air quality benefits of the RFG program.
The Administration supports the use of renewable fuels like ethanol, and
recognizes the important role ethanol plays in our nation's energy secu-
rity, agricultural, and environmental policy.
The use of ethanol in RFG is generally used at a volume that provides
more oxygen in the fuel than other additives. The additional oxygen in
the gasoline significantly reduces emissions of CO. Therefore, in ex-
change for greater CO benefits, EPA is proposing to provide refiners with
more flexibility by adjusting the standards for volatile organic compound
(VOC) in ethanol blended RFG. This proposed adjustment would make it
more feasible for refiners to use ethanol in the RFG program.
RFG is required to reduce VOCs, oxides of nitrogen (NOx), and air
toxics. When ethanol is added to gasoline in the amount needed to satisfy
the oxygen content requirement of the Clean Air Act, the volatility of
gasoline (as measured by Reid Vapor Pressure or RVP) increases.
Because evaporation of gasoline contributes to air pollution, and gasoline
with ethanol evaporates more than gasoline with other additives, refiners
must reduce the volatility of the gasoline before adding ethanol in order
to meet the VOC standards of RFG.
Since the higher oxygen content of the gasoline resulting from ethanol
provides for greater reductions of CO than other additives, EPA is pro-
posing to make an adjustment that will provide more flexibility to refin-
ers. This flexibility allows a small increase in the volatility of the gaso-
line, while maintaining the benefits of RFG.
and of
The goal of the RFG program is to reduce emissions of the pollutants that
contribute to ozone, or smog. Smog is formed when VOC, NOx, and
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other pollutants such as CO react in the presence of sunlight. The RFG
program sets acceptable levels for these pollutants that refiners must
meet, regardless of the oxygenate they choose.
The clean air benefits of the RFG program are significant. The combined
impact of both phases of the RFG program will reduce smog-forming
pollutants by 105,000 tons annually. This is equivalent to eliminating the
pollution from 16 million cars. The program also reduces toxic pollut-
ants by 24,000 tons annually.
Costs
EPA estimates that the second phase of RFG (required on June 1, 2000)
will cost from 4 to 8 cents more per gallon to produce than conventional
gasoline, which includes a one cent additional cost for the use of etha-
nol. Studies from Bonner and Moore Associates, and Oak Ridge Na-
tional Laboratory confirm these estimates. Other studies, such as those
performed by Cambridge Energy Research Associates, formed the basis
of some of the above studies.
We welcome your comments on this proposed rule. For instructions on
submitting written comments, please see the Federal Register notice. You
may submit written comments to EPA up to 60 days after the proposed
rule is published in the Federal Register. It is available from the EPA Air
Docket by calling 202-260-7548; please refer to Docket No. A-99-32. In
addition, you can access the proposed rule and related documents elec-
tronically on the Office of Transportation and Air Quality (OTAQ) Web
site at:
http ://www. epa. gov/otaq/rfg. htm
For
You can access documents on this proposed rule electronically on the
OTAQ Web site given above, or by contacting Barry Garelick at:
U.S. Environmental Protection Agency
Office of Transportation and Air Quality (6406J)
1200 Pennsylvania Avenue NW
Washington, DC 20460
202-564-9028
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