United States Air and Radiation EPA420-F-01-003
Environmental Protection June 2001
Agency
Office of Transportation and Air Quality
Program
Update
EPA's Decision on California's
Request for Waiver from the
Reformulated Gasoline Program
Oxygen Requirement
The U.S. Environmental Protection Agency (EPA) is denying
California's request for a waiver from the oxygen requirement in
cleaner-burning reformulated gasoline (RFC).
EPA's Decision
Congress established the RFG program to improve air quality in some
of our nation's most polluted urban areas, enhance energy security by
extending the gasoline supply through the use of oxygenates, and
encourage the use of domestically-produced, renewable energy sources.
The Clean Air Act requires that reformulated gasoline contain oxygen to
reduce harmful emissions. In order to be granted a waiver from this
Congressional mandate, a state must provide clear evidence that the
requirement will interfere with being able to meet the national health-
based standards for clean air.
In April 1999, California Governor Gray Davis requested a waiver from
the oxygen requirement, contending that the Clean Air Act oxygen
mandate impeded California's ability to further reduce smog-forming
oxides of nitrogen (NOx). Governor Davis' request for a waiver closely
followed his announcement that the state would ban the use of the
oxygenate methyl tertiary butyl ether (MTBE) starting in 2003.
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California's waiver request is based on the assertion that additional NOx
reductions are needed in California in order to attain the National Ambi-
ent Air Quality Standards (NAAQS) for ozone and particulate matter.
California claimed that without the oxygen requirement, greater NOx
reductions would be achieved with their California RFG Phase 3
(CaRFG3) fuel. California's assertion is based primarily on the relation-
ship between fuel oxygen and NOx formation, claiming that NOx in-
creases with oxygen in the fuel and therefore the requirement for oxygen
in RFG prevents the maximum amount of NOx reduction from CaRFG3.
EPA agrees with California's assertion that NOx emissions would de-
crease with a waiver. Such a waiver would, however, at the same time
result in an increase in carbon monoxide (CO) emissions. CO, like
volatile organic compounds (VOCs) and NOx, contributes to ozone or
smog. In addition, VOC emissions may increase or decrease, resulting in
an uncertain impact on ozone. This uncertainty is largely the result of
significantly increased gasoline volatility due to commingling, when
ethanol-oxygenated gasolines and gasolines without ethanol are mixed in
vehicle fuel tanks. As a result of this uncertainty, California has not
clearly demonstrated the impact on smog that would occur from a waiver
of the oxygen mandate.
Since the Agency is denying California's request based upon uncertainty
associated with the effect of a waiver on ozone, EPA does not need to
decide whether the expected reduction in NOx from a waiver and the
associated reduction in particulate matter (PM) would support a determi-
nation of interference with the PM NAAQS.
Background
In April 1999, the State of California requested a waiver from the federal
oxygen requirement for reformulated gasoline. EPA has the discretion
under the Clean Air Act to waive the Congress!onally-mandated oxygen
content requirement where EPA determines that compliance with the
oxygen content requirement would interfere with attainment of the
primary NAAQS in an ozone nonattainment area.
EPA communicated with California Air Resources Board (CARB)
concerning its request, and CARB submitted additional information
pertinent to the request for a waiver. On February 7, 2000, CARB sub-
mitted data which EPA determined made CARB's application complete.
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Given the complexity of the issues involved, EPA carefully examined all
of the information and analysis submitted by California, as well as that
submitted by interested parties. The Agency also performed its own
comprehensive analysis to evaluate the possible emissions effects of a
waiver.
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The goal of the RFG program is to reduce motor vehicle emissions of the
pollutants that contribute to ozone, or smog, and toxic pollutants, such as
benzene. Smog is formed when VOCs, NOx, and other pollutants such as
CO react in the presence of sunlight. The RFG program sets limits for
these pollutants that refiners must meet, regardless of the oxygenate they
choose.
The clean air benefits of the RFG program are significant. The reformu-
lated gasoline program reduces smog-forming pollutants by 105,000 tons
and toxic pollutants by 24,000 tons annually. This is equivalent to elimi-
nating the pollution from 16 million cars every year.
For
You can access documents related to EPA's determination electronically
on the Office of Transportation and Air Quality (OTAQ) Web site at:
www.epa.gov/otaq/rfg.htm
You can also contact the OTAQ Library for document information at:
U.S. Environmental Protection Agency
Office of Transportation and Air Quality Library
2000 Traverwood Drive
Ann Arbor, MI 48105
(734)214-4311
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