v>EPA
   United States
   Environmental Protection
   Agency
Office of Transportation
and Air Quality
EPA420-F-06-020
February 2006
                 Regulatory
                 Announcement
                 Removal of Reformulated Gasoline
                 Oxygen Content Requirement and
                 Revision of Commingling Prohibition
                 to Address Non-Oxygenated
                 Reformulated  Gasoline
                 To provide U.S. oil refiners with greater flexibility in producing clean-
                 burning gasoline, EPA is removing the two percent oxygen content
                 requirement for reformulated gasoline (RFG) nationwide.
                 Overview
                 The U.S. Environmental Protection Agency (EPA) is amending the
                 reformulated gasoline (RFG) regulations to remove the oxygen con-
                 tent requirement and associated compliance requirements. Because the
                 2005 Energy Policy Act provided for different compliance dates for the
                 removal of the RFG oxygen requirement in California and the rest of the
                 country, EPA is implementing the removal of the oxygen requirement
                 in two separate rules. One direct final rule removes the RFG oxygen re-
                 quirement and related compliance requirements for California gasoline.
                 The effective date for this rule is 60 days from the date of publication of
                 the rule. The other direct final rule removes the oxygen requirement for
                 RFG nationwide. The effective date for this rule is May 5, 2006, (270
                 days from enactment of the Energy Act), or 60 days from publication of
                 the rule in the Federal Register, whichever is later.

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These direct final rules also revise the current prohibition against com-
bining volatile organic compound (VOC)-controlled RFG blended with
ethanol with VOC-controlled RFG blended with other oxygenates. The
revision also prohibits combining VOC-controlled RFG blended with
ethanol with non-oxygenated VOC-controlled RFG, except in limited
circumstances authorized by the Energy Policy Act of 2005.
Background
Section 21 l(k) of the 1990 Amendments to the Clean Air Act (CAA)
required RFG to contain oxygen in an amount that equals or exceeds 2.0
weight percent. Accordingly, EPA's current regulations require RFG re-
finers, importers and oxygenate blenders to meet a 2.0 or greater weight
percent oxygen content standard. Recently, Congress passed legislation
which amended Section 21 l(k) of the CAA to remove the RFG oxygen
requirement. To be consistent with the current CAA Section 211(k), these
direct final rules modify the  RFG regulations to remove the oxygen stan-
dard in Section 80.41. These rules also modify several other sections of
the RFG regulations which contain provisions designed to implement and
ensure  compliance with the oxygen standard.

Under the current regulations at 40 CFR Part 80, there is a prohibi-
tion against combining VOC-controlled RFG blended with ethanol
with VOC-controlled RFG blended with any other oxygenate during
the period January 1 to September 15, because of the volatility increase
that results when such blending occurs. With the removal of the oxy-
gen requirement for RFG, in order to maintain the effectiveness of this
provision, it is necessary to amend the regulations to have the prohibition
apply to combining VOC-controlled RFG blended with ethanol with any
non-ethanol VOC-controlled RFG, including non-oxygenated RFG. EPA
is making this revision with  these rulemakings.

The Energy Act contains a provision which specifically allows retail
outlets  to sell non-ethanol-blended RFG which has been combined with
ethanol-blended RFG under certain conditions and limitations. These
rules implement this provision of the Energy Act.

RFG has been required to be used since 1995 in metropolitan areas with
the most severe air pollution and in other non-attainment areas that re-
quested the cleaner burning gasoline. Today, about 30 percent of the gas
used in the United States is RFG.

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Effect on  Industry
These rules will remove the burden on industry of having to comply with
the oxygen requirement for RFG and associated compliance require-
ments. It will allow retailers and wholesale purchaser-consumers to com-
bine ethanol-blended VOC-controlled RFG with non-ethanol-blended
VOC-controlled RFG under certain conditions and limitations.
Health and Environmental Effects
The emissions benefits of the RFG program are not expected to be re-
duced as a result of these direct final rules.
Public Participation Opportunities
EPA is issuing these rules without prior proposal because no adverse
comments are anticipated. However, in the "Proposed Rules" section of
the Federal Register publication, EPA is issuing two separate documents
that will serve as proposals to adopt the provisions in the direct final
rules if EPA receives adverse comments.

You can access these rules and related documents on EPA's Office of
Transportation and Air Quality (OTAQ) EPA web site at:

    www. epa. gov/otaq/rfg_regs. htm

For More  Information
For more information on these rules, please contact Marilyn Bennett at:

    U.S. Environmental Protection Agency
    Office of Transportation and Air Quality (6406J)
    1200 Pennsylvania Avenue, NW
    Washington, DC 20460
    (202)343-9624
    E-mail: bennett.marilvn@,epa.gov

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