United States               Air and Radiation          EPA420-F-99-040
                     Environmental Protection                            November 1999
                     Agency

                     Office of Mobile Sources
vvEPA        Emission
                     Facts
                     Reformulated Gasoline
                     Reformulated gasoline (RFC) is gasoline blended to burn cleaner and
                     reduce smog-forming and toxic pollutants in the air we breathe. About
                     75 million people are breathing cleaner air because of RFG. The
                     second phase of the RFG program, which will begin in 2000, will
                     achieve even greater reductions in air pollution than  Phase I RFG.
                     History of RFG
                     Despite tremendous progress in reducing U.S. air pollution since the
                     Clean Air Act was passed almost 30 years ago, cars and trucks are still a
                     major source of pollution because the number of cars and trucks and the
                     number of miles driven keeps growing.

                     One way to reduce air pollution from cars and trucks is to use a gasoline
                     that is designed to burn cleaner. This cleaner burning gasoline, called
                     reformulated gasoline or RFG, is required by the Clean Air Act in cities
                     with the worst smog pollution, but other cities with smog problems may
                     choose to use RFG. The federal RFG program was introduced in 1995;
                     RFG is currently used in 17 states and the District of Columbia. About
                     30 percent of gasoline sold in the U.S. is reformulated. Each oil company
                     prepares its own formula that must meet federal emission reduction
                     standards.

                     The RFG program is a significant step toward cleaning the air we
                     breathe, and a significant component of the country's smog reduction
                     strategy. RFG's air quality benefits, combined with other industrial and
                     transportation controls aimed at smog reduction, together are responsible
                     for the long-term downward trend in U.S. smog.
                                                                 > Printed on Recycled Paper

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Air                    of
The first phase of the RFG program was designed to reduce the air
pollution that causes smog by 64,000 tons per year in the areas that use
RFG, compared to conventional gasoline—the equivalent of eliminating
the smog-forming emissions from over 10 million vehicles.

When the more stringent standards of Phase II RFG replace Phase I in
2000, the program is designed to reduce smog pollutants by an addi-
tional 41,000 tons per year in RFG areas, for a combined equivalent of
eliminating the smog-forming emissions from about 16 million vehicles.

The RFG program also reduces emissions of toxic air pollutants such as
benzene, a known human carcinogen. Phase I and Phase II RFG com-
bined reduce toxic pollutants by about 24,000 tons per year in RFG
areas, the equivalent of eliminating the toxic  emissions from over 13
million vehicles.

A study by the Northeast States for Coordinated Air Use Management,
an organization of state air quality experts, shows that Phase I RFG
reduced cancer risk from gasoline by about 12 percent, and Phase II
RFG is expected to reduce cancer risk by 19 percent.

Analysis of fuel data submitted to EPA by industry for compliance
purposes shows that emission reductions from the RFG program have
been more than the program requires each year since the program's
introduction in 1995.
EPA conducted a fleet testing program in 1998 to evaluate car and truck
performance with Phase II RFG, compared to Phase I RFG. Testing took
place in Boston, Chicago, and Houston. The test fleet drove over one
million miles with Phase II RFG. Performance testing was also con-
ducted in 1998 with utility, lawn, and garden equipment, and with
motorcycles and marine engines. In addition, EPA sponsored fuel
economy testing with Phase II RFG, compared to Phase I RFG.

All available data indicate that no difference in car or truck performance
or fuel economy is expected when Phase II RFG replaces Phase I RFG.
In addition, no difference in performance is expected with utility, lawn,
and garden equipment, or with marine engines or motorcycles.

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Note that changing from conventional gasoline to RFG, which is oxy-
genated, results in a one to three percent fuel economy loss; that is less
than one mile per gallon for a vehicle that gets 25 miles per gallon.
However, there is no additional oxygenate in Phase II RFG compared to
Phase I, so there is no additional fuel economy loss.
                    and
Prior to the introduction of Phase I RFG, EPA estimated that the cost to
industry to produce the fuel would be about three to five cents per gallon
more than conventional gasoline. The Lundberg survey, conducted by an
independent market research firm, concluded in October 1997 that
RFG's retail price has been about three cents per gallon more than
conventional gasoline. The retail price does not necessarily reimburse all
production expenses.

EPA estimates that Phase II RFG will, on average, cost one to two cents
per gallon more to produce than Phase I RFG. In some parts of the
country and for  some refiners, production costs could be higher. It is not
possible to accurately predict the retail price of Phase II RFG in the year
2000 because it  will be influenced by many factors, including production
costs, weather, crude oil prices, taxes, and local and regional market
conditions. It is  important to note that, at the start of the Phase II RFG
program, retail prices may be higher or fluctuate more.
In the Clean Air Act, Congress specified that RFG contain oxygen —
two percent by weight. MTBE (methyl tertiary butyl ether) and ethanol
are the two most commonly used substances that add oxygen to gaso-
line. Oil companies decide which substance to use to meet the  law's
requirements.

Leaking storage tanks are the number one cause of gasoline contamina-
tion of water. Small spills and improper disposal are also sources of
contamination.

Many chemicals in gasoline—including MTBE—can be harmful in
water. MTBE is highly soluble and travels faster and farther in water
than other gasoline components.

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MTBE has a strong taste and odor, so even small amounts of MTBE in
water can make a water supply distasteful. In most cases where MTBE
has been detected, MTBE concentrations are below levels of public
health concern. At high levels, MTBE may pose a public health threat.
EPA's MTBE advisory level for taste and odor is 20 to 40 parts per
billion.

EPA is concerned about the presence of MTBE in ground and surface
water. In November 1998, EPA established a panel of independent
scientists and other experts to examine MTBE's performance in gasoline,
its presence in water, and alternatives to its use. Panel recommendations
made to EPA in July 1999 include:

  *   Ensure no loss of current air quality  benefits from RFG.

  *   Reduce the use of MTBE, and seek Congressional action to remove
     the oxygen requirement in RFG.

  •   Strengthen the nation's water protection programs, including spe-
     cific actions to enhance the Underground Storage Tank, Safe Drink-
     ing Water, and private well protection programs.

EPA has announced its intention to work  with Congress to provide a
targeted legislative solution that maintains the air quality benefits of RFG
while allowing reductions in the use of MTBE. EPA will also protect
water supplies by improving gasoline leak protection and remediation
programs.
For
Additional documents on RFG are available electronically on the Office
of Mobile Sources Internet site at:

    http ://www. epa.gov/om s/rfg .htm

Document information is also available by writing to:

    U.S. Environmental Protection Agency
    Office of Mobile Sources
    NVFEL Library
    2000 Traverwood Drive
    Ann Arbor, MI 48105

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