U.S. ENVIRONMENTAL PROTECTION AGENCY   	EPA4oo-F-92-ois
            OFFICE OF MOBILE SOURCES

         Vehicle  Fuels  and the  1990  Clean Air Act

Vehicle Fuels and Clean Air

Gasoline and diesel fuel are both produced from crude oil, that is, petroleum. Together, gasoline
and diesel fuel power 99 percent of this country's motor vehicle fleet.

Past efforts to reduce vehicle emissions took petroleum fuels as a given and focused on the devel-
opment of sophisticated engine and vehicle emission control systems involving catalytic converters,
on-board computers, and other hardware. It is becoming apparent, however, that fuel composition
and type are also critical factors in the clean vehicle equation.

The Clean Air Act of 1990 explicitly recognizes that changes in fuels as well as in vehicle technology
must play a role in reducing air pollution from motor vehicles.


Why  the Interest  in New  Fuels?

The recognition that fuels are significant opened up an interesting debate about the relative merits of
petroleum and nonpetroleum fuels. Petroleum fuels have many advantages as vehicle fuels.  Oil can
still be discovered and pumped from the ground in many parts of the world for as little as ten or
twenty cents per gallon. Gasoline and diesel fuel pack more energy per gallon than other fuels.
Most important, our country's vast transportation infrastructure (refineries, pipelines, service sta-
tions, vehicle assembly plants, etc.) has been designed and optimized for petroleum fuels.

On the other hand, petroleum fuels have certain drawbacks. Emissions of reactive hydrocarbons,
carbon monoxide, and oxides of nitrogen from gasoline and diesel vehicles contribute significantly to
the air pollution that plagues most large American cities. Carbon dioxide emissions from petroleum
fuel combustion add to the atmospheric buildup of greenhouse gases and the potential for global
warming. The United States consumes far more oil than it can produce domestically, leading to
concerns over our energy and national security.

There are several alternative (i.e., nonpetroleum) fuels, such as methanol, ethanol, natural gas,
propane, electricity, and hydrogen, that could reduce vehicle emissions of conventional and green-
house pollutants and could be produced from domestic feedstocks.  Unfortunately, to varying
degrees, a transition to one or more of these fuels could decrease vehicle range and increase the
overall cost of the U. S. transportation system, particularly during the transition when infrastructure
modifications would be necessary.
                                                                 FACT SHEET OMS-13
                                                                    August, 1994

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     Fuels and the 1990 Clean Air Act
 Clean Fuel Provisions of the Clean Air Act of 1990

 The Clean Air Act stopped short of mandating the sale or use of alternative fuels. But the Act
 includes several programs that will require cleaner fuels and will open up the fuel market to
 nonpetroleum gasoline additives. These include provisions that force modifications in gasoline
 composition and that establish more stringent emission standards for vehicles in certain polluted
 areas. There are five major fuel-related provisions of the 1990 Clean Air Act:

 •    Oxygenated Fuels
     The oxygenated fuels provision affects 31 metropolitan areas that have high levels of carbon
     monoxide pollution (see chart). Since November 1992, gasoline sold in the winter in these
     areas must contain a minimum of 2.7 percent oxygen. The oxygen helps vehicles burn fuel
     more completely, this program has reduced vehicle carbon monoxide emissions by 15 to 20
     percent.

    Fuel additives supply the extra oxygen for oxygenated gasolines. The most common additives
    are ethanol and methyl tertiary butyl ether (MTBE), a methanol derivative. These additives are
    being used in about a third of the nation's gasoline, displacing 100,000 to 200,000 barrels per
    day of oil. The oxygen additive added a few cents per gallon to the cost of gasoline.

 «    Reformulated Gasoline
    The reformulated gasoline requirement applies to gasoline sold year-round in the nine metropoli-
    tan areas with the most severe ozone pollution (see chart). Beginning in 1995, reformulated
    gasoline specifications include a minimum oxygen content of 2 percent and a maximum 1 percent
    benzene content. Heavy metal additives are prohibited. Overall emission performance stan-
    dards for reformulated gasoline call for at least 15 percent hydrocarbon and toxic emission
    reductions by 1995 and at least 20 to 25 percent reductions of hydrocarbons and toxic emis-
    sions beginning in the year 2000.

    In addition to the use of oxygenates to boost fuel oxygen content, it is expected that refineries
    will have to restrict or delete certain high-volatility compounds, aromatics, olefins, and sulfur
    from gasoline.

    The nine-city base requirement will reformulate 22 percent of the country's gasoline supply and
    displace between 100,000 and 350,000 barrels per day of oil. However, the Clean Air Act
    permits other polluted cities (up to 87 across the country) to voluntarily join the program, which
    could result in reformulating more than half of the nation's gasoline. Again, the price of gasoline
    is projected to rise by a few cents per gallon.

 •    California Pilot Program
    This program sets lower hydrocarbon emission standards (relative to cars in the general U.S.
     market) for a set number of new passenger cars and light trucks sold in California beginning in

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    Fuels and the 1990 Clean Air Act
    1996. The standards drop still lower beginning in 2001, when a new nitrogen oxide standard
    also takes effect.  The sales requirement is 150,000 vehicles per year in 1996 through 1998
    and 300,000 vehicles per year thereafter.

    It appears that reformulated gasoline will likely be the fuel of choice to meet the California
    standards (possibly combined with some engine modifications and additional emission control
    hardware such as an electrically heated catalytic converter). Alcohol flexible fuel vehicles
    (which can operate on alcohol or gasoline or any blend of the two) are another possibility.
    California must mandate availability of any fuel necessary to operate clean-fueled vehicles.
    Other states may adopt California's vehicle standards.

    Clean-Fuel Fleet Vehicle Program
    This provision applies to fleets in 23 metropolitan areas around the country that have high ozone
    and/or carbon monoxide pollution (see chart). Like the California Pilot Program, the fleet
    program requires vehicles that are cleanerthan those for sale in the general U.S. market. A
    portion of new cars, light trucks, and medium-duty trucks purchased by fleets will need to meet
    the lower hydrocarbon and nitrogen oxide emission standards beginning in 1998. Individual
    states must ensure that appropriate fuels are available for clean-fueled fleet vehicles.

    It is expected that vehicles operating on reformulated gasoline will be able to meet the lower
    standards, though some fleets may consider fuels such as natural gas or propane which can
    offer cost savings. All in all, this program will affect approximately 3 5,000 fleets and should
    result in about one million clean-fueled vehicles by 2010.

    Transit Bus Provisions
    The particulate matter emission standard for transit bus engines is progressively tightened in both
    1993 and 1994. Although it is expected that redesigned diesel bus engines equipped with
    catalysts will be able to meet these standards, some transit operators are expected to consider
    alternative fuels such as methanol and natural gas.

    Beginning in 1994, EPA must evaluate whether buses are continuing to emit low levels of
    parti culate matter in actual service. If not, EPA must establish a low-polluting fuels requirement
    beginning in the late 1990s that would affect new transit buses in all cities with populations of
    750,000 or more.  This requirement could result in widespread substitution of alternative fuels
    for diesel in the nation's transit bus fleet.
 For  M.ore Information:
 The Office of Mobile Sources  is the national center for research and policy on air
 pollution from highway and off-highway motor vehicles and equipment.  'You
 can write to us at the EPA National Vehicle and Fuel Emissions Laboratory,
 2565  Plymouth Road,  Ann Arbor,  MI 48105. Our phone number is (313)  668-4333.

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               Cities Affected by Clean Fuels Provisions of the Clean Air Act
METROPOLITAN AREA || POLLUTANT CATEGORY *

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Anchorage, AK
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Boston-Lawrence-Worcester, MA-NH
Chi^agb-Gary-Lake County , ILr|N-lllllil||
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   1990 Clean Air Act classification. The metropolitan area generally includes suburbs and nearby towns.
**  If a low-polluting transit bus fuels program is necessary, it would affect all cities with populations of 750,000 or more.
f  Other ozone nonattainment areas are expected to opt in to this program.
tf States may opt out of the fleets program by substituting other programs that yield equivalent emission reductions.
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