EPA Makes Ethanol an Easier Blend

July 9, 2001

Environmental Protection Agency Administrator Christine Whitman has signed a final rule to help reduce costs for blending ethanol into gasoline, an action that formalizes the agency's March 15 decision. The rule makes it easier for oil refiners to use ethanol in cleaner-burning gasoline supplied to the Chicago and Milwaukee areas while continuing to achieve air quality benefits in the reformulated gasoline (RFG) program.

EPA said it provides flexibility for refiners and helps reduce costs for blending ethanol into gasoline by adjusting the volatile organic compounds (VOC) standards for ethanol reformulated gasoline which also should help boost supply.

In March, EPA issued an enforcement discretion for these areas, allowing the adjustment to take place prior to this rule being made final. This action recognizes the environmental benefits of ethanol and ensures that it will continue to play a significant role in the cleaner-burning RFG program, according to EPA.

The action is specific to Chicago and Milwaukee, because they are the only areas of the country that use ethanol exclusively in RFG. Increased VOC emissions can occur from combining RFG made with the oxygenate methyl tertiary butyl ether (MTBE) and RFG made with ethanol in automobile gasoline tanks.

For the first time the Midwest refiners will receive credit toward their carbon monoxide reduction as recommended to the Agency by the National Academy of Science. The final rule and supporting documents can be found at: http://www.epa.gov/otaq/rfg.htm.