EPA Ethanol Rule Makes It Easier to Use

July 3

The Environmental Protection Agency (EPA) has issued a proposed rule designed to make it easier for oil refiners to use ethanol in cleaner-burning gasoline while maintaining the air quality benefits of the program. EPA says the action will fully recognize the environmental benefits of ethanol and ensure that it will continue to play a role in the cleaner-burning gasoline program.

Specifically, the proposal makes it easier for refiners to blend ethanol in cleaner-burning gasoline by recognizing that the use of ethanol, more so than other oxygenates, reduces the air pollutant carbon monoxide from the tailpipe. Normally, for cleaner-burning gasoline with ethanol to meet pollution reduction standards, an adjustment must be made to the gasoline. That adjustment involves reducing the evaporative property of gasoline to accommodate ethanol, since ethanol can make gasoline evaporate more readily which leads to an increase in air pollution.

EPA's proposed adjustment allows refiners to slightly increase the evaporative property of gasoline in exchange for the carbon-monoxide reductions derived from using ethanol. EPA says this adjustment will maintain the overall air quality benefits of the program.

Ethanol has been in use in reformulated gasoline since 1995. Congress required that reformulated gasoline contain 2% oxygen by weight. To meet this requirement, oil refiners generally can choose between MTBE and ethanol. If gasoline containing MTBE leaks or is spilled into the environment, it can enter the groundwater and render water supplies undrinkable due to taste and odor impacts.

The Clinton Administration has called on Congress to pass legislation that will significantly reduce or eliminate the use of MTBE. By providing refiners with more flexibility to use ethanol, this proposal will help reduce the use of MTBE, according to EPA.

Before releasing its proposal, EPA first wanted to analyze an alternative proposal submitted by the Illinois Environmental Protection Agency. EPA is requesting comment on the alternative Illinois proposal as well as the agency's preferred proposal during the 60-day comment period.

EPA's proposed rule is available at: http://www.epa.gov/otaq/rfg.htm