Message-ID: <20125026.1075844935931.JavaMail.evans@thyme> Date: Thu, 23 Mar 2000 03:18:00 -0800 (PST) From: jeffrey.keeler@enron.com To: james.prentice@enron.com, stanley.horton@enron.com, ted.robinson@enron.com, michael.robison@enron.com, stephen.swain@enron.com, lou.potempa@enron.com, micha.makowsky@enron.com, michael.terraso@enron.com, rick.craig@enron.com, marc.phillips@enron.com, sandra.mccubbin@enron.com, richard.shapiro@enron.com, janel.guerrero@enron.com, carolyn.green@enron.com, john.wodraska@enron.com, diane.bazelides@enron.com, john.palmisano@enron.com, catherine.mckalip-thompson@enron.com, susan.worthen@enron.com, joe.kolb@enron.com, steven.kean@enron.com, rob.bradley@enron.com, joe.allen@enron.com, joe.hillings@enron.com, cynthia.sandherr@enron.com, stephen.burns@enron.com, chris.long@enron.com, mark.palmer@enron.com Subject: EPA Fact Sheet on RFG Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Jeffrey Keeler X-To: James Prentice, Stanley Horton, Ted Robinson, Michael A Robison, Stephen Swain, Lou Potempa, Micha Makowsky, Michael Terraso, Rick Craig, Marc Phillips, Sandra McCubbin, Richard Shapiro, Janel Guerrero, Carolyn Green, John Wodraska, Diane Bazelides, John Palmisano, Catherine McKalip-Thompson, Susan Worthen, Joe Kolb, Steven J Kean, Rob Bradley, Joe Allen, Joe Hillings, Cynthia Sandherr, Stephen D Burns, Chris Long, Mark Palmer X-cc: X-bcc: X-Folder: \Stanley_Horton_1\Notes Folders\All documents X-Origin: HORTON-S X-FileName: shorton.nsf FYI -- More information from EPA to back up its recent announcement: Oxygenates in Gasoline Congress required, in the Clean Air Act of 1990, that areas of the country with the worst ozone smog problems use reformulated gasoline (RFG) with an increased oxygen content of 2%. Seventeen states and the District of Columbia presently use reformulated gasoline (RFG), either because of the Congressional mandate, or because some areas have voluntarily chosen to use RFG to help achieve their clean air goals. Methyl tertiary-butyl ether (MTBE) is the oxygen additive most commonly used by the petroleum industry to satisfy the RFG mandate. MTBE is used in approximately 87% of RFG, with ethanol being the second most commonly used additive. Of those areas listed below, only Milwaukee and Chicago use RFG that is primarily ethanol. Areas Required to Use RFG Areas That Have Voluntarily Chosen to Use RFG Los Angeles, CA San Diego, CA Hartford, CT New York City (NY-CT-NJ) Greater Philadelphia (PA-NJ-DE-MD) Chicago (IL-WI-IN) Baltimore, MD Houston, TX Milwaukee, WI Sacramento, CA The State of Connecticut (that portion not part of NYC) The State of Delaware (that portion not part of Phil.) The District of Columbia Kentucky portion of Cincinnati Metro Area Louisville, KY Maryland - DC suburbs and two other nearby counties The State of Massachusetts St. Louis, MO New Hampshire Portion of Greater Boston The State of New Jersey (that portion not part of NYC and Phil.) New York counties near NYC The State of Rhode Island Texas - Dallas-Fort Worth area Virginia - DC suburbs, Richmond, Norfolk-Virginia Beach-Newport News Since the late 1970s, MTBE also has been used by the petroleum industry in much smaller amounts as an octane enhancer to replace lead. Approximately 4.5 billion gallons of MTBE are used each year in gasoline (275,000 barrels per day out of a total of 8.2 million barrels/day of gasoline), an increase of more than 3 times since Congress's 1990 mandate. MTBE in Water Since MTBE is very soluble in water and does not "cling" to soil well, it has a tendency to migrate much more quickly into water than other components of gasoline. Recent testing by the United States Geological Survey show detections of MTBE in approximately 20% of the ground water in RFG areas, while there is only a 2% detection rate in non-RFG areas. Most of these detections are below the levels of public health concern and are within the range EPA has set for a taste and odor water advisory for MTBE at 20 to 40 parts per billion. Small individual fuel spills (more than 9 million gallons of gasoline each year) and storm water runoff contribute to low level detections of MTBE in water supplies. MTBE detections at higher concentrations usually result from leaking underground or aboveground fuel storage tanks and pipelines. Even though significant air quality gains have been made using RFG, these air benefits can be maintained without using MTBE and without endangering the nation's water resources. MTBE - Call to Action In response to the growing concerns regarding MTBE in water, EPA Administrator Browner appointed an independent Blue Ribbon Panel of experts to investigate the use of oxygen additives in gasoline. The Panel called for significant reduction in the use of MTBE in gasoline and recommended that Congress and EPA take action to lift the oxygen mandate and clean up MTBE contamination. EPA fully supports the Panel recommendations and is taking steps to strengthen its underground storage tank, safe drinking water, remediation, and research programs. Upon release of the Panel's report in September 1999, EPA immediately began working with and encouraging Congress to pass legislation that responded to the Panel's recommendations. To date, legislation that would solve this problem has not moved forward. EPA is now providing Congress with a framework for legislation that will give EPA the authority to significantly reduce or eliminate MTBE. EPA is also taking action to control MTBE under the Toxic Substances Control Act (TSCA) as a backup to the needed Congressional action. A TSCA rulemaking is procedurally burdensome and may take several years to complete. Ethanol Use Will Expand Current annual ethanol production is about 1.5 billion gallons. Of this total, about 30 percent is used in RFG during the summer in Federally designated non-attainment areas. About 20 percent of ethanol production is used in the winter oxygenate program in Federally designated areas where carbon monoxide is a problem. The remaining 50 percent of production is used in conventional gasoline markets around the United States to enhance octane and extend fuel supplies. With today's announcement by Secretary Glickman and Administrator Browner, ethanol use is expected to continue to grow. Provided air quality gains achieved to date are not reduced, ethanol will continue to be used very much as it is used today. In areas of the country where it is heavily used, ethanol will continue to be favored based on its price, availability and environmental benefits. Other areas may also find ethanol to be an economic way to maintain air quality benefits that had been achieved with the use of MTBE. Without the renewable fuels standard, some petroleum-based substitutes for ethanol may emerge over time. The proposed renewable fuels standard would ensure that the current market for ethanol would be maintained and expand over time. The renewable fuels standard will be met through the use of fuels made from a variety of renewable feedstocks. While most ethanol now is made from corn, other crops, such as wheat and sorghum, have and could also be used. In addition, new conversion technologies now in development are expected to be available in the future for efficient conversion of cellulosic material to ethanol. These technologies would make possible the broader use of a wide array of renewable feedstocks, including agricultural waste and residue, such as corn stalks, and dedicated crops, such as switchgrass. The President has set a goal to triple U.S. use of biobased products and bioenergy by 2010. The Administration's FY 2001 budget proposes an increase of $96 million (56 percent) to support biobased products and bioenergy research and development, demonstration and commercialization, and outreach and education activities. The President also directed USDA's Commodity Credit Corporation to provide up to $100 million in FY 2000 and up to $150 million in 2001 and 2002 in incentive payments to ethanol and other bioenergy producers to expand production of biobased fuels. Payments will be made on a portion of the increase in agricultural commodities purchased for expanded bioenergy production, with smaller and cooperatively-owned facilities receiving higher payment rates. ###