News to service stations and distributors regarding ethanol-blended RFG and MTBE-blended RFG

As many of you know, the States of Connecticut and New York have banned methyl tertiary butyl ether, or MTBE, from gasoline effective January 1, 2004. At that time, it is expected that ethanol blended reformulated gasoline (RFG) will be sold in these areas. In some cases, ethanol blended RFG is already being sold in New England.

The RFG regulations provide that “no person may combine any VOC-controlled reformulated gasoline that is produced using ethanol with VOC-controlled reformulated gasoline that is produced using any other oxygenate during the period January 1 through September 15.” See 40 CFR 80.78(a)(8). This prohibition is in the federal rules to prevent the effect called commingling, which would result in a more volatile fuel when the two fuel types are mixed- than either of the fuels separately. This is also called an RVP “kick” associated with ethanol blends. More smog causing chemicals would be emitted if the two fuel types are mixed, resulting in dirtier air. Although the VOC-control period begins on May 1 for upstream parties and June 1 for retailers, this prohibition is in effect starting in January because refiners may begin their production and distribution of VOC-controlled RFG as early as January.

Again, both ethanol blended VOC-controlled RFG and MTBE blended VOC-controlled RFG alone can meet the pollution reduction requirements of the RFG program- it is the mixture of the two blends that causes the problem. This requirement against mixing pertains to any person who sells gasoline at a service station, who delivers gasoline to a service station, or any person further up the gasoline distribution chain. Suppliers and service station owners who may receive gasoline from Connecticut or New York suppliers should be aware of this issue.

Any upstream party or service station which wants to switch between ethanol blended VOC-controlled RFG and MTBE blended VOC-controlled RFG must draw down their tanks sufficiently before switching between blend types. Any party, including a service station, that changes the service of a tank to switch between these oxygenate blend types must have a sample of the new product tested for compliance with the VOC standard before the product is distributed or sold to consumers. See 40 CFR 80.78(a)(10). If a party wants to avoid the sampling and testing requirement, it should wait until after September 15 to switch between these blends.

We expect that the ban on MTBE in Connecticut and New York could have the greatest effect on folks that do business in Massachusetts or Rhode Island, near the Connecticut border. Presumably, service stations in Connecticut will only be selling ethanol blended RFG. This ban on MTBE is currently scheduled to go into effect in January, 2004- but stay informed of Connecticut and New York legislative activity for any changes. Anyone who has any questions can contact Bob Judge of EPA in Boston at 617-918-1045.

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