Fw: EPA MAKES PLANS TO EASE TRANSITION TO SUMMER FUEL

[Bruce Plecan]

Since it comes up here from time to time
Bruce



> EPA MAKES PLANS TO EASE TRANSITION TO SUMMER FUEL
> 
> Administrator Christie Whitman on Thursday told the Speaker of
> the House and members of the Illinois and Wisconsin Congressional
> delegations that EPA is very close to reaching a decision that
> should help reduce costs for blending ethanol into gasoline.
> 
> "I am very concerned about the potential for price increases
> caused by many different factors such as increased demand and
> pipeline disruptions. And we don't want to see this happen
> again," said Administrator Christine Whitman. "To help this, I
> recently directed EPA staff to finalize an upward adjustment to
> the VOC standard. Based on preliminary data, we believe we will
> be able to adjust the standard closer to 0.3 pounds per square
> inch Reid vapor pressure which will provide greater flexibility
> than the 0.2 pounds that was originally proposed."
> 
> The Agency hopes this action will be finalized by the end of the
> week and will help keep prices under control based on adjustments
> to the Volatile Organic Compounds (VOC) standard for ethanol
> reformulated gasoline. Chicago and Milwaukee saw gasoline prices
> as high as $2.75 per gallon of gas last summer. Adjusting the
> rule will make it less expensive to blend ethanol into
> reformulated gasoline, which should also help boost supply. If
> the adjustment is made, it will apply only to Chicago and
> Milwaukee, the areas of the country that use ethanol exclusively
> in reformulated gasoline.
> 
> When added to gasoline, ethanol increases the evaporation rate,
> causing more VOC emissions, but ethanol reduces carbon monoxide
> (CO) emissions. Both pollutants play a role in ozone formation.
> While there will be an increase in VOCs they will be offset by
> the concurrent CO reductions. Air quality will not be compromised
> by this change, and the region will receive credit toward their
> carbon monoxide reductions associated with ethanol reformulated
> gasoline.
> 
> EPA has also been meeting with Midwest refiners over the past two
> weeks to evaluate problems they experienced last year with
> swapping fuels in tanks to provide cleaner summer fuel for the
> ozone (smog) season. "We don't expect any problems this year and
> we will be monitoring the situation closely." said Whitman. "If
> individual companies experience unforeseen difficulties, we will
> provide flexibility to ease the transition to summer blends."


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