US EPA formally repeals the RFG's oxygenate requirement

Washington (Platts)--8May2006

The US Environmental Protection Agency Monday formally lifted the
requirement that clean-burning reformulated gasoline contain an oxygenate,
such as MTBE or ethanol, with the publication of the final rule in the Federal
Register.

The repeal, which was a requirement of last year's energy bill, allows
"clear RFG" -- RFG without oxygenates -- to be produced and retailed effective
immediately.

The removal of the oxygen-content requirement in gasoline has blamed by
some for the sharp run-up in gasoline prices across the nation, and
particularly in RFG areas. Because of the repeal, refiners have decided to
stop blending MTBE in RFG. Refiners feared that without the oxygenate
requirement, they could be open to lawsuits if they used MTBE, which has been
known to contaminate groundwater. Instead of MTBE, refiners have mainly been
blending ethanol into RFG gasoline.

EPA in February announced its intention to remove the requirement
effective May 5, but it fell a few days short of its deadline.

--Cathy Landry, cathy_landry@platts.com

For similar news, take a trial to Platts Oilgram News at
http://oilgramnews.platts.com.


 

Copyright © 2005 - Platts

Please visit:  www.platts.com

Their coverage of energy matters is extensive!!.