Creating a Greater Demand for Ethanol with a Better Clean High Octane Fuel

Transcription

1 Creating a Greater Demand for Ethanol with a Better Clean High Octane Fuel 1

2 What is the Urban Air Initiative? The Urban Air Initiative (UAI) is a non profit organization dedicated to reducing harmful emissions from gasoline to improve public health and support a wide range of public policy objectives. The goal of UAI is to create greater clean high octane demand and the objective is to give the ethanol industry access to the consumer by removing regulatory barriers. The pathway to that goal and objective is largely through the U.S. EPA. UAI is in the process of building a diverse coalition of health based and environmental groups that are dedicated to improving the quality of motor vehicle fuels which will lead to improved air quality, particularly in urban areas. 2

3 The pathway to change is largely through the EPA We have the research and the data that clearly shows ethanol is a technically and healthier fuel than today s gasoline. It s now time to push for change in the way EPA regulates ethanol and assesses its environmental impact. UAI is working with the law firm Michael Best to layout potential legal pathways to open the marketplace to ethanol. Two key issue areas have emerged as priorities for UAI. Endangerment Vapor Pressure Informing the ethanol industry on importance of maintaining FFV credits and incentives 3

4 ETHANOL IN AMERICA: A PATH FORWARD URBAN AIR INITIATIVE AMERICAN COALITION FOR ETHANOL CONFERENCE AUGUST 4 6, 2014 Todd E. Palmer, Esq. Michael Best & Friedrich LLP 100 East Wisconsin Avenue, Ste.3300 Milwaukee, WI (414) tepalmer@michaelbest.com Anna Wildeman, Esq. Michael Best & Friedrich LLP 601 Pennsylvania Ave, NW Ste.700 South Washington, DC (202) ajwildeman@michaelbest.com 4

5 Overview Background for the Presentation What is the Urban Air Initiative? UAI s Goals UAI s Plan to Achieve These Goals Advocacy Approaches Coalition Building Initial Supporters Legal/Regulatory Approaches Reduce Aromatics in Gasoline Solve the Reid Vapor Pressure Riddle 5

6 UAI Approach In a Nut Shell 6

7 Background on Octane The petroleum industry has a dubious record when it comes to octane enhancers. Numerous octane sources have been abandoned for health and environmental reasons. Aromatics are the predominant source of octane in today s fuels, however: Aromatics are regulated as a hazardous air pollutant under the Clean Air Act. Combustion of aromatics linked to the formation of other harmful pollutants. 7

8 What is the Urban Air Initiative? The Urban Air Initiative (UAI) is a non profit organization exclusively devoted to supporting the development of cleaner transportation fuels and additives to improve public health. UAI is doing this through three distinct tracks of technical research, scientific/health research, and public awareness. UAI receives support from organizations, public interest groups, and individuals in the fields of health, fuels, environment, agriculture, energy, transportation and other related areas. All of this may come together in the form of legal/regulatory action 8

9 UAI s Goals UAI s long term goal is to break down barriers to the increased use of higher octane and cleaner burning fuel blends, including increased ethanol concentrations in fuel. UAI hopes to open up pathways to the market for use of these cleaner fuels by removing these regulatory barriers, hopefully in a collaborative manner with EPA. The use of these fuels will lead to improved air quality and significant health benefits throughout the U.S., but primarily urban areas. 9

10 UAI Plan to Achieve these Goals Make the case from a technical and emissions standpoint that ethanol is a superior fuel and octane enhancer and meets a variety of public policy goals. Make the case from a public health standpoint that ethanol can replace some of the most harmful components of gasoline. Make the case with a public awareness and coalition building effort that demands healthier fuels. Take that case to EPA to open up pathways. 10

11 Achieving the goals (cont.) Technical: Work with automakers, fuel providers, on modeling, emissions, testing/certification procedures, etc. Scientific/Health Research: Conduct and compile data and research on health impacts of gasoline emissions. Create Public Awareness Campaign and build broad base of support. Appeal to EPA and work collaboratively to change the view of ethanol. 11

12 Public Awareness and Coalition Building UAI initiates and supports ongoing research that continues to raise alarming questions as to the relationship between gasoline based emissions and the rise in a range of respiratory, neurological and other health issues. UAI has amassed an impressive body of scientific data that links gasoline additives to particulate and toxic emissions previously thought to be limited to diesel fuel and stationary source emitters like power plants. The public needs to be informed and engaged. 12

13 Public Awareness & Coalition (cont.) UAI will work to align interests in the areas of environmental justice, air quality, and human health to help reduce the volume and nature of aromatics in gasoline. UAI will bring new voices and perspectives in support of cleaner burning renewable fuels. Cleaner fuels mean cleaner air in our urban and suburban communities, and healthier families. 13

14 UAI will continuing working with its partners to develop science that will support the advocacy effort: UAI supported recent Energy Future Coalition workshops documenting the linkage between aromatics and fine/ultrafine particle borne toxic emissions. UAI and EFC teamed on comments to EPA on the Tier III rules. EFC is not an ethanol group, but believes that ethanol should be widely used to replace aromatics. Sen. Tim Wirth, Chair of EFC and co sponsor of Clean Octane provision in 1990; Sen. Daschle & John Podesta served on Energy Future Coalition Steering Committee. C. Boyden Gray and Associates Mr. Gray was White House Counsel to President George H.W. Bush. 14

15 UAI s Advocacy Approach Directly appeal to EPA s core mission and purpose: Protecting public health Protecting the environment Protecting our most sensitive and vulnerable populations 15

16 16

17 Message: Reduce Aromatics in Gasoline! UAI s messages to EPA on aromatics: Significant new scientific findings conclude that the combustion of heavy aromatics in gasoline cause or contribute to an endangerment of public health and welfare which must be mitigated by EPA; The assumptions and uncertainties EPA relied upon in 2007 to avoid regulating aromatics in fuel are no longer accurate and as a result, these issues must be revisited; Implementing federal limits on the aromatic content in fuel is both technologically and economically feasible; 17

18 Message (cont.) EPA has ample legal authority, discretion and scientific support to appropriately limit the content of aromatics in fuel; and Regulating aromatic content in fuel while facilitating an increase in octane will support numerous other EPA initiatives, including: reduction of carbon intensity, air toxics, particulate matter and ultrafine particulate; reduction in fuel RVP; improved gas mileage; and address environmental justice concerns as impacts from aromatics are largely focused on vulnerable urban population centers. 18

19 So Why Is a Lawyer Talking to You About Technical & Health Issues?? Every aspect of ethanol use is controlled and regulated by law. Legal pathways and likely legal solutions are necessary. EPA has the authority to address these issues in the interest of public health and can do so if we provide the technical, scientific evidence to do so, backed by public support. Hence, the UAI mission and strategic approach to achieving its goals is built around this reality. 19

20 UAI s advocacy may ultimately be memorialized in a formal petition requesting increased EPA regulation of aromatic additives in gasoline. Based on our work as described: Petition would be supported by diverse set of advocacy interests. Petition would focus on the adverse health and environmental impacts of aromatics added to gasoline. Petition would be filed pursuant to a provision in the Clean Air Act which allows citizens to request that EPA regulate components of gasoline that cause or contribute to an endangerment of public health or welfare.* *42 U.S.C. Sections 7521(l) and 7545(c). 20

21 An Important Piece of the Regulatory Puzzle: Solve the Reid Vapor Pressure Riddle Historically, EPA has interpreted the 1 psi RVP Ethanol Waiver to apply strictly to fuels that contain between 9 10 percent ethanol by volume. Ethanol blends greater than E10 have not been deemed eligible for the waiver based upon what is now widely regarded as outdated science and facts. This regulatory barrier limits the amount of ethanol that can be distributed in the marketplace. 21

22 Solve the Reid Vapor Pressure Riddle (cont.) Our review of the relevant statutes and latest science indicates that EPA s interpretation of the RVP Ethanol Waiver statute is unnecessarily narrow. There is a more appropriate interpretation that gives meaning and harmony to the CAA s RVP provisions, while allowing the RVP Ethanol Waiver to be used for ethanol blends greater than E10. This revised interpretation, if adopted by EPA, would allow the introduction of more ethanol into the marketplace with lower RVPs than E10 and lower overall emissions than conventional fuels. 22

23 Solve the Reid Vapor Pressure Riddle (cont.) UAI intends to advocate that EPA change its interpretation of the RVP Ethanol Waiver based upon the following: Significant new scientific findings that the RVP of fuel blends will decline as ethanol is splash blended at volumes greater than 10 percent; Ethanol being readily available in the market and available for higher blend fuels; Motor vehicle manufacturers desire for higher octane, clean burning ethanol fuel blends; and EPA having ample legal authority and discretion to revise its interpretation to come in line with current science and market demands. 23

24 Solve the Reid Vapor Pressure Riddle (cont.) This approach may involve UAI filing a petition for rulemaking, or a functionally equivalent document, asking that EPA take action to effectuate and memorialize a revision to its historic interpretation of the RVP being limited to E10 blends. The net result is to allow higher ethanol blends to immediately begin reducing aromatics through dilution and improving gasoline fuel quality 24

25 Conclusion: The combination of technical, scientific/health, and legal arguments, backed with broad public support can affect change in the way ethanol is valued as a fuel component. ACE, the other ethanol organizations, the commodity groups, and all of you are rightfully focusing on the foundation of the ethanol industry right now which is the RFS Urban Air needs your support because these pathways we have identified, based on value and health benefits, are critical to backstop the RFS and create market demand. This is complimentary and supportive of current ethanol industry efforts, yet unique. 25

26 Working Together Gets Results!! Protecting Health and Human Lives Transcends ethanol interests this message is beginning to be recognized by a broader group of energy and environmental interests. By building a base of ethanol, agriculture, and renewable energy organizations, we will expand to other industries and interest groups. 26

27 27

28 Solutions occur with Public Awareness and a Collective Voice 28

29 FixOurFuel.com Too Small to See but Too Big to Ignore Explains the issue of aromatics and the health issues they cause. Interactive and easy to understand, to prompt people to get involved. Ability to send a letter to the EPA requesting our gasoline be improved. Will launch this month 29

30 Additional Focus Areas: Technical Research Helped author an upcoming Society of Automotive Engineer paper with engineers from the auto industry evaluating EPA s model Fuel study looking at density and material compatibility ASTM addressing Match Versus Splash blending Working with Fuels Institute Real world fuel data and performance Fuelingthetruth.com Dealership sales education Value for higher ethanol blends with higher octane Consumer focused for understanding blender pumps Education based website for technical issues Small engine issues and education 30

31 What Does Winning Look Like? Autos Through a clean high octane strategy, greater GHG reduction with lower tailpipe emissions EPA Reduction of toxic emissions to include particulates Ethanol Access to the market through octane competition which promotes a higher value for ethanol Consumers A fuel that can reduce the cost per mile while improving the air quality they are exposed to. 31

32 We Need Your Help! Consider financial support to UAI to help us reach our goals Help us continue to build our coalition Share Fixourfuel.com on social media Get informed and help educate your co workers and community to the issue 32

33 Thank for your attention and support of the Urban Air Initiative!! For further information, visit our website or contact us via at: Find us on Facebook & Linkedin: Urban Air Initiative Follow us on Contributions or gifts to Urban Air Initiative Inc. are not tax deductible as charitable contributions. 33