What is California Cleaner-Burning Gasoline and Why is Flexibility Required in California?

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What is California Cleaner-Burning Gasoline and Why is Flexibility Required in California? March 1999 California Environmental Protection Agency Air Resources Board

Overview History of California s vehicle fuels program California s Cleaner-Burning Gasoline program Recent activities Summary and conclusion Future activities

History of California s Vehicle Fuels Program

California Legislative Requirements for Mobile Sources Achieve maximum feasible reductions in PM, CO, and toxic air contaminants Achieve maximum emission reductions of VOC and NOx by earliest practicable date Adopt most effective combination of control measures on all classes of motor vehicles and their fuels

Motor Vehicle Fuels Control Strategy Treat vehicles / fuels as a system Vehicle emission standards Fuel standards Include lubricants Flexible

California s Gasoline Programs Year Adopted Gasoline Related Programs Action 1971 Reid Vapor Pressure (RVP) Limit RVP to 9 psi in smog season Bromine Number Limit reactivity of evaporative emissions 1975 Sulfur Protect catalysts Manganese/Phosphorus 1976 Lead Begin phase-out of lead 1982 Lead Continue lead phase-out 1990 Phase 1 CaRFG - Reid Vapor Pressure Limit RVP to 7.8 psi in smog season - Lead Phase-Out Lead completely phased-out - Deposit Control Additives Prevent/remove deposits in fuel system 1991 Phase 2 CaRFG Cleaner Burning Gasoline Wintertime Oxygenates Required 2% oxygen in winter 1994 Phase 2 CaRFG Predictive Model Provides flexibility and lower costs 1998 Deposit Control Additives Prevent combustion chamber deposits Source: ARB/SSD

California Cleaner-Burning Gasoline Program

California Cleaner-Burning Gasoline Program Emissions performance based fuel parameter limits, not on general emissions criteria Limits on the following parameters: RVP* Sulfur T50 Benzene T90 Aromatic Hydrocarbons Olefins Oxygen Content * Only the summer RVP limit is fixed, at 7.0 psi

Emissions Response to Fuel Parameter Changes* RVP - Reduces evaporative VOC s Sulfur - Reduces VOC s, NOx, sulfur oxides, toxics (improves catalyst effectiveness) Benzene - Reduces toxics * Assumes holding other parameters constant and reduce subject parameter.

Emissions Response to Fuel Parameter Changes (continued) Aromatic Hydrocarbon - Reduces VOC s, NOx, toxics Olefin - Reduces NOx, toxics, slight increase in VOC s Oxygen - Reduces CO, VOC s, and toxics; increases NOx T50 & T90 - Reduces VOC s, toxics, slight NOx increase * Assumes holding other parameters constant and reduce subject parameter.

Flexibility is Part of Cleaner- Burning Gasoline Program Typical Before CBG Flat Limit Standard Average Standard Cap for All Gasoline RVP, psi 7.8 7.0-7.0 Sulfur, ppmw 150 40 30 80 Aromatic HC, vol% 32 25 22 30 Benzene, vol% 2.0 1.0 0.8 1.2 Olefins, vol% 9.9 6.0 4.0 10.0 Oxygen, wt% 0 1.8-2.2 -- 1.8*-2.7 T90, deg F 330 300 290** 330 T50, deg F 220 210 200 220 * Wintertime only **. Refinery cap = 310 deg F

Predictive Model Used for a majority of gasoline produced Provides alternative means of compliance through a statistical model Increases gasoline producer s flexibility Reduces compliance costs / improves production capability

Why Flexibility is Allowed Reduced capital expenditure by refiners by about 20% Allows refiners to adjust to unexpected events without interruptions Minimizes production costs and increases supplies No loss in emissions benefits On average produces a modest decrease in emissions

Emission Reductions 1 from Cleaner-Burning Gasoline Percent TPD Volatile Organic Compounds (VOC) 17% 190 Oxides of Nitrogen (NOx) 11% 110 Sulfur Dioxide (SO2) 80% 30 Carbon Monoxide (CO) 11% 1300 Toxic Compounds Risk 40% 1. Based on on-road exhaust and evaporative emissions in 1996

Emissions Reductions Comparison Pollutant Federal RFG California RFG Phase I (1995) Phase II (2000) (1996) VOC 9% 15% 17% NOx 4% 4% 11% CO 11% 11% 11% SO2 0% 0% 80% Cancer Risk 30% 40% 40%

Benefits of Cleaner-Burning Gasoline Emission reductions equivalent to removing 3.5 million vehicles from California roads Reduces smog forming emissions from motor vehicles by 15% Reduces potential cancer risk from vehicle emissions by 40% 1/4 of SIP reductions in 1996 Reduces benzene emissions by half

Other Benefits Reduces combustion chamber deposits Allows vehicle manufacturers to improve engine technology to reduce emissions further

Air Quality Benefits Ambient benzene emissions cut in half Northern California (Spring 1995 to Spring 1996) Southern California (Spring 1994 to Spring 1996) Significant ozone reductions due to Cleaner-Burning Gasoline South Coast Air Basin (10%) Sacramento (12%) Reduced formation of fine particles

Oxygen Requirements in California California s rules are flexible, can be met without oxygen, except in winter in some areas California now allows all oxygenates approved by U.S. EPA All oxygenates are regulated equally, refiners choose the oxygenates, if any Federal minimum oxygen content prevents use of flexibility in most of state

Federal Minimum Oxygen Content Applies to Federal RFG Areas Affects about 70% of gasoline sold in California

Why Oxygenates Are Used Required by Congress Current refiners configured to take advantage of oxygenates, specifically MTBE Provide octane benefits Expand production volume Assist in producing complying gasoline Depress T 50 Lowers sulfur, aromatics, benzene and olefins

Emissions Effects of 2% Oxygen in Gasoline 10% CO reduction 3% HC reduction 2% NOx increase Dilutes other properties such as sulfur, olefins, aromatics, and T50 However, with the exception of CO, all of these effects can be accomplished by forgoing oxygenates and modifying other properties

To Replace Oxygen and Maintain Ozone and Toxic Reduction Requires Minor increase in refining to reduce sulfur, olefins, etc. to offset dilution effect Further reduction in sulfur (~20 ppm) and T50 (~5(C) to offset HC increase

Why Flexibility from Federal Oxygen Mandate is Needed and Appropriate Oxygen not essential to provide air quality benefits California s Cleaner Burning Gasoline provides necessary emissions benefits Reduced flexibility increases costs Oxygen mandate makes it difficult to reduce MTBE use; ethanol is effectively the only alternative

Recent Activities

Winter Oxygen Rescission Recently rescinded minimum oxygen requirement except for South Coast area (Los Angeles region) Required a two-year delay in Fresno and Tahoe, to protect state CO standard (Ends February 2000) As a result refiners are free under California rules to produce oxygenate free gasoline in most of California

Ability to Use Ethanol Recently increased maximum oxygen cap statewide to 3.5 wt% Allows use of 10% ethanol, provided fuel complies with predictive model requirements Determined ethanol blends should not be exempt from RVP requirements ARB made finding that ozone-forming potential would increase if gasoline with 10% ethanol were exempt from RVP limits All fuels must meet 7.0 psi RVP standard

Percent Change in Emissions for 10% Ethanol Blend with 1 psi RVP increase Compared to Complying Fuel* RL Diff. Included Likelihood (E>C) CO -10% 0% NOx 14% 99% THC 18% >99% NMOG 32% >99% OFP 21% >99% OFPCO 17% >99% TOX 13% >99% TOXPW 5% 92% * Positive number indicates an increase in emissions for 10% ethanol blend with a one psi RVP increase

Findings Test program meets the criteria specified in HSC section 43830(g) Independently verifiable automobile emission test data Representative automobile fleet Test program results demonstrate that gasoline containing 10% ethanol with a 1 psi RVP increase results in increased ozone forming potential in comparison to complying gasoline Test program results are statistically significant with a high degree of certainty (>90%)

Findings (Continued) Test program results are consistent with the findings of previous test programs that evaluate the effect of fuel oxygen and RVP on motor vehicle emissions Test program results are consistent with modeling results using the US EPA complex model Independent peer review supports staff s evaluation Conclusion 10% ethanol did not qualify for full RVP waiver

Future Activities / Conclusion

Future Activities Update predictive model Add new vehicle technology group Develop evaporative emissions model Evaluate changes to specifications, including sulfur Other work as appropriate

Conclusions Cleaner-Burning Gasoline provides significant and essential air quality benefits California is neutral as to type of oxygenate California is flexible on amounts of oxygenate Congressional mandate imposes oxygen requirements in California Flexibility to reduce use of oxygenates while maintaining benefits are limited without relief from federal mandate