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Gold/Mining/Energy : Arconenergy, Inc. (Long Term Investors and Fundamentals) -- Ignore unavailable to you. Want to Upgrade?

To: Binder who wrote (32)	2/8/1998 4:37:00 PM
From: Binder	Respond to of 1757

Shoot...SI makes the table at the bottom rather difficult to read, but if you can make it out, it's good info... :-) Binder EPA 420-F-95-007 April 1995 EPA Office of Mobile Sources -------------------------------------------------------------------------------- Is Reformulated Gasoline a "New" Gasoline? Reformulated gasoline (RFG) is gasoline that is blended such that, on average, it significantly reduces Volatile Organic Compounds (VOC) and air toxics emissions relative to conventional gasolines. Nevertheless, RFG fuel parameter values are well within the ranges of fuel parameter values of conventional gasoline as shown in the attached table. Essentially, the RFG Program is a "new program," but RFG is not a "new gasoline." Differences Between RFG and Conventional Gasoline Reid Vapor Pressure (RVP) RVP is a measure of how quickly fuel evaporates. RVP is reduced in RFG only during the summer. RVP reduction provides the majority of VOC emission reductions from RFG. RVP level in RFG is still within the range of RVP levels in conventional gasoline. Vehicle performance should not be affected. Benzene Benzene is a proven human carcinogen. Benzene reduction provides the majority of air toxics emission reductions from RFG. RFG's benzene levels are still well within the range of benzene levels in conventional gasoline. Vehicle performance should not be affected. Oxygenates Methyl Tertiary-Butyl Ether (MTBE) and ethanol (EtOH) represent the majority of oxygenate use in RFG. Oxygenates are required to be present in RFG by the 1990 Clean Air Act. The required concentration of oxygenates in RFG is lower than that historically blended in gasohol or the oxygenated fuels programs. Considerable in-use experience (see below) with oxygenate additives prior to the RFG program suggests that vehicle performance should not be affected. Other Fuel Differences in RFG The table on page 3 outlines the changes in fuel parameter values in RFG. Changes other than those discussed above are due primarily to dilution from oxygenates. These minor fuel changes are well within the range of conventional gasoline and should not impact vehicle performance. The auto manufacturers have been strongly supportive of the RFG program due in part to the constraints the program places on the variability in the quality of gasoline (e.g., lower probability for "bad gas"). In-use Experience with Oxygenates Oxygenates have been used as gasoline extenders and octane enhancers in gasoline since the 1970's without notable problems. Denver and Phoenix started the first oxygenated gasoline programs in the late 1980's as a means of reducing carbon monoxide (CO) emissions. In 1990, EtOH was present in nearly 7% of the U.S. gasoline pool and MTBE in nearly 25% (in lower concentrations). Oxygenates will probably continue to be used in conventional gasoline, primarily as octane extenders. Oxygenate use increased substantially with the start of the federal oxygenated fuel program (for controlling CO) in 1992. Required in 39 cities across the country MTBE with 2/3 market share and ethanol with 1/3, but these shares vary with local market conditions Oxygenate use increased again recently with the beginning of the RFG program. Required in 9 cities across the country Many other cities and entire states voluntarily opted into the program at the request of their governors -------------------------------------------------------------------------------- Fuel Parameter Values (national basis) ====================================== Conventional gasoline Gasohol Oxyfuel Phase I RFG (2.7 wt% oxygen) Avg1 Range2 Avg Avg Avg ------- -------- ------ ------ --------- RVP3 8.7-S 6.9-15.1 9.7-S 8.7-S 7.2/8.1-S (psi) 11.5-W 11.5-W 11.5-W 11.5-W T50 207 141-251 202 205 202 (oF) T90 332 286-369 316 318 316 (oF) Aromatics 28.6 6.1-52.2 23.9 25.8 23.4 (vol%) Olefins 10.8 0.4-29.9 8.7 8.5 8.2 (vol%) Benzene 1.60 0.1-5.18 1.60 1.60 1.0 (vol%) (1.3 max) Sulfur 338 10-1170 305 313 302 (ppm) (500 max) MTBE4 -- 0.1-13.8 -- 15 11 (vol%) (7.8-15) EtOH4 -- 0.1-10.4 10 7.7 5.7 (vol%) (4.3-10) -------------------------------------------- 1 As defined in the Clean Air Act. 2 1990 MVMA survey. 3 Winter (W) higher than Summer (S) to maintain vehicle performance. 4 Oxygenate concentrations shown are for separate batches of fuel; combinations of both MTBE and ethanol in the same blend can never be above 15 volume percent total. --------------------------------------------------------------------------------

To: Binder who wrote (32)	2/8/1998 4:41:00 PM
From: Binder	Read Replies (1) \| Respond to of 1757

Origin of the Reformulated Gasoline Program The concept of reformulated gasoline (RFG) was originally generated, developed, and promoted by industry, not the Environmental Protection Agency (EPA) or other parts of the federal government. In late 1980's Arco Petroleum began successfully marketing RFG in California to help reduce emissions from motor vehicles. Their formula, "EC-1," was formulated specifically for older vehicles as a replacement for leaded gasoline. It utilized Methyl Tertiary-Butyl Ether (MTBE) as an additive. (ARCO chemical was then and is now one of the largest domestic producers of MTBE). Other petroleum refiners also began marketing their own gasoline reformulations. The Clean Air Act legislation President Bush sent to Congress in 1990 included a number of provisions that would have led to the introduction of alternative (non- petroleum) fuels. The petroleum and oxygenate industries responded to these provisions by offering the RFG program as a substitute for most of the alternative fuel provisions. Their argument, which ultimately succeeded, was that significant fleet turnover would need to occur before emission reductions could be realized from alternative fuels. RFG, on the other hand, would be effective immediately in the existing fleet. The final Clean Air Act legislation not only set emission performance requirements for RFG, but it also included a mandate for RFG to contain oxygenates. Throughout much of 1991, EPA participated in a regulatory negotiation process with the petroleum industry, oxygenate industry, state and local organizations, environmental groups, auto manufacturers, organizations representing the public, and other government agencies to lay out the framework for the RFG rulemaking. EPA continued to work with most of these organizations throughout the development of the rulemaking and beyond to ensure it would be a program acceptable to all interests. The automobile manufacturers and oil companies voluntarily invested millions of dollars in a joint research program, the "Auto/Oil Air Quality Improvement Research Program," to quantify the emission impacts of changes in the quality of gasoline. The results of the Auto/Oil program and numerous other studies conducted by EPA and industry revealed that large emission benefits were indeed possible and cost- effective through RFG. As a result, the emission standards for RFG in the year 2000 go beyond the minimum requirements specified in the Clean Air Act. The RFG program was mandated to be implemented only in the nine cities in the country with the worst smog (Los Angeles, San Diego, Chicago, Houston, Milwaukee, Baltimore, Philadelphia, Hartford, and New York City). In addition, many other areas which also have a history of smog problems were requested to be included in the program by the State Governors. EPA expanded the program to cover these areas. --------------------------------------------------------------------------------