CWPMA per the below, has looked into the implementation dates for RFG extensively... we have received reports of certain terminals and suppliers only offering RFG...I want to be clear - there is nothing in the law that prohibits a terminal or supplier from offering a lower R.V.P. product then is required by law during the winter months. IF a supplier or terminal wants to only offer a certain grade product then that their privilege as long as it meets the minimum standards. Per the fuel streamlining rules an RFG product that meets the 7.4 R.V.P.standard is more than sufficient for the 9.0 wintertime blend.
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Questions on RFG in Colorado - CWPMA is getting frantic calls from distributors and retailers about the applicable dates for RFG - working with one of our suppliers early last month we posed some question to our regulatory council in D.C.... (one of the benefits of CWPMA is that we are part of a national federation and we have this resource to call on.) In summary unless we are successful in asking our congressional delegation to change the clean air act requirements relative to static implementation of RFG retailers and wholesalers Beginning June 1st of 2024 through September 15th of each year will have to sell RFG which per the streamlining rule is a 7.4. R.V.P. product. The rest of the year conventional (wintertime) blends and R.V.P. fuels are fungible and either could be sold in the market. The association estimates that and RFG requirement will cost Colorado families hundreds of millions a year assuming no supply disruptions We are happy for Colorado working famalies that the Governor does not support RFG . Please see below for in line questions and answers from our national Regulatory Counsel The streamlining rule converted the complex model for determining RFG VOC and replaced it with a maximum summertime RVP of 7.4. The purpose of the change was to make gasoline more fungible. Under the streamlining rule, RFG in a covered RFG area must meet the 7.4 RVP standard from June 1 (May 1 for refiners) through September 15. Since the EPA does not regulate RVP content during the winter driving season (September 16 through May 31 (April 30 for refiners) RFG and conventional gasoline can be comingled during the winter driving season and substituted for one another without recertification. Please see my answers in red below:
Mark S. Morgan, Regulatory Counsel Energy Marketers of America
§ 1090.215 Gasoline RVP standards. Except as specified in subpart G of this part and paragraph (c) of this section, all gasoline designated as summer gasoline or located at any location in the United States during the summer season is subject to a maximum RVP per-gallon standard in this section. (a) (1) Federal 9.0 psi maximum RVP per-gallon standard. Gasoline designated as summer gasoline or located at any location in the United States during the summer season must meet a maximum RVP per-gallon standard of 9.0 psi unless the gasoline is subject to one of the lower maximum RVP per-gallon standards specified in paragraphs (a)(2) through (5) of this section. (2) Federal 7.8 maximum RVP per-gallon standard. Gasoline designated as 7.8 psi summer gasoline, or located in the following areas during the summer season, must meet a maximum RVP per-gallon standard of 7.8 psi: Table 1 to Paragraph (A)(2) - Federal 7.8 psi RVP Areas
1 That portion of Larimer County, CO that lies south of a line described as follows: Beginning at a point on Larimer County's eastern boundary and Weld County's western boundary intersected by 40 degrees, 42 minutes, and 47.1 seconds north latitude, proceed west to a point defined by the intersection of 40 degrees, 42 minutes, 47.1 seconds north latitude and 105 degrees, 29 minutes, and 40.0 seconds west longitude, thence proceed south on 105 degrees, 29 minutes, 40.0 seconds west longitude to the intersection with 40 degrees, 33 minutes and 17.4 seconds north latitude, thence proceed west on 40 degrees, 33 minutes, 17.4 seconds north latitude until this line intersects Larimer County's western boundary and Grand County's eastern boundary. (Includes part of Rocky Mtn. Nat. Park.) 2 That portion of Weld County, CO that lies south of a line described as follows: Beginning at a point on Weld County's eastern boundary and Logan County's western boundary intersected by 40 degrees, 42 minutes, 47.1 seconds north latitude, proceed west on 40 degrees, 42 minutes, 47.1 seconds north latitude until this line intersects Weld County's western boundary and Larimer County's eastern boundary. (3) RFG maximum RVP per-gallon standard. Gasoline designated as Summer RFG or located in an RFG covered area during the summer season must meet a maximum RVP per-gallon standard of 7.4 psi. (4) California gasoline. Gasoline designated as California gasoline or used in areas subject to the California reformulated gasoline regulations must comply with those regulations under Title 13, California Code of Regulations, sections 2250-2273.5. (5) SIP-controlled gasoline. Gasoline designated as SIP-controlled gasoline or used in areas subject to a SIP-approved state fuel rule that requires an RVP of less than 9.0 psi must meet the requirements of the federally approved SIP. (b) Ethanol 1.0 psi waiver. (1) Except as specified in paragraph (b)(3) of this section, any gasoline subject to a federal 9.0 psi or 7.8 psi maximum RVP per-gallon standard in paragraph (a)(1) or (2) of this section that meets the requirements of paragraph (b)(2) of this section is not in violation of this section if its RVP does not exceed the applicable standard by more than 1.0 psi. (2) To qualify for the special regulatory treatment specified in paragraph (b)(1) of this section, gasoline must meet the applicable RVP per-gallon standard in paragraph (a)(1) or (2) of this section prior to the addition of ethanol and must contain ethanol at a concentration of at least 9 volume percent and no more than 15 volume percent. (3) RFG and SIP-controlled gasoline that does not allow for the ethanol 1.0 psi waiver does not qualify for the special regulatory treatment specified in paragraph (b)(1) of this section. (c) Exceptions. The RVP per-gallon standard in paragraph (a) of this section for the area in which the gasoline is located does not apply to that gasoline if the person(s) who produced, imported, sold, offered for sale, distributed, offered to distribute, supplied, offered for supply, dispensed, stored, transported, or introduced the gasoline into commerce can demonstrate one of the following: (1) The gasoline is designated as winter gasoline and was not sold, offered for sale, supplied, offered for supply, dispensed, or introduced into commerce for use during the summer season and was not delivered to any retail station or WPC during the summer season. (2) The gasoline is designated as summer gasoline for use in an area other than the area in which it is located and was not sold, offered for sale, supplied, offered for supply, dispensed, or introduced into commerce in the area in which the gasoline is located. In this case, the standard that applies to the gasoline is the standard applicable to the area for which the gasoline is designated. https://www.epa.gov/gasoline-standards/reformulated-gasoline
RFG has not previously been required in the Denver area. The prohibition on the sale of conventional gasoline in the Denver area will begin on November 7, 2023. The gasoline sold in the Denver area will be required to comply with the summer RVP standard of 7.4 psi beginning on June 1, 2024 for wholesale purchaser consumers and for all other parties beginning on May 1, 2024. Once the prohibition begins, EPA will update the above table and publish a final rule revising the list of RFG covered areas in 40 CFR 1090.285.
Subject: FOR IMMEDIATE RELEASE: Governor Polis Fighting for Clean Air and to Save People Money, Opposes Reformulated Gas Requirement
FOR IMMEDIATE RELEASE Wednesday, September 14, 2022 Conor Cahill | conor.cahill@state.co.us
Governor Polis Fighting for Clean Air and to Save People Money, Opposes Reformulated Gas Requirement
DENVER - In an effort to protect the air Coloradans breathe, save drivers and people money, and avoid rolling back progress made on clean air and climate change initiatives enacted by his administration, Governor Polis urged the Environmental Protection Agency (EPA) to reconsider their reformulated gasoline requirement for the Denver Metro/North Front Range, outlined alternatives and expressed his opposition to this proposal, and asserted pursuit of all legal strategies to avoid the requirement. “Addressing our air pollution challenges, including ozone, has been and remains a top priority of my governorship, and this has included nation-leading strides in both policy and investments which are having an impact. However, with potential ozone reclassification to severe nonattainment, I am deeply opposed to the associated requirement that reformulated gasoline (RFG) be deployed within the DM/NFR non-attainment Area. I am hopeful that the U.S. Environmental Protection Agency will aggressively pursue all means to be a helpful partner in prioritizing air quality over one antiquated, inefficient, and increasingly ineffective tool; reformulated gasoline. The reformulated gasoline requirement would do more harm than good for our air quality and environmental justice goals, and I will continue to pursue any opportunity available, including legal means, to avoid or delay the RFG mandate,” Governor Polis wrote to EPA Administrator Michael S. Regan. “The State of Colorado is not under a required deadline to propose challenges to reformulated gasoline or the reclassification more broadly. With this in mind, over the coming months, we will be conducting rigorous air modeling and additional legal analysis to explore any and all opportunities and build the strongest case to avoid the reformulated gasoline requirement,” the Governor’s letter continued. Colorado has had a decades-long problem with ground-level ozone that is the result of sources of pollution interacting with strong sunlight and heat to create smog. The Polis administration has been making bold progress in an effort to get ahead of this challenge and Governor Polis has signed transformational legislation related to climate and clean air that help reduce emissions - and modernizing the state’s air quality agency to both improve Colorado’s tools to improve air quality. “The Denver-metro and front-range air quality challenges affect Coloradans’ daily lives and human health in too many ways, and we face a shared imperative to act boldly and swiftly to surmount it. That is why my Administration remains committed to pursuing the most efficient and effective strategies that we can to fight the severity of our ozone situation. In addition to well over 70 signed pieces of climate, clean air and environmental justice legislation, and an upwards of $350 million clean air investment package last legislative session, Colorado is actively developing a proposed State Implementation Plan (SIP) that recognizes the severity of Colorado’s air quality situation and puts us on a course to achieve attainment even without the use of RFG. We continue to evaluate additional future strategies across sectors that while not ready for this SIP, may also prove valuable to our clean air goals. We are also exploring additional tax credits to reduce pollutants including ozone even more rapidly,” the letter continued. Nonetheless, everyday Coloradans have felt the impact of high gas prices and inflation among the many other residual shockwaves of the pandemic as our nation and the global economy continue to recover. Coloradans, especially those of limited means, should not bear the burden of this requirement. While there have been exaggerated claims on cost, and examples nationally where RFG is actually less expensive, a previous analysis in 2011 estimated a potential price increase of between 13 to 26 cents per gallon (cpg) for the largest volume suppliers and 1 to 1.5 cpg for smaller suppliers, with the most up to date state analyses estimating a potentially 4 to 8 cpg increase. I believe an increase in price of any amount is too great, particularly given the lack of benefits. While this would apply only to the DM/NFR area and only during the summer, I am deeply concerned in particular about the impacts to the most vulnerable among us, to whom this increase may not be trivial. Furthermore, the capital construction and production requirements that accompany RFG have the potential to exacerbate long-standing historic environmental injustices in communities near regional refineries. The mandate raises serious environmental justice questions, again particularly given the lack of realized benefits that accompany it. The mandated but antiquated tool of reformulated gasoline puts the burden directly on everyday Coloradans without clear associated benefits, and in some cases I fear will only add challenges to our ability to make meaningful progress toward cleaner and healthier air. For this reason, I am asking the EPA to work with Colorado to explore and support any potential strategies to avoid the reformulated gasoline requirement or minimize its impacts, otherwise scheduled to start in 2024, and required only during summer months under a severe nonattainment designation,” Governor Polis wrote to the EPA. “While coastal states can frequently rely on the 179(B) waiver, which should also apply to Colorado, and other states do not have our unique geographic characteristics, we are left with fewer strong precedents to pursue in truly accounting for our challenges and the opportunities to correct them. These inequities should be addressed through whatever means the EPA has available, through congressional action, or if necessary the courts. While Colorado seeks to embrace its clean air responsibilities and even exceed required actions in the SIP, it is only honest to acknowledge that we face greater disadvantages outside of our control, with fewer flexibilities and fewer opportunities to get credit for the vast improvements we’ve made with the sources of pollution for which we do have the ability to influence. Colorado hereby reserves the right to pursue any legal means we identify to correct this injustice and inequity, particularly when it leads to impacts like reformulated gasoline that impact hardworking Coloradans without significant benefit with regard to ozone attainment,” the Governor’s letter concludes.
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