Repeating History with Octane Biofuel Standards Is a Huge Mistake

May 09, 2018

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by Mike Carr (New Energy America/The Hill) Recently, Chet Thompson of American Fuel & Petrochemical Manufacturers (AFPM) testified before Congress and proposed a “fuel neutral” octane standard as a “potential replacement” for the Renewable Fuel Standard (RFS).

Octane is a fuel characteristic that allows engines to run more efficiently and without “knock.” Refiners use biofuels to meet octane standards today, so in theory, more octane means better engine performance, cleaner air and more biofuels.

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Thirty years ago, the oil industry used the same strategy to avoid using biofuels. And consumers paid the price.

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Biofuels contain high levels of oxygen, which also improves combustion. So, while an oxygen standard didn’t prescribe the means to improve environmental performance, farm state and environmentally minded senators agreed to Big Oil’s “fuel neutral” standard, in hopes of creating new market opportunities for biofuels and reducing air pollution.

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Instead of buying and blending renewable biofuels, the oil industry chose another oxygenate to meet their obligations: methyl tertiary butyl ether, or MTBE.

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MTBE is truly nasty stuff that leaches into groundwater. It is made by reforming natural gas and combining it with petroleum by-products at the refinery. In 2016, Exxon agreed to a $30 million settlement requiring them to provide clean water to three MTBE-contaminated schools in Massachusetts. Damages in some states reach into the hundreds of millions of dollars.

Congress did the right thing in 2005, effectively replacing the oxygen standard with the RFS as part of the Energy Policy Act of 2005. The RFS, together with MTBE liability concerns, essentially ended the use of the chemical in the United States. The quick transition from MTBE to ethanol has been a good outcome for public health, clean water and rural jobs.

Now, refiners are back, with the same old pitch. Incredibly, oil champions in Congress did little to hide their agenda in the wake of Thompson’s testimony. Rep. Gene Green (D-Texas), who represents three major refineries in his Texas district, said, “We're still producing MTBE in Texas for export market, but we can't use it to reformulate our gas. And now we have lots of natural gas that we could be using that for.”

Green’s district produces MTBE for export to Mexico. He made clear that the politicians working for Big Oil see the octane proposal as an opportunity to bring back petrochemical octane, and replace renewable fuels with dirty, polluting chemicals that contribute to climate change.

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To be sure, pursuing higher octane fuels is a good thing. Policies that result in higher efficiency engines, less pollution, lower emissions, and allow for higher blends of emissions-friendly biofuels are certainly worth considering.

But as we saw in the 1990s, and before that with leaded fuel, we shouldn’t count on the promise that the refineries will simply do the right thing for the environment or the consumer. READ MORE

High Octane Ethanol Blends Needed For Fuel Economy Standards (Urban Air Initiative)

Ethanol Can Help EPA Follow the Law (Urban Air Initiative)

Excerpt from Urban Air Initiative: Increasing octane should not come at the expense of air quality, carbon emissions, or human health. This was part of the testimony from Bob Dinneen with the Renewable Fuels Association this week at the House Energy and Commerce Subcommittee hearing. The Urban Air Initiative applauds RFA for speaking out and helping educate lawmakers on the importance of clean octane.

There is a lot of discussion about raising the minimum octane value in the United States.Octane is needed in gasoline to prevent engine knocking in our cars. Right now, to boost octane, refiners mostly use toxic aromatics known as BTEX , including benzene. And if octane standards are increased without oversight, it is likely refiners will continue increasing these cancer causing carcinogens.

However, ethanol can and should play a role in higher octane standards. Ethanol provides a better octane boost compared to aromatics, while significantly reducing toxic emissions coming out of the tailpipe.

And here's the thing, the Environmental Protection Agency is mandated under the Clean Air Act (CAA) to reduce mobile air toxics to the greatest degree achievable. EPA has acknowledged that aromatics are "hazardous air pollutants" that must be regulated under section 202(L) of the CAA. Apart from a small decrease in benzene, the Agency has yet to substantially reduce aromatics in gasoline. So as the calls for higher octane fuels increase, we must let the EPA and gasoline refiners know that ignoring the law is not an option. The CAA forbids increasing octane by increasing aromatics in gasoline.

However, given EPA continues to offer gasoline refiners free passes like RFS waivers, we are concerned that the EPA will allow refiners to use increased amounts of toxic aromatics to meet potential higher octane standards. READ MORE