WASHINGTON -- U.S. Representatives Paul Ryan (R-Wis.) and Mark Green (R-Wis.) have introduced a bill, the Fuel Blend Reduction Act of 2006 (H. R. 5124), that would reduce the number of "boutique" fuels in the national gasoline system to five, according to the latest issue of Petroleum Marketers Association of America's (PMAA) Weekly Review.
Green said that "reducing the number of fuel blends is a critical step in our ongoing battle to lower and stabilize gas prices.
H.R. 5124, as introduced, would require the U.S. Environmental Protection Agency ([image-nocss] EPA) and the U.S. Department of Energy (DOE) to identify five fuels to comprise a Federal Fuels List that states would choose from to meet clean-air requirements, excluding California Air Resources Board (CARB) fuels and Texas' low-emission diesel fuel. The five fuels would be an onroad diesel blend, one conventional gasoline for ozone attainment areas, one reformulated gasoline (RFG) fuel and two additional gasolines with Reid vapor pressure (RVP) controls for use in ozone attainment areas of varying degrees of severity, said PMAA, citing the text of the bill.
EPA and DOE would then be required to develop a plan to help states transition to the new fuel blends, which must be implemented by Dec. 31, 2008. The Energy Policy Act (EPACT) of 2005 tackled the issue of boutique fuels by requiring that a study be conducted within 12 months of passage on the effects state implementation plans have caused to air quality, the number of fuel blends, fuel availability, fungibility and fuel costs. H.R. 5124 would require a similar study, including an analysis of the five fuels under the Federal Fuels List and its impact on ozone emissions and supply fungibility.
Green and Ryan agreed that their intent was to cause fewer supply disruptions and price spikes, not to increase them. They also openly acknowledged the problems faced by California and Texas.
A Ryan spokesperson told PMAA that a study has yet to be completed, so it would not be much trouble to conduct the additional study on the five new fuels. If DOE and EPA determine "that the new fuels slate will result in a reduction in supply, then they can report that finding to Congress and suspend the implementation of the list.
Click here for more information on the bill.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.