http://enn.com/news/wire-stories/2001/08/08072001/reu_epa_44576.asp
- 8/7/2001 - ENN.com
EPA chief considers limits on US gas blends

Tuesday, August 07, 2001

By Reuters

WASHINGTON - U.S Environmental Protection Agency Administrator 
Christie Whitman said in an interview published Monday that she was 
considering cutting the number of pollution-fighting gasoline blends 
which the industry partially blames for seasonal price spikes.

Whitman said in a USA Today interview that the EPA was considering 
limiting states to three or four so-called "boutique fuels" instead 
of about a dozen formulas currently available.

Whitman also told the newspaper that she was not considering a 
requirement that all states use only one formula.

"It is very much a states' rights issue," Whitman was quoted as 
saying. "Boutique fuels are a result of states making independent 
decisions about (meeting) their clean-air requirement. ... That's not 
to say we wouldn't eventually cut the number of fuels."

The 1970 Clean Air Act requires drivers in polluted urban areas to 
use fuels with special additives like MTBE or ethanol that burn 
cleaner and reduce smog.

The regulations have caused a balkanization of the U.S. gasoline 
market, and require refiners to tailor gasoline for cities with 
specialized fuel regulations.

Some oil industry experts blame boutique fuel requirements for spikes 
in high pump prices as refiners switch to producing them each summer 
and fall.

Refiners have also said the number of blends required by the EPA 
reduces storage capacity and leads to shortages.

Whitman told USA Today the problem could be fixed by easing rules on 
keeping different blends of gas in the same storage tank.

Copyright 2001, Reuters

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