AM-97-28 THE ECONOMICS OF GASOLINE REFORMULATION: REFINING ECONOMICS, EMISSIONS STANDARS AND THE COMPLEX MODEL

Description:

emissions of air pollutants’ or specified limits on properties (e.g., oxygen or benzene content). Vehicle emissions of interest in an RFG program may include 0 VOC (volatile organic compounds) 0 NOs (oxides of nitrogen) 0 To&s (toxic organic compounds) . co l Particulatea (im possible future standards) - VOC and NOx are the primary ozone precursors. CO is a secondary ozone precursor. : RFG has become one of the approaches of choice iri‘regulatory programs for achieving ambient air quality standards, especially for ozone in the Summer season. Two (year-round) RFG programs are in place in various parts of the United States. l federal RFG (Phase 1 started January 1995; Phase 2 starts January 2000) [Ref. l] l California Phase 2 RFG (Phase 2 started March 1996) [Ref. 21 Some states not now in the federal RFG program are considering opting in to it as part of their implementation plans for complying with the federal standard for ozone. The Ozone Transport Assessment Group (OTAG) and the American Automobiiie Manufacturers Association @AMA) recently have proposed alternative RFG standards, each with its own objectives. The U.S. EPA recently has proposed new, more stringent air quality standards for ozone and particulates. Jf implemented, these air quality standards could increase the number of states considering federal RFG, California RFG, or their own RPGs (“designer gasolines”). Interest in gasoline reformulation extends beyond U.S. borders. British Columbia instituted a summer RFG program in 1996. Various RFG standards and programs are under consideration in Canada, the European Union, and Japan. Despite (or perhaps because of) the number of RPG initiatives in the U.S. and elsewhere, there is no consensus on the costs of different RFG standards or-on the economic and technical factors that account for these costs.