Home > Forecasts & Analysis > Annual Energy Outlook Analyses > Mobile Source Air Toxics Rule

Mobile Source Air Toxics Rule

On February 9, 2007, the EPA released its MSAT2 rule, which will establish controls on gasoline, passenger vehicles, and portable fuel containers. The controls are designed to reduce emissions of benzene and other hazardous air pollutants [23]. Benzene is a known carcinogen, and the EPA estimates that mobile sources produced more than 70 percent of all benzene emissions in 1999. Other mobile source air toxics, including 1,3-butadiene, formaldehyde, acetaldehyde, acrolein, and naphthalene, also are thought to increase cancer rates or contribute to other serious health problems.

The MSAT2 rule sets a revised specification for benzene, which will take effect in 2011. The regulations on passenger vehicles, which will control hydrocarbon emissions in colder temperatures, will be implemented from 2010 to 2015. The rule also sets more stringent controls on portable fuel containers, beginning in 2009. The MSAT2 rule has been included in AEO2008 by modifying the NEMS representation of refinery processing of catalytic reformer feed. Although virtually every refinery will meet the requirement in a different way, most will involve treatment of the feed or product or the operation of the catalytic reformer.

Beginning on January 1, 2011, all gasoline products (including both reformulated and conventional gasoline) produced at refineries will be required to contain no more than 0.62 percent benzene by volume. (This does not apply to gasoline produced or sold in California, which is already covered by the current California Phase 3 Reformulated Gasoline program.) Approved small refineries will be required to conform to the rule by 2015. The second part of the standard requires that the actual average benzene levels that each refinery produces be no greater than 1.3 percent by volume by July 1, 2012 (July 1, 2016 for small refiners). The actual level is the level reached without use of any credits.

The published rule for gasoline benzene control includes an averaging, banking, and trading (ABT) program that is consistent with past EPA fuel regulations, allowing refiners to choose the most economical compliance strategy to meet the 0.62-percent annual average standard either by investing in new technology or by buying credits from the ABT program. From 2007 to 2010, the ABT program allows refiners to build “early credits” by making qualifying benzene reductions earlier than required. In 2011 and beyond, refiners and importers can generate “standard credits” by producing or importing gasoline with benzene levels below 0.62 volume percent on an annual average basis. The credits will be interchangeable between refiners and importers nationwide and can be “banked” for future use. The 3-year lag following establishment of the credit program provides the time necessary for small refiners to finish capital projects that are needed to meet the new standards without relying on credits. The rule also establishes a temporary hardship provision, which will provide refiners and importers with temporary relief from the benzene standards under certain rare circumstances (such as a refinery fire or natural disaster).

 


23. Most of the data cited in this section are taken from U.S. Environmental Protection Agency, 40 CFR Parts 59, 80, 85, and 86, “Control of Hazardous Air Pollutants From Mobile Sources; Final Rule,” Federal Register, Vol. 72, No. 37 (February 26, 2007), pp. 8428-8570, web site http://edocket.access.gpo.gov/2007/pdf/ E7-2667.pdf.

 

Contact: Paul Holtberg
Phone: 202-586-1284
E-mail: paul.holtberg@eia.doe.gov