Cato Institute
Policy Analysis
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Reformulated
another way, sports utility vehicles today
the manufacture and sale of the nation's first
emit less pollution than small cars did sever-
reformulated gasoline (known as Phase 1
gasoline has been
al decades ago.4 3
reformulated gasoline). The new gasoline--at
setting the com-
The big three domestic automakers
an incremental cost of 1 to 2 cents per gal-
petitive standard
lon4 5--lowered Reid vapor pressure, phased
(Chrysler, Ford, and General Motors) have
announced a National Low Emission
out lead, and added engine deposit control
for transporta-
Vehicle program for year-2001 models (and
additives. Federal gasoline regulation pur-
tion energy in the
as early as model-year 1999 in the
suant to the Clean Air Amendments of 1990
Northeast). Those vehicles will emit, on
followed later the same year. In November
United States.
average, 99 percent less smog-forming
1992, 39 cities in 20 states not in compliance
hydrocarbon emissions than cars made in
with the Clean Air Act began using gasoline
the 1960s. Car size and comfort will not be
blended with oxygenates, primarily MTBE
affected. The new technology incorporates
but also ethanol, during the four-month win-
upgraded catalytic converters, improved
ter driving season to reduce carbon monox-
computer engine control, and enhanced air-
ide emissions. Major East Coast cities were
fuel mixtures--all for about $60 a car.4 4
prominently represented, as was the entire
state of California. An increased cost of sever-
The motivation for automakers to intro-
al cents per gallon and a 1 percent to 4 per-
duce cars that exceed federal standards is to
cent loss of fuel mileage initially resulted.4 6
prepare for the next generation of federal
requirements and discourage states from
The winter oxygenated-gasoline program
implementing zero-emission vehicle (ZEV)
of 1992 was supplemented on January 1,
mandates. The only ZEV is the electric vehi-
1995, with a federal year-round reformulated
cle, which qualifies only because it is not
gasoline requirement for nine areas around
penalized by the air emissions associated
the country with the worst ozone (summer-
with its upstream electricity-generation
time urban smog) problems, as well as other
phase. California already has rescinded its
"opt-in" areas. Six southern California coun-
requirement that 2 percent of all vehicles
ties formed the largest geographical concen-
sold in 1998 be ZEVs and postponed its
tration in the program, and 15 other states
requirement that 5 percent of all vehicles
were represented as well. Compared with
sold in 2001 be ZEVs. The 2003 ZEV
conventional gasoline, EPA Phase 1 reformu-
requirement, 10 percent of all new vehicle
lated gasoline reduced benzene (a carcino-
sales, remains on the books in California as
gen), lowered Reid vapor pressure specifica-
do ZEV requirements in New York,
tions by reducing butane, increased oxy-
Massachusetts, Maine, and Vermont. The
genates, and reduced heavy metal content.
automakers' National Low Emission
The reduction of emissions of volatile organ-
Vehicle program will apply to 45 states and
ic compounds contributing to summer smog
any other states that abandon their ZEV
and the reduction of year-round toxic emis-
requirements.
sions were achieved at an initial premium of
2 to 5 cents per gallon in addition to some
Reformulated Fuels
loss in fuel efficiency. Refiners reported the
Reformulated gasoline, coupled with
changeover as "blissfully uneventful," while
advances in internal combustion engine tech-
consumers reported no operational prob-
nology, has been setting the competitive
lems with the cleaner reconstitution.4 7
standard for transportation energy in the
The Natural Resources Defense Council
United States since the early 1970s, and par-
praised the reformulated oil product:
ticularly in the 1990s. That began on the first
day of 1992 when the California Air
Changing fuel formulations is an
Resources Board (CARB) of the California
essential element to improving air
Environmental Protection Agency required
quality, in part because it has immedi-
11