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Section I: Ethanol and Alkylates Workshop
Unexpected spikes in the price of gasoline in California and
the Midwest during the past year are indicators of a basic problem
facing refineries nationwide - there are so many environmentally-
driven requirements on gasoline blends that refiners no longer have
the flexibility to fill spot market short falls and to produce a
widely fungible product. This situation exacerbates any sort of
production or supply shortage and can push retail prices up
dramatically. California's decision to remove MTBE from gasoline was
based on solid evidence that MTBE was contaminating ground water
supplies. Additional studies showed that the basic oxygenate
requirement mandated by the federal Clean Air Act was no longer needed
to maintain air quality - other fuel changes could be made to achieve
the same air quality benefits of oxygenated gasoline. Consequently,
the California Air Resources Board requested from the United States
Environmental Protection Department a waiver from the oxygenate
requirement. Until that is granted, the only approved alternative
oxygenate to MTBE is ethanol, and to blend ethanol into summertime
gasoline will require the removal of other hydrocarbons in order to
meet stringent vapor pressure requirements. Moreover, other gasoline
componenents such as alkylates will be needed to maintain the octane
level of gasoline and the volume losses caused by the removal of high
vapor pressure components. These changes will necessarily mean
changes in refinery operations and equipment. Production capacity
limitations for ethanol could further complicate a phase out of MTBE.
Other states that have established MTBE phase outs face similar
challenges.
Recently Lawrence Livermore National Laboratory hosted a Workshop on the Increased
Use of Ethanol and Alkylates in Automotive Fuels in California that
addressed the environmental issues associated with the MTBE phase out
and the increased use of alkylates in gasoline. This workshop follows
up on a commitment to the California Environmental Policy Council to
continue to examine life cycle environmental and resource management
consequences of the increased use of ethanol and alkylates in
gasoline. Major interest groups attending the workshop were fuels-
related companies (including refiners, distributors, and ethanol and
alkylate producers), regulatory agencies (including the US EPA,
California EPA, and agencies from eight other states), and
universities/national laboratories.
There were several important conclusions from the workshop:
- From an environmental management standpoint, the impacts
associated with the use of ethanol will be significantly less and more
manageable than those associated with the continued use of MTBE.
Further, information presented at the workshop indicated that air and
water resource impacts associated with the increased use of alkylates
would also be significantly less and more manageable than continued
use of MTBE.
- New reformulated fuels required to meet clean air standards
require significant changes in refinery and distribution
infrastructures.
- There will likely be both ethanol and base fuel hydrocarbon
national shortages during the mandated phase out of MTBE.
- The influence of environmental regulations and inaction in
granting an oxygenate waiver have led to significant reductions in
fuel formulation flexibility and failures to develop needed refinery
and distribution infrastructures. This inflexibility creates spot
market shortages and price spikes.
- There is a growing need to reduce the number of "boutique"
gasolines required to meet fuel standards in different states.
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Section II: LLNL Scoping Study
Opportunities for Applying LLNL's Science and Technology
to the
Development of New Gasoline Formulations in the
U.S. to
Reduce Future Shortages
David W. Rice, Environmental Protection Department
David W. Layton, Energy and Environment Directorate
Environmental Risk Reduction Business Council
Council on Energy and Environmental Systems
Goal
The primary goal of this scoping study is to determine how LLNL
could apply its scientific and technical capabilities to the
development of a new nationwide fuel standard for gasoline that does
not contain MTBE. Specifically, we will assess what the critical
requirements are for an applied research program at LLNL to address
the environmental impacts of the production, storage, and use of
gasolines that meet a fuel standard that is protective of the
environment, maintains automotive performance, and is cost-effective
to comply with. We will prepare a white paper and briefing that
defines the nature of the nationwide fuel problem as well as the
scientific role of LLNL in providing potential solutions. We will
identify institutions we could partner with, and critically evaluate
potential competitors. Importantly, we will meet with a number of
potential state and federal sponsors to determine the possibilities of
funding major work in this arena.
Scoping Study Deliverables
The timing of the proposed scoping study is excellent because we
believe that LLNL is in a strategic position to influence the
development of new fuel standards that would help ease impending fuel
shortages. The study would summarize the status of research and
development activities involving the systematic evaluation of the
consequences of fuel formulation choices. What are the problems and
key issues concerning fuel formulations? What are the secondary
effects that may be unanticipated at the moment, but which could alter
the selection and fungibility of gasolines? The scoping study would
also include information on funding sources and potential competitors
and collaborating institutions. Special emphasis will be placed on
an analysis of the scientific requirements for dealing with new fuel
formulations. In addition, we will determine if there are new
technologies needed that LLNL can contribute to.
A key element of this scoping study will be to invite experts from
the California Air and Water Boards and the California Energy
Commission to provide briefings to LLNL staff. This will facilitate
internal LLNL discussions and collaborations. Another key element of
the scoping study will be visits to U.S. EPA and U.S. DOE staff who
are responsible for fuel formulation specifications.
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Section III: Related Research Issues
- Vulnerability Study: Removing MTBE from gasoline may occur in a
phased elimination process. Studies that delineate the priority
areas, in terms of most vulnerable drinking water wells and aquifers,
may help in planning such phase outs.
- Comparision Study of Alternative Oxygenates: Competing hypotheses
exist related to the appropriate replacement oxygenate(s) for
MTBE.
- Field Studies: Controlled releases of alternative oxygenates may
offer a prospective understanding of the transport and fate processes
inherent to each.
- Life Cycle Analysis Screenings: There is a gaining momentum for
conducting full life cycle screening analyses of alternative
oxygenates.
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