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Office of Transportation EPA420-F-05-020 

and Air Quality May 2005 

Program

Update

EPA Upholds Reformulated Gas

Requirement in California,

New York, and Connecticut 

The U.S. Environmental Protection Agency (EPA) is denying requests 

from California, New York, and Connecticut for a waiver from the 

oxygen content requirement in reformulated gasoline (RFG). 

EPA’s Decision 

On June 2, 2005, EPA denied requests made by the states of California, 

Connecticut and New York for a waiver of the oxygen content requirement of 

the RFG program. The Clean Air Act includes specific guidelines for when 

EPA may grant a waiver from the Congressional mandate that RFG contain 

oxygen. States must provide to EPA clear evidence that the oxygen content 

requirement will prevent or interfere with their ability to meet the National 

Ambient Air Quality Standards (NAAQS). EPA determined that the petitions 

submitted by California, Connecticut and New York fail to meet the waiver 

requirements outlined in the Clean Air Act. 

Congress established the RFG program to improve air quality in some of our 

nation’s most polluted urban areas, enhance energy security by extending 

gasoline supply through the use of oxygenates, and encourage the use of 

domestically-produced, renewable energy sources. RFG has been used since 

1995 and continues to be a highly effective strategy to reduce harmful emissions from motor vehicles that cause ozone, commonly called smog. 
California 

The Clean Air Act specifies that RFG contain 2 percent oxygen by weight. 

The law does not specify which oxygenate must be used and most refiners use 

either MTBE (methyl tertiary butyl ether) or ethanol. RFG sold in California, 

New York and Connecticut, however, contains only ethanol, since each state 

has banned the use of MTBE due to water contamination concerns. 

The Administration supports efforts by Congress to remove the oxygen 

requirement from the RFG program and replace it with a flexible, national 

renewable fuels program. This legislation would provide California, Connecticut, New York and other RFG areas the relief they are seeking through these 

waiver requests without compromising the air quality benefits of clean fuel. 

Background 

In 1999, the State of California requested a waiver from the oxygen 

content requirement for RFG in California covered areas. The Agency 

denied California’s original request in 2001, finding that the State had 

not clearly demonstrated what impact a waiver would have on the 

NAAQS for ozone. 

California contested EPA’s 2001 denial, and the Court of Appeals for the 

Ninth Circuit overturned EPA's decision and instructed the Agency to review 

the impact of the oxygen content requirement on the State’s ability to attain the 

NAAQS for particulate matter. 

In response to concerns over groundwater contamination, California has 

banned the use of MTBE in gasoline sold in California since January 1, 2004. 

With the ban in place, refiners supplying California now use ethanol to meet 

the oxygen requirement of RFG. 

EPA reviewed additional information submitted by California. While EPA 

agrees with California's claim that an oxygen content waiver would lead to a 

decrease in certain vehicle emissions that contribute to the formation of smog 

and particulate matter, the Agency concluded that the overall impact on 

emissions is slight. With a waiver, total volatile organic compounds (VOC) 

and nitrogen oxide (NOx) emissions are likely to decrease while carbon 

monoxide (CO) emissions are likely to increase. 

In addition to this analysis, EPA evaluated whether the absence of these 

emission reductions (i.e., continuation of the oxygenate requirement) would 

prevent or interfere with the State’s ability to attain the ozone and particulate 

matter standards under the Clean Air Act. EPA evaluated this by looking at 

whether a waiver would lead to earlier attainment of the NAAQS. 

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Connecticut 

New York 

In each of the areas required to use federal RFG in California--San Diego, 

South Coast, San Joaquin Valley, and Sacramento--the State has either 

projected attainment with the applicable NAAQS by the approved attainment 

date, or is developing an emission reduction plan to achieve attainment. In no 

case has the state relied upon or shown that a waiver of the RFG oxygen 

content requirement would lead to earlier attainment of the NAAQS. EPA 

therefore determined that the State has not clearly demonstrated that the 

oxygen content requirement prevents or interferes with California’s 

ability to attain the NAAQS or prevent attainment by the regulatory deadline. 

Because Congress established other goals for the RFG program, EPA also 

considered the following factors in its decision to deny the State's petition: the 

relationship between the RFG oxygen content requirement and energy security 

concerns, and benefits to the rural and agricultural economies. The Agency 

concluded that California’s use of ethanol as an oxygenate contributes to the 

U.S. goals of reducing dependence on foreign oil and supporting rural and 

agricultural economies. 

On September 29, 2004, the Connecticut Department of Environmental 

Protection (DEP) requested that EPA grant Connecticut a waiver from the 

oxygen content requirement. RFG is used statewide in Connecticut. 

In response to concerns over groundwater contamination, Connecticut has 

banned the use of MTBE since January 1, 2004. Since that time, refiners 

supplying Connecticut have used ethanol to meet the oxygen requirement of 

RFG. Connecticut claimed that the oxygen content requirement causes increased air pollution that interferes with the State’s ability to meet the NAAQS 

for ozone and particulate matter. Specifically, DEP asserted that the use of 

ethanol increases emissions of NOx and VOC during the summer ozone 

season relative to emissions prior to the ban of MTBE in Connecticut State. 

EPA is denying Connecticut’s waiver request because the State did not submit 

the technical data necessary for the Agency to determine what impact the 

waiver would have on emissions and air quality. Without this information, EPA 

could not evaluate whether the oxygen content requirement prevents or 

interferes with attainment of the smog or particulate matter standards. 

On January 6, 2003, New York Department of Environmental Conservation 

(DEC) requested a waiver from the oxygen content requirement for RFG in 

the New York City area. 

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In response to concerns over groundwater contamination, New York has 

prohibited the use of MTBE in gasoline sold in New York state since January 

1, 2004. With the ban in place, refiners supplying New York are now using 

ethanol to meet the oxygen requirement of RFG. New York has claimed that 

the oxygen content requirement causes increased air pollution that interferes 

with the State’s ability to meet the NAAQS for ozone. Specifically, DEC has 

stated that the use of ethanol increases NOx and VOC emissions, relative to 

emissions prior to the ban of MTBE in New York State. 

In April 2003, EPA notified New York DEC that its submission lacked 

the necessary technical supporting documentation for EPA to review the 

request. A subsequent submission by the state did not provide the necessary data. 

EPA is denying New York’s waiver request because the State did not submit 

the technical data necessary for the Agency to determine what impact the 

waiver would have on emissions and air quality. Without this information, EPA 

could not evaluate whether the oxygen content requirement prevents or 

interferes with attainment of the smog or particulate matter standards. 

New York’s RFG area is made up the Counties of Bronx, Kings, Nassau, 

New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, and 

Westchester. 

Health Benefits of Reformulated Gasoline 

The RFG program is a highly effective strategy to reduce harmful emissions 

from motor vehicles that cause ozone, commonly called smog. Smog is formed 

when VOCs, NOx, and other pollutants such as CO react in the presence of 

sunlight. RFG also reduces emissions of toxic air pollutants such as benzene, a 

known human carcinogen, by about 24,000 tons per year in RFG areas. 

Today, roughly 75 million Americans are breathing cleaner air because of RFG. 

For More Information 

You can access documents related to EPA’s determination on the Office of 

Transportation and Air Quality (OTAQ) Web site at: 

www.epa.gov/otaq/rfg_regs.htm 

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