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Federal Document Clearing House Congressional Testimony

June 28, 2000, Wednesday

SECTION: CAPITOL HILL HEARING TESTIMONY

LENGTH: 1627 words

HEADLINE: TESTIMONY June 28, 2000 WILLIAM ORR CHAIRMAN HOUSE GOVERNMENT REFORM RISING OIL PRICES

BODY:
June 28, 2000 WILLIAM ORR, CHAIRMAN, NATIONAL ALTERNATIVE FUELS ASSOCIATION THE TRUTH (THE MEDIA AND CONGRESS) DON'T WANT YOU TO KNOW - THE RFG REGULATIONS ARE UNSCIENTIFIC AND ILLEGAL! Washington - Mr. William Orr, Chairman of the National Alternative Fuels Association (NAFA) issued the following statement, 'Today's high gasoline prices, especially those reflected in the reformulated gasolines (RFG) of the mid-west, are in large part due to faulty EPA science. Unfortunately, even higher gasoline prices can be expected because of poor EPA science! Isn't it time to put aside partisan politics and look into the most important reason why gasoline prices are so high?" NAFA is a private scientific-based, non-profit entity (organized in 1992). NAFA's principals were instrumental in the adoption of the nation's first premier alternative fuel "unleaded gasoline." In the early 1990's, NAFA and leading fuel scientists urged the EPA to consider au the science on reformulated gasoline (RFG) before issuing its Section 211 (k) regulations. At that-time, NAFA's scientists were concerned about the EPA's "back door" mandate of methyl tertiary butyl ether (MTBE), and the lack of competent science supporting its arbitrary "mase basis volatile organic compound (VOC) definition (which was the basis of the mandate). The EPA's "mass" basis definition served as the foundation for the EPA's RFG regulations, which were intended to reduce smog and low altitude ozone formation. Under its "mass" basis definition, the EPA did not consider the "reactivity" of smog/ozone forming emissions. Rather, the EPA weighed benign and relatively benign evaporative emissions (not contributing to smog/ozone formation) the same as the most harmful smog/ozone causing emissions' This created an effective legal barrier against alcohols, such as ethanol, because alcohols increases Reid vapor pressure (RVP) and hence evaporative (VOC) emissions. Ethanol increases RVP by about 1.0 pound per square inch (psi). Thus, a gasoline (to which ethanol is to be added) must be manufactured at an artificially low vapor pressure (1.0 pound per square inch psi lower) in order to offset the RVP increase (caused by the alcohol). This is an extremely expensive requirement in the manufacture of RFG, adding approximately $0.10 to 0.15/gallon (or more). Furthermore, this requirement provides no environmental benefit, because the increase in RVP (and evaporative VOC emissions) attributed to alcohol results in mostly benign non-reactive emissions. In other words, the addition of alcohol, while increasing total atmospheric or "mass" emissions, does = increase ozone formation or smog. Scientists have maintained this for some time and report there is little or no increase in smog/ozone from the 1.0-psi RVP increase due to ethanol. Thus, the EPA's arbitrary "mass" emission restraint is prohibitively expensive, unscientific, and unnecessary. It also provides no environmental benefit. However, it was this restraint which effectively mandated MTBE (which does not increase RVP or "mass" evaporative VOC emissions). History shows that the EPA's science on IVITBE was equally flawed. The characteristics of IVITBE were unknown when it was mandated. Yet, the EPA failed to heed vigorous scientific calls by NAFA for additional study. Today IVITBE is being banned nation-wide, due to groundwater contamination problems (see attached article). Unfortunately, this is after the refining industry was forced to and had already made its multi-billion dollar IVITBE investment. "After dealing with the fall out of its fatally incompetent science on MTBE, the fox has returned to haunt the EPA on its incompetent science on alcohols. First, the EPA forces the refiners to make a huge investment and use IVITBE. Then in mid- stream, the EPA says it made a mistake because IVITBE poisons ground water, and therefore can no longer be used. So the EPA tells the refiners they must use ethanol instead. However, the EPA manufactured its earlier science to create an expensive barrier in order to make alcohol prohibitively expensive. Now their bad science and deception is costing Americans dearly, at least $0.15 gallon. Unfortunately, the media and the government don't want Americas to know the truth, " continued Orr. "Refiners now must not only amortize off their multi-billion dollar MTBE investment in each gallon of gasoline (because of EPA mistake), but they must manufacture an unnecessarily expensive low vapor pressure gasoline in order to accommodate the EPA's artificial restraint against ethanol, all at no additional environmental benefit - just higher prices!" said Orr. 'The EPA clearly did not consider the relevant science when making its RFG regulations. It did not consider the health effects of MTBE, which it mandated (to the detriment of numerous inexpensive and other viable options, which were capable of achieving the laudable goal of reducing smog). No the EPA gave MTBE an exclusive and now its costing use. This arrogance and poor science is the legal basis upon which regulations are declared Magal by Courts of law! (see 5/21/93 attachment)," says Orr. NAFA notes poor EPA science is not new. In May of 2000, the National Academy of Sciences concluded that the EPA's "Mobile Sources Emissions" model was flawed (see attached 5-12-00 article). The Mobile model was used to predict and control vehicle emissions. A significant portion of current gasoline cost is attributable to the requirements imposed under the model. The National Academy has also criticized the EPA's science, in general, expressing "concerns about the quality of research behind the agency's regulatory decisions" (see attached 6-15-00 article). As a separate matter, NAFA is concerned about the next round of expected price hikes due to the EPA's poor science underlying its low-sulfur gasoline standards (see www.altfuelampA for more information).

LOAD-DATE: July 6, 2000, Thursday




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