The recent change to gasoline blends may change testing of VOC in underground storage tanks
Industry News

US Change To Testing Gasoline Blends No Longer Tests For Aromatics

Boomtown Devs

In October 2020, the United States Environmental Protection Agency (EPA) reformulated and streamlined gasoline testing blends to no longer require gasoline producers to meet a set of standards known as “Volatile Organic Compound (VOC) – controlled RBOB”, which includes aromatics. Testing cut eleven parameters, that were previously evaluated utilizing the Complex Model by the EPA, down to three — Reid Vapor Pressure (RVP), benzene and Sulphur. This change can potentially lead to converging prices for grades with similar RVP levels and Americans can expect to see this change in gasoline blending for the summer of 2021.

What Is The New EPA Change To Testing For Gasoline Blends?

The new EPA change to testing means the only clear differentiator between RBOB, which is required in most metropolitan areas, and CBOB, which is typically used in non-metropolitan areas, is the different levels of RVP. The gasoline blends emissions have been changed from VOC standards to a 7.4 RVP per-gallon maximum standard.

The change in testing allows naphtha producers to start generating gasoline for the summer of 2021 since there is room for other blendstocks that are not normally included in seasonal gasoline. During this transition, alkylate producers will begin to fall out of favor as gasoline blenders move away from this low aromatic component in congruence with the EPA’s removal of aromatics testing.

What Is RBOBAnd Why Does It Impact Gas Prices?

The new reformulated blendstock for oxygenate blending (RBOB) specification takes effect in March 2021. RBOB, which previously used alkylate, will now turn to other high-octane blendstocks such as reformate, butane, and raffinate which can be more expensive to produce.

Prices for RBOB generally have a high correlation with crude oil since gasoline is a byproduct of refined crude oil. Seasonal demand, which is normally higher during the summer as well as seasonal pollution requirements can also drive an increase in prices. As summer approaches, prices tend to rise in anticipation of peak driving season and price drop in the winter when consumers are less likely to be on the roads. This specific EPA change though is not expected to increase the price of RBOB this summer.

What Is The Difference Between RBOB and Conventional Gasoline?

According to the EPA, RBOB gasoline tends to burn more cleanly than conventional gas which is finished motor gasoline that is not included in the reformulate gasoline category. RBOB reduces smog-forming and toxic pollutants in the ground-level ozone layer and is required in cities with higher smog levels and optional in areas with lower smog levels, in a long-term effort to bring down the smog levels in the United States.

What Is A Blendstock?

A blendstock can be either a fuel component used alone or an unfinished oil that is blended with other similar liquids, such as ethanol, to make a final refined gasoline. Blendstocks meet the basic requirements for fuel that is appropriate for use in spark ignition engines and motor vehicles. Most gasoline produced in the U.S. is unfinished gasoline or blendstock.

Does Conventional (CBOB) Gasoline Have Ethanol?

Most gasoline in the United States additionally contains 10% ethanol. Conventional blendstock for oxygenate blending (CBOB) is a blendstock that is combined with ethanol to produce E10 gasoline. CBOB tends to be used in the Gulf Coast spot market as there are fewer areas that require RBOB in that region.

Why Did The EPA Make The Change, and Will It Affect Pollution In Metropolitan Areas?

The previous testing structure was introduced by the EPA in 1990 to control pollution in metropolitan areas. The new fuel standards are still stringent but reduce the cost for the industry and the EPA. The reformulation of gasoline testing is likely to make RVP adjustments more flexible which can ease and cheapen the blending process. The EPA is expecting to save $40.4 million per year largely in administrative costs from this change.

Markets in the US Gulf Coast, New York Harbor, and Chicago are anticipating the RBOB premium to narrow against CBOB. The updates are also expected to improve compliance by eliminating out-of-date requirements, which with this thought process, should ultimately improve pollution for metropolitan areas.

Will Removing Aromatics Testing Allow For More Types Of Blending?

As a result of removing aromatics testing increased blending flexibility and options for importers will follow. The removal of VOC requirements for summer RBOB could mean RBOB and CBOB are more closely interchangeable and approach a convergence of pricing. Though testing standards for gasoline blends won’t change for underground storage tanks, the levels will. By reformulating gasoline without aromatics, the gasoline may affect pipeline and equipment corrosion differently and UST owners must ensure this does not affect their equipment by testing accordingly.

Chem Service provides UST testing standards to meet EPA changing guidelines

As government rules change so must privately owned testing standards to keep pace. Chem Service provides updated UST testing standards for across the United States that meet new EPA guidelines. Click over to our Underground Storage Testing page for more information on all Chem Service options or give us a call at 1-800-452-9994 to discuss your underground storage tank testing needs and standards with our seasoned staff.

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