Polis Press Release on RFG

Governor Polis Fighting for Clean Air and to Save People Money, Opposes Reformulated Gas Requirement

WEDNESDAY, SEPTEMBER 14, 2022

DENVER –  In an effort to protect the air Coloradans breathe, save drivers and people money, and avoid rolling back progress made on clean air and climate change initiatives enacted by his administration, Governor Polis urged the Environmental Protection Agency (EPA) to reconsider their reformulated gasoline requirement for the Denver Metro/North Front Range, outlined alternatives and expressed his opposition to this proposal, and asserted pursuit of all legal strategies to avoid the requirement.

“Addressing our air pollution challenges, including ozone, has been and remains a top priority of my governorship, and this has included nation-leading strides in both policy and investments which are having an impact. However, with potential ozone reclassification to severe nonattainment, I am deeply opposed to the associated requirement that reformulated gasoline (RFG) be deployed within the DM/NFR non-attainment Area. I am hopeful that the U.S. Environmental Protection Agency will aggressively pursue all means to be a helpful partner in prioritizing air quality over one antiquated, inefficient, and increasingly ineffective tool; reformulated gasoline. The reformulated gasoline requirement would do more harm than good for our air quality and environmental justice goals, and I will continue to pursue any opportunity available, including legal means, to avoid or delay the RFG mandate,” Governor Polis wrote to EPA Administrator Michael S. Regan.

“The State of Colorado is not under a required deadline to propose challenges to reformulated gasoline or the reclassification more broadly. With this in mind, over the coming months, we will be conducting rigorous air modeling and additional legal analysis to explore any and all opportunities and build the strongest case to avoid the reformulated gasoline requirement,” the Governor’s letter continued.

Colorado has had a decades-long problem with ground-level ozone that is the result of sources of pollution interacting with strong sunlight and heat to create smog. The Polis administration has been making bold progress in an effort to get ahead of this challenge and Governor Polis has signed transformational legislation related to climate and clean air that help reduce emissions – and modernizing the state’s air quality agency to both improve Colorado’s tools to improve air quality.

“The Denver-metro and front-range air quality challenges affect Coloradans’ daily lives and human health in too many ways, and we face a shared imperative to act boldly and swiftly to surmount it. That is why my Administration remains committed to pursuing the most efficient and effective strategies that we can to fight the severity of our ozone situation. In addition to well over 70 signed pieces of climate, clean air and environmental justice legislation, and an upwards of $350 million clean air investment package last legislative session, Colorado is actively developing a proposed State Implementation Plan (SIP) that recognizes the severity of Colorado’s air quality situation and puts us on a course to achieve attainment even without the use of RFG. We continue to evaluate additional future strategies across sectors that while not ready for this SIP, may also prove valuable to our clean air goals. We are also exploring additional tax credits to reduce pollutants including ozone even more rapidly,” the letter continued.

Nonetheless, everyday Coloradans have felt the impact of high gas prices and inflation among the many other residual shockwaves of the pandemic as our nation and the global economy continue to recover. Coloradans, especially those of limited means, should not bear the burden of this requirement. While there have been exaggerated claims on cost, and examples nationally where RFG is actually less expensive, a previous analysis in 2011 estimated a potential price increase of between 13 to 26 cents per gallon (cpg) for the largest volume suppliers and 1 to 1.5 cpg for smaller suppliers, with the most up to date state analyses estimating a potentially 4 to 8 cpg increase. I believe an increase in price of any amount is too great, particularly given the lack of benefits. While this would apply only to the DM/NFR area and only during the summer, I am deeply concerned in particular about the impacts to the most vulnerable among us, to whom this increase may not be trivial. Furthermore, the capital construction and production requirements that accompany RFG have the potential to exacerbate long-standing historic environmental injustices in communities near regional refineries. The mandate raises serious environmental justice questions, again particularly given the lack of realized benefits that accompany it. The mandated but antiquated tool of reformulated gasoline puts the burden directly on everyday Coloradans without clear associated benefits, and in some cases I fear will only add challenges to our ability to make meaningful progress toward cleaner and healthier air. For this reason, I am asking the EPA to work with Colorado to explore and support any potential strategies to avoid the reformulated gasoline requirement or minimize its impacts, otherwise scheduled to start in 2024, and required only during summer months under a severe nonattainment designation,” Governor Polis wrote to the EPA.

“While coastal states can frequently rely on the 179(B) waiver, which should also apply to Colorado,  and other states do not have our unique geographic characteristics, we are left with fewer strong precedents to pursue in truly accounting for our challenges and the opportunities to correct them. These inequities should be addressed through whatever means the EPA has available, through congressional action, or if necessary the courts. While Colorado seeks to embrace its clean air responsibilities and even exceed required actions in the SIP, it is only honest to acknowledge that we face greater disadvantages outside of our control, with fewer flexibilities and fewer opportunities to get credit for the vast improvements we’ve made with the sources of pollution for which we do have the ability to influence. Colorado hereby reserves the right to pursue any legal means we identify to correct this injustice and inequity, particularly when it leads to impacts like reformulated gasoline that impact hardworking Coloradans without significant benefit with regard to ozone attainment,” the Governor’s letter concludes.

EPA Response to Polis on RFG

EPA tells Colorado’s governor there’s no getting out of selling reformulated gas to fight ozone

Colorado has threatened to sue over pricier, cleaner gasoline in 2024, but feds say it should add only 3 cents a gallon and Clean Air Act is a hard rule

EPA tells Polis Colorado can’t avoid reformulated gas for ozone (coloradosun.com)

The Environmental Protection Agency can’t let Colorado off the hook for imposing more expensive reformulated gas to fight ozone pollution beginning in 2024, the agency said in a reply to Gov. Jared Polis’ objections and threats to sue.

The gas, which produces fewer ozone-contributing fumes, should cost about 3 cents a gallon more than normal gas formulations, according to an EPA review.

The EPA’s Washington headquarters told Polis that the Clean Air Act dating to the 1990s requires all penalized areas, like the nine counties of the northern Front Range, to switch to reformulated gas when the agency declares them in “severe” nonattainment for lung-damaging ozone.

The change in classification also requires Colorado’s Air Pollution Control Division to lower the threshold for stationary sources that must apply for permits to 25 tons of pollutants from the current 50 tons. Air pollution control officials have said that will add at least 400 new permits to an already backlogged system.

“The Clean Air Act provisions requiring the sale of (reformulated gas) in areas reclassified as Severe and the timing of those requirements are clear,” national EPA Administrator Michael Regan wrote to Polis. Regan did say the EPA will try to work with Colorado on implementation, and noted the state has “20 months of lead time to prepare.”

The Polis administration did not back down from its objections after hearing from the EPA.

“Gov. Polis has been clear that he will pursue all legal strategies to avoid this outdated and ineffective requirement for reformulated gasoline,” spokesman Conor Cahill said. “It’s clear that this outdated policy would negatively impact Colorado’s most vulnerable, rewind environmental justice efforts and raise costs on people when they need their money most.”  The Polis objection letter said the reformulated gas mandate has “the potential to exacerbate long-standing historic environmental injustices in communities near regional refineries. The mandate raises serious environmental justice questions, again particularly given the lack of realized benefits that accompany it.”

Suncor is the only major refinery in Colorado, and likely the one that would supply reformulated gas. While environmental groups and community leaders have asked the Polis administration to phase out Suncor’s Commerce City location altogether, air pollution regulators have recently required more stringent air monitoring at Suncor’s fence line and put new conditions on long-delayed permit renewals. 

Polis’ letter said new construction required to supply reformulated gas and higher production levels could hamper air quality progress in those neighborhoods.

While environmental groups do not believe reformulated gas will do much to solve the northern Front Range ozone problems, because current everyday formulations are much cleaner than when the 1990s law was passed, they also dismiss the Polis objections as “reelection-year theater.”

“There’s no way out of it. It’s going to happen,” said Jeremy Nichols of WildEarth Guardians. Colorado knew the ozone downgrade was coming for years, and Nichols likened the state’s reaction to a high school senior failing all their classes and then complaining they couldn’t graduate.

 READ MORE

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4:08 AM MDT on Aug 29, 2022

“If Gov. Polis truly cared about clean air and avoiding RFG, he’d direct the air division to everything in their power to clean up ozone in the region and either avoid a severe classification or at least get out of it as quickly as possible,” Nichols said. “Instead, the air division has offered up an ozone cleanup plan that it admits will fail.”

The advocates and allies among metro area elected officials want the state to speed up the transition to lower-emission vehicles, pause air pollution permitting, and put more restrictions on Front Range oil and gas drilling as keys to reducing ozone faster. The state’s proposals so far do not include those extras or others recommended by clean air coalitions.

“Pollution is now bad enough that more federal environmental protections are kicking in, which is exactly why the Clean Air Act exists in the first place,” said Jacob Smith of Colorado Communities for Climate Action, a coalition of 40 local governments. “Trying to avoid the rules will mean it takes longer, costs more and leaves more people sick. The quickest path to not needing federal air quality protections is for Colorado to actually clean up the air we breathe.”

The new State Implementation Plan for ozone attainment that Polis highlighted in his original letter to the EPA acknowledges up front that Colorado can’t meet tighter 2015 standards by a 2024 deadline, noted Katherine Goff, a Northglenn City Council member and vice president of the communities coalition.

“There are enormous emissions sources that Colorado could clean up right now that would make a huge difference, but the proposed plan largely ignores them,” she said.

Suncor said Wednesday it is working on a $36 million project to be ready to produce reformulated gas by the 2024 summer driving season, and that they have state health department approval. The Regional Air Quality Council estimates the new gas will reduce ozone-contributing emissions by 200 tons a year, Suncor said.

What the price differential will be is not clear, Suncor added, since much of it depends on how many other suppliers bring reformulated gas into the Front Range market. Suncor said it currently produces about one third of Colorado’s gasoline, half of the state’s diesel fuel, and 30% of the jet fuel for Denver International Airport.