Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...

As shown above in Table VI.A.3-1, 99 percent of MTBE use occurred in PADDs
1 and 3. This reflects the high concentration of RFG areas in the northeast (PADD 1) and
the local production of MTBE in the gulf coast (PADD 3). PADD 1 receives a large
portion of its gasoline from PADD 3 refineries who either produce the fossil-fuel based
oxygenate or are closely affiliated with MTBE-producing petrochemical facilities in the
area. Overall, 100 percent of MTBE in 2004 was assumed to be used in reformulated
gasoline. 47
In 2004, total ethanol use exceeded MTBE use. Ethanol’s lead oxygenate role is
relatively new, however the trend has been a work in progress over the past few years.
From 2001 to 2004, ethanol consumption more than doubled (from 1.7 to 3.5 billion
gallons), while MTBE use (in RFG) was virtually cut in half (from 3.7 to 1.9 billion
gallons). A plot of oxygenate use over the past decade is provided below in Figure
VI.A.3-1.
The nation’s transition to ethanol is linked to states’ responses to recent
environmental concerns surrounding MTBE groundwater contamination. Resulting
concerns over drinking water quality have prompted several states to significantly restrict
or completely ban MTBE use in gasoline. At the time of this analysis, 19 states had
adopted MTBE bans. A list of the states with MTBE bans is provided in DRIA Table
2.1-4.
California Phase 3 RFG (CaRFG3) and Arizona Clean Burning Gasoline (CBG).
47 2004 MTBE consumption was obtained from EIA. The data received was limited to states with RFG
programs, thus MTBE use was assumed to be limited to RFG areas for the purpose of this analysis.
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