EPA Issues Report on ‘Boutique Fuels’

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he Environmental Protection Agency Friday released a report from a task force looking at “boutique fuels” that said if a fuel supply disruption occurs, requirements for the specialty blends make it more difficult to move fuel supplies around the country.

EPA Administrator Stephen Johnson launched a task force in May to review boutique fuels, specialized blends produced for a specific state or area to meet state and/or local air quality requirements. (Click here for previous coverage.)

“In order to meet our growing energy needs, effective communication and collaboration between states and the federal government are essential,” said EPA Administrator Stephen L. Johnson. The report “demonstrates that cooperation can benefit both our energy security and our environment,” he said in a statement.



As the task force — which included state governors and affected industry and environmental groups — worked to meet its objectives, EPA was required by the Energy Policy Act of 2005 to cap the number of boutique fuels permitted for use and place additional restrictions on the growth of such fuels.

The report called for conducting more analysis of any action to further limit a state’s ability to adopt boutique fuels. EPA said it will conduct a more comprehensive review in coming months examining boutique fuels and other factors that affect the fuel supply and distribution system.

The report also stated that:

Because of fuel supply disruptions primarily from hurricanes and storms last year, EPA needed to waive fuel requirements more than 30 times.

There were no conclusions regarding the exact effect of boutique fuels on retail fuel prices, because stakeholder opinions were divided on this issue.

Any action to modify the state of existing boutique fuels or limit a state’s ability to adopt fuel programs must at least maintain air quality gains and avoid unnecessary restriction.

Careful consideration should be given to potential legislative authority to allow for adoption of regional clean fuel programs.