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WORLDWIDE REFINING & PETROCHEMICAL INDUSTRY MONITOR:

Environmental Legislation on Fuel Specifications, Refinery Site Emissions, and Waste Disposal

HYDROCARBON PUBLISHING COMPANY Translating Knowledge into ProfitabilitySM

WORLDWIDE ENVIRONMENTAL LEGISLATION ON FUEL SPECIFICATIONS, REFINERY SITE EMISSIONS, AND WASTE DISPOSAL 1

World................................................................................................................................................................................. 1

1.1 Driving Forces Behind Legislation .................................................................................................................................... 1 1.1.1 Air Quality Concerns and Global Warming .......................................................................................................... 1 1.1.2 Increasing Popularity of Alternative/Renewable Energy ...................................................................................... 2 1.1.3 Clean-fuel Specifications ..................................................................................................................................... 3 1.1.4 Waste Management .......................................................................................................................................... 13 1.1.4.1 Refinery Site Emissions........................................................................................................................ 14 1.1.4.1.1 NOX Emissions ......................................................................................................................... 16 1.1.4.1.2 SOX Emissions.......................................................................................................................... 17 1.1.4.1.3 Volatile Organic Compounds (VOCs) ....................................................................................... 17 1.1.4.2 Solid Waste Disposal............................................................................................................................ 18 1.1.4.2.1 Definitions and Sources of Solid Waste.............................................................................18 1.1.4.2.2 Disposing of Solid Waste.................................................................................................19 1.1.4.3 Wastewater Disposal ............................................................................................................................ 21 1.1.4.4 Spent Catalyst Disposal........................................................................................................................ 23 1.2 Motor Gasoline ............................................................................................................................................................... 23 1.3 Middle Distillates............................................................................................................................................................. 23 1.4 Residual Fuel Oil and Bunker Fuel................................................................................................................................. 25 2

The United States and Canada ..................................................................................................................................... 26

2.1 The United States........................................................................................................................................................... 26 2.1.1 Motor Gasoline......................................................................................................................................28 2.1.1.1 Federal Reformulated Gasoline (RFG) ................................................................................................. 29 2.1.1.2 Sulfur .................................................................................................................................................... 31 2.1.1.3 RVP ...................................................................................................................................................... 31 2.1.1.4 Olefins................................................................................................................................................... 32 2.1.1.5 Benzene/Aromatics............................................................................................................................... 32 2.1.1.6 Ozone ................................................................................................................................................... 32 2.1.1.7 Distillation Cut Points and Drivability Index........................................................................................... 32 2.1.1.8 MTBE Ban ............................................................................................................................................ 33 2.1.1.9 New York's Specifications..................................................................................................................... 35 2.1.1.10 California's Specifications ..................................................................................................................... 35 2.1.2 Middle Distillates ...................................................................................................................................36 2.1.2.1 Highway Diesel ..................................................................................................................................... 36 2.1.2.1.1 Sulfur ................................................................................................................................... 36 2.1.2.1.1.1 Fuel Specifications ........................................................................................................ 37 2.1.2.1.1.2 Pipeline Specifications................................................................................................... 38 2.1.2.1.2 Aromatics and Cetane.....................................................................................................38 2.1.2.1.3 Lubricity.........................................................................................................................39 2.1.2.1.4 Density ..........................................................................................................................39 2.1.2.2 Non-road Diesel and Heating Oil .......................................................................................................... 39 2.1.2.3 Jet Fuel and Kerosene.......................................................................................................................... 40 2.1.2.4 Marine and Locomotive Diesel.............................................................................................................. 40 2.1.2.5 State Regulations ................................................................................................................................. 41 2.1.2.5.1 New York.......................................................................................................................41 2.1.2.5.2 Texas ............................................................................................................................41 2.1.2.5.3 California .......................................................................................................................41 i Copyright Â© Hydrocarbon Publishing Company, Inc. All Rights Reserved.

2.1.3 2.1.4 2.1.5

Residual Fuel Oil and Bunker Fuel.......................................................................................................... 42 Renewable Fuel Standard (RFS)............................................................................................................ 43 Refinery Emissions and Waste Disposal ................................................................................................. 43 2.1.5.1 Plant Site Emissions .............................................................................................................................43 2.1.5.1.1 SOX Emissions, NOX Emissions, and VOCs .................................................................... 43 2.1.5.1.2 Ozone Emissions ........................................................................................................... 46 2.1.5.1.3 Particulate Matter (PM)................................................................................................... 46 2.1.5.1.4 Hazardous Air Pollutants (HAPs) ..................................................................................... 47 2.1.5.1.5 Emissions Enforcement .................................................................................................. 48 2.1.5.2 Solid Waste Disposal ............................................................................................................................51 2.1.5.3 Wastewater Disposal ............................................................................................................................52 2.1.5.4 Spent Catalyst Disposal ........................................................................................................................54 2.1.6 Automotive Emissions and Fuel Economy Legislation .............................................................................. 55 2.1.7 Ship Emissions Legislation .................................................................................................................... 56 2.2 Canada ...........................................................................................................................................................................57 2.2.1 Motor Gasoline ..................................................................................................................................... 57 2.2.1.1 Sulfur.....................................................................................................................................................57 2.2.1.2 RVP.......................................................................................................................................................57 2.2.1.3 Benzene ................................................................................................................................................57 2.2.2 Middle Distillates................................................................................................................................... 58 2.2.2.1 Highway Diesel .....................................................................................................................................58 2.2.2.2 Non-road Diesel ....................................................................................................................................58 2.2.2.3 Jet Fuel .................................................................................................................................................58 2.2.3 Residual Fuel Oil .................................................................................................................................. 59 2.2.4 Emissions Enforcement ......................................................................................................................... 59 2.2.5 Fuel Economy Legislation...................................................................................................................... 59 3

Latin America and the Caribbean .................................................................................................................................60

3.1 Regional Overview..........................................................................................................................................................60 3.1.1 Motor Gasoline ..................................................................................................................................... 60 3.1.2 Middle Distillates................................................................................................................................... 61 3.2 Mexico ............................................................................................................................................................................62 3.2.1 Motor Gasoline ..................................................................................................................................... 62 3.2.2 Middle Distillates................................................................................................................................... 62 3.3 Brazil...............................................................................................................................................................................63 3.3.1 Motor Gasoline ..................................................................................................................................... 63 3.3.2 Middle Distillates................................................................................................................................... 63 3.4 Other South American Countries ....................................................................................................................................64 4

Western Europe..............................................................................................................................................................65

4.1 EU-wide Fuel Regulations ..............................................................................................................................................65 4.1.1 Motor Gasoline ..................................................................................................................................... 65 4.1.1.1 Sulfur.....................................................................................................................................................66 4.1.1.2 RVP.......................................................................................................................................................66 4.1.1.3 Olefins and Evaporation Specifications.................................................................................................67 4.1.1.4 Benzene/Aromatics ...............................................................................................................................67 4.1.1.5 MTBE ....................................................................................................................................................67 4.1.2 Middle Distillates................................................................................................................................... 67 4.1.2.1 Highway Diesel .....................................................................................................................................67 4.1.2.1.1 Sulfur ............................................................................................................................ 69 ii Copyright ÂŠ Hydrocarbon Publishing Company, Inc. All Rights Reserved.

4.1.2.1.2 Other Specifications........................................................................................................69 4.1.2.2 Non-road Diesel and Heating Oil .......................................................................................................... 69 4.1.2.3 Jet and Aviation Fuels .......................................................................................................................... 69 4.1.3 Residual Fuel Oil ...................................................................................................................................70 4.2 Switzerland (Non-EU)..................................................................................................................................................... 71 4.3 Refinery Emissions and Waste Disposal........................................................................................................................ 72 4.3.1 Plant Site Emissions ..............................................................................................................................72 4.3.1.1 FCCU Emissions .................................................................................................................................. 73 4.3.1.2 PM, NOX Emissions, and VOCs............................................................................................................ 74 4.3.2 Solid Waste Disposal .............................................................................................................................75 4.3.2.1 Definitions and Sources of Solid Waste................................................................................................ 75 4.3.2.2 Disposing of Solid Waste...................................................................................................................... 76 4.3.3 Automotive Emissions Legislation ...........................................................................................................77 4.3.4 Water Framework Directive ....................................................................................................................77 5

The CIS and Central/Eastern Europe ........................................................................................................................... 78

5.1 Regional Overview ......................................................................................................................................................... 78 5.2 Russia ............................................................................................................................................................................ 78 5.2.1 Motor Gasoline......................................................................................................................................79 5.2.2 Middle Distillates ...................................................................................................................................79 5.3 Other Central/East European Countries......................................................................................................................... 80 5.4 New EU Members .......................................................................................................................................................... 80 6 6.1 6.2 6.3 6.4 7

The Middle East.............................................................................................................................................................. 81 Regional Overview ......................................................................................................................................................... 81 Saudi Arabia................................................................................................................................................................... 81 Turkey ............................................................................................................................................................................ 81 Other Middle Eastern Countries ..................................................................................................................................... 82 Africa............................................................................................................................................................................... 83

7.1 Regional Overview ......................................................................................................................................................... 83 7.1.1 Motor Gasoline......................................................................................................................................83 7.1.2 Middle Distillates ...................................................................................................................................83 7.2 South Africa.................................................................................................................................................................... 84 7.2.1 Motor Gasoline......................................................................................................................................84 7.2.2 Middle Distillates ...................................................................................................................................84 7.3 Other African Countries .................................................................................................................................................. 85 8

Asia-Pacific..................................................................................................................................................................... 85

8.1 Regional Overview ......................................................................................................................................................... 85 8.1.1 Motor Gasoline......................................................................................................................................85 8.1.1.1 Sulfur .................................................................................................................................................... 86 8.1.1.2 Benzene/Aromatics............................................................................................................................... 88 8.1.1.3 MTBE.................................................................................................................................................... 88 8.1.2 Middle Distillates ...................................................................................................................................88 8.1.3 Residual Fuel Oil ...................................................................................................................................89 8.2 China .............................................................................................................................................................................. 90 8.2.1 Motor Gasoline......................................................................................................................................90 8.2.2 Middle Distillates ...................................................................................................................................91 iii Copyright ÂŠ Hydrocarbon Publishing Company, Inc. All Rights Reserved.

8.3

8.4

8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 9

8.2.3 Emissions Reduction............................................................................................................................. 91 8.2.4 Refinery Wastewater Disposal................................................................................................................ 91 Taiwan ............................................................................................................................................................................92 8.3.1 Motor Gasoline ..................................................................................................................................... 92 8.3.2 Middle Distillates................................................................................................................................... 93 8.3.3 Refinery Solid Waste Disposal ............................................................................................................... 93 Japan ..............................................................................................................................................................................93 8.4.1 Motor Gasoline ..................................................................................................................................... 93 8.4.2 Middle Distillates................................................................................................................................... 93 8.4.3 Bunker Fuel.......................................................................................................................................... 94 South Korea....................................................................................................................................................................94 8.5.1 Motor Gasoline ..................................................................................................................................... 94 8.5.2 Middle Distillates................................................................................................................................... 95 India ................................................................................................................................................................................95 8.6.1 Motor Gasoline ..................................................................................................................................... 96 8.6.2 Middle Distillates................................................................................................................................... 96 Australasia ......................................................................................................................................................................96 8.7.1 Gasoline .............................................................................................................................................. 96 8.7.2 Middle Distillates................................................................................................................................... 97 Pakistan ..........................................................................................................................................................................97 Singapore .......................................................................................................................................................................97 Malaysia..........................................................................................................................................................................98 Indonesia ........................................................................................................................................................................98 Thailand ..........................................................................................................................................................................98 Philippines ......................................................................................................................................................................99 Vietnam...........................................................................................................................................................................99 Other Asian Countries.....................................................................................................................................................99 Summary and Conclusions .........................................................................................................................................100