NEWS OF THE WEEK
AIR POLLUTION CLEANUP. Pact set for reformulating gasolines U.S. urban areas with excessive levels es Defense Council: "The agreement of ozone and carbon monoxide pol- is a positive first step to cleaner air lution will have to start using oxy- through cleaner gasoline. We will genated and reformulated gasolines be urging state and local officials in late next year, under an agreement all areas not meeting the air quality signed Aug. 16 by the Environmental standards to adopt this program." Protection Agency and 29 parties The agreement has two parts: addfrom industry, local and state gov- ing oxygenates to gasolines for use e r n m e n t s , and e n v i r o n m e n t a l during the winter in the 41 cities groups. The negotiated regulation with carbon monoxide problems, fulfills a requirement of the 1990 and reformulating gasolines to deal amendments to the Clean Air Act. with ozone pollution. The regulation will require that Oxygenated fuels are cleaner burnmetropolitan areas with the most se- ing because they offset the fuel-rich vere carbon monoxide problems be- operating conditions needed for iggin using oxygenated gasoline dur- nition in winter; this results in fewer ing the winter months of 1992-93. carbon monoxide emissions. Oxygen EPA says 41 cities have serious will be added to gasoline by blendcarbon monoxide problems. In addi- ing in additives such as methyl terttion, nine cities with severe ozone butyl ether (MTBE) at the refinery, or problems must use reformulated adding ethanol or methanol at distrigasolines starting in 1995. The nine bution terminals. The regulation will are Baltimore, Chicago, Hartford, require that all gasolines sold in winHouston, Los Angeles, Milwaukee, ter in the 41 cities contain an avNew York, Philadelphia, and San Diego. An additional 87 areas that do not meet the ozone air quality standards also can choose to use reformulated gasolines. William G. Rosenberg, EPA assistant administrator for air and radiation, says, "I can't think of another example in EPA history that involved so many different groups coming together on such complicated legal and technical matters and having to work on such a tight deadline." Rosenberg says the agreement achieves more environmental benefits at a lower cost to industry than would otherwise have been possible under the clean air law's requirements. "As a result of reaching a consensus among the groups, we will avoid costly and protracted litigation that unfortunately occurs so often with environmental regulation." Adds Debbie Sheiman, an attorney with the Natural ResourcRosenberg: more benefits at a lower cost 4
August 26, 1991 C&EN
erage of 2.7% oxygen by weight. This will reduce carbon dioxide emissions about 17%, EPA says. Reformulated gasolines are a bigger issue. Refiners will have to provide these fuels to the nine highest ozone areas by January 1995. If the additional 87 cities not meeting ozone standards participate, up to 55% of all U.S. gasoline will have to meet new requirements. These include no more than 1.3% by volume average benzene content per gallon, an average Reed vapor pressure of 7.4 psi or higher, and an average oxygen content of 2.1% by weight. Standards also will be set for sulfur content, olefins, and boiling range. A provision of the agreement aims to prevent dumping of abovestandard gasolines in areas not selling reformulated products, an action that would cause their pollutant emissions to increase. Gasoline refiners will bear the brunt of the costs in complying with this regulation. Notes Urvan R. Sternfels, president of the National Petroleum Refiners Association, much uncertainty remains. Smaller independent refiners— whose entire output might have to be changed—face enormous capital investments if they have to produce the reformulated gasolines, and they do not know yet if they have to. Many of these companies indicate they will have trouble getting necessary capital from tight financial markets. Some say the regulation could end their participation in the gasoline business. Another problem for refiners will be getting enough of the oxygenated compounds to meet EPA requirements. Sternfels says it looks as if EPA has not considered current use of MTBE or the alcohols when calculating future
supplies. Unless significant new capacity is built for these materials, or some new oxygen-containing compound is used, refiners will not be able to meet the demand, he says. "These two programs together will save more than 300,000 barrels of imported oil per day," Rosenberg claims. This will be done by the combination of lower volatility and the use of oxygenates or other compounds to replace petroleum. EPA also estimates the price of a gallon of gasoline will increase about 5 cents, but industry representatives believe the cost to consumers could be much higher. David Hanson
Kodak sues to stop Cetus technology sale Eastman Kodak has requested an injunction in Delaware Chancery Court to prevent Cetus Corp. from selling its polymerase chain reaction (PCR) technology to Hoffmann-La Roche. If successful in its suit, Kodak could disrupt the planned merger of biotechnology companies Cetus and Chiron to form a major biopharmaceutical company (C&EN, July 29, page 8). Cetus' merger with Chiron is contingent on the PCR sale. Kodak believes the sale interferes with pending arbitration over rights to PCR technology stemming from a previous agreement between Cetus and Kodak. PCR is among the most important new technologies developed during the boom in biotechnology. Used as a research, forensics, and diagnostic tool, PCR is a means to amplify minute amounts of genetic material. It has long been one of Cetus' major assets: The firm has used it as the basis of an instrumentation joint venture with Perkin-Elmer and sees the technology as a way to break into an estimated $500 million diagnostics market. Cetus also has had to fight other firms claiming rights to the technology or, at the very least, wishing to invalidate Cetus' claims—as in a recent court battle with Du Pont. Kodak's interest in PCR technology stems from a three-year agreement signed in 1986 with Cetus to
jointly develop human clinical diagnostic products. Cetus terminated the agreement in 1989, despite Kodak's interest in continuing the partnership. About the same time, Cetus cross-licensed its flagship interleukin-2 product with HoffmannLa Roche to avoid the threat of litigation by that firm, and entered a collaborative arrangement with it for development and commercialization of human diagnostic products based on PCR technology. In April 1991, Kodak filed a request for arbitration with the American Arbitration Association to settle its dispute with Cetus over the scope of Kodak's continuing rights and licenses under its original PCR contract with Cetus. To allow for completion of arbitration, Kodak has now requested an injunction to delay the transfer, licensing, or disclosure to Hoffmann-La Roche of any information or proprietary technology rights in the area of PCR diagnostics. Such action would irreparably harm Kodak, it says. "Based on the terms of its contract with Cetus, Kodak holds exclusive rights under Cetus patents to market in-vitro human diagnostic products based on PCR technology," says Jose J. Coronas, vice president and general manager of Kodak's Clinical Products Division. Having continued its R&D efforts after its agreement with
Cetus worker prepares for PCR test Cetus was terminated, Kodak plans to commercialize a family of products based on PCR technology. According to Cetus, Kodak is seeking rights to a broad range of PCR-based diagnostic products. The firm believes Kodak has rights only to a limited number of products. Cetus denies that sale of PCR technology would violate any of Kodak's rights under the 1986 agreement, and therefore says Kodak is not entitled to an injunction. However, the firm will not comment on the suit's effect on the merger. Ann Thayer
Tighter curbs sought on transport of chemicals In the wake of two recent rail tankcar toxic chemical spills, chemical and railroad industry groups are stepping up efforts to tighten rules for transport of hazardous chemicals by broadening the application of federal hazardous materials regulations. Last week, the Chemical Manufacturers Association announced its support for efforts to identify and regulate the transportation of substances that are potential water pollution hazards. Concern for materials that can cause problems if spilled in large quantities into water was raised by the July 14 derailment of a Southern Pacific train carrying metham-sodium along the Sacramento River in northern California (C&EN, July 29, page 7). "One possible method is to adopt,
for domestic transportation, a list of substances contained in the International Maritime Organization's convention on marine pollutants," notes Morton L. Mullins, vice president of regulatory affairs for CMA. The U.S., along with 44 other countries, recently ratified IMO's marine pollutants (MARPOL) convention, a treaty that identifies about 500 chemicals considered to be water pollutants. The treaty, which goes into effect next year, mandates special marking and other communication requirements when transporting these substances internationally by water. CMA will work with the Department of Transportation to help determine how MARPOL provisions can be adapted for domestic land transportation. For its part, Southern Pacific is August 26, 1991 C&EN
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