Alternative Energy Development Incentive (AEDI)


Committed to Supporting Air Quality

OED is committed to supporting air quality along Wasatch Front and Uintah Basin, including providing an economic option for refinery investment in cleaner Tier 3 fuels. Tier 3 fuels reduce sulfur content, enabling a car’s catalytic converter to run better and reduce volatile organic compounds (VOCs) and nitrogen oxides (NOx) emissions on all vehicles. On vehicles with newer emissions reduction equipment, the emissions reduction is up to 81 percent.


KEY STATE ACTIONS


Utah's Tier 3 Fuels

Located just north of Salt Lake City are 5 small refineries where less than 75,000 barrels of oil are produced per day. For small refineries, the tier 3 fuel production phase-in was delayed until 2020 and exemptions could be granted due to the potential for economic hardship further delaying air quality benefits to be realized from transportation.

In general, transportation currently accounts for the majority of emissions we experience along the Wasatch Front. Realizing the potential to improve air quality by reducing the number of air shed emissions, the State of Utah looked into ways to encourage refineries to produce the cleaner-burning Tier 3 fuels at an accelerated rate.

Current Refinery Status

While Utah’s refineries have consistently produced cleaner fuels over time, all refineries have engaged with OED in conversations about producing tier 3 gasoline at their facilities.

Both Chevron and Marathon are now producing the lower-sulfur Tier 3 gasoline at their Salt Lake City refineries. Additionally, Silver Eagle and Holly Frontier have also committed to producing tier 3 fuels.

 

KEY STATE ACTIONS


Utah's Tier 3 Fuels

Located just north of Salt Lake City are 5 small refineries where less than 75,000 barrels of oil are produced per day. For small refineries, the tier 3 fuel production phase-in was delayed until 2020 and exemptions could be granted due to the potential for economic hardship further delaying air quality benefits to be realized from transportation.

In general, transportation currently accounts for the majority of emissions we experience along the Wasatch Front. Realizing the potential to improve air quality by reducing the number of air shed emissions, the State of Utah looked into ways to encourage refineries to produce the cleaner-burning Tier 3 fuels at an accelerated rate.

Current Refinery Status

While Utah’s refineries have consistently produced cleaner fuels over time, all refineries have engaged with OED in conversations about producing tier 3 gasoline at their facilities.

Both Chevron and Marathon are now producing the lower-sulfur Tier 3 gasoline at their Salt Lake City refineries. Additionally, Silver Eagle and Holly Frontier have also committed to producing tier 3 fuels.

UTAH BENEFITS


“Emission reductions from the Tier 3 program will lead to immediate air quality improvements that are critically important for states to attain and maintain the existing health-based National Ambient Air Quality Standard (NAAQS).”

Where Can I Get Tier 3 Fuels


OED is currently analyzing stations that will be supplying the fuel. The exact number of stations and locations may change at any given time because of how gasoline supplies are mixed, adjusted seasonally, and for various other reasons.

There are a number of petroleum retailers including Chevron and Speedway, who have announced they will be selling this cleaner fuel in the Utah market. The fuel is available directly at the pump and there is no additional step you need to take from the way you have always filled up.


Additional Resources

The Governor’s Office of Energy Development’s education initiative encourages students to pursue STEM studies and careers through the support of STEM curriculum, higher education scholarships, programs, and events.

Tax Credits Team

Image

Brook Tucker
Deputy Director
Phone: 801-123-4567
Email: btucker@utah.gov