API Senior Fuels Policy Advisor Patrick Kelly called on the Environmental Protection Agency (EPA) to withdraw its Tier 3 gasoline regulations, saying the rules are too costly, provide scant environmental benefits, and come with an unreasonable implementation timeline.
“With the new Tier 3 gasoline regulations, EPA is pursuing an agenda that is not based on science, or economics, or common sense,” Kelly said in a statement posted on the API website. “The regulations would impose enormous costs on the American economy while providing only negligible environmental benefits . . . In fact, EPA’s proposed new standard is completely arbitrary, not at all supported by science.
“We are also concerned that the rushed timeframe leaves little opportunity for refiners to design, engineer, permit, construct, start up, and integrate the new machinery required,” Kelly said. “Due to the lack of sound science and economic analysis to support this new standard, we believe EPA should withdraw the rule entirely.”
The new standards could require $10 billion in capital costs, API contends, citing a study by consulting firm Baker & O’Brien, which has offices in Dallas and Houston, Texas.
The annual compliance cost is $2.4 billion, equating to a potential increase of between 6 cents and 9 cents per gallon to the cost of making gasoline.
See the Baker & O’Brien study here.
