The AFPM is concerned by the Environmental Protection Agency’s (EPA) decision to proceed with Tier 3 rulemaking imposing new vehicle emissions and fuel standards. The proposal will require further reduction in sulfur levels in gasoline to an average of 10 ppm, a 70% drop from today’s very low levels without significant benefits.
‘While we haven’t had the opportunity to review the report, EPA’s decision to move forward with Tier 3s gasoline sulfur reduction program is completely without merit given that the Agency has not previously offered any cost/benefit analysis to justify this onerous rulemaking,’ said AFPM President Charles T. Drevna. ‘The Acengy’s failure until today to provide any information on the need for this discretionary rule, despite repeated requests form American fuel manufacturers, strongly suggests the lack of a credible case.
‘Tier 3 rulemaking that targets trace amounts of sulfur in gasoline is not worth the direct threat to our domestic fuel supply, consumer cost at the pump and American jobs,’ Drevna concluded.
Sulfur 2004, refiners have reduced sulfur levels in gasoline from an average of 300 ppm in 2004 to an average of 30 ppm today. The adverse economic impacts of Tier 3 rulemaking have attracted bipartisan Congressional concern, and a group of House and Senate Democrats have sent letter to the Administration asking for a more transparent process and information on potential benefits before proceeding with final rulemaking.
American refiners have already spent billions of dollars to achieve a 90% reduction in sulfur levels, but Tier 3 will require another US$ 10 billion in new infrastructure and another US$ 2.4 billion /y in operating costs on an industry already burdened by questionable regulations.
Adapted from press release by Claira Lloyd.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/03042013/afpm_tier_3_rulemaking/