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API calls on EPA to pull back costly new gasoline regulations

Hydrocarbon Engineering,

In a conference call with reporters, API Senior Fuels Policy Advisor Patrick Kelly called on the EPA to withdraw its Tier 3 gasoline regulations, saying that the rules are too costly, provide scant environmental benefits and come with an unreasonable timeline.

According to a study by Baker & O’Brien, the new standards could require US$ 10 billion in capital costs. The annual compliance cost is US$ 2.4 billion, equating to a potential increase of between 6 cents and 9 cents per gallon to the cost of making gasoline.

Furthermore, removing the last bit of sulfur to reach EPA’s proposed standard of 10 parts per million "would yield only very small additional improvements" in air quality, according to analyses by ENVIRON.

"With the new Tier 3 regulations, EPA is pursuing an agenda that is not based on science, or economics, or common sense [...] 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", said Kelly.

"We are also concerned that the rushed timeframe leaves little opportunity for refiners to design, engineer, permit, construct, start up and integrate new machinery required. Due to lack of sound science and economic analysis to support this new standard, we believe EPA should withdraw the rule entirely."

Adapted from a press release by Emma McAleavey.

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