WASHINGTON, April 24, 2013 – API Senior Policy Advisor Patrick Kelly testified at an EPA hearing in Philadelphia on the agency’s proposed Tier 3 regulations for gasoline today, saying the industry has already reduced sulfur levels in gasoline by 90 percent over the last decade and that further reductions would require enormous costs without providing environmental benefits.

“This rulemaking could hurt consumers by adding unnecessary manufacturing costs to gasoline," Kelly said. “This is government at its worst and is completely out of touch with American consumers."

EPA’s proposed Tier 3 rule would add nearly $10 billion in up front capital costs; annual compliance costs are $2.4 billion – or 6 to 9 cents per gallon produced, according to a study by Baker O’Brien. The regulations would not provide measurable ozone air quality benefits, according to a study by ENVIRON.

“This rulemaking could have significant impacts on domestic refiners, which are already heavily regulated,” Kelly said. “EPA should not consider these costs in a vacuum. Refiners need to balance these costs with the cumulative costs of other federal and state regulations.”

API is a national trade association that represents all segments of America’s technology-driven oil and natural gas industry. Its more than 500 members – including large integrated companies, exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms – provide most of the nation’s energy. The industry also supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $85 million a day in revenue to our government, and, since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.