WASHINGTON, June 27, 2013 – EPA’s proposed Tier 3 gasoline sulfur rule should be withdrawn because it would do practically nothing to improve air quality yet would cost billions and potentially harm gasoline consumers, API Group Director for Downstream and Industry Operations Bob Greco told reporters this morning, in a briefing that previewed API’s soon-to-be-submitted comments on the EPA proposal:

“The rule’s biggest impact would be to increase the cost of delivering energy to Americans, making it a threat to consumers, jobs, and the economy. The new sulfur regulation could impose nearly $10 billion in new capital costs on refiners – increasing gasoline manufacturing costs by between six and nine cents per gallon – according to an analysis by Baker and O’Brien. Yet, as studies by ENVIRON International Corporation have found, the regulation would do very little to reduce air pollution.

“Tier 3 is a reckless regulation, an unnecessary regulation, and, unfortunately, one of several new rules in the offing that collectively could put upward pressure on energy prices, discourage business expansion, and harm new job creation. EPA is a regulatory agency. Issuing rules is its job. But its formula for deciding on new regulations has become disconnected from common sense and sound science. This must be corrected if we want to avoid unnecessary long-term harm to the economy. A good first step would be to pull back the Tier 3 rule.”

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.