WASHINGTON, October 10, 2013 – In a conference call with reporters, API Senior Fuels Policy Advisor Patrick Kelly called on 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 . . . 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. 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, according to a study by Baker O’Brien. 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.

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 (here and here) by ENVIRON.