WASHINGTON, September 23, 2011 – API welcomed the bipartisan U.S. House of Representatives' vote to require EPA to review and analyze the economic impact of its upcoming "Tier 3" regulations for gasoline.
"The new requirements could be devastating for consumers and communities across the nation," said Misty McGowen, API director of federal relations. "American taxpayers deserve a thorough analysis of the economic and jobs impacts before EPA moves forward with its proposal."
The new requirements could boost the cost of making gasoline by up to 25 cents per gallon, close up to seven U.S. refineries, and drive up carbon dioxide emissions by up to 7.4 million tons a year because of the increased energy needed to manufacture the new fuel blend, according to a study by energy consulting firm Baker & O'Brien.
"EPA hasn't done its homework," McGowen said. "With no clear environmental benefit, these new regulations could not only drive up costs and force jobs overseas, they could actually end up increasing our carbon dioxide emissions."
EPA is developing a "Tier 3" rulemaking that would further reduce sulfur levels in gasoline to an average of 10 parts per million, a 70 percent change from today's low levels, which are already down 90 percent from 2004. The agency has yet to demonstrate the extent to which these extremely costly further sulfur reductions will lead to environmental improvements.
API represents more than 480 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America's energy, supports more than 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $86 million in revenue to our government every day, and, since 2000, has invested nearly $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.