WASHINGTON, March 29, 2013 – EPA’s proposed Tier 3 fuel regulations could raise refiners’ costs, provide little or no environmental benefit, and actually increase carbon emissions, according to API Downstream Group Director Bob Greco.
“There is a tsunami of federal regulations coming out of the EPA that could put upward pressure on gasoline prices,” Greco said. “EPA’s proposed fuel regulations are the latest example. Consumers care about the price of fuel, and our government should not be adding unnecessary regulations that raise manufacturing costs, especially when there are no proven environmental benefits. We should not pile on new regulations when existing regulations are working.”
EPA’s Tier 3 proposal would increase the cost of gasoline production by up to nine cents per gallon, according to an analysis by energy consulting firm Baker & O’Brien
. If EPA adds a vapor pressure reduction requirement in a separate regulation, it would push the cost increase up to 25 cents a gallon, according to Baker & O’Brien
. Separately, gasoline costs would also rise 30 percent by 2015 unless changes are made to federal ethanol mandates,according to a newly-released
study by NERA Economic Consulting. Greco also cited EPA’s upcoming proposal for new ozone standards that could further increase manufacturing costs.
“Implementing the new requirements would actually increase greenhouse gas emissions because of the energy-intensive equipment required to comply,” Greco said. “We urge the administration to bring common sense back into the regulatory process. Unnecessary regulations just mean higher costs and lost jobs.”
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 $86 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.