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Copyright 1999 The New York Times Company  
The New York Times

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May 2, 1999, Sunday, Late Edition - Final

SECTION: Section 1; Page 37; Column 1; National Desk 

LENGTH: 588 words

HEADLINE: Clinton Says New Rule on Emissions Won't Impose Undue Costs

BYLINE:  By KEITH BRADSHER 

DATELINE: WASHINGTON, May 1

BODY:
Defending his new plans for cleaner air against criticism from the oil industry, President Clinton said today that proposed regulations on gasoline and tailpipe emissions would not impose excessive costs.

In his weekly radio address, the President said that the new rules were designed to avoid creating hardships for businesses or consumers. "The proposal would achieve a dramatic reduction in air pollution for the 21st century, and it would do so in the most cost-effective and flexible ways," he said. Oil lobbyists and their Congressional allies began criticizing the proposals on Friday, as the Administration began a series of briefings. The American Petroleum Institute, the industry's lobbying arm, held a press conference on Friday afternoon to say that the plan would unnecessarily raise gasoline prices in rural areas with no air pollution problems. Senator James M. Inhofe, a Republican from oil-producing Oklahoma, said that he had begun drafting legislation to devise a more cost-effective approach.

But Senator Inhofe, the chairman of the Senate's clean air subcommittee, faces a difficult task. The Clean Air Act of 1990 gives the Administration the legislative authority to act, meaning that the new rules will take effect unless Congress can agree on a way to change them. And the Administration has an unlikely ally if a battle does develop in Congress: the auto industry, which wants cleaner gasoline to simplify the task of designing cleaner automobiles, particularly sport utility vehicles, which emit up to three times as much air pollution as cars.

Unlike previous Administrations, the Clinton Administration has pursued an unusual strategy that seems to have weakened oil and auto industry lobbyists by dividing them. After decades of piecemeal regulation of the two industries, the Administration is proposing for the first time a single set of rules to cover both fuel that goes into auto engines and the waste gases that come out.

Rather than fighting the Administration for less stringent emissions standards, the auto industry has allied itself with environmentalists in demanding cleaner gasoline.

Josephine Cooper, the president of the Alliance of Automobile Manufacturers, based in Washington, said that the industry generally supported the new rules because of the sulfur provisions, even though the rules require big sport utility vehicles and pickup trucks to start meeting car pollution rules for the first time by 2009. The auto industry wants the Administration's help in meeting this tough requirement by forcing the oil industry to eliminate as much sulfur as possible, Ms. Cooper said.

Oil industry executives appear to be unhappy with the Administration and furious with the auto industry. "The interests of the environment and the motoring public are served if the two industries work together," said William O'Keefe, the executive vice president of the American Petroleum Institute.

The oil industry had proposed that only Eastern states and California be subject to strict sulfur regulations, while Western states with lesser air pollution problems be allowed less stringent rules. Oil companies will have to spend several billion dollars to install more sulfur-removing equipment at refineries, Mr. O'Keefe said.

To accommodate the oil companies, the Administration will allow two dozen small refineries an extra two to four years to comply with the sulfur rules, Carol M. Browner, the administrator of the Environmental Protection Agency, said on Friday.




 http://www.nytimes.com

LOAD-DATE: May 2, 1999




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