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NEWS
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NPRA Representative Addresses Sulfur Issue Washington, D.C., April 19, 1999 — Addressing a stakeholder forum sponsored by the Environmental and Energy Study Institute, Robert King, Director of Environmental Fuels Technology, Sunoco, Inc., and representative of the National Petrochemical & Refiners Association, today urged those present to recognize the economic and domestic supply implications that would result from a severe nationwide reduction of sulfur levels in gasoline in the 2004 timeframe. Before a broad audience that included Congressional staff, King stressed the refining industry’s commitment to provide motorists with high quality transportation fuels that are affordable, reliable, and compatible with the environment. The U.S. Environmental Protection Agency will soon propose a new nationwide set of vehicle emissions standards, known as Tier 2. These new standards will include a requirement imposed on the oil industry to reduce levels of sulfur in gasoline. It is widely expected that EPA will require the entire nation to achieve stringent sulfur reductions that are similar to California requirements in a short time frame. King stated that a primary concern of the refining industry lies with this short time frame. King noted that the state of California’s achievement of lower gasoline sulfur standards, trumpeted by environmental activists as a model for the rest of the country, took place over a period of twenty years. Given the transition to Phase 2 RFG in 2000, and a confluence of future major new environmental requirements, such as refinery maximum achievable control technology standard, urban air toxics, and possible new diesel sulfur standards, King said that it is not practicable for refiners to meet a California sulfur level in the short time frame under consideration by the Agency. The mounting pressure to address MTBE-related issues will also pose significant challenges. King noted that California’s stringent fuel standards resulted in the closure of the majority of that state’s small refineries. With the nation’s refining capacity fully utilized today, the imposition of severe sulfur reductions nationwide could likewise drive some small refiners out of business. Given the tight balance between gasoline supply and demand, this could result in price spikes and even temporary supply disruptions. King went on to note that the refining industry proposal is a phased, regional approach that takes into account the vast differences that exist throughout the country. In doing so, King voiced similar sentiments issued by Midwestern lawmakers in recent months. In a February letter to EPA Administrator Carol Browner, South Dakota Governor William Janklow urged the EPA to include the option of regional standards. Janklow stated that, "South Dakotans, who neither contribute to the problem nor benefit from the solution, will pay higher gasoline prices so that regions with real problems in desperate need of a solution will save on vehicle maintenance. That is not fair....The risk that lower sulfur standards will raise prices for South Dakota’s motoring public, farmers, and general citizenry is significant." King stressed that the refining industry is committed to environmental improvement but supports a policy that reflects both supply concerns and regional differences. ~ Home ~ Press Releases ~
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