| October 27, 1999
The Honorable Carol M. Browner
Administrator
U.S.
Environmental Protection Agency
401 M Street, NW, Rm.
1200
Waterside West Building
Washington D.C. 20460
Dear Administrator Browner:
Last June, Western Governors sent you a letter expressing
concerns about the impact the Environmental Protection Agencies
proposed rule to reduce sulfur levels in gasoline would have on the
operation and viability of small, western refineries. At that time,
we informed you that we had referred the issue to the Western
Regional Air Partnership’s (WRAP) Mobile Source Forum and asked the
Forum to evaluate the merits of a regional versus a national
standard, redefine small refineries to be less restrictive, and
develop flexible compliance requirements for this new category of
small refineries.
This effort by the WRAP is a resounding example of Enlibra in
action. Through a remarkable stakeholder process which included
representatives from the refinery industry, automobile
manufacturers, environmental groups, tribes and states, the WRAP
developed a consensus recommendation on these issues. The
recommendation supports the proposed rule’s national standard for
sulfur in gasoline providing the WRAP’s new small refinery
definition is adopted and this new category is given a phased-in
reduction schedule that lies between large refinery and Small
Business Regulatory Flexibility Act refinery compliance requirements
and schedules in the proposed rule.
We urge you to adopt the WRAP’s recommendation. The WRAP
recommendation, which supports the national standard in the proposed
rule, ultimately produces the full air quality benefits associated
with the rule and would achieve 98 percent of the benefit of the
proposed rule during the phase-in of the standard for the new small
refinery category. In other words, with a temporary loss during the
period of phase-in of only 2 percent of the air quality benefit of
the proposed rule, we can ensure the viability of small inland
refineries in the West, and as a result prevent the loss of jobs,
disruption of the supply of gasoline, and disproportionate increases
in the cost of gasoline.
We also strongly believe that the viability of small western
inland refineries is largely independent of ownership category.
Independent and corporate-owned small refineries are captive to the
same competitive market conditions and decisions on investments, and
needed returns on these investments will be driven singularly by
demands for profitability. To put it simply, large corporations will
not subsidize losing operations.
We hope you appreciate and respect the significance of reaching a
consensus on this issue in the West. There were great divides
separating states and among stakeholders when we began our
discussions and only because of the commitment to the environment
and the desire for fairness and balance on the part of all parties
was consensus reached. Also, please understand that because of the
enormous amount of give and take, the consensus is carefully
crafted, and any selective use of the recommendations may severely
undermine the collective support for them.
Finally, it is our understanding that Bob Perciasepe has offered
to meet with Western interests on this matter. We will take Bob up
on this offer and look forward to our discussions.
Sincerely, |