1

Brunner, Christine

From: Sargeant, Kathryn

Sent: Wednesday, February 26, 2014 12:15 PM

To: Tier 3 Rule Team

Cc: Grundler, Christopher; Charmley, William; Birgfeld, Erin; Mylan, Christopher; Hengst, 

Benjamin; Cook, Leila

Subject: FYI: CleanAir Watch and API dueling emails

Importance: High

See below... 

From: Frank O'Donnell [mailto:cleanairfrank@cleanairwatch.org] 

Sent: Wednesday, February 26, 2014 11:19 AM 

To: cleanairfrank@cleanairwatch.org

Subject: Is Big Oil flying the white flag of surrender on "Tier 3" clean-gas, clean-car standards? 

Importance: High 

Dear friends, 

Perhaps the oil industry is now resigned to its fate. I am talking about new EPA smog-fighting “Tier 3” standards that will 

require cleaner gasoline and cleaner new vehicles. 

That’s the only way I can account for the email, below, that API chief Jack Gerard sent out this morning. It looks as if 

Gerard is flying the white flag of surrender and simply asking for surrender terms. 

As I and many others have noted repeatedly, this EPA plan is the best and most effective smog-fighting tool available. (If 

you need more, please let me know!) 

We are hoping that EPA issues a final rule as soon as possible – this week! 

Gerard’s email does nothing more than repeat refuted studies about the cost of the clean-gas standards (less than a 

penny a gallon), about its environmental impact (it will reduce soot and smog-forming nitrogen oxides –enough to 

prevent 2,500 premature deaths a year! )-- while fleet emission reductions will more than offset ghg emissions from 

running pollution control equipment. (Big Oil’s concern for climate seems so lame and hypocritical!) 

Here is email, in case you missed it: 

** 

From: Jack Gerard, API <Jack_Gerard_API@mail.vresp.com> 

Date: Wed, Feb 26, 2014 at 8:44 AM 

Subject: EPA’s Unnecessary New Gas Regulation 

Click to view this email in a browser

February 26, 2014 The Renewable Fuel 

Standard

EPA’s Unnecessary New Gas 
2

Regulation In addition to Tier 3, the 

Renewable Fuel Standard 

(RFS) is part of a regulatory 

wave with the potential to exert 

upward pressure on gasoline 

prices. Learn more about the 

evidence against the RFS.

Follow our Blog to stay upto-date

To stay up-to-date on the latest 

energy-related news, there is 

no better place to check than 

the Energy Tomorrow Blog.

 

Dear xxx, 

Fairly soon, the Environmental Protection Agency (EPA) is 

expected to finalize new restrictions on the sulfur content 

of fuel – restrictions that are both costly and unnecessary. 

Although the nation’s refiners have already reduced

average sulfur content by 90 percent – from 300 parts per 

million (ppm) to 30 ppm -- EPA’s new Tier 3 rule would 

mandate a further reduction from 30 to 10 ppm. 

Simple cost-benefit analysis demonstrates the new Tier 3 

rule is misguided:

• According to a study by ENVIRON, removing the 

last bits of sulfur from gasoline would provide 

negligible, if any, environmental benefits. Baker &

O’Brien found the rule will actually increase CO2 

emissions at U.S. refineries because of the 

energy-intensive hydro treating equipment needed 

to meet the new standard. 

• If finalized, the rule could lead to $10 billion in new 

capital costs; the annual compliance cost is $2.4 

billion, equating to a potential increase of between 

6 cents and 9 cents per gallon to the cost of 

making gasoline, according to a study by Baker & 

O’Brien.

• The EPA’s proposed under three-year timeframe 

leaves little opportunity for refiners to design, 

engineer, permit, construct, start up, and integrate 

the new machinery required – forcing an 

accelerated implementation that adds costs and 

potentially limits the industry’s ability to supply

gasoline to consumers.

• EPA has failed to provide the evidence that this 

new standard would appreciably improve air 

quality. In fact, EPA’s proposed 10 parts per 

million standard is completely arbitrary -- not at all 

supported by science. 

The current Tier 2 standard is still providing sulfur 

reductions, and tailpipe emissions from our nation’s 

vehicle fleet will continue to drop under existing 

regulations as more new cars and trucks come into the 

market that can take advantage of today’s advanced,

cleaner burning fuel. We can all agree that protecting the 

public’s health and the nation’s environment is important. 

However, EPA’s Tier 3 regulations for gasoline go too far, 

too fast. 

Sincerely, 

Jack Gerard 

President and CEO 

API