EPA Fuel Rule Will Raise Prices At The Pump

Political Realities ^ | 03/29/13 | LD Jackson

[LD Jackson]

If there is one thing we can depend on, it's that liberals will be liberals. That includes the liberals who are running the EPA. Leave it to these guys to figure out a way to "save the environment" and raise fuel prices at the same time. That's exactly what a new rule the EPA is set to announce will do. According to news reports, the EPA wants to do more to clean up automobile and gasoline emissions. Thus, the new rule, which will kill two birds with one stone.

(Fox News) The proposal, released Friday morning, aims to reduce sulfur in gasoline by more than 60 percent in 2017. The agency claimed the change would save lives and cut down significantly on respiratory ailments by making the air cleaner.

But critics questioned those claims, and said the plan would impose higher gas prices on hard-hit families.

"Increases in gas prices disproportionately hurt the nation's most vulnerable individuals and families -- with $4 dollar a gallon gas the norm in many parts of the country, we cannot afford policies that knowingly raises gas prices," Energy and Commerce Committee Chairman Fred Upton, R-Mich., said in a statement. "The Obama administration cannot be more out of touch. With hard-pressed families already struggling to afford each fill-up, Congress needs to take a hard look at any new EPA regulation that may raise the price at the pump."

The oil industry pointed to a study that found the changes could increase the cost of gasoline by up to 9 cents per gallon. The study projected an annual compliance cost of $2.4 billion for the industry.

It should be noted here that no one really knows for sure how the new rules will affect prices at the pump. As it is with any new regulation or legislation, the consequences are greater than first stated, many times. It is an admirable thing to want to have cleaner air for all of us, but have we not already reduced emissions with the new fuel standards already adopted by the automobile industry? Those were courtesy of the Obama EPA as well. Now they want more of our skin in the game.

From what I have read, it appears they are aiming for 2030, when they say the new rules will have prevented 2,400 premature deaths and 23,000 cases of respiratory ailments in children. I can't help but wonder where they came up with those numbers, but one thing is clear. Just like with Obamacare, the EPA is making the claim that the benefits of the new rules and regulations will only be apparent years down the road, but they want us to start paying the piper now. We have already seen how truthful the Obama administration was about Obamacare and having done so, I am not left with a lot of confidence that the EPA isn't just blowing a lot of smoke.

Of course, the EPA is denying the new rule will have a major impact on consumers and the price they pay for fuel. Ed Morrissey takes more than a little exception that theory and points out something rather obvious about the EPA claims that the oil refineries will not be overly affected.

(Hot Air) That’s still a lot of refitting, and part of the reason why gas prices jumped so high this year has been maintenance down time. The US operates near full capacity at all times to keep up with demand, one of the problems created by opposition to building new refineries, which would already have this technology in place. If 66 refineries need “modifications” and another 16 need major overhauls to comply within four years, that means that 74% of our refineries will be experiencing additional down time during that period. That sounds like a recipe for shortages and price shocks. And so far, prices haven’t come down a lot after the round of supply issues of this year.

The EPA is supposed to carefully consider the economic impact of any new rule or regulation they hand down. Maybe they have done so with this new rule, but methinks they haven't paid enough attention to their findings. Either that, or they are ignoring the facts. All for the good of the environment though, so it's for a good cause.

[FlingWingFlyer]

To heck with the Congress! We’re the EPA gods!!! The Federal “government” is out of control.

[RicocheT]

The current standard for sulfur in gasoline is 30 parts per million, already a very small amount in the product. If it must be refined to end up to only 10 ppm, the process becomes very costly as driving an already low number to an even lower number involves the law of diminishing returns, it’s harder to wring more water out of the sponge when it’s already been wrung hard. The cost is born by the consumer and we already find high gas prices are hard on our wallets and hard on the economy.

These clean air nuts are on a religious mission and do not care that when you tinker with energy matters you affect jobs, the overall economy and each individual consumer. Meanwhile China allows its refiners to make much dirtier gas and diesel for internal use as its economy and ability to produce is the main point of that government.

[PIF]

Like ethanol, it will probably reduce millage, be harder on engines, and not runnable in small engines.

[Vaduz]

Guess the feds are ready to offer a higher discount on the Volt cars again.
The or else plan in in effect.