http://www.nytimes.com/2001/01/25/politics/25DIES.html

January 25, 2001

Oil Industry Seeks Softening of Clinton Clean-Air Rules

By DOUGLAS JEHL


WASHINGTON, Jan. 24 - The oil industry has begun a major campaign for 
changes in the strict clean-air standards for buses and big trucks 
that were ordered late last year by the Clinton administration.

Industry representatives are urging the Bush administration, Congress 
and the federal courts to revise the rules, which refiners say could 
lead to shortages and price increases for diesel fuel when the 
guidelines begin to take effect in 2006.

The issue could provide an early test of willingness by the Bush 
administration and the Congress to challenge what critics have 
portrayed as hasty and misguided decisions by the Clinton 
administration on environmental policy.

The new standards, which would affect the heaviest polluters on 
American roads, were portrayed by the Clinton administration and its 
allies as the most important clean-air advances in a generation.

In expressing dissent, oil industry representatives have emphasized 
their support for measures aimed at reducing pollution from buses and 
trucks. But they say the new rules go too far and would impose 
unnecessary and potentially disruptive requirements on refiners.

The National Petrochemical Refiners Association, which represents 
virtually all American refiners, plans to challenge the new rules in 
federal court as part of a broader bid to explore "basically every 
avenue for revision," Bob Slaughter, the group's general counsel, 
said.

"We would hope that the new administration would be more interested 
in balancing energy supply and environmental concerns, because it's 
possible to strike a better balance," Mr. Slaughter said.

In recent months, the oil industry has said repeatedly that it could 
accept new standards that would require as much as a 90 percent 
reduction in the sulfur content of the diesel fuel used by the buses 
and big rigs. But it has opposed the Clinton measure, which would 
require a 98 percent reduction, on grounds that the further cuts were 
environmentally unnecessary and could put some refiners out of 
business.

A study conducted last year for the industry found that the Clinton 
standards could lead to a 12 percent shortfall in the supply of 
diesel, the main fuel for the transportation industry. That study 
said the cost could go up more than 15 cents a gallon.

A spokesman for ExxonMobil, Jeanne Moore, said today that the company 
had joined others in endorsing the more moderate plan because it 
would "provide virtually the same environmental benefits as the 
E.P.A.'s more severe rule but at a lower cost to consumers, and 
without placing diesel fuel supply at risk."

But in its own analysis, the Environmental Protection Agency 
concluded that shortages and price surges were unlikely, even with 
the steeper reduction in diesel content. It said the cost of the 
regulations would increase diesel fuel prices by only about three to 
five cents a gallon, while bringing far greater health benefits.

The Clinton White House upheld those findings as part of the 
administrative process that preceded its announcement of the new 
standards in December. The Bush administration could amend the diesel 
rules only by restarting the time-consuming procedure that produced 
the new standards.

But Congress could overturn the measure by a majority vote if it acts 
before March 17, and at least one senator, James M. Inhofe, 
Republican of Oklahoma, has indicated that he might press for just 
such an action.

At least two major oil refiners, British Petroleum and Tosco, have 
broken ranks within the industry by supporting the Clinton 
administration rules.

The American Petroleum Institute, the industry's main trade group, 
has listed the issue as one of its major concerns, but a senior 
official said today that the group had not decided whether to join 
any formal challenge. "Frankly, we are looking at all of options on 
how to deal with it," the official, Edward H. Murphy, said. "We are 
supportive of the basic objectives, so we don't want to take action 
that would interfere with the environmental benefits."

Copyright 2001 The New York Times Company

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