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Lyondell urges EPA action on gasoline supply

March 27, 2006
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Lyondell Chemical Company recently said that the nation is likely to see sharp increases in gasoline prices, gasoline supply disruptions and deterioration in air quality as a result of rulemaking to remove the reformulated gasoline oxygen content requirement issued by the U.S. Environmental Protection Agency (EPA). According to PRNewswire, Lyondell submitted comments and recommendations to EPA as part of the public participation process to the rulemaking removing the oxygen content requirement as included in the Energy Policy Act of 2005. Lyondell said that the rules proposed by EPA fail to address Executive Order 13211, which requires that rules or regulations not significantly affect energy supply, distribution or use. The accelerated removal of MTBE, brought on by the elimination of the oxygen content requirement, will negatively impact gasoline price and supply, distribution patterns and air quality, Lyondell said. The negative impacts could be averted if EPA would issue a transition rule that encourages refiners to continue to blend the oxygenate MTBE through the spring and summer, as refiners have for the past 13 years. Additionally, Lyondell urged EPA to engage in a full notice-and-comment review of the impacts on gasoline price and air quality of removing the oxygen content requirement.

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