EPA plan to ramp up tail pipe standards and reformulate gasoline garners automaker support and big oil opposition

EPA plan to ramp up tail pipe standards and reformulate gasoline garners automaker support and big oil opposition

EPA proposed standards last week designed to reduce sulfur levels in gasoline and tailpipe emissions by 2025, saying that the move will save 2,400 lives per year by 2030. Automakers say they are on board with the plan because lower sulfur emitting vehicles are more in line with the advanced technology required for the formidable mpg mandate from the EPA for cars in the future. Automakers are also supportive of EPAs plan because it comes with an assurance from the government of a 50 state tailpipe standard instead of the lame California states/federal states approach from days gone by. Oil companies concerned about the economic challenge they foresee in reformulating gasoline, such as overhauling refineries, believe it is significant enough to harm the overall economy and, accordingly, are opposed to the low-sulfur plan.

Everyone acknowledges, however, that, yes, the cost of the ramped up standards will cost motorists; one cent per gallon according to EPA and nine cents according to the oil companies. Correspondingly, there is no disagreement that the average price of a new car will rise $130, measured in 2013 dollars, by 2025.

Just as the low sulfur proposal would include a 50 state tailpipe regulatory scheme, the automakers point out that it is also comparable to vehicle standards in Europe and Japan. They also note that catalytic converters should last longer with the low sulfur standard, by as much as 20% going from a projected 125,000 miles to 150,000.

Is the juice worth the squeeze? Or on point: Will gasoline production be set back and motorists less apt to buy and drive cars because of increased cost? It would appear that no one will know for sure until 2025. Here and now, however, its probably safe to say that EPAs low sulfur proposal will become the law of the land.