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EPA's Proposed Rule on Tier II Standards and Reduced Sulfur in Gas

3 May 1999

Statement by the Association of International Automobile Manufacturers, Inc. on the EPA's Proposed Rule on Tier II Standards and Reduced Sulfur in Gasoline

    WASHINGTON, May 1 -- "The Association of International
Automobile Manufacturers, Inc. (AIAM) and its member companies are encouraged
by the Environmental Protection Agency's (EPA) recognition, through its
proposed rule, that motor vehicle emissions and fuel quality controls must
work together as a system to bring about significant and lasting emissions
reductions," stated Philip A. Hutchinson, Jr., President and CEO of AIAM.
    Reducing the sulfur content in gasoline nationwide from 330 parts per
million (ppm) to 30 ppm would have an immediate impact on the environment, and
be the equivalent of removing the emissions of 54 million cars from our
nation's highways.
    "AIAM supports the need for a 30 ppm gasoline and diesel sulfur standard
nationwide and year-round," stated Greg Dana, Vice President of Environmental
Affairs.  "However, we need to recognize that further improvements will be
necessary to achieve maximum reductions from current technology and to enable
advanced technologies in the developmental stage," Dana added.
    It is estimated that the costs associated with lower sulfur will range
from one to two cents a gallon.  That means an average family will spend from
only ten to twenty dollars more a year for dramatically reduced emissions from
their motor vehicle.
    "If we do not reduce sulfur in gasoline nationwide, the economic
consequences may result in lost facilities, jobs, and opportunities in many
communities as these areas try to meet tougher clean air standards set by
EPA," said Hutchinson.
    According to Dana, international automakers believe the EPA has taken the
right steps in its proposal.  "We look forward to working with the Agency in
the process of finalizing this regulation and ensuring that critical issues
such as Distillation Index and potential MTBE phase-out in gasoline are also
given proper consideration," Dana added.
    "EPA's proposed emission standards provide a difficult challenge for auto
manufacturers.  Our member companies have been at the forefront of many
environmental achievements, and we will work diligently with EPA as the Agency
develops its final rule," added Hutchinson.

    AIAM is the trade association representing the US subsidiaries of
international automobile companies doing business in the United States.
Member companies distribute passenger cars, light trucks and multipurpose
passenger vehicles in the US.  Nearly two-thirds of these vehicles are
manufactured in the New American Plants established by AIAM companies in the
past decade.
    International Automakers support American jobs in manufacturing, supplier
industries, ports, distribution centers, headquarters, R & D centers and
automobile dealerships.  AIAM also represents manufacturers of tires and other
original equipment with production facilities in the US and abroad.