By ALISON SIDER
Valero Energy said the cost of complying with new pollution
standards for gasoline will cost hundreds of millions of
dollars in equipment construction and upgrades alone.
Valero spokesman Bill Day said Tuesday that the company
expects to spend $300 million to $400 million building new
equipment to remove sulfur from gasoline and to expand existing
facilities. He said the company
expects to incur additional operating costs each year, and
those costs have yet to be determined.
The Environmental Protection Agency said
most refineries will be able to comply with its plan to reduce
the amount of sulfur in gasoline with little to no effort. The
agency is proposing to cut the sulfur content to an average of
10 parts per million, down from the current standard of 30
parts per million.
Valero is the largest US independent refiner. The American
Petroleum Institute has estimated that the new standards would
cost refiners $10 billion in up-front capital expenditures, and
an additional $2.4 billion in annual compliance costs.
"The EPA hasn't shown anything that suggests [the proposed
standard] is going to have the benefits that would be worth the
costs," Mr. Day said.
He said Valero isn't involved in discussions with the EPA on
the proposal, though he said the industry has had some input at
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