Energy is not a national issue at this stage of the U.S. presidential campaign and is unlikely to become one later.
But the Bush administration has recognized it can be a regional issue.
On the eve of the Texas, Oklahoma, and Louisiana presidential primary elections last week, the administration made a show of headlining what it was doing for the oil industry.
In the space of a few days, it supported relief from the alternative minimum tax for independent producers, issued its stripper well royalty reduction rule, and reiterated a grab bag of actions it is taking to help increase natural gas use (see story, p. 63).
THIS ONE COULD HURT
Unfortunately, the administration may follow those actions with one thai would harm the oil industry.
President Bush was considering announcing, at a talk in Detroit just before the Michigan primary, that the Environmental Protection Agency would not require the auto industry to install enlarged gasoline vapor recovery canisters on new cars.
He also planned to announce a program to give companies with pollution problems marketable pollution credits if they buy and junk older cars, which emit relatively high levels of air emissions.
The alternative to larger canisters on cars would be to require gasoline marketers to install second stage vapor recovery systems at stations at a cost of $19,000-58,000/station, depending on the number of pumps, plus several thousand dollars a year for maintenance.
The oil and auto industries have been battling over vapors for a decade, and the oil industry thought it had won.
The 1990 Clean Air Act Amendments required EPA to require larger canisters on 1996 model year cars unless the National Highway Transportation Safety Administration concluded that larger canisters posed a safety threat,
Nhtsa waffled but reported no basis for concluding there was a safety risk.
EPA missed its Nov. 15, 1991, statutory deadline for issuing a canister rule, prompting the American Petroleum Institute to sue EPA to force it to act.
DIBONA'S VIEW
Charles DiBona, API president, said last week it would be a serious mistake for the administration not to proceed with the rule.
He said the only legal basis for EPA not to issue a canister rule is a safety problem "and none of the data suggest there is one."
DiBona added, "Japanese car manufacturers have said they don't see a problem. But the American auto industry opposes larger canisters because it would cost them $15 more per car. And the oil industry does not want to modify existing gasoline stations ... with second stage vapor recovery systems."
DiBona said if the Bush administration proceeds to play politics with the canister rule, "we will litigate this."
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
