The effects of air pollution regulations on the US refining industry. Task 3

Numerous air pollution regulations affecting petroleum refineries recently have been promulgated, have been proposed, or are under consideration at the federal, state, and local level. As shown in Figure ES-1, all of these environmental regulations are intended to take effect over the relatively short time period from 1989 through 1995. In the aggregate these regulatory activities have significant implications for the US refining industry and the Nation, including: Major investment requirements; changes in industry profitability; potential closure of some refineries; and potential changes in crude oil or product import dependence. At issue is whether the cumulative effect of these regulations could so adversely affect the US refining industry that US national security would be affected. In addition to the regulations outlined in Figure ES-1, President Bush recently presented a major new plan to improve the nation`s air quality. The aspects of the President`s plan that could strongly affect US refineries are summarized below.