Industry group: Low carbon proposal threatens Hyperion refinery

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New environmental regulations for transportation fuels being considered in Congress would deal a “devastating” blow to U.S. projects like the proposed Hyperion Energy Center in Union County, according to a coalition of business groups.

Some majority Democrats back legislation that would lower carbon emissions in U.S. vehicles. The Low-Carbon Fuel Standards, or LCFS, would penalize heavier, dirtier oil such as the crude from the Alberta, Canadian oil sands that Hyperion plans to process.

Last month, Hyperion secured a state air quality permit for its $10 billion refinery, which would process of 400,000 barrels per day.

“No permit in the world is going to save this project if LCFS is put in place,” said Chris Tucker, a spokesman for the Consumer Energy Alliance, a 125-member group that includes oil companies, retailers, trucking and transportation groups and business organizations like the U.S. Chamber of Commerce.

At top is a YouTube video of a TV ad that the CEA is airing in South Dakota, as well as three other states — North Dakota, Montana and Tennessee — with industries dependent on heavier oil. The S.D. ad encourages viewers to call the state’s two U.S. senators — Republican John Thune and Democrat Tim Johnson.

The group’s television and radio campaign, scheduled to last two weeks, attempts to educate consumers about the issue, warning that LCFS threatens to cost Americans jobs, drive up prices at the pump and increase U.S. dependence on Mideast imports.

A broader, better known climate control bill, known as Waxman-Markey, or cap-and-trade, passed the House in June without the low-carbon fuel provision, which was removed during negotiations. But CEA officials fear supporters will revive the low carbon language and insert it into other legislation during the current session of Congress.

Tagged as: America carbon, Carbon Emissions, low carbon fuel

Posted on September 7, 2009 · in USA