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Jun 8, 2006 10:47 AM

The American Petroleum Institute is questioning a study by Democratic staff of the House Energy and Commerce Committee that claims that state regulations have not delayed the refinery expansion permitting process.

“Without seeing the survey itself, a press report indicates that two key refining states, California and Texas, were not included in the survey," API stated in a news release. "If this is the case, the conclusions of this survey are questionable since 47 of the nation’s existing 148 refineries are located in those two states.

“While we do not believe that domestic refining capacity is a significant factor influencing gasoline prices, higher crude oil prices continue to have the biggest influence on fuel prices, we would welcome a streamlined permitting process to bring more capacity online faster."

API is not seeking a regulations rollback, but notes that the current permitting process is complex and time-consuming. "The process is exacerbated by the time it takes agencies to process permit applications, the time and complexity involved with drafting the permit application, the lack of coordination in the review process among various levels of government, and the fact that there are no review deadlines."