SALT LAKE CITY — The president and CEO of the company that owns the Big West Refinery and Maverik convenience store chain told a committee of lawmakers that the transition to producing the cleaner burning Tier 3 fuel is costlier and more complicated than initially envisioned.
“It is not a boilerplate thing to get done,” said Crystal Maggelet with FS Management. “We were still working through the engineering at the time. We didn’t know how much it would cost us and how long it would take.“
Big West and HollyFrontier are not yet producing Tier 3 fuel, which in newer cars reduces tailpipe emissions by 80% and in older vehicles by about 11%. The state’s three large refineries — Marathon, Chevron and Silver Eagle — are producing the fuel and received the sales tax credits that are due to expire for refineries not producing the fuel in 2021.
Sen. Ralph Okerlund, R-Monroe, wants to extend a sales tax exemption to the two refineries via SB239 to encourage the transition to Tier 3 fuel, providing the break until Dec. 31, 2024, if the refineries report their progress on the investment.
“We think this is the way to get to Tier 3 the fastest,” he said.
But opponents say the measure rewards refineries for their inaction.
“We are concerned these refineries have done nothing to move in that direction,” said Noah Miterko, policy associate with HEAL Utah, adding the organization believes the bill is too vague and doesn’t define the parameters of how a refinery’s progression toward Tier 3 fuel production is measured.
Craig Provost, a volunteer with the Utah Sierra Club, said the bill is a bad move and encourages even further delays in Tier 3 production.
“It seems unfair, and we need cleaner air sooner,” Provost said.
Maggelet said the $130 million investment needed is in the company’s current capital budget with a goal to be producing Tier 3 fuel by the end of 2024.
Sen. David Hinkins, R-Orangeville, said anything the state can do to encourage the Tier 3 fuel transition, it should.
“This is going to be the biggest bang for our buck. Anyone who wants clean air should vote for this,” he said.
The measure passed out of the Senate Natural Resources, Agriculture and Environment Committee unanimously.