Texas Gov. Greg Abbott fires warning to Biden over EPA rule that could send gas prices even higher

An EPA plan for the Permian Basin in Texas and New Mexico could lead to 'draconian regulations' Texas Gov. Greg Abbott said

Texas Gov. Greg Abbott is asking the Biden administration to halt a plan he said would jeopardize a significant portion of the nation's oil production and increase gas prices even more.

In a letter sent to Biden on Monday, Abbott, a Republican, cited the Environmental Protection Agency's (EPA) plan to impose a discretionary re-designation of the Permian Basin, which is located in Texas and New Mexico, and accounts for 40% of all oil produced in the U.S. 

"While you express concern about out-of-control gas prices, your Environmental Protection Agency (EPA) is threatening to increase them even further," the letter said. "The EPA’s process could interfere in the production of oil in Texas which could lead to skyrocketing prices at the pump by reducing production, increase the cost of that production, or do both. Your administration's announced action is completely discretionary. Thus, you have the power to stop it."

The EPA recently announced plans to tighten air quality standards at the basin, a move that could result in "draconian regulations," Abbott said. 

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Texas Gov. Greg Abbott on the Permian Basin

An oil pump is seen operating in the Permian Basin near Midland, Texas. Texas Gov. Greg Abbott is asking the Biden administration to halt a plan at the basin he said could lead to higher gas prices.  (Reuters / Reuters Photos)

"EPA is now considering a discretionary redesignation for (portions of) these counties in New Mexico and Texas for the 2015 ozone NAAQS under Clean Air Act section 107(d)(3) based on current monitoring data and other air quality factors," the Biden administration wrote. "If the area is redesignated to nonattainment, the state(s) will be required to submit a State Implementation Plan to bring the area into attainment with the 2015 ozone NAAQS."

The basin is responsible for 5.2 million barrels of oil per day, which can be processed into about 95,000,000 gallons of gasoline each day, Abbott said. 

"If you let the EPA move forward with the untimely and unnecessary measures that accompany redesignation, that action will put at risk 25 percent of American oil supply," the letter said. "That, in turn, could substantially increase the cost of gasoline."

He said he wants a response by July 29. If the EPA moves forward, Texas will take action to protect oil production and "the gasoline that comes from it," the governor said. 

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