Business Notes REGULATION

"A lousy idea," sniped the Motor Vehicle Manufacturers Association. "Unwise and unwarranted," said the American Petroleum Institute. What caused Detroit and the oil industry to blow off steam last week were two Government proposals that could help cut down smog. The rules, put forth by the Environmental Protection Agency, would impose new controls on gasoline content and require improved pollution-control equipment on autos. Acknowledging that the proposals are "controversial," EPA Administrator Lee Thomas said oil companies and automakers "are going to have to spend additional money."

So would consumers, of course. The new regulations would increase the amount of crude oil needed to make gasoline and thus boost costs for refiners. Thomas estimates the additional cost to be $450 million a year, or 1/2 cent per gal. at the gas pump. But oil companies say the burden would be more like $2 billion. The second proposal would require automakers to enlarge the charcoal canisters that are placed inside gas tanks to reduce the emission of fumes. Thomas says this modification would add only $19 to the sticker price of a typical car, but automakers argue that the hike could be as high as $80 in the first year.