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December 2006

News & Media

EPA Says 85 Percent of Highway Diesel Fuel Meets Its Standards 
December 12, 2006 

WASHINGTON – The U.S. Environmental Protection Agency (EPA) reveals that new, cleaner diesel fuel is producing cleaner air, according to preliminary reports. Surveys of retail stations since mid-October show that about 85 percent of highway diesel fuel meets ultra low sulfur diesel (ULSD) standards, exceeding the 80 percent regulatory mandate. 100 percent of highway diesel fuel must meet the ULSD standards by 2010.

"These results show that we are making significant progress in protecting the environment and public health," said Bill Wehrum, EPA's acting assistant administrator for air and radiation, in a press release.

Having clean diesel fuel at the pump will help all Americans breathe easier. ULSD fuel has 97 percent less sulfur than diesel fuel produced in previous years. Under EPA's clean diesel programs, ULSD – combined with the new engine emission control technology kicking in next year – will deliver billions of dollars in environmental and public health benefits by preventing nearly 20,000 premature deaths and tens of thousands of cases of respiratory ailments such as bronchitis and asthma.

Although almost all pumps contain ULSD, preliminary data indicates that some retail stations have not properly labeled their diesel pumps as such. Proper labeling is critical for consumers to know that they are using the correct fuel for new clean diesel cars and light trucks coming on the market.

As of June 1, 2006, all pumps dispensing diesel fuel products – whether providing ULSD, low sulfur on-highway diesel, or off-highway diesel – must be properly labeled. As reported in the December 8 Washington Report, EPA is currently sending reminder letters to retailers who are not labeling all dispensers. However, continued non-compliance will result in fines. The Clean Air Act establishes the maximum fine for violations at $32,500 per violation with each day considered a separate violation.

Furthermore, retailers currently selling ULSD from dispensers labeled as containing 500 parts per million low sulfur diesel must ensure compliance with downgrading limitations. Retailers are permitted by regulation to sell ULSD as low sulfur diesel fuel  for only 20 percent of their total diesel volume sold during a particular reporting period. According to an EPA fact sheet [PDF] released last week,  the current downgrading regulatory period extends from October 15, 2006, to May 31, 2007. Therefore, any ULSD sold as low sulfur diesel fuel since October 15, 2006 counts towards the 20 percent downgrading restriction.

NACS advises its members to review the EPA fact sheet to ensure compliance with the regulations. Additional questions should be directed to John Eichberger in the NACS Government Relations department at (703) 518-4247 or jeichberger@nacsoline.com.