WASHINGTON – On Sunday, October 15, the U.S. Environmental Protection Agency's (EPA) regulations regarding ultra low sulfur diesel (ULSD) took effect at most retail locations across the United States.
During a press conference last week, EPA Administrator Stephen Johnson commented the new ULSD regulation "is the single greatest achievement in clean fuel since lead was removed from gasoline."
The EPA notes that when fully implemented, "clean diesel fuels and engines will result in more than $70 billion annually in environmental and public health benefits at a fraction of the cost ($4 billion per year). Expanded use of ULSD also will enhance energy security since diesels tend to be more fuel efficient than gasoline engines."
San Antonio-based Valero Energy Corp. spokeswoman Mary Rose Brown told the San Antonio Express-News that the company ready for the switch and would have ULSD available at all of its company-owned locations by October 15.
Tesoro Corp., also based in San Antonio, has been selling ULSD in California because state specifications required it, notes the newspaper. "We see this as an easy transition," Tesoro spokeswoman Natalie Silva commented.
Meanwhile, according to the American Petroleum Institute (API), the "move to clean diesel fuel doesn't come without cost," notes the newspaper, adding that according to the group, the switch is "the most costly and complex change ever experienced in the U.S. fuels market."
The newspaper notes that transition also presents "some challenges" for retailers, as the violations of the sulfur standard are subject to the Clean Air Act civil penalty of $32,500 per violation.
"That's one year's gas profits in one violation," NACS spokesman Jeff Lenard told the newspaper, adding, "You have to depend on the integrity of the distribution channel."
In December 2000, the EPA promulgated regulations requiring the installation of advanced emissions control devices on model year 2007 and later diesel engines. To enable these devices to operate efficiently, the EPA further required a 97 percent reduction in the sulfur content of on-road diesel fuel.
On June 1, 2006, refiners were required to convert 80 percent of their on-road diesel production to the new sulfur standard of 15 parts per million; 100 percent of on-road diesel fuel production must comply with this standard as of June 1, 2010. Although there is no requirement for retailers to sell ULSD until December 1, 2010, many retailers will choose to offer ULSD to their customers before that date. Effective October 15, any retailer selling ULSD must ensure the sulfur content does not exceed 15 parts per million. Violations of the sulfur standard are subject to the Clean Air Act civil penalty of $32,500 per violation.
NACS encourages retailers choosing to sell ULSD to communicate with their suppliers to verify adequate quality assurance programs are in place to ensure the product delivered to their facilities is compliant with regulations.
Log on to the "Government Relations" section at NACS Online for more information on implementation of the ULSD regulation.