The timing of new regulations governing sulfur limits and oxygenate preferences in motor fuels topped the agenda at the start of the 100th annual meeting of the National Petrochemical & Refiners Association in San Antonio Mar. 17.
NPRA's meeting focused on changes within the refining and petrochemical industries since the association's inception in 1902 and plans for the future challenges its members will face.
NPRA is undergoing leadership changes as it enters into its second century. Urvan Sternfels is retiring as NPRA president after 21 years at the helm and after 31 years of total service. Sternfels will be succeeded by Bob Slaughter, currently general counsel and director of public policy (OGJ, Mar. 18, 2002, p. 44).
In addition, NPRA welcomed a new chairman, Duane Gilliam, executive vice-president, corporate affairs, Marathon Ashland Petroelum LLC, to a 2-year term.
Gilliam replaces Jerry Thompson, senior vice-president of Citgo Petroleum Corp. Both changes took effect at the meeting's close.
MTBE
The four officers expressed support of California Gov. Gray Davis's decision to extend the delay of California's methyl tertiary butyl ether ban by 1 year.
Gilliam said that this was a "very smart decision" on Davis's part. He also said that ethanol presents a number of technical difficulties and that a reduction of gasoline supply would be one result of the MTBE ban.
Thompson stressed the fact that ethanol cannot be transported by pipeline. He mentioned that delaying the ban would give refiners more time to solve the logistical problems involved with transportation of ethanol from the Midwest to California if, in fact, the ban does occur.
Diesel sulfur
As with last year's meeting, NPRA focused concern over EPA's diesel sulfur rule.
"We think this is a bad rule under the current schedule," Slaughter said. NPRA earlier had estimated that refiners would need 4 years of lead time to implement changes to comply with the rule.
Thompson said that more time is needed to implement technology in a more "prudent and thoughtful way."
Gilliam noted that EPA has set a target date only for the on-road diesel specification. He said that it would be very hard to plan massive investments until the other half of the diesel target is specified.
