US regulators should be mindful that refiners still face unresolved downstream issues when drafting new low-sulfur rules for diesel-powered boats and trains, the National Petrochemical & Refiners Association said Aug. 30.
A final rule is not expected until next year.
In comments filed with the US Environmental Protection Agency, NPRA said it generally supports EPA's draft plan to dramatically lower nonroad diesel sulfur levels. But the group said its members are worried that the multitude of regulatory programs the industry is facing might increase the chance of a supply disruption.
NPRA also said there is a chance that engine manufacturers might not have the right equipment in time to meet a proposed 15 ppm sulfur standard by 2012.
"The refining industry is concerned that despite the efforts by the industry now under way and likely to be continued over the next few years, unresolved downstream implementation issues remain—pipeline, terminal, retail distribution—that could adversely impact total supply," said NPRA Pres. Bob Slaughter.
"Despite this, NPRA and the rest of the fuel supply stakeholders will continue their efforts to work with EPA to address, eliminate, or at least minimize these potential problems," he said.
Last May EPA issued a final rule that will cut sulfur levels in diesel fuel used for construction, agricultural, and nonroad equipment to 500 ppm in 2007 and 15 ppm by 2010; industry's total cost should run about 7¢/gal on average, EPA said. A low-sulfur "highway" diesel fuel rule already in place requires 80% of highway diesel to meet a 15 ppm level by mid-2006 (OGJ, May 17, 2004, p. 29).
NPRA comments
In its latest comments, NPRA cited a General Accounting Office report released in March that agreed with NPRA's position that pipelines might find it difficult to maintain required diesel sulfur limits for both highway and offroad diesel fuels.
The group also challenged EPA's assertion that states will be able to count low-sulfur fuels as a smog-reducing strategy to meet tougher federal ground-level ozone standards.
NPRA said many areas must show they meet federal guidelines before 2010, before the full impact of the rule has kicked in. Therefore, refiners will have to turn to other, expensive pollution control strategies to meet new pollution standards.
"As a consequence, the refining industry will be required to install additional stationary source controls at existing facilities with significant costs because many of these benefits cannot be included in the pre-2010 compliance submissions," NPRA said. "In addition, more areas will have to resort to additional boutique fuels programs in an attempt to demonstrate compliance," Slaughter said.
State regulator view
A group representing state and local air regulators urged EPA to stick to its guns and establish a "rigorous engine-standard schedule on an expeditious schedule."
Until new standards are in place, EPA projects that railroad and marine diesels will account for some 27% and 45%, respectively, of total nitrogen oxides (NOx) and particulate matter (PM) pollution coming from mobile sources.
Officials with the State and Territorial Air Pollution Program Administrators and the Association of Local Air Pollution Control Officials said there is a compelling need to control emissions from diesel locomotives and marine engines.
"Because these engine categories are subject only to minimal controls, not only do they currently emit substantial quantities of PM and NOx, their relative contribution to emission inventories is anticipated to increase due to expected future growth in these sectors and the extensive reductions in emissions scheduled to occur from the onroad and nonroad diesel rules," the group said.
