Maureen Lorenzetti
OGJ Online
WASHINGTON, DC, June 6 -- Environmental groups said Wednesday they fear the US Environmental Protection Agency is already trying to undermine a controversial low sulfur diesel regulation that industry is trying to have overturned in court.
On the table is a plan by EPA to create a blue ribbon advisory panel that would study the impact of the new rule on prices and supply. EPA has used blue ribbon panels before on other controversial issues such as the health effects of the oxygenate methyl tertiary butyl ether (MTBE).
But environmental groups say there is no need for the panel and that the agency should merely do its job and enforce the rule.
Sources close to the EPA discussions said the agency will meet with various interest groups today, June 6, to go over a strategy for an independent panel that would include a wide range of stakeholders including industry, environmental groups, and regulators.
EPA officials could not be reached at press time to comment on the meeting.
Industry sources told OGJ Online that EPA has already agreed to a request by the American Petroleum Institute to have the National Academy of Sciences, or a similar institution, conduct a study to see if the new rule could cause the kind of supply problems feared by industry. The White House made a similar move with regard to conservation by asking NAS in April to study automotive fuel efficiency standards.
Under the diesel rule, federal regulators are also required to review supply and technology issues on an annual basis to make sure the rule won't cause problems.
A recent report by the US Energy Information Administration bolstered industry's argument with White House policymakers. The agency said it could not predict whether refiners and importers will be able to supply enough low sulfur diesel fuel to meet market demand in 5 years (OGJ Online, May 8, 2001).
The agency's comments were in a report requested by the House Committee on Science last December on the possible impact of the new low sulfur requirement on the diesel fuel market. EIA did not offer any recommendations; instead, it presented several possible scenarios that could occur when the 15-ppm standard becomes effective in June 2006.
EIA also noted that under rules issued by EPA last year, up to 20% of highway diesel fuel produced may continue to meet the current 500 ppm sulfur limit through May 2010. The remaining 80% of the highway diesel fuel produced must meet the stricter standard. EIA said that highway diesel represents about 12% of total petroleum consumption, compared to 43% for gasoline.
Contact Maureen Lorenzetti at [email protected]
