EPA plans independent review of diesel sulfur rule in mid-2002

Sept. 20, 2001
The US Environmental Protection Agency Thursday said it expects to conduct an "independent review" of the controversial low sulfur diesel rule in mid-2002. The current rule would force refiners to meet a 15 ppm standard in 2006 on 80% of diesel supply.

By the OGJ Online Staff

WASHINGTON, DC, Sept. 20 -- The US Environmental Protection Agency Thursday said it expects to conduct an "independent review" of the controversial low sulfur diesel rule in mid-2002.

The blue ribbon panel will include members of the oil industry, environmental groups, state regulators, automakers, and other interested parties, EPA officials told the Hart World Fuels Conference in Washington, DC.

Last June EPA signaled it would pursue an independent study to take a second look at the rule, which the agency implemented during the administration of former President Bill Clinton. The current rule would force refiners to meet a 15 ppm standard in 2006 on 80% of diesel supply. The remaining 20% would be phased in by 2010 (OGJ Online, June 6, 2001).

Karl Simon, acting deputy director of the agency's assessment and standards division, said no specific persons are under consideration for the panel, which will focus on "the progress" industry has made meeting the rule so far.

"We are just at the beginning," Simon said.

A handful of refiners have said they can meet the standard in time. But most companies say the regulation is too stringent and are suing in court to prevent the agency from carrying out the rule. EPA says the lead times are sufficient, and environmental groups say the rule is needed to ensure air quality.

Green groups and automakers say the review panel is a waste of time. Their spokesmen said the groups plan to be "actively" involved in the panel to ensure that EPA does not turn its back on the rule.

Meanwhile, industry has protested the rule in complaints lodged with the White House Council on Environmental Quality and to Vice-Pres. Dick Cheney's office. Industry has gotten a sympathetic reception at the Department of Energy, where some policy makers are concerned that the rule may be too much of a strain on supply, given refiners have to meet a low sulfur gasoline rule in 2004.

EPA argues refiners have sufficient lead time to meet the standards and that technology exists to make the changes needed.

Briefs in the pending diesel sulfur lawsuit are due Oct. 1. Simon predicted the legal battle would be protracted.