EPA seeks input on clean diesel fuel rules

The US Environmental Protection Agency Apr. 22 said it wants stakeholders to review low-sulfur diesel standards. Refiners, environmental groups, fuel distributors, and state and local governments will participate.The panel will begin its work in May with EPA seeking recommendations by mid-September 2002. Meetings will be open to the public.

April 24, 2002

3 min read

Maureen Lorenzetti
Washington Editor

WASHINGTON, DC, Apr. 24 -- The US Environmental Protection Agency Apr. 22 said it wants stakeholders to review low-sulfur diesel standards. Refiners, environmental groups, fuel distributors, and state and local governments will participate.
The panel will begin its work in May, with EPA seeking recommendations by mid-September 2002. Meetings will be open to the public.
In a letter to stakeholders, EPA said the panel will review the progress of manufacturers of diesel engines and emission control systems in developing technology to reduce engine exhaust pollutants and of the fuels industry in developing and demonstrating technologies to effectively lower the sulfur level of diesel fuel.

"Since the clean diesel program was only established last year and the affected industries still have almost 5-8 years lead time to meet the standards, we do not expect the panel to find widespread adoption of technologies that meet the 2007 program requirements," said Jeffrey R. Holmstead, EPA Assistant Administrator. "Instead, the panel shall focus on the progress toward development of applicable technologies, looking at information and activities that have taken place since January 2001."

Technical review
Holmstead added that EPA is currently conducting a technical review "as part of our ongoing assessment of progress that industry is making toward the program's implementation. The first of these agency reports will be provided to the panel in order to bring all the participants up to date with EPA's understanding of the situation and to provide a starting point from which to conduct its review."

Last June EPA signaled it would pursue an independent study to take a second look at the Clinton administration-era rule. The rule now on the books would force refiners to meet a 15 ppm standard before 2007 on 80% of diesel supply. The remaining 20% would be phased in by 2010 (OGJ Online, June 6, 2001).

The American Petroleum Institute and the National Petrochemical & Refiners Association have filed suit to block the EPA diesel sulfur rule, saying it could cost the oil industry too much money and lead to fuel shortages. An analysis by the Energy Information Administration 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.

Environmental groups and state air administrators earlier objected to EPA convening the panel, saying the rule should stand as written because it has already gone through an extensive public comment period. They support the rule, saying industry has enough time to adjust to the tighter rules so retail gasoline prices are not dramatically impacted. They also argue that the rules represent a cost-effective way to lower harmful air pollution that costs billions of dollars in public health costs.