Industry groups urge appeals court to remand diesel rule to EPA

Trade associations representing refiners and marketers have asked a federal appeals court to order the US Environmental Protection Agency to revise a controversial low-sulfur diesel rule. EPA plans its own independent review in 2002 but industry wants legal assurances the agency will reconsider the rule.

Oct. 3, 2001

2 min read

By the OGJ Online Staff

WASHINGTON, DC, Oct. 3 -- Trade associations representing refiners and marketers Wednesday said they are asking a federal appeals court to force the US Environmental Protection Agency to revise a controversial low-sulfur diesel rule.

The National Petrochemical & Refiners Association (NPRA), American Petroleum Institute (API), Society of Independent Gasoline Marketers of America (SIGMA), National Association of Convenience Stores (NCAS), and Antek Instruments filed a brief with the US Court of Appeals for the DC Circuit. They claim EPA disregarded its duty to assure an adequate supply of diesel fuel in the early years of the program.

The associations said they are concerned that the rule, as written, will lead to shortages of diesel fuel beginning in 2006. The US Energy Department in a recent analysis, also warned shortages were a possibility, although not a certainty.

EPA said industry has enough lead time to comply with the rule, which it said is needed to protect public health. Environmental groups support EPA's action but have criticized its willingness to revisit the rule as part of an independent review part in mid-2002 (OGJ Online, Sept. 26, 2001).

API has warned that an adverse impact on diesel fuel supply could sharply increase transportation costs, raising prices for consumer goods trucked throughout the nation.

EPA�s rule requires a 97% reduction in highway diesel fuel sulfur levels by mid-2006.

Some trade groups that represent small business such as SIGMA, NACS and NPRA told the DC Circuit Court that EPA�s regulations could result in severe financial problems for small business marketers and distributors. They also said EPA failed to follow legal requirements to consider the impact of the rule on small businesses.

They explained that many small businesses won't be able to afford new storage tanks and other infrastructure that may need to be built to accommodate a second grade of highway diesel fuel during the phase in period.

NPRA, SIGMA and NACS also argued that EPA overstepped its legal authority to regulate motor fuel when it improperly selected one particular nitrogenxide control technology that is still on the drawing board as its basis for the 15 ppm sulfur requirement, API said.

Petitioners also argued that EPA�s selection of an inappropriate compliance test method should be reversed. The brief requests that the rule be vacated and remanded to EPA for reconsideration. Oral argument has been scheduled for Feb. 26.