COALITION CALLS FOR CARB SPEC DIESEL MORATORIUM

A coalition of truckers, farmers, and business leaders in California has asked that state's Gov. Pete Wilson impose a 6 month moratorium on the new diesel formula required under state law.

That new formula, calling for tougher than federal specifications for diesel that took effect Oct. 1, has been linked to supply shortfalls, price spikes, and engine damage in California (OGJ, Oct. 18, p. 32). Wilson appointed a task force to study effects of the new diesel on the California market and engine performance (OGJ, Nov. 8, p. 34). After holding hearings last week, the task force was scheduled to issue its final report Nov. 15.

The California Air Resources Board (CARB) ordered all diesel fuel sold in the state beginning Oct. 1 to contain no more than 0.05 wt % sulfur. It also ordered severe cuts in aromatics levels-or comparable aromatic hydrocarbon emission reduction steps-to reduce overall diesel air emissions.

New federal diesel rules, which also took effect Oct. 1, called only for reduced sulfur levels for on-highway diesel.

After the supply crunch and price spikes, CARB issued an emergency order exempting agricultural and other off-highway users from having to purchase the new spec diesel (OGJ, Oct. 25, Newsletter).

COALITION GOALS

Joel Anderson, executive vice-president of the California Trucking Association, said, "Clearly, more research must be done regarding the impacts of this new fuel before the state further jeopardizes California's business community."

The Diesel Users Coalition contends a 6 month moratorium will immediately relieve upward pressure on fuel prices and allow enough time to study effects of low aromatic fuel on diesel engines and perform a cost/benefit analysis of using only the California spec fuel.

"Since September, when diesel fuel operators began using the new fuel mandated by CARB, prices have skyrocketed, fuel pumps have broken down, and diesel sales at truck stops in California have plummeted," the coalition said. "Because interstate truckers are fueling at the border before coming into California, the state stands to lose tens of millions of dollars in diesel fuel tax revenue."

CARB had assured California diesel fuel users prices would climb by only about 6cts/gal and there would be no significant supply problems as a result of the new diesel rule. However, within 2 weeks of the new spec fuel's introduction into the market, prices at some California truck stops shot up by as much as 40cts/gal and supply shortfalls were widespread, especially in northern California.

"These new regulations have caused diesel shortages, raised prices, and put people out of work in California," said Jim Gigoux, executive vice-president of the California Independent Oil Marketers Association.

"By requiring a separate fuel for California, CARB has placed diesel fuel users here at a competitive disadvantage with other states and cost California millions in tax revenue, all at a time when we need to be protecting-not bankrupting-business."

"The irony about this whole government debacle is that no one is benefiting-not the environment, not the state, and certainly not California's diesel-dependent industries," said Manual Cunha, Nisei Farmers League, Fresno.

NEW FUEL SHORTCOMINGS

The coalition said CARB instituted the new diesel spec rule based largely on results of a study the agency has kept confidential and has not subjected to scientific review.

In addition, CARB admits it never studied first hand the effects of low aromatic fuel on diesel engines, the coalition said.

"The result has been an alarming increase in fuel pump failures because of the new fuel, which reduces engine lubrication," the coalition said. "Since the middle of September, when they began using the new fuel, some trucking companies in California have reported fuel pump failures at a rate hundreds of times above normal.

"Because California's new diesel is more expensive and potentially damaging to engines, interstate truckers have been stocking up on fuel at the borders before coming into California. Shortly after the new regulations went into effect, one truck stop operator in Redding, Calif., reported losses approaching 70%. During the same period, a truck stop near Las Vegas reported a 40% increase in business."