Office of Transportation EPA420-F-05-051
~" andAirQuality November2005
Umied Stales
of
to
to the
2
The highway fuel sulfur rule, issued in 2001, becomes effective in
June 2006. The fuel industry has concerns that the required
nationwide transition from higher sulfur to ultra-low sulfur (ULSD)
fuel may require a limited amount of additional time. EPA is providing 45
additional days for the transition to be completed while ensuring that
ULSD will be available exclusively when new engines are
introduced.
Background
As a result of the highway diesel fuel sulfur program, finalized in 2001, there
will be a nationwide transition in 2006 of most diesel fuel from low-sulfur
diesel (LSD)to ULSD (diesel fuel that meets the 15 parts per million [ppm]
sulfur standards). This program was carefully designed, through an extensive
process of discussion and comment with industry and others, to ensure the
successful transition of the diesel fuel distribution system to ULSD nationwide.
The design of the program also incorporated an understanding that as new
2007 diesel engines and vehicles are introduced, ULSD must be universally
available for them to use.
-------
Earlier this year, some companies in the diesel
fuel production and distribution industries
indicated to us that they may be unable to
complete the transition to ULSD by the
current deadlines at the very furthest reaches
of the distribution system. In response, EPAis
making limited changes to the transition
provisions for entities in the highway diesel
distribution system. These changes will facili-
tate the rapid and complete shift to ULSD
without seriously interfering with the planned
introduction of the new diesel engines and
vehicles that need thi s clean fuel.
The impacts of the recent hurricanes along the
Gulf Coast of the United States are not a
contributing factor in making these changes.
The need for the limited actions taken in this
tulemaking was identified prior to the storms.
To the extent that individual refineries identify
hurricane-related i ssues with meeting ULSD
requirements, there are existing regulatory
provisions to address such concerns. The
additional flexibility provided here is available
only to entities downstream of refineries, and
there is no change in the June 1, 2006 start
date for refiners to be producing ULSD.
Overview
The goals of this rule are met with three limited
revi sions to the exi sting highway diesel pro-
gram. First, we extend the ULSD implementa-
tion dates for terminals and retail outlets by 45
days. Terminals will have until September 1
(vs. July 15), 2006, and retailers will have until
October 15 (vs. September 1), 2006, to
complete their transitions to ULSD. Second,
fuel up to 22 ppm sulfur temporarily may be
sold as ULSD at terminals until September 1,
2006 and at retail outlets until October 15,
2006. Third, we extend the beginning of the
restriction on how much ULSD can be
downgraded to higher sulfur fuel by 15 days,
to October 15,2006, to be consistent with the
end of the new transition dates.
This rule also includes corrections to the
recordkeeping and reporting requirements
under the highway diesel program to facilitate
enforcement duringthe program's initial year.
Finally, the rule also includes several minor
amendments to the highway diesel sulfur,
nonroad diesel sulfur, and gasoline sulfur
programs to correct errors or omissions in the
regulations.
Of
The amendments to the highway diesel transi-
tion provi sions directly provide flexibility to
parties downstream of diesel refineries (such
as pipelines, terminals, wholesalers, and
retailers). The nilemaking will also indirectly
benefit refiners to the degree that the entire
system quickly and efficiently transitions to
ULSD. The other amendments to the highway
diesel regulations will help ensure that the
proj ected benefits of the program are
achieved. The corrections to the gasoline
sulfur, highway diesel sulfur, and nonroad
diesel sulfur regulations will help provide
clarity to regulated parties regarding the
requirements under the nonroad diesel pro-
gram.
EPA has worked with members of the fuel
refining and distribution industry and the diesel
auto and heavy-duty engine makers, as well as
non-governmental stakeholders, in developing
these amendments. We understand that some
2007 model year vehicle introductions will be
delayed. We finely balanced the consider-
ations of the stakeholders in determining the
-------
changes in thi s rulemaking. These changes will
not adversely affect the environment, but
rather will help ensure that the full benefits of
the diesel program are expeditiously achieved.
Costs
There are no costs associated with the amend-
ments to the ULSD transition provisions.
Regarding the corrections to the provisions of
the highway diesel fuel
regulations needed to ensure appropriate
enforceability, some diesel fuel
di stributors may incur the modest annual cost
of compliance one year earlier
than expected.
Opportunities
We welcome your comments on this rule. For
instructions on submitting written comments,
please see the Federal Register notice, which
is available from the EPAAir Docket (202-
566-1742; http://docket.epa.gov/edkpub/
index.jsp; please refer to Docket No. OAR-
2005-0153). In addition, you can access the
rule and related documents on EPA's Office of
Transportation and Air Quality (OTAQ) Web
site at:
www.epa.gov/otaq/regs/fuels/diesel/
diesel.htm
For
You can access information regarding the
Ffighway Diesel andNonroad Diesel Rules on
EPA's Office of Transportation and Air Quality
Web sites:
• Highway Diesel Mule
Web site: www.epa.gov/otaq/diesel.htm
Preamble: www.epa.gov/otaq/regs/
hd2007/frm/frdslpre.pdf
Regulations: www.epa.gov/otaq/regs/
hd2007/frm/frdslreg.pdf
• Nonroad Diesel Rule
Web site: www.epa.gov/nonroad-diesel/
2004fr.htm
Preamble & Regulations: www. epa.gov/
otaq/url-fr/fr29jn04.pdf
• Tier 2 Gasoline Rule
Web site: www.epa.gov/rier2
Preamble & Regulation: www.epa.gov/
otaq/uri-ir/fii OfeOO.pdf
For further information on this Direct Final Rule,
please contact Tad Wysor at:
U.S. Environmental Protection Agency
Office of Transportation and Air Quality
2000 Traverwood Drive
Ann Arbor, MI 48105
734-214-4332
E-mail: wysor.tad@epa.gov
We do not currently plan to hold a hearing.
We have worked extensively with diesel fuel
production and distribution industries and the
diesel engine and vehicle manufacturing
industries, as well as other stakeholders, and
believe that concerns of all parties have been
satisfied.
------- |