Office of Transportation                                EPA420-F-06-040
United               and Air Quality                                       May 2006
Environmental               	      	
Agency

                                                                          for
                   The U. S. Environmental Protection Agency (EPA) is modifying the
                   fuel regulations to apply an             of June 1, 2010, forthelSppm
                   sulfur requirements for highway, nonroad, locomotive and marine
                   fuel produced or imported for,           to, or     in the rural       of
                   Alaska. This final rule       implementation of the nationwide programs
                   for highway and nonroad           in       to be consistent with an
                             transition program          by the
                   Standards/Regulations
                   This rule will finalize the following:
                   *   Rural areas (those areas not served by the Federal Aid Highway Sys-
                      tem) of Alaska will begin transitioning all highway, nonroad, locomo
                      tive, and marine diesel fuel to 15 ppm sulfur content diesel fuel
                      beginning June 1, 2010.
                   «   15 ppm sulfur content diesel fuel must be in retail facilities in the
                      rural areas by December 1, 2010.
                   •   All diesel fuel in Alaska remains exempt from the dyeing require-
                      ments in the highway and nonroad final rules.
                      Fuel distributors in urban Alaska will be given the same transition
                      schedule as distributors in the rest of the country for highway diesel
                      fuel.

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Benefits of EPA's Technical Amendments
•  Until 2010, rural areas of Alaska will be able to use uncontrolled sul-
   fur content diesel for all uses; and thus will not face the unnecessary
   burden of trying to carry multiple grades of fuel.
•  All areas of Alaska, including both urban and rural, will begin transi-
   tioning both highway and NRLM diesel  fuel to 15 ppm sulfur content
   diesel fuel at the same time: June 1, 2010.
•  Rural Alaska will begin transitioning locomotive and marine diesel
   fuel to 15 ppm sulfur content fuel beginning June 1, 2010, which
   is two years earlier than the nonroad diesel final rulemaking re-
   quires.
Background
In January 2001 and in June 2004, EPA finalized the Highway Diesel and
Nonroad Diesel Rules, respectively, which will implement more stringent
standards for new diesel engines and fuels. The rules mandate the use of
lower sulfur fuels in diesel engines beginning in 2006 for highway diesel
fuel, and 2007 for nonroad diesel fuel. These fuels will enable the use
of aftertreatment technologies for new diesel engines, which can reduce
harmful emissions by 90 percent or more. Aftertreatment technologies
will start phasing into the diesel sector beginning in 2007 for highway
and 2011 for nonroad. These programs will yield enormous long-term
benefits for public health and the environment.

Because Alaska has unique geographical, meteorological, air quality,
and economic characteristics, EPA granted temporary exemptions for
the urban areas of the State (those served by the Federal Aid Highway
System) from both the 500 ppm highway diesel fuel sulfur and the non-
highway dye standards, and a permanent exemption for the remaining
State-defined rural areas, beginning in 1993. During the development
of the Highway Diesel and Nonroad Diesel rules, EPA worked with the
State of Alaska and regulated entities throughout the state to ensure that
the unique characteristics of Alaska were taken into account. In general,
the State of Alaska requested that the urban areas of Alaska adhere to the
federal fuel sulfur standards and implementation schedule. However, the
State requested alternative implementation schedules for the rural areas
(those not served by the Federal Aid Highway System) of Alaska.

During the development of the Nonroad Diesel rule, the State requested:
1) that June  1, 2010, be the deadline for conversion to highway diesel
fuel in rural Alaska; 2) that June 1, 2010, be the deadline for conversion
of all nonroad, locomotive, and marine (NRLM)  diesel fuel to 15 ppm
sulfur content in rural Alaska; and 3) that the 15 ppm standard applicable

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to locomotive and marine diesel fuel produced in, imported into, and dis-
tributed or used within rural Alaska be moved up to June 1, 2010 (from
the June 2012 nationwide date in the final Nonroad Diesel rule.

Rural Alaska is unique in that its fuel storage and distribution systems
are not capable of handling more than one grade of fuel, and there will
not be many vehicles (if any) in rural areas that will require the use of 15
ppm sulfur diesel fuel. There was concern that, under the final Nonroad
Diesel rule, rural Alaska would have essentially been forced to either
carry two grades of fuel or begin using 15 ppm sulfur content diesel fuel
for all uses well before it is required.

In October 2005, EPA published a notice of proposed rulemaking, which
proposed provisions to meet the State's three requests for rural Alaska.
With its current rulemaking, EPA is finalizing those provisions. As such,
the rural areas  of Alaska will be allowed to transition all highway, non-
road, locomotive, and marine diesel fuel to 15 ppm starting June 1, 2010.
This will ensure that the rural areas of Alaska will have ultra-low sulfur
diesel fuel (ULSD), and it will streamline the transition process by al-
lowing all of the fuel to transition to ULSD at the same time.

In addition, the State commented that the current language of the high-
way  diesel fuel regulations as applied to the urban areas of Alaska did
not meet the intent of the final highway diesel rule. The current wording
essentially requires that all parties downstream of the refinery in urban
Alaska would have to transition to a 500 ppm standard by June 1 since
they  are currently exempted from the 500 ppm standard and are at a
higher sulfur level. This intent was that fuel distributors in urban Alaska
would have the same transition schedule as distributors in the rest of the
country. In its comments, the State requested that we apply the nation-
wide distributor transition dates for highway diesel fuel to distributors in
urban Alaska. To be consistent with the intent of the highway diesel final
rule, this rule will also finalize such provisions.
Public Participation Opportunities
We do not anticipate adverse comments on this rule nor do we currently
plan to hold a hearing, as these provisions are minor. In addition, we
worked with parties in the State of Alaska during the development of
the rule. The provisions in this rule will not adversely affect regulated
entities or the environment; they will merely assist parties throughout
the fuel refining and distribution system in Alaska in complying with the
highway and nonroad diesel regulations.

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For More Information
You can access this Final Rule and related documents on EPA's Office of
Transportation and Air Quality Web site at:

      www.epa.gov/otaq/regs/fuels/diesel/diesel.htm

Additional information on the Highway Diesel and Nonroad Diesel Rules
is available at the following Web sites:
•  Highway Diesel Rule
      Web site: www.epa.gov/otaq/diesel.htm
      Preamble: www.epa.gov/otaq/regs/hd2007/frm/frdslpre.pdf
      Regulations: wwwega^goy/ota£/regs/h^2007/frm/fj^slreg.pdf

•  Nonroad Diesel Rule
      Web site: wwwjjj3aj|ov/|KMir^^
      Preamble and Regulations: www.epa.gov/otaq/url-fr/fr29jn04.pdf

•  July 2005 Technical Amendment to the Highway and Nonroad
   Diesel Rules published July 15, 2005)
      Web site: www.epa.gov/otaq/regs/fuels/diesel/diesel.htmtfaiTiend
      Preamble & Regulations:
      http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.
      access.gpo.gov/2005/pdf/05-13781.pdf

•  November 2005 Technical Amendment to the Highway and Non-
   road Diesel Rules (published November 22, 2005)
      Web site: wwtyj;pa_.goy/ota£j^
      current
      Preamble & Regulations:
      http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.
   May 2006 Technical Amendment to the Highway and Nonroad
   Diesel Rules (signed April 20, 2006; published May 1, 2006)
      Web site: www.epa^Qy/Qtaqjggs^udj/dJ£sel/diesdJitm#nonmM
      Preamble & Regulations:
      http://frwebgate. access, gpo.gov/cgi -hi n;getpage.
   Additional compliance help on diesel regulations

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