UltraLow and Low Sulfur Diesel Fuel Program Highway and NRLM

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Ultra-Low and Low Sulfur Diesel Fuel Program
(Highway and NRLM)

• May, 2007

• U.S. EPA- New England

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Diesel Exhaust and Your Health- What is the Risk?

• Diesel exhaust contains significant levels of
  small particles, known as fine particulate
  matter. Fine particles are so small that several
  thousand of them could fit on the period at the
  end of this sentence.
• Fine particles pose a significant health risk
  because they can pass through the nose and throat
  and lodge themselves in the lungs. These fine
  particles can cause lung damage and premature
  death. They can also aggravate conditions such as
  asthma and bronchitis.
• EPA has determined that diesel exhaust is a
  likely human carcinogen. Diesel exhaust can also
  contribute to other acute and chronic health
  effects (see EPA's Health Assessment Document for
  Diesel Exhaust).

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Agenda

• Why control diesel fuels?
• Brief Status of HW ULSD Implementation
• NRLM Rulemaking Background and requirements

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Health Risks- Who and what is at Risk?

• People with existing heart or lung disease,
  asthma or other respiratory problems are most
  sensitive to the health effects of fine
  particles. The elderly and children are also at
  risk.
• Children are more susceptible to air pollution
  than healthy adults because their respiratory
  systems are still developing and they have a
  faster breathing rate.
• Diesel exhaust also contains pollutants that
  contribute to ozone formation (or smog), acid
  rain, and global climate change.
• Fine particles from diesel engines contribute to
  haze which restricts our ability to see long
  distances.

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API Reported Distillate Production
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API Reported Distillate Inventories
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Rule Definitions- 80.2 80.502- Who does this
effect?

• Definitions are located in 80.2 (general
  definitions that apply to all fuel programs) and
  80.502 (diesel fuel-related definitions)
• Retailer ( 80.2(k))
• any person/company who owns, leases, operates,
  controls, or supervises a retail outlet
• Retail outlet ( 80.2(j)) is any establishment
  at which gasoline, diesel fuel, methanol, natural
  gas or liquified petroleum gas is sold or offered
  for sale for use in motor vehicles or nonroad
  engines, including locomotive engines or marine
  engines
• Wholesale purchaser-consumer ( 80.2(o))
• anyultimate consumer of gasoline, diesel
  fuelwhich purchases or obtains gasoline, diesel
  fuel,from a supplier for use in motor vehicles
  or nonroad engines, including locomotive engines
  or marine engines and, in the case of gasoline,
  diesel fuelreceives delivery of that product
  into a storage tank of at least 550-gallon
  capacity substantially under the control of that
  person

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HW ULSD Update
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ULSD

• ULSD is now widely distributed in the motor
  vehicle/ on-road market in the Northeast.
• About 90 ULSD market penetration in on-road
  diesel.

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ULSD labeling

• Federal regulations require the labeling of all
  diesel fuel pumps to specify the type of fuel
  dispensed by each pump by June 1, 2006 (except in
  California where all diesel fuel must be ULSD by
  June 1, 2006).
• Similar instrument panel and fuel inlet/fill cap
  labeling is being mandated for 2007 and later
  model year highway engines and vehicles that
  require ULSD fuel.
• Consumers are advised to check the pump and
  vehicle labels to ensure they are refueling with
  the proper diesel fuel consistent with their
  vehicle warranties.

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ULSD Availability and Pump Labeling

• General ULSD Availability
• A significant majority of pumps are labeled
  correctly as ULSD
• A modest portion of pumps are labeled LSD, but a
  significant amount of these pumps are mislabeled
  and contain ULSD
• A small percentage of pumps are not labeled, but
  the majority of these contain ULSD
• OECA Outreach to Companies with Retail Stations
• OECA has engaged retail stations to inform them
  of the need to properly label diesel fuel pumps
  or enforcement action will be taken
• Some notices of violation and fines have already
  been issued

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NRLM Rulemaking Background
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Requirements of the Nonroad Rule

• Refiners and importers
• Must produce 500 ppm sulfur non-road locomotive
  and marine diesel fuel (NRLM) beginning June 1,
  2007
• Small refiners and credit users may continue to
  produce high sulfur NRLM diesel until 2010
• Must produce 15 ppm NR diesel fuel beginning June
  1, 2010
• LM diesel fuel will may remain at 500 ppm
• Small refiners and credit users must produce NRLM
  meeting at least a 500 ppm sulfur level
• Must produce 15 ppm NRLM beginning June 1, 2012
• Small refiners and credit users may remain at 500
  ppm NRLM until June 1, 2014
• Such fuel cannot be used in the NE/MA area, but
  small refiner fuel may be used with approval in
  Alaska

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Requirements of the Nonroad Rule (cont.)

• Terminals and other downstream parties
• Red dye will be added to NRLM at the terminal
• High sulfur NRLM and heating oil must continue to
  be dyed at the refinery
• Inside the NE/MA area must begin conversion to
  500 ppm NRLM in 2007
• Terminal conversion date- August 1, 2007
• Retail and wholesale purchaser-consumer- October
  1, 2007
• End user/in use- December 1, 2007
• Outside the NE/MA area may remain at high sulfur
  until 2010
• Heating Oil marker requirement
• Terminal operators outside the NE/MA area will
  need to begin marking all heating oil they
  distribute with 6 mg per liter of solvent yellow
  124 beginning June 1, 2007
• Heating oil must also contain red dye
• All highway and NRLM diesel fuel must be free of
  the heating oil marker

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Northeast/Mid-Atlantic Area

• Terminals located within the NE/MA area who
  distribute heating oil to facilities within this
  area are not subject to the heating oil marking
  requirement
• HS NRLM will not be allowed inside the NE/MA area
• Thus, NRLM can differentiated from heating oil
  based on the sulfur content alone
• The NE/MA area includes the following states and
  counties
• North Carolina, Virginia, Maryland, Delaware, New
  Jersey, Connecticut, Rhode Island, Massachusetts,
  Vermont, New Hampshire, Maine, Washington D.C.,
  New York (except for the counties of Chautauqua,
  Cattaraugus, and Allegany), Pennsylvania (except
  for the counties of Erie, Warren, Mc Kean,
  Potter, Cameron, Elk, Jefferson, Clarion, Forest,
  Venango, Mercer, Crawford, Lawrence, Beaver,
  Washington, and Greene), and the eight
  eastern-most counties of West Virginia
  (Jefferson, Berkeley, Morgan, Hampshire, Mineral,
  Hardy, Grant, and Pendleton)

NE/MA 80.510(g)(1)
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Product Transfer Documents (80.590-591)

• PTDs must state basic information about the fuel
  and parties transferring the fuel (80.590)
• Names and addresses of the transferor and
  transferee
• Volume of diesel fuel or distillate being
  transferred
• Location of the fuel or distillate at time of the
  transfer
• Date
• Sulfur standard the fuel meets
• Accurate and clear statement of the applicable
  designation and/or classification under 80.598
  (e.g.,500 ppm sulfur NRLM diesel fuel) and
  whether the fuel is dyed or undyed, and marked or
  unmarked
• Applicable statements required in 80.590(a)(7)
• Alternate statements may be used with EPA
  approval
• The PTD requirements also apply to mobile
  refuelers (per 80.590(g))
• 80.591 states PTD requirements for additives
• Additive information does not need to be included
  on fuel PTD

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Labeling Requirements(80.571)

• Pump labeling requirements apply to both
  retailers/marketers and wholesale
  purchaser-consumers
• Labeling requirements do not apply to mobile
  refuelers/wet hosers although they must take
  appropriate measures to prevent misfueling
• All pumps dispensing diesel fuel were required to
  have labels (as of June 1, 2006) with the
  statements noted in the regulations at
  80.570(a)-(c) meeting the following labeling
  requirements
• Block letters of no less than 24-point bold type
• Printed in a color contrasting with the
  background
• New labels are stated at 80.571(a)-(d) for NRLM
  and heating oil as of June 1, 2007
• Pumps that already have the 80.570(c) label do
  not need to re-label their pumps with the
  80.571(c) label
• Alternate pump labels may be used
• Must first get approval from EPA
• Sample pump labels, which may be printed out and
  used, are available on the Clean Diesel Fuel
  Alliance website (link provided at the end of the
  presentation CDFA will be posting sample NRLM
  labels on the website shortly)
• Aftermarket additives- Labels are also required
  for aftermarket additives, these requirements are
  set out at 80.591(d)

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Sample NRLM Diesel Labels
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MVNRLM Diesel Fuel Standards

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Violations and Liability

• 80.610, 80.611, 80.615
• Violations of prohibited acts or requirements are
  subject to Clean Air Act penalties
• Presumptive liability scheme like other fuels
  programs
• Liability for distributing/dispensing fuel not
  meeting the applicable standard and/or
  requirements at a partys facility
• Liability extends upstream
• Any person (including a retailer or WPC) is
  liable for
• Introducing noncompliant fuel
• E.g., retailer knowingly pumps NRLM into a HW
  vehicle
• Permitting the introduction of noncompliant
  fuel
• E.g., retailers who condone misfueling or cause
  it by improper pump labeling or other practices
  (however, retail employees are not expected to
  risk safety to stop self-serve violations)
• Subject to a penalty of up to 32,500 per day,
  per violation
• Can be less if party acts in good faith

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Website
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For More Information...

• QAs and other guidance documents
  www.epa.gov/cleandiesel/comphelp.htm
• Regulations
• Electronic CFR (eCFR)
• http//ecfr.gpoaccess.gov/cgi/t/text/textidx?cec
  frsid94cf84cc9b9f6927a1ff4daf8d7f8642tpl/ecfrb
  rowse/Title40/40cfr80_main_02.tpl
• Clean Diesel Fuel Alliance website
• www.clean-diesel.org
• Contacts Bob Judge judge.robert_at_EPA.GOV
  [phone]
• Program Implementation Chris McKenna
  mckenna.chris_at_epa.gov, [phone]
• Reporting John Weihrauch weihrauch.john_at_epa.gov,
  [phone]
• Enforcement Erv Pickell pickell.erv_at_epa.gov,
  [phone]
• Background Tia Sutton, sutton.tia_at_epa.gov,
  [phone],
• Jeff Herzog
  herzog.jeff_at_epa.gov, [phone]