Title: Ultra-low Sulfur Diesel Highway Fuel Implementation: EPA Update
1Ultra-low Sulfur Diesel Highway Fuel
Implementation EPA Update
- Emerging Fuels Workshop
- December 2006
- Paul Argyropoulos
- Senior Policy Advisor
- Office of Transportation and Air Quality
2Overview
- General Background
- Status of Engine and Vehicle Industry
- Status of Petroleum Industry
- OTAQ Updates for EPA Regions and States
3EPA Implementation Efforts
- Implementation has been a very high priority for
EPA - Clean Highway Diesel Program is of national
importance, both due to - Importance for public health
- Substantial level of effort required by industry
- 5 ½ years working with all stakeholders
4Clean Air Highway Diesel Program Requirements
-Background
- ULSD is the foundation of the Clean Air Highway
Diesel Program - Program developed as a systems approach Clean
Fuel Clean Engines - New model year 2007 engines and vehicles require
ULSD - Clean Diesel Fuel
- Sulfur in diesel prevents the use of advanced
emissions control systems - Since 1993, highway diesel fuel sulfur has been
capped at 500 parts per million (ppm) - Beginning June 1, 2006 80 percent of the
highway diesel fuel volume produced or imported
must be 15 ppm sulfur or less (ultra-low sulfur
diesel, ULSD) - June 1, 2010 100 percent of highway diesel fuel
produced or imported must be ULSD - Clean Diesel Engines and Vehicles
- Heavy-duty diesel trucks and buses must meet
stringent new standards beginning with model year
2007 - 90 percent reduction in diesel particulate matter
- 95 percent reduction in oxides of nitrogen,
phased in through 2010 - New diesel light-duty passenger vehicles,
sport-utility vehicles and pickup trucks must
also meet stringent standards which require ULSD
5Health Welfare Benefits of Clean Diesel
- Enormous long-term benefit for the public
- Very large particulate matter and oxides of
nitrogen reductions - Program will prevent, on an annual basis
- 8,300 premature deaths
- 7,100 hospital admissions
- 1.5 million lost work days
- Total annual benefits in 2030 70 billion
- Annual costs 4 billion
6Program Design and Transition Period
- The regulation was developed with input from all
major stakeholders - Included substantial lead-time, flexibilities,
and a transition period - In past year, EPA has provided additional
transition time and flexibilities in response to
industries needs
7EPA Implementation Efforts
- Clean Highway Diesel Rule finalized in 2001
- Substantial lead-time, more than any previous
mobile source program - EPA has issued five Implementation Progress
Reports - Engine progress reports in 2002 and 2004
- Fuel pre-compliance reports in 2003, 2004, 2005
- EPA co-sponsored implementation workshops
- Fuel implementation workshops in 2002, 2004, 2005
- Engine implementation workshop in 2003
- Workshops focused on addressing implementation
issues, educating regulated community - In addition, EPA has participated in dozens of
industry sponsored fuel and vehicle conferences
focused on implementation, and had hundreds of
meetings with individual companies - EPA has issued guidance documents, QA documents,
and technical amendment regulations in response
to industries needs
8Status of Engine and Vehicle Program
Implementation
- Engine, vehicle, catalyst, and supplier companies
have invested billions for Clean Diesel - Hundreds of test vehicles in customer hands,
millions of miles have been accumulated - EPA has already issued Certificates of Conformity
to manufacturers for Clean Diesel technology
engines/vehicles - Some companies have already started production of
new technology engines/vehicles - New engines/vehicles are being introduced into
the market now
9Status of Ultra-low Sulfur Diesel Fuel
Implementation
- ULSD transition
- Production has been in the range of 2.4 to 2.6
million bpd - Equivalent to 90 or more of the estimated
average daily consumption of highway diesel fuel - ULSD program start-up transition occured over 4½
months (June 1, 2006 October 15, 2006) - June 1 Refineries and importers must produce
ULSD - September 1 ULSD distributed by Pipelines and
Terminals must meet 15ppm - October 15 ULSD distributed by Retail Stations
must meet 15ppm - Transition period provided time for each party in
the distribution chain to implement the new
practices necessary to protect ULSD from
contamination
10Status of Ultra-low Sulfur Diesel Fuel
Implementation
- Refineries
- ULSD transition is basically finished
- Refiners pre-compliance reports predicted 90
percent of the highway fuel will be ULSD in the
first year - By the end of June, majority of highway diesel
production was ULSD, most recent data indicates
90 or more - Pipelines Terminals
- ULSD transition for the vast majority of
terminals and pipelines was completed by Sept. 1
11Diesel fuel production for 2006
ULSD production ranges between 2.4 to 2.6 million
bpd
1215 PPM Production Trends
Source EIA
13Diesel fuel inventories at terminals for 2006
14Clean Diesel Fuel Alliance
- EPA is a member of the industry-govt outreach
effort called the Clean Diesel Fuel Alliance
(CDFA) - Next page lists the members of the CDFA
- Primary Purpose of the Stakeholder Outreach
Effort has been to develop and distribute common
messages to educate the public regarding the
roll-out of the ULSD program - Answers to many of the common questions from the
user community - Typical audiences retail station owners,
truckers, passenger car owners, farm and
construction equipment owner/operators, and the
general public - CDFA has established a contractor operated 800
number for consumers and others to call with
questions - Questions are then forwarded to the appropriate
CDFA member for follow-up - Has also facilitated information sharing between
the members of the CDFA regarding potential
issues and the status of the ULSD implementation - Weekly e-mail updates for all CDFA members on
ULSD roll-out status - Monthly conference calls
15Clean Diesel Fuel Alliance Members
Association of International Automobile
Manufacturers Alliance of Automobile
Manufacturers National Assoc. of Truck Stop
Operators Engine Manufacturers Association Petro
leum Marketers Association of America Diesel
Technology Forum Society of Independent
Gasoline Marketers of Manufacturers of Emission
Controls Association America US
Environmental Protection Agency American
Trucking Associations US Department of
Energy National Tank Truck Carriers US Energy
Information Administration National Automobile
Dealers Association Truck Renting and
Leasing Association American Petroleum
Institute American Automobile
Association National Petrochemicals and Refiners
Association Association of Oil Pipelines Independe
nt Liquid Terminals Association Western States
Petroleum Association
16Factual Information Sources
- EPAs Regulated Community Questions and Answers
(http//www.epa.gov/cleandiesel/comphelp.htmguida
nce) - Clean Diesel Fuel Alliance
- www.clean-diesel.org