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Ultra-low Sulfur Diesel Highway Fuel Implementation: EPA Update

Ultra-low Sulfur Diesel Highway Fuel Implementation: EPA Update. Emerging Fuels Workshop December 2006 Paul Argyropoulos Senior Policy Advisor Office of Transportation and Air Quality. Overview. General Background Status of Engine and Vehicle Industry Status of Petroleum Industry

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Ultra-low Sulfur Diesel Highway Fuel Implementation: EPA Update

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  1. Ultra-low Sulfur Diesel Highway Fuel Implementation: EPA Update Emerging Fuels Workshop December 2006 Paul Argyropoulos Senior Policy Advisor Office of Transportation and Air Quality

  2. Overview • General Background • Status of Engine and Vehicle Industry • Status of Petroleum Industry • OTAQ Updates for EPA Regions and States

  3. EPA 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

  4. Clean 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

  5. Health & 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

  6. Program 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

  7. EPA 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, Q&A documents, and technical amendment regulations in response to industries’ needs

  8. Status 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

  9. Status 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

  10. Status 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

  11. Diesel fuel production for 2006 ULSD production ranges between 2.4 to 2.6 million bpd

  12. 15 PPM Production Trends Source: EIA

  13. Diesel fuel inventories at terminals for 2006

  14. Clean Diesel Fuel Alliance • EPA is a member of the industry-gov’t 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

  15. Clean Diesel Fuel Alliance Members Association of International Automobile Manufacturers Alliance of Automobile Manufacturers National Assoc. of Truck Stop Operators Engine Manufacturers Association Petroleum 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 Independent Liquid Terminals Association Western States Petroleum Association

  16. Factual Information Sources • EPA’s Regulated Community Questions and Answers (http://www.epa.gov/cleandiesel/comphelp.htm#guidance) • Clean Diesel Fuel Alliance • www.clean-diesel.org

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