I think we should be very concerned about what this is going to the cost of diesel fuel. 
Ultra-Low-Sulfur Diesel
Beginning in 2006, EPA will mandate that diesel fuel refiners and importers reduce the sulfur content to 15 parts per million (“ppm”) from the current on-road standard of 500 ppm. Refineries have to meet the 15-ppm deadline in June 2006 and 80 percent of the on-road fuel they produce be ULSD. Terminals and pipelines have until July 2006 and retailers have until October 2006 to comply. Those groups have to ensure their facilities can maintain the sulfur levels in the fuel.
Although all groups involved are working hard to ensure a smooth transition, supply continues to be a concern for many in the industry, including refi neries. “We’re doing our best, but we’re fearful there is going to be an impact on supply,” said Charlie Drevna of the National Petrochemical and Refi ners Association. The sulfur molecules in crude aren’t created equally, and some are harder to remove than others. “When you get down to these ultra-low levels…it is going to take more crude to produce the same amount of fuel,” he said.
Refiners anticipate that 15-30 percent of their production capacity will be lost in meeting the EPA’s new 15-ppm standard. Refiners are planning to produce diesel fuel with a five- to eight-ppm sulfur level in order to allow for some contamination during transport. Pipelines and terminals expect that supply contamination will routinely occur during transport, meaning that a significant amount of the ULSD product will not be able to be used in on-road vehicles.
Since truckstops will be the last in the chain to receive the fuel, they are likely to face civil or criminal penalties if they sell fuel with sulfur levels exceeding 15 ppm. Retailers should maintain product transfer documents for seven years. EPA’s Erv Pickell said retailers must examine the PTDs when accepting a load to ensure they’re getting the proper fuel. Retailers selling non-compliant fuel could face EPA fines upwards of $30,000 per day. Pickell said EPA will presume fuel was in the distribution system for 25 days, which means fines could extend to all parties in the distribution system. In addition, retailers could face civil penalties if the fuel damages a driver’s engine...............
The Rest Of The Story
Tbar
Ultra-Low-Sulfur Diesel
Beginning in 2006, EPA will mandate that diesel fuel refiners and importers reduce the sulfur content to 15 parts per million (“ppm”) from the current on-road standard of 500 ppm. Refineries have to meet the 15-ppm deadline in June 2006 and 80 percent of the on-road fuel they produce be ULSD. Terminals and pipelines have until July 2006 and retailers have until October 2006 to comply. Those groups have to ensure their facilities can maintain the sulfur levels in the fuel.
Although all groups involved are working hard to ensure a smooth transition, supply continues to be a concern for many in the industry, including refi neries. “We’re doing our best, but we’re fearful there is going to be an impact on supply,” said Charlie Drevna of the National Petrochemical and Refi ners Association. The sulfur molecules in crude aren’t created equally, and some are harder to remove than others. “When you get down to these ultra-low levels…it is going to take more crude to produce the same amount of fuel,” he said.
Refiners anticipate that 15-30 percent of their production capacity will be lost in meeting the EPA’s new 15-ppm standard. Refiners are planning to produce diesel fuel with a five- to eight-ppm sulfur level in order to allow for some contamination during transport. Pipelines and terminals expect that supply contamination will routinely occur during transport, meaning that a significant amount of the ULSD product will not be able to be used in on-road vehicles.
Since truckstops will be the last in the chain to receive the fuel, they are likely to face civil or criminal penalties if they sell fuel with sulfur levels exceeding 15 ppm. Retailers should maintain product transfer documents for seven years. EPA’s Erv Pickell said retailers must examine the PTDs when accepting a load to ensure they’re getting the proper fuel. Retailers selling non-compliant fuel could face EPA fines upwards of $30,000 per day. Pickell said EPA will presume fuel was in the distribution system for 25 days, which means fines could extend to all parties in the distribution system. In addition, retailers could face civil penalties if the fuel damages a driver’s engine...............
The Rest Of The Story
Tbar
