Regulatory Announcement -- Direct Final Rule and Notice of Proposed ...

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Regulatory Announcement -- Direct Final Rule and Notice of Proposed Rulemaking: Revisions to Motor Vehicle Diesel Fuel Sulfur Transition Provisions and Technical Amendments to the Highway Diesel, Nonroad Diesel, and Tier 2 Gasoline Programs













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Regulatory
Announcement
Office of Transportation and Air Quality
EPA420-F-05-051 November 2005
Direct Final Rule and Notice of
Proposed Rulemaking: Revisions to
Motor Vehicle Diesel Fuel Sulfur
Transition Provisions and Technical
Amendments to the Highway Diesel,
Nonroad Diesel, and Tier 2 Gasoline
Programs
The highway diesel fuel sulfur rule, issued in 2001, becomes effective in June 2006. The fuel industry has raised concerns that the required nationwide transition from higher sulfur to ultra-low sulfur diesel (ULSD) fuel may require a limited amount of additional time. EPA is providing 45 additional days for the transition to be completed while ensuring that ULSD will be available exclusively when new diesel engines are introduced.
Background
As a result of the highway diesel fuel sulfur program, finalized in 2001, there will be a nationwide transition in 2006 of most diesel fuel from low-sulfur diesel (LSD) to ULSD (diesel fuel that meets the 15 parts per million [ppm] sulfur standards). This program was carefully designed, through an extensive process of discussion and comment with industry and others, to ensure the successful transition of the diesel fuel distribution system to ULSD nationwide. The design of the program also incorporated an understanding that as new 2007 diesel engines and vehicles are introduced, ULSD must be universally available for them to use.







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Earlier this year, some companies in the diesel fuel production and distribution industries indicated to us that they may be unable to complete the transition to ULSD by the current deadlines at the very furthest reaches of the distribution system. In response, EPA is making limited changes to the transition provisions for entities in the highway diesel distribution system. These changes will facili-tate the rapid and complete shift to ULSD without seriously interfering with the planned introduction of the new diesel engines and vehicles that need this clean fuel.
The impacts of the recent hurricanes along the Gulf Coast of the United States are not a contributing factor in making these changes. The need for the limited actions taken in this rulemaking was identified prior to the storms. To the extent that individual refineries identify hurricane-related issues with meeting ULSD requirements, there are existing regulatory provisions to address such concerns. The additional flexibility provided here is available only to entities downstream of refineries, and there is no change in the June 1, 2006 start date for refiners to be producing ULSD.
Rulemaking Overview
The goals of this rule are met with three limited revisions to the existing highway diesel pro-gram. First, we extend the ULSD implementa-tio