http://www.planetark.org/dailynewsstory.cfm/newsid/22712/story.htm

US Refiners on Target to Produce Clean Diesel - EPA

USA: October 31, 2003

WASHINGTON - U.S. oil refiners are on target to meet new federal 
requirements to produce cleaner diesel fuel in the next four to six 
years, the Environmental Protection Agency said this week.

Refiners have to cut the amount of sulfur in their diesel fuel to 15 
parts per million (PPM) from the current 500 PPM.

Based on current projections for 2006, 96 percent of the 2.9 million 
barrels per day of highway diesel expected to be produced will meet 
the standard, enough to meet nationwide demand, EPA said.

"EPA's clean diesel standards are an important reason Americans can 
expect air quality to continue to improve in the years ahead," said 
EPA Assistant Administrator for Air and Radiation Jeff Holmstead.

The agency said its analysis is based on responses from 126 refiners.

The oil industry and business groups had sued EPA to block the 
low-sulfur requirements, arguing that the tough standard would force 
some refiners to close instead of making expensive modifications to 
their facilities. Fewer refiners could result in fuel shortages and 
higher prices, they said.

A federal court eventually sided with EPA, ruling that there was 
technology available to make diesel fuel that emitted lower sulfur 
emissions.

Reducing the sulfur content in diesel will allow for advanced 
emission control technology in diesel engines that improves air 
quality, helps states meet Clean Air Act goals and protects public 
health and the environment, EPA said. Compared with 2000 levels, 
total U.S. clean diesel fuel production is expected to increase by 
318,000 bpd in 2006 and 658,000 bpd in 2010, the agency said.

Production will vary by region, with output on the East Coast and the 
Rocky Mountain area decreasing slightly, EPA said. However, 
production drops in those regions will be more than offset by output 
increases and shipments from refiners in the Gulf Coast, Midwest and 
West Coast areas, EPA said.

Story by Tom Doggett

REUTERS NEWS SERVICE


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