Low Sulfur Diesel Fuel Supply Is Expected To Meet 2006 Demand For New Diesel Engines.(Brief Article)

The nation's supply of highway diesel fuel, under a recently adopted regulation to cap sulfur content at 15 parts per million (ppm), likely will meet passenger and commercial transportation needs in 2006, according to a study released by the Alliance of Automobile Manufacturers and the Engine Manufacturers Association.

The study, conducted by MathPro Inc., addresses petroleum industry concerns that diesel fuel might be in short supply in 2006, when the fuel must meet ultra low sulfur diesel (ULSD) standards required by the U.S. Environmental Protection Agency (EPA) as part of its emissions reduction programs.

The study assumed that EPA would require a 100 percent introduction of ULSD in 2006, which is more challenging than the actual program requirements. Refiners have several methods to comply with the program, including a phase-in of ULSD.

"We are extremely pleased with the outcome of this in-depth study," said Josephine S. Cooper, President and CEO of the Alliance of Automobile Manufacturers. "It carefully examined key technical, economic and market factors shaping U.S. refinery investment decisions and concluded that ULSD, which will be required by clean diesel vehicles, likely will be fully available across the U.S. in 2006 for consumers interested in this fuel- efficient technology."

Jed Mandel, General Counsel to the Engine Manufacturers Association, indicated that "the availability of 15 ppm diesel fuel in 2006 is essential as heavy-duty engine manufacturers introduce advanced aftertreatment technologies to meet new federal emissions regulations. Our industry strongly supports the Environmental Protection Agency fuel initiative, and the MathPro Inc. study demonstrates that the fuel should be in the marketplace when new engine technologies are commercially introduced."

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