Gasoline and Diesel Sulfur Inspections

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Moris Mosley
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1 Gasoline and Diesel Sulfur Inspections STAPPA/ALAPCO Conference Charleston, South Carolina June 15, 2005

2 Agenda Background State Inspections Issues and Options Next steps 2

3 Background Brief description of sulfur rules Dates requirements begin Importance of downstream inspections EPA inspection plans Rational for state inspections When inspections should begin 3

4 Background Gasoline and Diesel Fuel Sulfur Rules Tier 2 motor vehicle stds, new HD truck Stds and new nonroad diesel equipment stds All 3 programs rely on regulation of engines and fuel as a system If engines do not use low sulfur fuel, emission controls permanently damaged If enforced, these programs will result in massive reductions of NOx, PM, SOx, Ozone E.g., Highway diesel emissions reduced by 95% (PM, NOx, NMHC). 97% reduction in diesel sulfur is required 4

5 Importance of Downstream Inspections High contamination risk from other products with high sulfur content Opportunities for contamination increase as fuel moves through distribution system Unleaded gasoline rule experience Retail outlet fuel quality is the ultimate test Pump labeling Misfueling Nearly 150,000 retail outlets Fewer carry diesel Fleets also important 5

6 Implementation Dates (Significant Exceptions Apply) Gasoline Sulfur Refinery: Jan. 1, 2004 Retail: March 1, ppm ref cap; 120 ppm ref avg 378 ppm cap downstream Highway Diesel Sulfur Nonroad Diesel Sulfur Refinery: Jan. 1, 2005 Retail: March 1, 2005 Refinery: Jan. 1, 2006 Retail: March 1, 2005 Refiner: June 1, 2006 Retail: Sept. 1, 2006 Refinery: June 1, 2007 Retail: Dec. 1, 2007 Refinery: June 1, 2010 Retail: Dec. 1, 2010 with exceptions 300 ppm ref cap; 30 ppm ref avg 326 ppm downstream cap 80 ppm ref cap; 30 ppm ref avg 95 ppm downstream cap 15 ppm refinery cap 17 ppm cap downstream (500 ppm fuel still available!) 500 ppm cap (including locomotive/marine) 15 ppm cap (except locomotive/marine fuel, and certain credit fuel) 6

7 EPA Inspection Plans EPA inspections and audits of at all levels of distribution system Branded refiner testing of branded retail outlets? State inspections? 7

8 Branded Refiner Testing Refiners have presumed liability for violations found at their branded stations; but with defenses One defense element is refiner QA testing 40 CFR (gasoline sulfur) 40 CFR (diesel sulfur) Possibility of refining industry consortium nationwide QA testing program, instead of individual refiner QA testing Other branded refiner or retail testing approaches also possible 8

9 State Sulfur Testing Level of Effort Can your state sample at retail? Easiest state has someone already going to retail outlets Possible terminal follow-up Sampling rate? 100% of stations; or 10% to 25% of stations, with diversity in geography, station-type type and time of year; or in response to complaints only 9

10 Level of Effort, Cont. Inspections of fleet fueling facilities; most important for diesel Misfueling inspections primarily a diesel issue ultra low sulfur diesel (ULSD) required for labeled vehicles 10

11 Sampling Procedure Issues Sample container and size Shipping containers and boxes Chain of custody Inspection forms: paper vs. laptop computer Pump label inspections EPA to draft and circulate an inspection manual 11

12 Sample Analysis Options Ship samples to EPA for analysis Field screen Centralized testing at state lab States share analysis equipment 12

13 Sulfur Field Screen Testing SINDIE brand equipment for ASTM D 7039 Also appropriate for lab testing Valid to 0.4 ppm Cost big issue: currently $55,000 13

14 Authority to Inspect State authority to enter and conduct sulfur inspections? Current state law may give authority State gasoline/diesel sulfur regulations? US EPA credentials EPA has issued in the past Gives right of entry as Authorized Representative of US EPA Normally violations referred to EPA for enforcement 14

15 Training EPA-conducted regional training sessions 1 or 2 days In late 2005 or early 2006? 15

16 Need for MOU with States Probably necessary if state does not have its own regulation EPA will develop model MOU 16

17 2 Potential State Program Options Option 1: State collects samples and sends to EPA for analysis (200 samples/yr) Cost estimate: $37K/year, plus $33K start-up. Option 2: 2: State collects and analyzes samples (400 samples/yr) Cost estimate: $132K/year, plus $125K start-up (includes $55K test machine). Costs could be less if state already has robust retail outlet presence for other programs 17

18 Interested States Please send to EPA if you believe your state may be interested in conducting gasoline/diesel sulfur testing Points of interest: Does state currently sample/test gasoline/diesel? If so: Which Agency? Which requirements? How many inspections/yr.? Where are samples analyzed? Are requirements seasonal? If so, explain Do you currently collect fuel samples? If so, how many/year or season? Parameters? Which lab? Conduct field screening? If so, describe 18

19 Interested States (cont.) Is your state interested in sampling for diesel/gasoline sulfur? Would your state be more likely to participate in Option 1 or 2 & why? Other options: describe other participation Is your state likely to promulgate sulfur regulations that match the federal regulations? If your state is not interested, what factors could makes state sampling/testing more feasible? Do you have other suggestions or thoughts regarding how a nationwide robust sulfur sampling/testing program could be implemented? 19

20 EPA Contact Information Erv Pickell Fuels Team Leader George Lawrence Chief, Mobile Source Enforcement Branch

21 Timing/Next Steps Next meeting (conference call): August? 21

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C Diesel Pump Labeling Requirements. -Fact Sheet-

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