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Summar y o f EPA' s Propose d Regulatio no f Diese l Fue l Qualit y

Briefin g fo r OM

B Offic e o f Mobil e Source s Jun e 2 , 198 9P. 3

Overvie w Backgroun dan dJoin t Industr y

Proposa l Descriptio no f Proposa l Environmenta l andEconomi c Impact s Timin g o f EPA' s Rulemakin g Actio nP. 4

EP A Rulemakin g Developmen t EP A promulgate demissio nstandard s fo r heavy-dut y engine s i nMarch , 198 5 (Tabl e 1 ) Nee dfo r sulfu r contro l wa s raise di ncomment s - EP A committe dt o continu e t o evaluat e nee d Funde da contracto r stud

y o ndiese l fue l issu e Foun dbot hsulfu r andaromati c contro l t o b e cos t effectiv e Publishe drepor t i nJun e 198 6 an

drequeste dcomment s Initiate da comprehensiv e interna l stud y i n198 7 EP A considere dlowerin g level s o f bot hsulfu r and aromatic s i non-highwa y

diese l fue l Encourage dengin e manufacturer s t o approac hoi l industr y t o develo pa mutua l agreemen t o nfutur e fue l qualit yP. 5

Tabl e 1

Mode l Yea r 198 8 199 0 199 1

199 4 Particulat e an

d NO xEmissio nStandard s fo r Particulat e (q/BHP-hr ) 0.6 0

0.2 5 0.1 0 0.1 0 Heavy-Dut y

Diese l Engine s NO x (q/BHP-hr ) 10, 7 6. 0 5. 0 5. 0 5. 0 Comment s Firs t HDD E particulat e standar d Delaye d fro m 198 8 b y cour t orde r Al l HDDE' s excep t urba n buse s Urba nbuse s onl y Al l HDDE' sP. 6

Join t Industry

Proposa l EP A encourage ddiscussion s betwee nengin e manufacturer s andoi l industry Representative s o f th e tw

o industrie s proposed : 0,05 1 sulfu r on-highwa y

diese l availabl e b y

Octobe r 1 , 199 3 Cetan e inde xminimu

m o f 4 0 (a s a ca po naromatics ) Refiner s allowe dflexibilit y

t o chang e segregatio n pattern s i nmeetin g ne w

requirement s Engin e certificatio no n0,05 1 sulfu r fue l beginnin g i n199 1P. 7

Revise dIndustr y

Proposa l

• Same a s earlie r proposa l excep t request s 0,10 1 sulfu r certificatio nfue l i n199 1 instea do f 0,05 1

• Proposa l ha s th e suppor t o f :

-AP I -NAP R -EM A -NCF C -NRD C

• EM A als o propose s t o undertak e a cooperativ e tes t progra m o f emissio ntestin g in-us e engines ,
• Manufacturer s wil l als o striv e t o implemen t 199 1 technolog y early , • Leadtim e i s critica l fo r 199 4 fue l contro lP. 8

EPA' s Respons e t o Industr y

Proposa l Industry' s propose dreductio no f fue l sulfu r t o 0,05 1 woul dresul t i ncost-effectiv e emissio ncontro l Th e propose dcetan e standar dwoul dpreven t fue l aromatic s level s fro m climbing ; woul davoi dcostl y aromatic s reductio n Clea nAi r Ac t limit s regulation s t o highwa y fuel s However , changin g 199 1 engin e certificatio nt o 0.05 % sulfu r woul dmak e certificatio ntestin g unrepresentativ e o f in-us e emission s EP A calculation s indicate dtha t averag e sulfu r level s fo r 1991-199 3 HDE s ove r thei r certifie d usefu l lif e woul db e approximatel y

0,10 % Certificatio na t 0,10 % woul dtherefor e kee p 1991-199 3 lifetim

e emission s th e same a s wa s expecte dwithou t sulfu r contro lP. 9

Th e Notic e o f Propose dRulemakin g Propose s implementin g th e mos t recen t join t industr y proposa l Establishe s 0,05 1 a s maximu

m sulfu r leve l fo r on-highwa y diese l fue l afte r Octobe r 199 3 Establishe s interi m

cer t fue l leve l o f 0,10 % fo r 1991-199 3 engine s Cap s aromatic s a t curren t level s Request s comment s i nsevera l specifi c area s t o allow th e assessmen t o f economi c an

denvironmenta l impact s o f contro l t o b e improve dfo r th e fina l rul e Enforcemen t scheme wil l follo

w approac huse dfo r volatilit y Al l partie s i ndistributio nnetwor k fro m refiner s t o retailer s ar e covere dby

thes e regulation s EP A wil l randoml y

tes t a t variou s distributio npoint sP.1 0

Environmenta l Impacts : Sulfu r Contro l Significan t gaseou s S O contro l 2 Larg e indirec t (atmospheric ) sulfat e effec t (no t considere db y engin e emissio nstandards ) Significan t reductio ni ndirec t sulfat e emission s Overal l effec t (se e Tabl e 2 ) Ne t PM emissio nreduction s wil l b e significan t Allow s us e o f catalysts ; long-ter

m urba nH C andC O emissio nreductio no f 30,00 0 an

d329,00 0 tons/yr , respectivel y (0,4 % an d1 % o f curren t inventories ) Improve durba nai r qualit y

an dvisibilit y Benefit s proportiona l t o degre e o f sulfu r contro l Some smal l cance r benefi t possibl eP.1 1
Tabl e 2 Environmenta l Impacts : Sulfu r Contro l t o 0.05 * Annua l Urba nEmissio nReduction s
PM (effectiv e tons/yr ) 1 0 ( t o f 198 6 total ) S O (tons/yr ) 2 ( t o f 198 6 total ) Annua l Ambien t Urba nBenefi t (|ig/m' )

NAAQ S P M - Larg e cit y

5 0 1 0 Smal l cit y

5 0 Visibilit y Improvemen t (\) Larg e cit y Smal l cit y 199 5

35-95,00 0 2,9-5, 8 110-275,00 0 1,3-2. 5

199 5 1.4-3. 8 0.9-2, 3
199 5 2,8-8, 6 0,5-1, 5 201 5

57-156,00 0 4.7-9, 5 195-470,00 0 2,3-4, 2

201 5 2,3-6, 3 1,4-3, 8
201 5 3,8-14, 6 0,6-2, 4P.1 2

Cos t o f Contro l Cos t dependen t o ndegre e t o whic hrefiner s segregat e on-highwa y diese l fro m othe r fuel s i nproductio n Cos t wit hmaximu

m segregatio nwoul db e 1. 8 cent s pe r gallo no f diese l fue l Cos t wit hminimu

m segregatio nwoul db e 2, 3 cent s pe r gallo no f diese l fue l Cost s ar e offse t by

(Tabl e 3) : reductio ni ncos t o f complyin g wit h199 4 particulat e standard s reductio ni nengin e wea r reductio ni nfue l consumptio nby change s i n aftertreatmen tTabl e 3

Tota l Annua l Cost s an

dSaving s

• Increase dfue l cost :

- $37 0 - 91 0 millio ni n199 5 $53 0 - 1,30 0 millio ni n201 0

• Decrease dtechnolog y

costs : $14 0 millio ni n199 5 $22 0 millio ni n201 0

• Decrease dfue l consumption : $6 0 millio ni n199 5 $25 0 millio ni n201 0

• Decrease dengin e wear :

- $16 0 - 2,30 0 millio ni n199 5 $40 0 - 3,70 0 millio ni n201 0P. M
Cos t Effectivenes s 0 Numerou s pollutant s controlle d Primar y focus : particulat e N o credit s take nfo r othe r pollutant s controlle d (suc ha s HC , CO , an

dS O ) 2 0 Sulfu r contro l t o 0,05 % Withou t an y wea r credit , cos t pe r urba nto no f P M i s $2,80 0 t o $6, i From -$3,90 0 t o $4,30 0 pe r urba nto no f P M wit h smalles t engin e wea r credi t Cos t effectivenes s woul db e negativ e i f HC , CO , an d S O credit s ar e adde d 2 Fo r comparison , urba ncos t effectivenes s o f th e 199 4 0.lg/BHP- m particulat e standar dwa s $11,00 0 (198 5 dollars )P.1 5

Effec t o nComplianc e Wit h Particulat e Standard s Advance dengine s already

meetin g emissio nlevel s below

th e 199 1 truc k standar d Manufacturer s argu e tha t lo

w sulfu r fue l i s neededt o assur e complianc e wit h199 1 standard ; fue l sulfu r contro l reduce s engine-ou t particulat e approximatel y ,0 4 g/BHP-h r Chang e i n199 1 certificatio nfue l wil l no t chang e 1991-199 3 engines , bu t wil l improv e complianc e margin s Some typ e o f aftertreatmen t technolog y appear s necessar y t o mee t 199 4 standar d Sulfu r contro l importan t fo r 199 4 complianc e Particulat e reductio nincrease s confidenc e o f manufacturer s meetin g th e standar d Allow s us e o f lowe r cos t trap s design s Allow s us e o f oxidatio ncatalyst sP.1 6

Timin g Becaus e o f th e broa dconsensu s o f industr y and environmenta l support , rulemakin g i s expecte dt o procee d quickl y Publicatio no f thi s NP l mus t occu r soo nfo r severa l reasons : Refiner s nee dt o mak e advance ddecision s o ncapita l requirement s t o mee t Octobe r 199 3 deadlin e Manufacturer s ma y

nee dthi s sulfu r contro l t o mee t 199 4 standard s Changin g certificatio nfue l specification s t o 0,10 % sulfu r ma y impac t nee dfo r NCP s i n199 1 AP I already indicatin g tha t withou t a promp t proposal , 199 4 deadlin e i s i njeopardy Fina l rulemakin g wil l nee dt o follow th e NP l quickl y