JOH N E . QUIN N Executiv e Directo r B Y HAN D Jun e 30 , 200 4 Mr . Rober

t Donaldson Busines s Complianc e Divisio n Burea u o f Wast e Prevention Departmen

t o f Environmenta

l Protectio n On e Winte r St . Boston , M A 0210 8 Dea r Mr . Donaldson , Pleas e accep t thes e writte n comment

s i n response to th

e publishe d propose

d revision s to th

e Massachusett

s Ai r Pollutio n Contro l Regulation s - Engine s an d Combustio n Turbine s (amendment s to 31 0 CM R7.0

0 and 31 0 CM R70.00) . Th e Massachusett

s Petroleu mCounci l i s adivisio n o f th e America

n PetroleumInstitute , anationa l trad e organizatio n representing most o f th e majo r petroleumrefiners . A s such , we wil l limi t ou r comment s t o provision s o f

th e proposed regulation s relate d t o fuel s specification s only , namel y amendment

s t o 31 0 CM R7.0 5 U Fuel s Al l District s an d 31 0 CM R7.2 6 Industr

y Performanc e Standards . FUEL AVAILABILITY/COS T CONCERN S A s proposed , 31 0 CM R7.0 0 attempt s t o piggyback

o n th e federa l highwa y diesel regulation s whic h requir e that , beginnin g i n 2006 , 8 0 percen t o f highwa y diese l hav e 1 5 ppmsulfur , whil e th e remainin g 2

0 percen t ca n b e a s hig h a s 50 0 ppmsulfur . B y 2010 , al l highwa y diese l mus t b e 1 5 pp msulfur . Whil e th e federa l non-roa d (i.e . constructio n an

d far mequipment

) regulation s publishe d thi s wee k d o no t addres s stationar y sources suc

h a s thos e propose

d i n 31 0 CM R7.00 , non-roa d diese l requirement s wil l mandat e tha t al l diese l use d fo r thi s purpos e must

b e 50 0 pp msulfu r

i n 2007 . B y 201 0 al l non-roa d diese l (excep t fo r locomotive s and marine applications ) mus t b e 1 5 pp man

d by 201 2 al l non-roa

d diesel must

b e 1 5 ppmsulfur . W e strongly believ e tha

t th e Departmen

t shoul d requir

e th e us e o f non-roa d instea d o f highwa y diese l fue l fo r th e application s regulate d unde r 31 0 CM R7.00 . Th

e proposa l shoul d referenc e the federa l nonroa d diese l rule , publishe d o n 6/2

9 (6 9 Fed . Reg . 3895 7 t o 39273 , Jun e 19 , 2004) . * Requirin g non-roa d diese l wil l result

i n a n approximat

e 90 percen

t reductio n o f

sulfu r fro mcurren

t level s (whic h ca

n b e a s hig h a s 500 0 ppm) . I n addition , 1 5 pp mdiesel , o r Ultr aLo w Sulfu r

Diesel (ULSD) , i s neede d o n engine s tha

t incorporat

e after-treatmen

t o f exhaust . I t

i s uncertai n whethe

r th e smal l engine s regulate d unde r 31 0 CM R7.0 0 wil l gai n an

y additiona

l benefit s fromULS D since these engine s d o no t hav e after-treatment . W e believe tha

t i t i s not necessar y t o subject th e user s o f these engine s to th

e extracost

s associate

d wit h ULS D fo r arelativel y smal l incrementa l reductio n i n sulfu r

oxid e emissions . 

### MASSACHUSETT

S PETROLEU

M COUNCI

L A DIVISIO N O

F AMERICA N PETROLEUM INSTITUT E 1 1 BEACO N STREE

T BOSTON , MASSACHUSETT S 0210 8 STEPHE N C . DODG

E Telephon e (617 ) 227-422

7 Fa x (617 ) 227-574 3 Associat e Directo rBecaus

e o f storag e issue s tha

t ma y var y betwee n differen t

region s o f

th e state , an

d becaus e o f difference s i n th e metho d o f

deliver y betwee n highwa y diese l (usually delivere d i n larg e tankers destined fo r deliver y to asingle servic e statio n o r UST ) an d non-roa d diesel (usually delivere d b y mean s o f asmal l tan

k truc k suc h a s th e typ e use d fo r hom e heating oi l deliveries) , i t ma y be difficul t

fo r user s t o secur e a n available an d affordabl e suppl

y o f ULS D highwa

y fue l fo r us e i n small , sometime s remotely locate d engines . Jus t becaus e ULS D wil l "be available " fo r highwa y us e i n 2006 , does no t

necessaril

y mea n i t wil l be accessibl e an d affordabl e fo r

stationary , off-roa d use . W e believ e th

e requiremen

t currentl y proposed i n 31 0 CM R7.0

0 coul d ta

x th e abilit y o f

refiners , supplier s an

d en d user s to supply an

d obtai n adequat

e volume s o f

complian

t USLD , particularl y i n th e mor e remot e area s o f th e state . TAXATIO N ISSUES A s yo u ma

y b e aware , a

s mandate d b y federa

l law , distillat e fuel s tha

t ar e use d fo r nontaxable purpose s (e.g . of f roa d use , heatin g fuel , stationar y application s suc

h a s thos e regulated unde

r 31 0 CM R7.00) ar

e dyed red . Diesel fuel s use d fo r highwa y us e ar e undyed . I t

i n unlawfu l to use

d dyed fue l fo r

highwa y use . Th e federa l ta x i s 24. 4 cent

s pe r gallo n an d th e Massachusett

s ta x i s 23. 5 cent

s pe r gallo n fo r

atotal o f 47. 9 cent s pe r gallo n collecte d an

d remitte d by distributor s o n ever y taxable gallo n o f

fue l sold . A s proposed , 31 0 CM R7.0

0 woul d requir

e owners/operator

s o f th e smal l engine s regulate d unde r thi s section t o purchase dye d fue l (sinc e i t wil l most

likel y b e th e onl y ULS D fue l availabl e i n 2006 ) an d pa y th e additiona

l almos t 5 0 cent s pe r gallo n tax . User

s woul d the

n hav e t o see k reimbursemen

t fro mth e Departmen

t o f Revenu e an d IR S fo r th e taxe s paid . W

e believ e thi s to b

e a n unintende d an

d overl y burdensom

e consequenc

e o f thi s proposal . Thi s issu

e i s anothe

r reaso n wh y i t makes sens

e fo r th e Departmen

t t o piggyback

th e federa l non-roa d diese l regulation s whic h wil l ensur e tha t adequat e supplie s o f non-taxable , lo w sulfu r

fue l ar e availabl e fo r

th e regulated use

s unde r 31 0 CM R7.0

0 I n conclusion , we believ e tha t th e Departmen

t ha s no t demonstrate

d th e nee d fo r control s o

n thes e engines , especiall

y give n th

e uncertain numbe

r an d smal l operationa

l requirements o f

the engine s regulated unti l thi s proposal . Ther e ar e no P M nonattainmen

t area s i n th e entir e stat e an d th e implementatio n o f

th e federa l highwa y an d non-roa d diesel regulation s no w established ar e likel y t o reduc e particulate s significantl y beginnin g i n mid-2006 . However , i f th e Departmen

t feel s i t i s necessar

y to regulat e emission s fro mthes e smal l an d largely undocumente

d sources , w

e strongly sugges

t th e Departmen

t mandat e the us e o f lo w sulfur , non-roa

d diese l fue l tha t wil l be , b y 2007 , readil y availabl e an d les s expensive . W e appreciat

e thi s opportunit

y t o offe r these comments . Pleas

e fee l fre e t o contact

ou r offic e i f w e ca n provide an

y additiona

l informatio n regarding thi s proposal . Sincerely , Stephe n C . Dodge

i