EPA: Texas High Sulfur Diesel Waiver on Through Dec. 3


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) - The U.S. Environmental Protection Agency (EPA) is 
allowing Texas to produce and sell through December 3 a higher-sulfur diesel 
variant for older trucks and machinery, in a bid to ease the state's tightness 
in transportation and industrial fuels supply.

   Texas' emergency waiver for higher-sulfur diesel was set to expire on 
November 13 but will be extended by another three weeks effective November 14, 
the EPA announced Tuesday (11/10), following consultations with the Department 
of Energy. 

   The ruling temporarily relaxes federal ultra-low sulfur diesel (ULSD) 
standards and Texas Low Emission Diesel requirements. With the waiver, Texas 
refiners will continue producing and distributing through December 3 diesel 
containing up to 500 parts per million (ppm) sulfur, compared with the standard 
15 ppm limit for ULSD. Its use will remain restricted to older highway diesel 
engines and nonroad equipment designed to operate on such fuel, while newer 
engines must continue using ULSD.

   EPA attributed the supply disruptions partly to ongoing Middle East 
instability and reduced domestic refining capacity, noting that U.S. refinery 
utilization reached 94.5% during the week ended October 30, above the seasonal 
five-year average.

   National distillate inventories were 12% below the five-year average during 
the same week, according to EPA's determination, limiting the industry's 
ability to respond to unexpected supply interruptions.

   Prior to this, the agency initially issued emergency diesel waivers for 
Texas on October 5 and October 20. EPA said it will continue monitoring supply 
conditions and could extend the relief as necessary.




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