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U.S. Environmental Protection Agency Clean Diesel Fuel Implementation Workshop

U.S. Environmental Protection Agency Clean Diesel Fuel Implementation Workshop. Transportation Panel Pat Barnecut Southern Counties Oil Company Orange, CA. November 21, 2002. ULSD (15ppm) in California. Preparation has been relatively simple. Conversion seamless to customers.

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U.S. Environmental Protection Agency Clean Diesel Fuel Implementation Workshop

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  1. U.S. Environmental Protection AgencyClean Diesel Fuel Implementation Workshop Transportation Panel Pat Barnecut Southern Counties Oil Company Orange, CA November 21, 2002

  2. ULSD (15ppm) in California • Preparation has been relatively simple • Conversion seamless to customers • Problems have been few

  3. Factors contributing to ease of transition: • Average sulfur content of CARB diesel is already 140 PPM --range of refinery production from 30PPM to 300PPM • Product integrity at rack is excellent • Primarily three refiners making it available at the rack • Available only at the three producing refiner’s local rack and one proprietary (barge transported) terminal • Pipeline handling strictly on proprietary line(s) to rack tanks • Dedicated pumps and rack loading systems • Rigorous testing

  4. Factors contributing to ease of transition (continued): • Size of market is small-currently less than 2% • Overall CA on road demand is approximately • 240,000 barrels per day • Current size of ULSD market is 4,000 bbl/d • Market limited to public transit agencies required to convert by CARB • Environmentally ambitious entities • Slow growth anticipated in near term

  5. Current Transportation Preparation • Use only selected common carrier. • ULSD handling procedures distributed to and • reviewed with carrier • carrier responsible for driver training • Prefer truck dedicated to ULSD service but require: • Trucks with prior load of jet fuel, EPA Low Sulfur Diesel or gasoline cannot be used (exceeds refiner requirements) • Prior load of CARB diesel requires only drain dry

  6. Customer Tankage and Delivery • Not necessary to pump out or otherwise clean tanks • converted from CARB diesel: • Conversions thus far predominately ahead of retrofitting • No compliance testing in field tanks - regulations • require transits purchase ULSD but do not spell • out tank testing. • Procedure for conversion from CARB usage tank is • simply to let inventory run to minimum level then • deliver ULSD to tank maximum • If converting from a tank in Low Sulfur (500ppm) service • or to vehicles already equipped with traps we would plan • three tank turns to assure tank does not exceed 15ppm.

  7. The Future • When will California switch to ULSD completely? • In the South Coast Air Basin (LA area) certain fleet types must purchase alternative fuels at they purchase new vehicles • Further state or local regulation could accelerate conversion • Without further regulation CA converts when the demand tide turns, which likely just precedes 2006 national conversion timetable • Outlying terminal storage does not have adequate capacity to accommodate more than one grade of diesel. • When the demand shifts favoring the ULSD, the pipeline grade will change.

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