Incentives for Early Fuel Distribution Will Ease Clean Diesel Transition

July 8, 2005

Refiners have an added incentive to produce and distribute ultra-low sulfur highway diesel fuel earlier than required. Ultra-low sulfur diesel fuel is necessary to reduce harmful diesel emissions because it allows a new generation of engines to run more than 90% cleaner than today's diesels.

EPA is enhancing an early credit program through a direct final rule. Under the incentive program, refiners and importers will be given credits for the amount delivered into the distribution system prior to June 1, 2006. Providing incentives for early production and distribution of ultra-low sulfur highway diesel fuel will help to ensure fuel in the delivery system can be transported and distributed efficiently and in compliance with the regulations.

In addition, the fuel tracking system is modified so refiners and other parties throughout the fuel distribution system can better calculate the volume of low-sulfur fuel being produced and distributed. The credit provisions began June 1, 2005 and the remaining technical amendments will go into effect 30 days after the rule is published in the Federal Register. The rulemaking and related documents are available at:

Source: EPA

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