On June 1, 2007 an EPA rule will mandate a sulfur level of not more than 500 ppm for non-road locomotive and marine diesel (NRLM). This level will decline to 15 ppm on June 1, 2010. The rule does not include diesel fuel for home heating, industrial boiler, or stationary power uses or diesel fuel used in aircraft.

Beginning June 1, 2007 refiners will be required to produce non-road, locomotive, and marine diesel fuel (NRLM) that meets a maximum sulfur level of 500 ppm. The 2007 compliance dates are staggered for different segments of the industry:

The transferor must provide to the transferee documents which include the following information for non-road locomotive diesel fuel, heating oil including distillates used or intended to be used as motor vehicle, non-road locomotive, and marine diesel fuel or heating oil (except when such fuel is dispensed into motor vehicles or nonroad, locomotive, or marine equipment),

• The names and addresses of the transferor and transferee
• The volume of diesel fuel or distillate which is being transferred
• The location of the diesel fuel or distillate at the time of the transfer
• The date of the transfer
• The sulfur content standard that the transferor represents the fuel to meet and an accurate, clear statement of the applicable designation or classification, (for example, 500 ppm sulfur NRLM diesel fuel), and whether the fuel is dyed or undyed, and for heating oil, whether marked or unmarked

The following verbiage also must be included, as applicable:

For Dyed High Sulfur NRLM Fuel:
From June 1, 2007 through September 30, 2010: “High Sulfur Dyed Non-road, Locomotive, or Marine Engine Diesel fuel-sulfur content may exceed 500 ppm sulfur. Not for use in highway vehicles or engines. Not for use in any non-road engines requiring Ultra-Low Sulfur Diesel Fuel. Not for use in the Northeast/Mid-Atlantic Area.”

Heating Oil:
For heating oil produced or imported beginning June 1, 2007: “Heating Oil. Not for use in highway vehicles or engines or nonroad, locomotive, or marine engines.” The following may be substituted for the descriptions above, as appropriate:

• This is high sulfur diesel fuel for use only in Guam, American Samoa, or the Northern”
• This diesel fuel is for export use only.”
• This diesel fuel is for research, development, or testing purposes only.” or
• This diesel fuel is for use in diesel highway vehicles or non-road equipment under an EPA- approved national”

Heating Oil:
EPA does not regulate the sulfur content of heating oil. However, with the exception of areas of the Northeast and Mid- Atlantic regions of the U.S. and Alaska, all heating oil will contain a marker (solvent yellow 124) to insure that it does not get diverted to the off-road pool of fuel. Thus, marketers will have to take care to segregate heating oil from non-road fuel in storage, transportation, etc. PMAA suspects that due to the limited volumes of heating oil in those areas, many marketers may opt to offer low sulfur diesel (500-ppm) to their customers rather than invest in additional storage for segregation of the two products. North Carolina and Virginia WILL NOT BE REQUIRED TO HAVE THE MARKER.

Yes, the EPA regulations require that the sulfur content of all diesel dispensers in the United States, except California, be communicated to the diesel end-users, using new dispenser labels. This includes the S15 (ULSD), S500 (LSD), and S5000 (HSD) dispensers. This regulation applies to any dispenser; whether it is at a retail site, commercial site, or is for company’s own use.

In California, the state has mandated that ULSD be the only fuel available. Therefore, the EPA has exempted California from labeling dispenser pumps.

Low Sulfur Non-Road Diesel Fuel Dispensers (< 500 ppm) Valid 6/1/2007 thru May 31, 2010

• LOW-SULFUR NON- HIGHWAY DIESEL FUEL (500-ppm Sulfur Maximum)

WARNING
Federal Law Prohibits Use in Highway Vehicles or Engines

Ultra Low Sulfur Non-Road Diesel Fuel Dispensers (< 15 ppm) Valid 6/1/2007 thru May 31, 2010

• ULTRA-LOW SULFUR NON- HIGHWAY DIESEL FUEL (15-ppm Sulfur Maximum)
• Required for Use in All Model Year 2011 and Newer Non-Road Diesel Engines.
• Recommended for Use in All Non-Road, Locomotive and Marine Diesel Engines.

High Sulfur Non-Road Diesel Fuel Dispensers (may exceed 500 ppm) Valid 6/1/2007 thru September 30, 2010

• HIGH SULFUR NON-HIGHWAY DIESEL FUEL (May Exceed 500-ppm Sulfur)

WARNING
Federal Law Prohibits Use in Highway Vehicles or Engines. May Damage Non-highway Diesel Engines Required to Use Low Sulfur or Ultra-low Sulfur Diesel Fuel.

Heating Oil Dispensers (may exceed 500 ppm) Valid 6/1/2007 and beyond

• HEATING OIL (May Exceed 500-ppm Sulfur)

WARNING
Federal Law Prohibits Use in Highway Vehicles or Engines, or in Non-Road, Locomotive, or Marine Diesel Engines. Its Use may Damage These Diesel Engines.

Kerosene Dispenser (may exceed 500 ppm)

• Has not changed and is still valid. NON-HIGHWAY KEROSENE (May Exceed 500-ppm Sulfur)

WARNING
Federal Law Prohibits Use in Highway Vehicles or Engines. Its Use May Damage These Vehicles and Engines.

The new ULSD regulations require that the dispenser labels be placed on the vertical surface of each pump housing and on each side that has gallon and price meters. The labels must be on the upper two-thirds of the dispenser in a location where they are clearly visible.

If the dispenser is attached to the tank, such as a portable skid tank, and there is no room on the dispenser mechanism to apply the label, you may affix the label to the tank itself in a place that is easily seen by the person dispensing the fuel.

NOTE: The current IRS labels “DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE”; “DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE” and “UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY” are still required. Do not remove IRS labels or cover them with EPA labels. The EPA labels are in addition to, not a replacement, for IRS dispenser labels.