The standard for new emissions standards.

Diesel Engine School Bus Retrofit Technology Workshop

Maryland Department of the Environment

April 29, 2004

ULSD – The Road to 2006

• By 2006 the U.S. EPA standards for sulfur content in on-highway diesel will be reduced from 500 ppm to 15 ppm at refiner level; 2006-2010 phase in for end user

• Refiners, engine manufacturers, marketers, retailers and end users have begun strategizing how this new mandate will affect their industries

• Throughout the supply chain there must be adaptations to accommodate this lower sulfur fuel

EPA Regulations for On-Highway Diesel

2004 2006 2007 2010

500 ppm on-road diesel

Sulfur content reduced from 500 ppm to

15ppm

All diesel will be ULSD

80% ULSD20% 500 ppm

Phase in:

Fungible product

June ‘06

In 2007, all new diesel equipment manufactured must

run on ULSD.

All diesel vehicles manufactured prior to 2007 may run on either LSD or ULSD to 2010.

Sep ‘06

Marketers/Retail

Drivers of ULSD

• Meets community and public interest group objectives– Health organizations initiatives

• Achieve immediate emission reductions– With or without emission control devices

• Lowest overall cost option for reducing emissions– Unlike other alternative fuel options, ULSD has no

infrastructure or fleet changes/modifications

– If end user operates an on-site fueling facility, no upgrades or modifications necessary to tank, piping, or dispenser

National Availability of ULSD

Sprague

Other Suppliers

Manchester

Boston

New York

New JerseyPhiladelphia

Washington, D.C.

Ann Arbor

Cleveland

AtlantaBirmingham

San Diego

Los Angeles

Portland

Seattle

Houston

Current Users of ULSD

• Heavy, medium and light duty vehicles• Transit and school bus fleets• Municipal & private transportation fleets• Construction equipment• Power generation equipment• Marine

How Did Sprague Become Involved?

• 2000 New York City Transit Authority demonstration program– One depot – 200 buses– Buses used ULSD base fuel only & ULSD with particulate

filters

• Program test resulted in NYCTA converting 18 depots from 500 ppm diesel to ULSD, with no change in infrastructure or engine modifications– End result: 4,400 buses operating on ULSD had

immediate reduction in emissions (e.g. immediate reduction utilizing ULSD and even greater reduction with buses operating on ULSD with particulate filters)

KEY:PM = Particulate MatterCO = Carbon MonoxideTHC= Total Hydrocarbons

ULSD Base Fuel Only

ULSD with DPF Retrofit **

THC 76% 92%

CO 29% 94%

PM 23% 88%

*Society of Automotive Engineers, Inc. 2001-01-0511:“Performance and Durability Evaluation of Continuously Regenerating Particulate

Filters on Diesel Powered Urban Buses at New York City Transit” with Detroit Diesel Series 50 Engine.** 99% reduction in PM particle counts across all size ranges, including the smallest particles.

ULSD Proven Emission Reductions*

End User Concerns

Operability

• No measurable difference in vehicle performance• Easy to switch from engine perspective• ULSD may be used in older trucks – no need to store two

fuels

FuelPerformance

• Currently refinery production of ULSD does not meet engine manufacturers lubricity specifications

• Fuel meets/exceeds engine manufacturers’ specifications using lubricity additive

Supply & Distribution

• Transporting fuel to end user with minimal or no contamination is a challenge

• Requires segregated product at fuel terminals, pipelines, racks and delivery trucks

• At this time cannot use commercials pipeline for transportation of ULSD

End User ULSD Concerns

End User ULSD Concerns

• Price– Optimize delivery quantity

– Aggregate usage

• Supplier– Experienced in supply and delivery of ULSD or non-

fungible products

– Reliable and consistent supply (multi-refinery sources)

– Multi-terminal network

– Fungible vs. segregated system

– Multiple segregated delivery transport fleet

– Emergency Supply Plan

End User Concerns

• Supplier (cont’d)– Product winterization

– Quality Control Program

– Meet engine manufacturers’ fuel specifications• Lubricity (SLBOCLE vs. HFFR)

• Type of lubricity additive

• Lubricity insurance

• Sulfur testing standards and enforcement to insure product integrity

• Future federal and local legislation

• 500ppm vs. 15ppm

• Financial resources