One Year Later, Ultra-Low Sulfur Diesel Widely Available

High Customer Satisfaction with New Clean Diesel Car and Truck Engines. Transition to Cleaner Fuel, Engines Progresses More Smoothly Than Anticipated.

October 15 marks the one-year anniversary of ultra-low sulfur diesel’s (ULSD) arrival at U.S. fueling stations nationwide – a pivotal milestone for the diesel industry and America’s environmental progress and energy security. Initial concerns about fuel availability and the performance of heavy-duty trucks designed specifically for ULSD have waned, thanks to an absence of problems transitioning to the clean diesel system, according to the Diesel Technology Forum (DTF).

More than 93 million barrels of ULSD were refined in July 2007, compared with just 54 million one year earlier, according to the U.S. Energy Information Administration. ULSD now accounts for over 75 percent of all distillate fuel production, and EPA estimates that over 90 percent of all retail service stations that have diesel fuel are now carrying ULSD – exceeding the required 80 percent minimum level. Since October 2006, more that 838 million barrels of clean diesel fuel have entered the U.S. distribution system.

“The transition to ULSD fuel has been nearly seamless, with virtually no supply interruptions nor technical glitches. Like the switch from leaded to unleaded gasoline, this transition to clean diesel fuel is fundamentally transforming diesel technology to be a leading solution for reducing energy consumption, lowering greenhouse gas emissions and meeting aggressive clean air standards,” said Allen Schaeffer, DTF executive director. ULSD is required for all new 2007 clean diesel heavy-duty commercial truck engines and new diesel passenger cars and SUVs. Its use also allows for the modernizing of some existing engines and equipment with emissions control technology such as particulate filters.

The U.S. Environmental Protection Agency (EPA) estimates that this year, thanks to a combination of cleaner diesel fuel and new engine technology, sulfur oxide emissions (a contributor to acid rain) from heavy-duty trucks will decrease by more than 100,000 tons and carbon monoxide emissions by more than 70,000 tons. However, the most significant benefits of clean diesel will be realized when new trucks have largely replaced the existing fleet in 2020. At that time, EPA predicts two million fewer tons of nitrogen oxides (or NOx, a component of smog) and 83,000 fewer tons of fine particulate matter (or soot annually, thanks to clean diesel).

“Diesel truck drivers depend on their trucks for superior fuel economy and power. Early reports indicate that the cleaner fuel and engines still deliver both. Alongside the smooth fuel transition, equally encouraging is the tremendous satisfaction among users of new 2007 commercial vehicles,” continued Schaeffer. “Winning over commercial truck drivers is the litmus test for any new technology and those that have accumulated time in a 2007 truck have been pleasantly surprised by the performance and fuel economy as being better than expected.”

Heavy-duty truck sales slowed in 2007 compared to previous years, though most analysts expect purchases to increase later this year and into 2008. “Many factors influence the acquisition of new truck and engine technologies,” explained Schaeffer. “However, real-world experience has demonstrated that a lack of confidence in the new clean diesel engine technology should not be one of them.”

A new 2007 diesel truck emits just one-sixtieth the soot exhaust of one produced in 1988. And thanks to the new clean diesel fuel, owners of existing diesel vehicles have the option to install new emission controls that can reduce soot emissions by more than 90 percent. Congress is currently considering appropriations for the national clean diesel retrofit program and could provide up to $200 million this year to modernize existing vehicles and equipment.

The new clean diesel fuel has also opened the door for auto companies to begin offering cleaner diesel passenger vehicles that deliver greater fuel economy – typically 20 to 40 percent better than gasoline vehicles. Many diesel cars, pickups and SUVs are already available in the U.S., and during the past year numerous manufacturers – including Dodge, General Motors, Ford, BMW Group, Mercedes, Jeep, Audi, Volkswagen, Honda, Nissan, Hyundai and Mitsubishi – have announced or are expected to shortly announce plans to sell additional diesel models in the U.S. beginning as early as next year.

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