Retailers should check diesel dispensers for labels; EPA says many are missing

Diesel dispensers at many retail locations lack proper labeling for ultra-low-sulfur diesel, according to the Environmental Protection Agency.

“A nationwide survey shows that more than half of retail stations selling diesel fuel currently have pumps without any sulfur label or the pumps are labeled as dispensing low sulfur diesel,” EPA said in a letter issued in January.

The data also show that 76 percent of the pumps not labeled ULSD were dispensing fuel that met the 15 parts per million standard for ULSD, with an average sulfur content of 6.7 ppm, EPA’s letter stated. The letter accompanied a document issued by EPA that describes dispenser labeling requirements and downgrading restrictions.

“Downgrading” refers to the practice of labeling ULSD as low-sulfur diesel during the time that storage tanks are being switched to ultra-low sulfur fuel.

In its Weekly Review of Jan. 19, the Petroleum Marketers Association of America noted, “the EPA remains concerned about retail locations that continue to label their dispensers as low sulfur diesel, though samples taken at the facilities show the actual sulfur content is less than 15 ppm.”

EPA's document is intended to clarify downgrading rules and to remind retailers and fleet fueling facilities that, between Oct. 15, 2006, and May 31, 2007, with very few exceptions, downgrading is limited to 20 percent of ULSD received, the PMAA noted in its weekly publication.

EPA believes that retailers who have consistently downgraded ULSD since Oct. 15, 2006 may be close to exceeding the 20 percent limitation, PMAA reported in its Weekly Review.

The Jan. 9 EPA letter, signed by Adam M. Kushner, director of the Air Enforcement Division, said, “Retailers, wholesale purchaser-consumers and distributors that fail to comply with the diesel pump labeling and ULSD sales and transfer requirements are subject to penalties under the Clean Air Act.”

The agency document accompanying the letter stated: “When EPA determines that a distributor, retailer or wholesale purchaser-consumer has violated the diesel requirements in any way (e.g., exceeded its 20 percent downgrading allowance), the Agency may commence an enforcement action. EPA may require a regulated party to supply documents that demonstrate the volume of ULSD the party has downgraded to determine compliance with the 20 percent downgrading limitation. EPA may assess a civil penalty of up to $32,500 per day if a distributor, retailer orwholesale purchaser-consumer downgraded more than 20 percent of the ULSD it received.”

The EPA document also said:

“The ULSD regulations require all retailers and wholesale purchaser-consumers to label diesel fuel pumps with specific language notifying persons dispensing diesel fuel into vehicles of the sulfur standard of the fuel, and the vehicles for which it is appropriate. With certain exceptions, retailers and wholesale purchaser-consumers also are required to sell or dispense diesel fuel they receive as ULSD from a pump labeled as dispensing ULSD, and ULSD a distributor receives from a terminal must be classified as ULSD when it is transferred to a retailer or wholesale purchaser consumer.”