Court Hears Fuel Appeal

WASHINGTON — Petroleum refiners suing to stop a rule requiring a sharply reduced level of sulfur in diesel fuel warned the U.S. Court of Appeals here Feb. 26 that fuel shortages would result if the Environmental Protection Agency goes ahead with its plan.

Diesel engine makers attacked the plan from another side, saying the EPA’s ultra-low-sulfur diesel fuel requirement, slated to take effect in 2006, does not go far enough. They said it would not guarantee their lower-emissions engines, due in 2007, could run cleanly enough to hit the new targets unless the sulfur in the fuel is completely removed by the refiners.

The Court of Appeals – which has authority to block a federal agency action — could issue a decision this spring or by early summer to halt the EPA rule or allow it to go forward.

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