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ULTRA LOW SULFUR DIESEL A USER'S Point of view. Jerry Thrift Ryder Transportation Administrations TMC Summit June 10, 2003. Ultra Low Sulfur Diesel (ULSD) Course of events. June 2006
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ULTRA LOW SULFUR DIESEL A USER\'S PERSPECTIVE Jerry Thrift Ryder Transportation Services TMC Summit June 10, 2003

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Ultra Low Sulfur Diesel (ULSD) Timeline June 2006 – We will begin seeing ULSD in the on-expressway advertise September 2006 – ULSD will be common in the on-parkway showcase – 500 ppm sulfur diesel will keep on being accessible in the on-interstate market, yet in a quite lessened volume and accessibility January 2010 – 500 ppm sulfur diesel will never again be sold in the on-roadway advertise

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Can I Run ULSD in my Pre - Jan \'07 Engines? Yes, ULSD won\'t hurt your motor and there will be a change in motor discharges. ULSD will cost all the more, so you will most likely buy 500 ppm fuel for your pre – Jan \'07 motors the length of you can.

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Why Will ULSD Cost More? Decreasing the sulfur level requires all the more hydrotreating and this adds cost Additives should be added to ULSD to convey this current fuel\'s execution go down to 500 ppm sulfur diesel fuel\'s execution level Keeping ULSD at or beneath 15 ppm sulfur levels all through the dissemination procedure will include cost

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Why Will ULSD Cost More? For those providers that offer both ULSD and 500 ppm diesel, this will add cost because of more framework and additionally less proficiency of the current foundation

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How Much More Will ULSD Cost? EPA says $.05/gallon API says $.15/gallon Actual cost will most likely be some place in the center. For our motivations, lets say $.10/gallon

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ULSD & New Engines\' Impact on Fuel Cost Assumptions: 150,000 miles for each year Five year exchange cycle 6.50 MPG, Pre-Oct \'02 motor 6.27 MPG, Post-Oct \'02 motor (w/3.5% punishment)

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ULSD & New Engines\' Impact on Fuel Cost Assumptions cont\'d: 6.26 MPG, ULSD (w/.25% punishment) 6.16 MPG, Post-Jan \'07 motor (w/1.5% punishment) $1.50/gallon for 500 ppm sulfur diesel $1.60/gallon for ULSD

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New Engines & ULSD and Their Impact on Fuel Purchases Description Five Years Difference Pre-Oct 02 $173,000 Base Post-Oct 02 $ 6,300 + 4% Post-Jan 04 ? ? ULSD 18,700 + 11 Post-Jan 07 21,600 + 12.5

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Execution of ULSD into the Market Raises Serious Concerns Current Regulation Says: "Hardship" refiners will be permitted to offer 500 ppm sulfur diesel for the on-thruway showcase until 2010 These refiners can do as such the length of they don\'t surpass 20% of the on-interstate diesel advertise needs. (Called the 80/20 govern.)

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Impact Of This Regulation: Your Jan \'07 vehicle will be at danger of being powered with 500 ppm sulfur diesel If your tractor is furnished with a NOx adsorber, one top off will harm the adsorber and render it futile The cost to supplant the NOx adsorber will be around $6,000! The particulate trap should be overhauled sooner

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Government\'s Solution: Label the distributors as "15 ppm diesel" and "500 ppm diesel" Educate the clients on this issue This arrangement is not down to earth in this present reality. Blunders by individual filling vehicle Mistakes made on the dispersion side Unscrupulous representatives

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Better Solution: notwithstanding marking and training Dye 500 ppm sulfur diesel blue Decrease the span of the ULSD administering spouts and require fuel gulf restrictors in the fuel tanks of Jan \'07 vehicles. (This was done when we went to unleaded gas.)

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Best Solution: Do not permit 500 ppm sulfur diesel in the on-roadway advertise Have "hardship" refiners pitch to the off-thruway showcase Have different refiners decrease their off-parkway pitches to suit the "hardship" refiners This arrangement additionally settle the motor oil similarity issue when utilizing two sulfur level energizes

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Fuel Quality Concerns In 1993 on-interstate diesel sulfur level was lessened to 500 ppm This brought about motors creating fuel framework releases as well as other fuel framework issues Is this going to happen again in 2006 when we go from 500 ppm sulfur to 15 ppm sulfur?

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Fuel Quality Concerns Cont\'d It shows up this won\'t be the situation for two reasons: After 1993, motor makers changed to premium seals and made different upgrades In September 2002 the Engine Manufactures Association (EMA) discharged their "extra execution necessities" for ULSD

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Fuel Quality Concerns Cont\'d EMA prescribed enhancements to ULSD in the accompanying regions: Cetane Lubricity Thermal Stability However, most refiners won\'t take after this suggestion until the American Society of Testing and Materials (ASTM) favors these upgrades

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Fuel Quality Concerns Cont\'d Therefore, ASTM necessities to endorse EMA\'s "extra execution prerequisites" for ULSD

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ULSD – Above and Below Our Borders Canada needs to embrace our ULSD plan and actualize it in the meantime as the U.S. so business movement won\'t be adversely affected Mexico Entrance of U.S. trucks past the business zone is denied so this ought not be a noteworthy issue NAFTA transactions incorporate the production of a business truck "hall"

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ULSD – Above and Below our Borders When this passage is affirmed, ULSD will be needed

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ULSD A User\'s Perspective Conclusions: The cost of ULSD should be nearly inspected and held to a base The 80/20 manage should be canceled Have the "hardship" refiners pitch to off-interstate markets and confine different refiners to offer in this market If the 80/20 govern is not revoked, we require littler allocator spouts, fuel gulf restrictors and 500 ppm sulfur diesel colored blue

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ULSD A User\'s Perspective Conclusions: NOx adsorbers are excessively costly and too effectively harmed In 2007, you may wish to diminish your hazard with new outflow innovation by renting or altering your buy/exchange cycle

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ULSD A User\'s Perspective Questions? Jerry Thrift Ryder Transportation Services

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