Hazmat

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FHWA Talking Freight Seminar Series Energy
Issues and the Impacts on Freight Transportation

Richard Moskowitz American Trucking
Associations May 17, 2006
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Background Fuel Issues

• Diesel is Essential to Trucking
• Trucking industry consumes 36.4 billion gallons
  of diesel
• Fuel is typically the
• 2nd largest expense
• (20-25)

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The Price of Diesel Fuel

• 2006 98.3 billion

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Trucking Failures vs. the Price of Diesel Fuel
Failures only includes fleets with at least five
trucks
Sources A.G. Edwards ATA
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Transition to ULSD

• 2006 Highway diesel fuel
• sulfur cap of 15 ppm
• What exactly is 15 ppm S ?

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Why ULSD?

• Enables use of advanced emission control
  technology (2007)
• PM Traps
• EGR
• Clean Air is not free
• Cost of new engines
• Fuel Economy
• Maintenance Costs
• Engine Life (?)

X
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ULSD Refinery/Production Status

• 2005 Precompliance Report (90 ULSD)
• ULSD Dominant Fuel across all PADDs

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Will ULSD be Available Everywhere?

• Potential for Product Contamination
• Gasoline lt 80 ppm
• Jet Fuel lt 3,000 ppm
• Heating Oil lt 5,000 ppm
• Handoffs (add 1 ppm)
• End of the Pipeline Issues
• Localized shortages could cause dramatic price
  spikes

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Will ULSD Cost More than Conventional Diesel Fuel?

• ULSD will Cost More
• EPA estimates 5 cents
• Distribution costs
• Dedicated tank trucks?
• Difference between cost and price
• Energy Content

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Will ULSD Affect Performance ?

• ULSD energy content
• Lubricity (Additives / B2)
• Solvent Effect
• Consequences of misfueling (?)

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Tank Truck Concerns

• Ensuring Product Integrity
• Liability for Product Contamination
• Sulfur Testing Concerns
• Switchloading
• Static

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Potential Supply Disruptions

• Catch 22 solutions

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Questions

• Richard Moskowitz
• American Trucking Associations
• rmoskowitz_at_trucking.org