New York Becomes Latest Northeast State to Reduce Sulfur in Heating Oil

Over the last few months, several states have passed legislation to reduce the amount of sulfur in home heating oil, New York being the latest state to adopt such legislation.

Last week, the state's senate approved legislation that would cut sulfur levels in #2 heating oil from the current range of 2,000 to 15,000 parts per million to the Environmental Protection Agency's limit for diesel truck fuel of up to 15 ppm. The rule would take effect July 2012.

While environmental groups support such laws as a way to reduce acid rain, regional haze and soot pollution, the trucking industry is concerned it would increase demand for ultra-low sulfur diesel, resulting in supply shortages and prices increases.

Earlier this year, the American Petroleum Institute's chief economist told a gathering of truckers that API was concerned about such proposals in the Northeast to mandate ultra-low sulfur heating oil.

"You're talking about suddenly throwing the Northeast into a situation where you could suddenly have a surge in demand," said John Felmy during the National Private Truck Council meeting. The industry just does not have the refining capacity to meet that much need for ultra-low-sulfur fuel - and home heating oil is very similar to diesel fuel, he added. "The last thing you want is a major spike in demand for diesel in the winter."

New York is not the only state truckers have to contend with. In April, Maine enacted a similar law, which requires a phased-in reduction in sulfur. In 2014, sulfur levels will be reduced to 500 ppm, followed by a reduction to 15 ppm by 2018.

"Increasing the demand for ULSD could result in supply shortages and price increases," the Maine Motor Transport Association's website said. "ATA (American Trucking Associations) believes that the benefits sought for home heating oil users could be achieved by the use of heating oil that contains no more than 50 ppm sulfur."

This month, Connecticut also followed suit, approving a bill limiting sulfur levels in heating oil to less than 0.3 percent and at least 2 percent biodiesel by July 1, 2011. But a provision of the bill holds off on implementation until Massachusetts, Rhode Island and New York pass similar legislation. Other states considering similar proposals include New Jersey and Pennsylvania.