Western States Petroleum Association (WSPA, representing California refiners) is asking California Air Resources Board (CARB) to clarify crucial questions facing CARB’s proposed “low carbon fuel standards” (LCFS) regulations, due for a CARB board vote in April.

The CARB LCFS regulations could set precedents for future U.S. EPA regulation. They also could have an impact on future revisions to the European Union’s biofuels targets, as well as impacting similar CO2/greenhouse gas fuels rules in many other countries.

Economic sluggishness continues to weigh down diesel demand around the globe, as middle distillate supplies rise – and prices continue to fall.

Some analysts are projecting that retail diesel prices in free-market North America could fall below gasoline this summer, a phenomenon not seen in years.

Following years of development, U.S. EPA on Feb. 24 published in the Federal Register its final rule covering highway diesel emissions on-board diagnostics (OBD) for heavy-duty vehicles over 14,000 pounds, starting in 2010.

The rule, taking effect April 27, 2009, also includes revisions to OBD requirements for diesel heavy-duty vehicles under 14,000 pounds.

The World Bank announced Feb. 17 that it awarded a $330 million loan to Peru for a wide variety of environmental initiatives, including a scheme that would support the supply of Euro-4 (50-ppm sulfur) ultra low sulfur diesel (ULSD) in 30% of Lima retail stations.

The announcement points out that Petroperu is running behind schedule for a 2010 deadline to upgrade refining capacity for Euro-4 ULSD output.

Los Angeles-based algae fuel technology developer OriginOil has come up with a scheme that would require vastly smaller amounts of land (compared to pond- or greenhouse-algae schemes) for converting CO2 into methane, biofuels or Fischer-Tropsch fuels.

To develop the scheme, the company announced Feb. 17 that it has signed a cooperative research deal with U.S. Department of Energy's Idaho National Laboratory (INL).

Santa Barbara, Calif.-based Carbon Sciences announced Feb. 19 the filing of what it calls the first in a series of patent applications for a biocatalytic process to transform CO2 into liquid fuels.

Process costs – aside from water and CO2 capture/cleanup/delivery feedstock costs – could be as little as 20¢/gallon.

China’s diesel demand growth has cooled so much that small refiners are forced to shut-down, according to a SinoCast report.

“A number of small refineries in the country have to suspend operation and the overall operating rate of the industry is 21% to 23%,” the report said.

Renault aims to slash CO2 emissions from several popular diesel car models a further 25 grams/kilometer over the next couple of years, paired with similar low-CO2 introductions in gasoline and electric-car offerings.

“With the imminent switch to Euro 5 and Euro 6 legislation, petrol [gasoline] engines are poised to become an increasingly attractive proposition, a trend anticipated by Renault's new TCe powerplant family. Scheduled for launch in 2012, it is expected to account for 85% of Renault's petrol engine sales in 2015,” the company said.

Environmental groups are praising U.S. EPA’s just-unveiled proposal to slash emissions from existing stationary diesel engines.

The rule will revise national emission standards for “Hazardous Air Pollutants” (HAPs) for existing diesel “Reciprocating Internal Combustion Engines” (RICE).

California Air Resources Board on Feb. 19 posted its standard 15-day notice on a marine vessel rule requiring low-sulfur gasoil or diesel years in advanced of the 2015 deadline for International Maritime Organization Marpol Annex-6 gasoil limits.

The rule would force ocean ships within 24 miles of California ports to switch from high-sulfur residual bunker fuel to low-sulfur gasoil or diesel.