In a letter to U.S. House of Representatives leaders, the National Association of Small Trucking Companies (NASTC) shared its concerns and the concerns of a NASTC member over real potential for a crisis with a shortage of diesel fuel.
- NASTC and its member urged consideration of an export ban for diesel/distillate fuels, also recommended by some state governors in recent weeks.
- NASTC also asked for Congressional oversight related to the current federal waiver of hours regulation for fuel haulers, suggesting it was a disaster waiting to happen.
- EPA's temporary effort to mitigate a potential shortage in Texas, too, drew a warning to truck owners from Cummins against using too-high-sulfur fuel.
The NASTC member's diesel concerns, included in the association’s letter to Congress, highlighted the Sept. 9 Short-Term Energy Outlook published by the U.S. Energy Information Administration that forecast U.S. distillate inventories to “fall below 100 million barrels in September and remain below the five-year low through much of 2027.”
With diesel prices spiking that month, the NASTC member noted “small carriers and owner-operators have the least room to absorb a sudden fuel-cost spike” and urged “a temporary six-month pause on U.S. diesel/distillate exports, with narrowly tailored exemptions for national security, binding treaty obligations and genuine humanitarian needs, plus weekly public reporting and formal 90-day and 180-day reviews.”
The member’s message wasn't meant as “a permanent protectionist proposal” but instead “an emergency measure to preserve adequate domestic fuel supplies while multiple Middle Eastern routes are under simultaneous pressure.”
NASTC, operator of the large Quality Plus Network for fuel discounts for association members, called the member’s ideas “thoughtful, and the suggestions he makes should be considered.”
Of note, in EIA's more recent Oct. 6 Short-Term Energy Outlook, the agency pointed to continued decline in inventories for diesel and distillates. "East Coast distillate fuel inventories fell 32% below their five-year seasonal average in September," EIA said, expecting that inventories would "remain around 20% below the 2021-2025 average through the upcoming winter in our forecast."
Even still, EIA expects inventories to recover in the long run. "We expect East Coast distillate inventories will gradually increase as the tightness in global fuel markets eases, bringing inventories in the region close to their five-year average during the second half of next year," the agency said.
[Related: Will Trump pause diesel exports? More regs relief for ag, fuel haulers in Nebraska, Montana]
Fuel haulers' HOS relaxation a disaster waiting to happen?
NASTC also urged Congressional oversight with respect to the suspension of hours-of-service regulations for fuel haulers. The Federal Motor Carrier Safety Administration granted the relief in September, effective through Dec. 16.
“Allowing a driver to drive 16 consecutive hours a day is not consistent with the philosophy behind the HOS rules,” NASTC President David Owen said in his letter to Congress. “To allow drivers of tankers hauling hazardous material in the form of diesel fuel to drive 16 hours straight in a day creates a tremendous highway safety risk.”
Owen added that “speeding up fuel delivery does not address the fuel supply itself, and there is no way it doesn’t compromise highway safety.”
Since NASTC’s letter was sent to Congress Sept. 24, numerous states have acted on efforts to help truckers deal with rising fuel costs by suspending the fuel taxes in their states or, in a growing number of cases, allowing red-dyed, off-road diesel to be used in on-highway applications.
President Trump this week also issued an executive order related to dyed diesel, deferring federal tax payments through the end of this year. Truck drivers will still be on the hook for state taxes where relief has not been issued, likewise federal taxes ultimately unless the deferral turns into a full stay. There’s currently a patchwork of state exemptions related to red diesel, many with different rules around who can use it and where.
More information from the U.S. Treasury and the IRS is expected in the coming days about when the federal excise tax on dyed diesel will be due. It's unclear whether legislation will emerge to fully eliminate the obligation to pay the taxes during the exemption period for red diesel.
[Related: Trump orders relief for on-highway red-dyed diesel use]
EPA gets in the diesel-shortage-mitigation game
In an effort to mitigate potential diesel shortages, as reported today by Overdrive sister publication CCJ, the Environmental Protection Agency issued a temporary fuel waiver in Texas in response to a request from Gov. Greg Abbott that lifts State Implementation Plan TX-Low Emissions Diesel (TXLED) standards and ultra-low sulfur diesel (ULSD) requirements for 20 days, allowing the production and sale of higher sulfur diesel (up to 500 ppm).
The waiver is strictly limited to older, pre-emissions trucks built prior to the 2007 model year, and off-road Tier 1, Tier 2, or Tier 3 engines. Modern engines equipped with diesel particulate filters or catalytic emission control systems must continue utilizing standard 15 ppm ULSD to prevent serious damage.
In light of the Texas EPA waiver, engine manufacturer Cummins is warning customers to stick to engine fuel specifications to avoid damage.
"Cummins is aware of the temporary EPA waiver and continues to recommend that customers follow the fuel specifications outlined for their engines and equipment," the company said in a statement. "Failure to use the approved fuel (maximum 15-ppm sulfur diesel fuel for Tier 4 and 2007 and newer engines) can damage the engine and aftertreatment system."
Cummins added that engine and aftertreatment failures due to using incorrect fuels will be denied warranty coverage.
Using dyed diesel, however, will not on its own damage your engine or aftertreatment system, or void your warranty, as also reported today.
[Related: Could dyed diesel damage your engine or void your warranty?]
