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ARCO INTRODUCES CLEANER-BURNING DIESEL FUEL TO CALIFORNIA MARKET

 LOS ANGELES, Sept. 2 /PRNewswire/ -- ARCO announced today that it has begun delivering cleaner-burning diesel fuel to ARCO dealers and distributors throughout California, weeks ahead of a state-imposed, Oct. 1 deadline.
 "We are proud to say that ARCO's Vinvale Terminal in Southern California is meeting the state's new diesel standards today, well ahead of schedule," said William C. Rusnack, president of ARCO Products Co., the refining and marketing division of ARCO.
 "Our early compliance with California Air Resources Board (CARB) regulations further establishes ARCO's leadership in developing clean fuels for the state," Rusnack said.
 Oct. 1 is also the effective date for new federal Environmental Protection Agency diesel requirements, but state standards are tougher.
 Rusnack said that the new ARCO diesel provides a 98 percent reduction of sulfur dioxide, a 7 percent reduction of nitrogen oxides and a 25 percent reduction of particulate matter from the emissions of diesel now in use in California. CARB has estimated that such reductions will help eliminate 25 to 40 percent of the black smoke visible in emissions from diesel cars and trucks, as well as from diesel off-road, construction and agricultural vehicles. Trains, marine vessels and stationary diesel engines are not required to use the new diesel.
 Orange County Supervisor Harriett Wieder, a member of the CARB, praised ARCO for taking advantage of CARB's rule to develop its own unique diesel fuel.
 "Requiring the nation's cleanest diesel fuel is one of three steps CARB is taking to provide a clean, clear future for diesel in California," Wieder said. "Our other diesel plans include soot-free emission standards for new bus engines and roadside smog checks for high-polluting trucks."
 The price of ARCO CARB diesel will be determined by the changing market conditions, including supply and demand. The cost to produce CARB spec diesel varies, and CARB has estimated that cost to range from 8 to 10 cents a gallon more than the cost to produce California diesel fuels today. CARB-certified alternative formulas are estimated to cost 6 to 8 cents a gallon more to produce than the EPA-required formula, and some oil refiners who can't comply with the CARB requirement by Oct. 1 will be charged a variance fee of 6 cents for every gallon of non- complying California diesel that they sell after Sept. 1. All of these factors will affect the ultimate price of diesel in California.
 CARB established its diesel fuel specifications in November 1988, but all refiners have also been given the opportunity to produce an alternative equivalent fuel formulation, if the alternatives provide equivalent emission benefits. ARCO took this latter approach and tested two alternative cleaner-burning diesel formulas in an independent laboratory. The laboratory engine tests, which were certified by CARB, showed that the ARCO formulations had the same as, or better, overall emissions results than the CARB reference diesel fuel.
 CARB certified the ARCO formulas in July. Planning ahead, ARCO had already completed a two-year, $70 million modification at the company's Los Angeles Refinery, and, therefore, was able to begin producing the new diesel. ARCO expects to produce approximately 15,000 to 20,000 barrels (or 630,000 to 840,000 gallons) per day of complying diesel.
 ARCO's new diesel is available today for sale to distributors at the Vinvale Terminal, the world's largest truck distribution center for light petroleum products. Elsewhere in California, ARCO CARB diesel will be sold through the company's normal distribution supply channel, which is primarily through wholesale distributors. In addition, ARCO CARB diesel will be available on Oct. 1 to retail customers at the 25 ARCO-branded service stations supplied from Vinvale that sell diesel as well as gasoline in California.
 -0- 9/2/93
 /CONTACT: Annie Reutinger, ARCO Public Affairs, 213-486-3181/


CO: ARCO; ARCO Products Co.; California Air Resources Board ST: California IN: OIL SU: PDT

BP-JL -- LA010 -- 8446 09/02/93 13:02 EDT
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Date:Sep 2, 1993
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