Sullivan Welcomes EPA Regulatory Relief Putting Downward Pressure on Alaska Fuel Prices

ANCHORAGE, ALASKA-U.S. Senator Dan Sullivan (R-Alaska), a member of the Senate Environment & Public Works (EPW) Committee, today welcomed Environmental Protection Agency (EPA) Administrator Lee Zeldin's issuance of an emergency fuel waiver under Section 211 of the Clean Air Act, an action the Senator has been advocating for as a way to lower fuel prices. The waiver is an action of the National Energy Dominance Council's (NEDC) Rural Alaska Energy Security Task Force, announced in May by Secretary of the Interior and NEDC Chairman Doug Burgum. The waiver temporarily relaxes federal diesel-fuel sulfur requirements for qualifying sales of Arctic-grade diesel above the Arctic Circle in compatible engines and equipment.

The action will allow North Slope producers to put substantial idle refining capacity to work, increase local fuel production, and displace a significant portion of the ultra-low-sulfur diesel (ULSD) currently transported to the North Slope so that it can be utilized by Alaskans.

"Global fuel supply disruptions have been a significant challenge for Alaska communities, resulting in rising fuel prices," said Sen. Sullivan. "This targeted, commonsense measure-part of the NEDC Rural Alaska Energy Security Task Force-frees up Alaska-produced fuel to help put downward pressure on prices for hard-working Alaskans. I want to thank members of the administration, especially Secretary Burgum, Secretary Wright, and EPA Administrator Zeldin, for working with me to get this done. This is one important near-term step that I've relentlessly pushed for, and I will continue pressing for additional actions that will bring relief for Alaska's families facing high energy costs."

"President Trump has prioritized ensuring American families have an affordable domestic energy supply and EPA is proud to once again deliver, this time specifically for Alaska," said EPA Administrator Lee Zeldin. "Thanks to strong support and advocacy by Senator Sullivan, Alaskans will no longer be forced to unnecessarily truck their fuel hundreds of miles across the state and Alaskan families will feel lower prices at the pump. This is a prime example of why EPA has waiver authorities in the first place; unique circumstances warrant unique solutions."

Before the waiver, federal diesel-fuel sulfur standards prevented locally refined Arctic-grade diesel from being used in most internal-combustion engines, effectively limiting its use to heating and freeze protection and leaving significant North Slope refining capacity idle. Industry data indicate that at least 56,000 gallons of ULSD are currently trucked from Fairbanks to the North Slope each day, increasing to approximately 63,000 gallons per day during peak periods. By allowing existing topping units to supply eligible engines and equipment with locally produced fuel, the waiver will displace a substantial share of these shipments and unlock tens of thousands of gallons per day in previously unused local refining capacity. Up to an estimated 75,000 gallons of additional diesel per day could be brought online by North Slope producers.

The waiver takes effect upon signature, remains in force for 20 days, and can be renewed. Sellers must label fuel distributed under the waiver, and the fuel may be used only in eligible engines and equipment consistent with EPA's conditions.

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