TEPPCO in a shippers bulletin last week announced that beginning April 1 it will no longer receive low sulfur diesel fuel at any origin location “to facilitate an orderly transition out of the LSD business” ahead of a federal mandate.

Additionally, ultra-low sulfur diesel receipts will no longer be subject to an automatic 2 percent downgrade to LSD. At that time, TEPPCO will begin converting LSD tankage to ULSD service, beginning with Gulf Coast origin tankage, the bulletin read.

According to new rules by the Environmental Protection Agency, all highway and most off-road diesel produced by refiners meet a maximum 15 parts per million ULSD standard by June 1. By Oct. 1, all on and off road diesel in terminal tanks must meet the 15 ppm ULSD standard.

TEPPCO plans to have all system tankage converted from LSD to ULSD service by July 31.

“Between April 1 and July 31, TEPPCO will work with shippers to deplete the system inventories of LSD and/or downgrade residual inventory volumes of LSD to transmix for disposal,” according to the bulletin.