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ARCO Diesel Fleet Program May Lead To Cleaner Emissions

8 October 1999

ARCO Diesel Fleet Demonstration Program May Lead To Cleaner Bus, Truck, and Car Emissions
    LOS ANGELES, Oct. 7 -- ARCO has launched a fleet
demonstration program to confirm that its new EC Diesel fuel can make dramatic
reductions in soot emissions from trucks, buses and cars in Southern
California.
    ARCO, which a decade ago pioneered development of reformulated gasolines
that significantly improved California's air quality, will test the new fuel
in urban vehicles from seven California fleets over the next year.  Over
160 vehicles will participate in the program that will evaluate EC Diesel fuel
and new exhaust treatment devices.
    Initial testing of EC (Emission Control) Diesel resulted in up to a
15 percent reduction in particulates (soot) and a five percent reduction in
Nitrogen Oxide (NOx) emissions, with no apparent loss in fuel economy.  These
reductions resulted from comparing EC Diesel against today's California diesel
that is considered one of the cleanest diesel fuels in the nation.
    Included in the demonstration program will be Los Angeles City refuse and
street maintenance trucks, Santa Monica City Big Blue Buses, Ralphs Grocery
tractor trailer trucks, Hertz Equipment pickup trucks, San Diego School
District school buses, and ARCO gasoline tanker trucks.
    "We are confident that our demonstration program will show an immediate
and significant reduction in particulates and NOx emissions from diesel
engines," said Roger Truitt, president of ARCO Products, the marketing,
refining and marine division of ARCO, based in Los Angeles.  "In addition,
EC Diesel is expected to be a key contributor in reducing toxic emissions from
diesel-powered vehicles and equipment."
    The demonstration program has been developed and will be run with
assistance and guidance from the California Air Resources Board (CARB), the
South Coast Air Quality Management District (SCAQMD), the California Energy
Commission (CEC), the Department of Energy, and the National Renewable Energy
Laboratory.  West Virginia University will be performing the majority of the
emission testing work.  Dynamometers and road tests will be used to evaluate
ARCO's new fuel and exhaust treatment devices designed to reduce particulate
emissions.
    According to CARB, there will be nearly 739,000 diesel-powered vehicles on
the road in California by the year 2000.  Although these diesel vehicles
represent only two percent of all vehicles on the road statewide, CARB
estimates they contribute about 30 percent of the nitrogen oxides and a
significant portion of the small particulate matter known as PM10 that comes
from on-road vehicles.
    EC Diesel will have a higher cetane rating, with a lower sulfur and
aromatics content than diesel used today -- all of which contribute to
dramatically lowering emissions while improving performance.  Cetane ratings
are comparable to octane ratings for gasoline.
    Engine and vehicle manufacturers Cummins, Detroit Diesel, Navistar
International and Ford are also playing an integral role in the program,
assisting with the overall program design and implementation.
    Also, a significant portion of the program is the evaluation of new
exhaust emission control devices that can dramatically reduce particulates
from diesel exhaust.  Emission control manufactures Engelhard and
Johnson-Matthey, with support from Corning Incorporated, NGK-Locke, Inc. and
Fleetguard/Nelson are participating in the program by supplying passive
regenerating particulate filters to the program.  These technologies work more
effectively with lower sulfur fuel.  The use of EC Diesel through these
filters should generate very low particulate emissions.
    ARCO hopes to make EC Diesel available in California once the
demonstration program confirms its initial testing.
    "ARCO has once again taken a pioneering step to reduce air pollution and
toxic emissions by developing cleaner fuels," said Norma Glover, Vice Chair of
the SCAQMD's Governing Board.  "The use of reformulated fuels such as
EC-Diesel as well as alternative fuels will help ensure continued progress
toward meeting clean air standards in the Southland."
    Mike Kenny, CARB's Executive Director said, "We are pleased ARCO is
undertaking this project, and look forward to examining how improvements in
diesel fuel could be a tool in helping California reduce exposure to diesel
particles and help achieve compliance with other air quality standards.  We
greatly appreciate ARCO's action to once again take the initiative to develop
fuel changes that could help improve California's air quality."
    "A successful demonstration of the air cleaning capabilities of ARCO's new
fuel will go a long way in helping convince fleet managers throughout the
state to use this new fuel once it becomes available," said William Keese,
chairman of the CEC.
    ARCO's Truitt added, "We believe this new fuel will do for diesel what
EC-1 and EC-Premium did for gasoline.  We see EC Diesel as the next step in
our effort to help attain even greater air quality improvements.  ARCO is also
working with engine and emission controls manufacturers to design new engines,
controls and filters that will produce even lower emissions with EC Diesel."
    "We also believe this program will show that existing diesel trucks and
buses, fitted with catalytic converters and running on EC Diesel, can match or
exceed the performance of vehicles powered by alternative fuels," he said.
    EC Diesel was developed at ARCO's Engineering & Technology Center in
Anaheim, Calf., where a team of engineers and scientists continually seek
workable solutions to challenging air quality issues.  The EC Diesel used in
the demonstration test is produced at ARCO's Los Angeles Refinery in Carson,
Calf.
    ARCO is an industry leader in cleaner fuel development with a history of
innovation in transportation fuels.  It started producing unleaded gasoline in
1970, four years before catalytic converters were mandated in California.  In
1989 it introduced EC-1 which significantly reduced air pollution from
pre-1975 cars and pre-1980 trucks.  A new EC Premium followed this advance in
1990.  ARCO subsequently took the lead in 1996 in bringing to the market CARB
Phase II gasoline, the cleanest burning gasoline in the world.
    ARCO Products Company is a division of ARCO , a worldwide
producer, refiner and marketer of petroleum products.

    For more information, please contact: Paul Langland of ARCO, 213-486-3181,
plangla@mail.arco.com.

    For a menu of ARCO news releases or to retrieve a specific release, visit
the company's web site at http://www.arco.com on the Internet.


                  ARCO EC DIESEL FLEET PROGRAM PARTICIPANTS

    DETROIT DIESEL

    Detroit Diesel Corporation is engaged in the design, manufacture, sale and
service of heavy-duty diesel and alternative fuel engines, automotive diesel
engines, and engine-related products.  The Company offers a complete line of
diesel engines from 22 to 10,000 horsepower for the on-highway; off-road;
automotive; and power generation markets.  Detroit Diesel services these
markets directly and through a worldwide network of more than 2,800 authorized
distributors and dealer locations.  DDC is a QS-9000 certified company.
    Detroit Diesel's major shareholder is Penske Corporation, a closely-held,
diversified transportation services company whose operations include Penske
Truck Leasing Company, Diesel Technology Company, Penske Automotive Group,
Inc., Penske Auto Centers, Inc., and Penske Capital Partners, L.L.C.  The
Penske Group manages businesses with annual revenues exceeding $10 billion and
employs more than 33,000 people around the world.
    Detroit Diesel's World Wide Web address is http://www.detroitdiesel.com.
For Media Only:  A complimentary copy of Detroit Diesel's recent press
releases is available at Company News On-Call:  http://www.prnewswire.com or
call 1-800-758-5804, ext 239425.

    CORNING INCORPORATED

    Corning joined the campaign for cleaner air in the early 1970s, when it
developed an economical, high-performance cellular ceramic substrate that is
now the standard for catalytic converters worldwide.  An extension of that
technology is the particulate filter that removes soot particles from diesel
exhaust.
    Corning has supplied catalytic converter substrates and/or diesel
particulate filters to all of the world's major manufacturers of gasoline and
diesel engines and vehicles.
    Established in 1851, Corning Incorporated creates leading-edge
technologies for the fastest growing segments of the world's economy.  Corning
manufactures optical fiber, cable and photonic components for the
telecommunications industry; and high-performance displays and components for
television and other communications-related industries.  The company also uses
advanced materials to manufacture products for scientific, semiconductor and
environmental markets.  Corning's revenues in 1998 were $3.5 billion.  More
information on the company is available at http://www.corning.com.

    NAVISTAR INTERNATIONAL

    Navistar International Corporation, headquartered in Chicago, is a leading
North American producer of heavy and medium trucks and school buses and
mid-range diesel engines sold under the International(R) brand.  The company
is also a private label designer and manufacturer of diesel engines for the
truck and van markets.  Sales and revenues in fiscal 1998 totaled
$7.9 billion.  Additional information can be found on the company's web site
at http://www.internationaldelivers.com.
    Dan Ustian, president of Navistar's engine and foundry group, said the
availability of ARCO's ultra low sulfur EC diesel fuel demonstrates the power
of Partnership between industries.  "Low sulfur diesel fuel is a technology
enabler that will allow Navistar to continue the commitment to Green Diesel
Technology(SM)."  "Its availability will allow society to take advantage of
fuel efficiency, durability and performance offered by diesel power while
achieving clean air goals with diesel emissions that can be cleaner than
today's CNG alternative fueled vehicles," Ustian said.

    CUMMINS ENGINE COMPANY

    Cummins Engine Company, headquartered in Columbus, Ind., is the world's
largest producer of diesel engines above 200 horsepower, and provides products
for customers in its key markets: engines, including automotive and
industrial, power generation and filtration.  Cummins has been a leader in
developing engine technology, which meets both customer performance and
emissions control requirements.  Cummins today produces the largest line of
fuel-efficient automotive diesel and natural gas engines in the world.

    ENGLEHARD CORPORATION

    Engelhard Corporation is a world leading provider of environmental
technologies, specialty chemical and performance products and related
services.  The company starts every day at Engelhard with a clear and simple
objective: to deliver breakthrough innovations that improve customers'
products, expand or create new markets and make the world a better place to
live.
    Engelhard has long been a leader in catalyst technology, known for
creating unique solutions to problems big and small.  The company offers
exceptional emissions control products and systems for various applications
including manufacturing facilities, power plants, cars, buses, trucks,
airplanes, lawn mowers and forklifts.  Engelhard's manufacturing, research and
sales facilities span the globe.
    As a US Fortune 500 company, Engelhard has manufacturing, research and
sales facilities located throughout the world and annual sales of over
$4 billion.  Engelhard is working with ARCO to provide advanced emissions
control equipment to further reduce pollutants.  Additional information can be
found on the company's web site at http://www.engelhard.com.

    FLEETGUARD/NELSON

    Fleetguard/Nelson is the world's leading supplier of filtration and
exhaust systems.  It offers technologically-advanced system solutions that
control emissions and noise levels to meet legislative, environmental and end
user demands, as well as enhancing equipment performance and reducing
operating costs for tomorrow's vehicles.  One solution, the Exhaust
Purification System(TM), removes "black smoke" by reducing engine-out diesel
exhaust particulate matter by 80%+, and Carbon Monoxide and Hydrocarbon by
70%+, while reducing exhaust noise level.  Fleetguard/Nelson is a wholly-owned
subsidiary of Cummins Engine Company.


    NGK-LOCKE, INC.

    NGK is a world leader in fine ceramic technology.  This includes the
company's honeycomb ceramic substrate, HONEYCERAM(R), used for automotive and
diesel exhaust gas purification.  NGK also produces Diesel Particulate Filters
that removes PM (particulate matter) from diesel exhaust and other products to
help the environment.
    This year, NGK celebrated its 80th anniversary.  NGK's HONEYCERAM(R) has
gained worldwide acceptance and is manufactured in the United States, Japan,
Europe and Indonesia.  NGK had worldwide sales of $2.2 billion in 1998 and
employs over 10,500 people.  For more info, contact http://www.ng.co.jp.

    JOHNSON MATTHEY

    Johnson Matthey is a world leader in advanced materials technology,
applying the latest technology to add value to precious metals and other
specialized materials.  Johnson Matthey has built this pre-eminent position on
unrivalled specialist knowledge and technical excellence.
    The group's principal activities are the manufacture of catalysts and
pollution control systems and pharmaceutical compounds; the refining,
fabrication and marketing of precious metals and specialty chemicals; and the
manufacture of decorative and specialized materials for the ceramics, glass,
construction refractory, plastics and surface coatings industries.  Rigorous
in its own environmental policies, many of Johnson Matthey's products have a
beneficial impact on the environment.

    NATIONAL RENEWABLE ENERGY LABORATORY

    The National Renewable Energy Laboratory (NREL) is the U.S. Department of
Energy's premier laboratory for renewable energy and energy efficiency
research, development and deployment.  NREL will collect and evaluate data on
vehicle emissions, fuel economy and maintenance for the Ralphs Grocery EC
Diesel test fleet.

    SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

    AQMD is the air pollution control agency for all of Orange County and the
urban portions of Los Angeles, San Bernardino and Riverside counties.

    Statement of Norma Glover, Vice Chair:

    "Our air district is very pleased that ARCO is moving forward on
reformulated diesel fuel, with near-zero sulfur content.  This fuel has the
potential to lower emissions and make possible the use of add-on pollution
control devices.  The cumulative impact of which could be significant
reduction of nitrogen oxides, fine particulates and diesel air toxics that
would otherwise be unfeasible.
    "A benefit of this approach is that it provides a 'drop-in' replacement
for today's motor vehicle and engine fleets, while at the same time our region
pursues less polluting engines and fuels, such as fuel cells.
    "The South Coast Air Basin needs to reduce diesel emissions to achieve
federal clean air standards and to protect public health.  Cleaner fuels and
advanced control technologies can help us accomplish that goal.  For this
reason we support this demonstration project and are pleased to be a part of
this event."

    Other participants include Ford, California Air Resources Board, and the
University of West Virginia.