The Environmental Protection Agency now says Alaska is required to comply with the clean diesel standards. Under an exemption granted five years ago, Alaska was allowed a break from the national rule.

The state was allowed the break because just 5 percent of the requiring lower-sulfur diesel used in the state powers highway vehicles. Most is used to heat homes, run generators and fuel aircraft.

According to the Anchorage Daily News, Alaska argued it would have cost too much to retool the state's four private refineries to furnish a relatively small amount of cleaner fuel. Alaska today burns diesel with an average of five to six times the amount of sulfur as that in the Lower 48. Now, the Environmental Protection Agency has decided to call Alaska on emissions control within the state.

New nationwide regulations will require phase-in beginning in 2006 to even cleaner diesel. It would have a sulfur content of just 15 parts per million. The current national limit is 500 ppm.

So far, the EPA has said Alaska also must meet the new rule, but the agency may give the state extra time to phase the cleaner fuel in.

Industry representatives, air quality watchdogs and other officials plan to meet this month to hash out a plan on how the state will meet the new ultra-low sulfur requirements. The state must have a plan to present to the EPA by April 2002.

"If Alaska lags behind the rest of the nation, it may benefit from new refinery technology in the Lower 48," said Greg Henderson, a business manager with Tesoro Alaska. "The task force is trying to figure out how to meet the new rule without passing on higher costs to consumers. Henderson told reporters something must be done. "It's just a matter of making sure we can heat people's homes and transport goods into the state in a cost-effective manner," Henderson said.