The Environmental Protection Agency issued a temporary waiver Friday under the Clean Air Act for using diesel with higher sulfur levels above the Arctic Circle in Alaska. In a letter to Gov. Mike Dunleavy, EPA Administrator Lee Zeldin said the 20-day waiver was meant to address fuel supply disruptions caused by the war in the Middle East.

“It is in the public interest to take action to address the extreme and unusual supply circumstances that prevent distribution of an adequate supply,” Zeldin wrote in the letter.

The Clean Air Act requires the use of cleaner burning ultra-low-sulfur fuel in highway and non-road vehicles and equipment. The fuel produces fewer emissions and does not damage modern engines.

Zeldin said much of the equipment used above the Arctic Circle still has engines designed for high-sulfur diesel. He said that some North Slope topping refineries, which separate diesel from crude oil and produce heating oil, can produce high-sulfur diesel to power that machinery, which could reduce the demand for diesel hauled into the region.

“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,” Zeldin said in a prepared statement.

Fuel prices began to rise again earlier this month after the collapse of the ceasefire with Iran, with NPR reporting that prices were 86 cents higher per gallon than they were before the war. A new U.S. blockade of the Strait of Hormuz means prices could climb even higher.

Under Secretary of Energy Kyle Haustveit said during a roundtable in Anchorage that the waiver will allow for the production of tens of thousands more barrels of diesel.

“These topping units that have been restricted from an emission standpoint can now run at a higher output capacity,” Haustveit said. “It’s going to bring more supply to market.”

Sen. Dan Sullivan applauded the waiver and said he had advocated for it to lower fuel prices. He said in a press release that the action will allow North Slope producers to put idle refining capacity to work.

“Global fuel supply disruptions have been a significant challenge for Alaska communities, resulting in rising fuel prices,” Sen. Sullivan said in a prepared statement.

He said he measure “frees up Alaska-produced fuel to help put downward pressure on prices for hard-working Alaskans.”

The waiver is limited to highway and non-road vehicles and non-road equipment certified to operate on high-sulfur diesel fuel. It applies only above the Arctic Circle.

Copyright 2026 KNBA

Support CleanTechnica’s work through a Substack subscription, on Patreon, or on Stripe. Help us produce all of the high-quality, original content we publish week after week despite the challenges of content-scraping AI, antisocial media, inflation, and other hurdles.

NLR Laboratory Director Jud Virden Signs Partnership Agreements at Alaska Sustainable Energy Conference in Anchorage

The National Laboratory of the Rockies (NLR) signed two new memorandums of understanding (MOUs) on May 19 that aim to increase research and innovation in critical minerals, energy, and buildings in Alaska and the Arctic. These partnerships build on longstanding collaborations and are designed to tap into Alaska’s resources in a way that benefits both the state and the nation.

“Alaska faces unique challenges,” NLR Director Jud Virden said. “NLR is proud to partner with the state and its flagship university to develop and accelerate innovative solutions to Alaskan challenges and address our nation’s pressing needs in critical minerals, energy, and buildings.”

At the Alaska Sustainable Energy Conference, joined by U.S. Department of Energy (DOE) Assistant Secretary Audrey Robertson, Alaska’s governor Mike Dunleavy, and University of Alaska Fairbanks (UAF) leadership, Virden signed agreements that will make it easier for NLR to work with these key partners to scale solutions for the real world.

NLR is the only DOE national laboratory with a physical presence in Alaska, located adjacent to the University of Alaska Fairbanks campus. NLR’s Alaska research focuses on energy and building technologies in extreme climates and remote locations, as well as support for military, government, and communities in decreasing energy costs and improving reliability. Recent projects include an analysis of the state’s power grid to address declining natural gas supply within Alaska, an evaluation of methods to stabilize permafrost on military sites, and support for designing a secure, resilient facility on the Alaska-Canada border.

Through the MOU with the university, NLR gains access to UAF expertise in microgrids, engineering, and critical minerals—such as the Alaska Critical Minerals Collaborative, a research unit at UAF connecting government, industry, and researchers to advance critical mineral development across Alaska. The laboratory may also host students and fellows from UAF’s College of Engineering and School of Mines, Arctic engineering, geosciences, and other relevant programs, offering a training ground for the critical mineral workforce of the future.

On the flip side, NLR can provide access to advanced analysis tools, such as the ability to create digital twins of mines and microgrids with its Advanced Research on Integrated Energy Systems (ARIES) platform, and a wide range of capabilities in its new Energy Materials and Processing at Scale (EMAPS) facility that offers partners an entirely new model for “market-first” research: the ability to grow laboratory-scale innovations into scalable and validated market-relevant prototypes under a single roof.

“This partnership leverages the unique strengths of each of our organizations to create something that is greater than the sum of two parts,” UAF Interim Chancellor Mike Sfraga said.

NLR’s agreement with the state is complementary in approach, paving the way for NLR and the state to coordinate resources, share research, and boost Alaska energy and critical mineral production.

“This agreement helps turn Alaska’s resources and know-how into practical solutions,” Gov. Dunleavy said. “By formally partnering with federal researchers who are already based in Alaska, we can lower energy costs, build infrastructure that works in Arctic conditions, strengthen domestic supply chains, and create good-paying jobs, especially in rural and remote communities. It puts Alaska at the center of solutions that matter to both our state and the nation.”

Learn more about NLR critical minerals research and collaborations.

By Molly Rettig, NLR

Southcentral Alaska’s largest natural gas utility said Tuesday it might not have the gas to make it through this winter. That’s after state regulators last Wednesday denied Enstar’s request that would’ve expanded natural gas storage in Kenai, as the region faces a looming natural gas shortage.

Enstar president John Sims said it’s “not looking good” for the utility’s more than 150,000 Southcentral customers heading into the cold, winter months.

“Just to be very blunt, we need additional production in order to make it through this winter,” Sims said. “We are kind of turning over every stone possible and trying to find more gas resources.”

In the order, the Regulatory Commission of Alaska wrote they were “unsure about the timing of the need for additional natural gas storage capacity, including insertion and withdrawal capacity.”

Enstar proposed developing and operating a depleted reservoir known as the Kenai Loop Pool that is currently leased and operated by AIX Energy, LLC., to store gas to use during the colder months.

The utility was seeking an “advanced determination” from RCA that it was prudent, which would allow the project to unlock financing for development, the order says. In its original filing, Enstar said that the project would help ensure there are enough supplies to meet the needs of its customers.

A search for other options

The commission denied the utility’s request in a 17-page order last Wednesday, saying the Department of Natural Resources hadn’t determined if the facility was capable of serving as a gas storage facility. Hilcorp has a competing application for the same storage facility, the order said.

The RCA didn’t respond to a request for comment Tuesday afternoon.

The facility would hold 25 billion cubic feet of gas, which Sims said is appropriately sized for the current supply needs and future natural gas imports.

“The other benefit of having this storage facility right now is we can go to Furie, AIX, to all the small producers and even Hilcorp and say, ‘Hey, whatever volume of gas you produce, I can buy it.’ And I can store that into this storage facility for later use,” he said.

Longer term, utilities are looking to import natural gas, which would impose an unavoidable price increase to thousands of households and businesses. Legislators are currently in negotiations over a multibillion-dollar property tax break for the developer of the Alaska LNG project, Glenfarne. But it’s unknown if, or when, that project will be built.

According to the order, Enstar’s Kenai storage project garnered support from DNR, multiple state legislators and other regional electric utilities. However, some Anchorage-based property management companies said it was “inappropriate” for ratepayers to bear the cost of the project. The project’s $240 million price tag would’ve increased bills for customers by $10 to $12 per month, according to the filing.

Sims said Enstar is filing a petition for the reconsideration of the ruling next week.

“Just in case the commission denies that request, yes, we are looking at other storage options,” he said. “Unfortunately, based on our analysis that we did before we filed with the commission, those options appear to be more expensive.”

Sims said he’s hoping production and storage ramps up, but if it doesn’t, he said the utility may need to ask customers this winter to conserve supplies by lowering their thermostats.

___

This story was originally published by Alaska Public Media and distributed through a partnership with The Associated Press.