Honeywell is actively working on a 3-year program to develop and demonstrate proof-of-concept for an 'on-vehicle' desulfurization fuel filter for heavy-duty diesel engines. Integration of the filter into the vehicle fuel system will reduce the adverse effects sulfur has on post combustion emission control devices such as NO(sub x) adsorbers. The NO(sub x) adsorber may be required to meet the proposed new EPA Tier II and '2007-Rule' emission standards. The proposed filter concept is based on Honeywell's reactive filtration technology and experience in liquids handling and conditioning. A regeneration and recycling plan for the spent filters will also be examined. We have chosen to develop and demonstrate this technology based on criteria set forth for a heavy duty CIDI engine system because it represents a more challenging set of conditions of service intervals and overall fuel usage over light duty systems. It is anticipated that the technology developed for heavy-duty applications will be applicable to light-duty as well. Further, technology developed under this proposal would also have application for the use of liquid based fuels for fuel cell power generation. The program consists of four phases.