The U.S. Navy is seeking a way to reclaim a major portion of the approximately 70 million gallons of contaminated diesel fuel generated every year by its various activities. The National Institute for Petroleum and Energy Research (NIPER) is aiding the Navy in finding a process suitable for upgrading the contaminated diesel fuel to F76 (marine diesel fuel). This project consists of three phases: (I) information gathering, (II) experimentation, and (III) facility design. The Phase I literature review and information compilation have been completed. This phase showed that, although there is a great amount of literature and expertise which addresses waste hydrocarbon processing, very little actually addresses upgrading contaminated diesel fuel. The analysis performed during this phase demonstrated that the Reclaimed Product (RP) was a slightly contaminated F76 and that large recoveries should be possible. Also established from this analysis was the presence in some RP samples of significant amounts of chlorinated solvents which could affect the choice of the technology. This phase also assigned priorities to the available technologies and evaluated their probable success for upgrading RP to F76. These recommended technologies from Phase I are being evaluated in Phase II. After preliminary evaluation of a number of technologies, a light caustic pretreatment followed by a vacuum distillation to produce marine diesel fuel (F76) and Navy Special Fuel Oil (NSF) appears to be a promising technology. Our plans are to develop a conceptual design of a plant based on this technology. After Phase II is complete the U.S. Navy will make a decision, based on our findings, whether to build a proof-of-concept facility. If the decision is to build the facility, this will take place in 1986.