Summary and Analysis of the 

2007 Nonroad Diesel Fuel 

Pre-Compliance Reports 
Summary and Analysis of the 


2007 Nonroad Diesel Fuel 


Pre-Compliance Reports


Compliance and Innovative Strategies Division 

Office of Transportation and Air Quality 

U.S. Environmental Protection Agency 

NOTICE 

This technical report does not necessarily represent final EPA decisions or 

positions. It is intended to present technical analysis of issues using data 

that are currently available. The purpose in the release of such reports is to 

facilitate the exchange of technical information and to inform the public of 

technical developments. 

EPA420-R-08-003 

January 2008 
Table of Contents 

I. Executive Summary................................................................................................................................................i

II. Nonroad Diesel Program Overview ................................................................................................................1

III. Nonroad Pre-Compliance Reporting Requirements ........................................................................................3

IV. NRLM Summary Statistics .............................................................................................................................4

A. Nationwide Analysis .......................................................................................................................................4

1. Refineries and Importers – Numbers and Volumes....................................................................................4

2. Projected Credit Generation and Use .........................................................................................................7

3. Project Scope and Timing...........................................................................................................................9

4. Small Refiner Options ................................................................................................................................9

B. PADD Analysis ........................................................................................................................................10

1. PADD 1 ....................................................................................................................................................13

2. PADD 2 ....................................................................................................................................................14

3. PADD 3 ....................................................................................................................................................15

4. PADD 4 ....................................................................................................................................................16

5. PADD 5 ....................................................................................................................................................17

C. Comparison of 2006 and 2007 NRLM Pre-Compliance Reports..................................................................18
I. Executive Summary 

I. Executive Summary 

Any refiner or importer planning to produce or import nonroad, locomotive, or 

marine (NRLM) diesel fuel containing 15 ppm sulfur or less after June 1, 2010 is required to 

submit to the U.S. Environmental Protection Agency (“EPA” or “the Agency”) annual precompliance reports. Reports are due from 2005 through 2011 by June 1 of each year under 

the nonroad diesel sulfur regulations. This report summarizes the results of refiners’ June 

2007 pre-compliance reports. 

Refiners’ and importers’ nonroad pre-compliance reports must contain estimates of 

total highway and NRLM 15 ppm diesel fuel and total highway and NRLM 500 ppm diesel 

fuel produced or imported from June 2010 through December 2014. For those refiners and 

importers planning on participating in the credit trading program, the reports must contain a 

projection of how many credits will be generated or used by each refinery or importer. The 

pre-compliance reports must also contain information outlining each refinery’s timeline for 

complying with the 15 ppm sulfur standard and provide information regarding engineering 

plans (e.g., design and construction), and capital commitments for making the necessary 

modifications to produce 15 ppm NRLM diesel fuel. 

The 2007 nonroad pre-compliance reports showed that: 

- 122 refineries are planning to produce 15 ppm diesel fuel by June 1, 2014 

- 18 refineries are either undecided as to their plans, or are choosing to produce 

only heating oil 

- refiners have projected an increase in diesel fuel production from 2010 through 

2014 

- refiners are taking advantage of the flexibilities offered by the regulations (18 

refineries said they generated early high sulfur credits in 2006 and 2007, 10 

refineries plan to generate early 500 ppm credits in 2009 and 2010, small refiners 

are utilizing all of the options available to them) 

- total highway and NRLM diesel fuel (“total diesel fuel”) production and 

importation in each Petroleum Administration for Defense District (PADD) is 

projected to grow from 2010 through 2014 

- refiners project an increase in expected production and importation of total diesel 

fuel beginning June 1, 2010, compared to the 2006 nonroad pre-compliance 

reports. 

Many refiners have developed firmer plans to produce 15 ppm NRLM diesel fuel by 

June 1, 2010 than what they indicated in their 2006 pre-compliance reports, although these 

plans are still subject to change. EPA expects that next year’s nonroad pre-compliance 

reports will contain more definite information on refiners’ plans to produce 15 ppm NRLM 

diesel fuel by June 1, 2010. 

i 
II. Nonroad Diesel Program Overview 

II. Nonroad Diesel Program Overview 

The Nonroad Diesel final rule (69 FR 38958, June 29, 2004) contains a twostep approach to reducing the sulfur content of nonroad, locomotive, and marine 

(NRLM) diesel fuel from uncontrolled levels down to 15 ppm. Beginning June 1, 

2007, refiners and importers are required to produce or import NRLM diesel fuel with 

a maximum sulfur content of 500 ppm. Beginning June 1, 2010, refiners and 

importers are required to produce or import nonroad (NR) diesel fuel with a 

maximum sulfur content of 15 ppm. Beginning June 1, 2012, refiners and importers 

are required to produce or import locomotive and marine (LM) diesel fuel with a 

maximum sulfur content of 15 ppm. 

This rule includes provisions for refiners and importers to generate credits for 

early NRLM diesel sulfur reduction efforts. “High sulfur” credits may be generated 

for early production of 500 ppm NRLM diesel fuel between June 1, 2006 and June 1, 

2007. Similarly, “500 ppm” credits may be generated for early production of 15 ppm 

NRLM diesel fuel between June 1, 2009 and June 1, 2010. “High sulfur” credits 

could be used to comply with the 500 ppm NRLM standard beginning June 1, 2007, 

while “500 ppm” credits could be used to comply with the 15 ppm NR standard 

beginning June 1, 2010 and the 15 ppm LM standard that begins June 1, 2012. For 

both high sulfur credits and 500 ppm credits, one credit is equivalent to one gallon of 

diesel fuel that meets the respective standard earlier than required. In addition, “high 

sulfur” credits can be converted into “500 ppm” credits for use in 2010 and later. 

NRLM sulfur credits may be transferred nationwide. No credit trading area 

restrictions exist such as those found in the Highway Diesel rulemaking. 

Small Refiner Flexibilities 

Additional compliance flexibilities are provided for small refiners in the 

nonroad diesel sulfur regulations. The criteria for qualification as an NRLM small 

refiner are similar to those under the Tier 2/Gasoline Sulfur and Highway Diesel 

rules. To qualify as “small”, a refiner must: 1) process NRLM diesel fuel from crude 

oil; 2) employ no more than 1,500 people corporate-wide, based on the average 

number of employees for all pay periods from January 1, 2002 to January 1, 2003; 

and, 3) have a corporate crude oil capacity less than or equal to 155,000 bpcd for 

2002. 

The small refiner relief options provide additional time for compliance and, 

for small refiners that choose to comply earlier than required with the NRLM 

requirements, the option of either generating diesel fuel sulfur credits or receiving a 

limited relaxation of their Tier 2/Gasoline Sulfur standards. These small refiner 

options are described in more detail below. 

1
II. Nonroad Diesel Program Overview 

Option 1 – Delay 500 ppm NRLM production 

This option allows approved small refiners to delay compliance with the 

NRLM diesel fuel sulfur standards as follows. Instead of a 500 ppm NRLM 

compliance date of June 1, 2007, small refiners have a compliance date of June 1, 

2010. Production of high sulfur (greater than 500 ppm) NRLM diesel fuel from a 

small refiner’s refinery between June 1, 2007 and June 1, 2010 is limited to 105 

percent of the refinery’s average NRLM diesel fuel production from 2003 through 

2005. 

Option 2 – Delay 15 ppm NRLM production 

This option allows approved small refiners to delay compliance with the 

NRLM diesel fuel sulfur standards as follows. Instead of separate 15 ppm NR and 

LM compliance dates of June 1, 2010 and June 1, 2012, respectively, small refiners 

have a single 15 ppm NRLM compliance date of June 1, 2014. Production of 500 

ppm sulfur NRLM diesel fuel from a small refiner’s refinery between June 1, 2010 

and June 1, 2014 is limited to 105 percent of the refinery’s average NRLM diesel fuel 

production from 2006 through 2008. 

Option 3 - NRLM Credit Option 

An approved small refiner may choose to use the NRLM Credit Option in 

combination with the NRLM Delay Option. The NRLM Credit Option allows 

approved small refiners the opportunity to generate nonroad diesel sulfur credits for 

early production of compliant NRLM diesel fuel. These credits can be banked for 

future use or traded to another refiner. Small refiners could generate “High Sulfur” 

credits for producing any volume of 500 ppm NRLM diesel fuel prior to June 1, 

2010. Small refiners could also generate “500 ppm” credits for producing any 

volume of 15 ppm NRLM diesel fuel between June 1, 2009 and June 1, 2014. 

Option 4 - NRLM Diesel/Gasoline Compliance Option 

This option is available to small refiners that produce greater than 95 percent of their 

NRLM diesel fuel at the 15 ppm sulfur standard by June 1, 2006 and elect not to use 

the NRLM Credit Option described above. Production of 15 ppm sulfur NRLM 

diesel fuel from a refinery using this option must be at least 85 percent of the 

refinery’s 2003 through 2005 baseline NRLM production. Refiners choosing this 

option will receive a modest relaxation in their interim gasoline sulfur standards 

beginning January 1, 2004. Specifically, the applicable small refiner annual average 

and per-gallon cap would be increased by 20 percent for the duration of the interim 

program. The interim program is through 2010 if the refiner elected to extend the 

duration of its interim gasoline sulfur standards by producing 15 ppm highway diesel 

fuel by June 1, 2006, and through 2007 if the refiner did not produce 15 ppm highway 

2
II. Nonroad Diesel Program Overview 

diesel fuel by June 1, 2006. However, in no case may the per-gallon gasoline sulfur 

cap exceed 450 ppm. 

Other Flexibilities 

Unlike the Highway Diesel rulemaking, the nonroad diesel sulfur regulations do 

not provide any specific flexibilities for refineries located in the Geographic Phase-in 

Area (GPA). Refiners located in the Rocky Mountain States (ID, MT, ND, 

WY, UT, CO and NM) must comply with the 500 ppm and 15 ppm NRLM sulfur 

standards within the compliance deadlines discussed above. NRLM diesel fuel in 

rural areas of the state of Alaska (a GPA state in the gasoline sulfur rulemaking) is 

exempt from the 500 ppm NRLM diesel fuel sulfur standard beginning June 1, 2007, 

but must meet the 15 ppm sulfur standard beginning June 1, 20101. This fuel is 

regulated under a special rule for Alaska which was finalized in June 2006 (71 FR 

32450, June 6, 2006). 

Transmix processors distill off-specification interface mixtures of petroleum 

products from pipeline systems into gasoline and distillate fuel and are considered 

refiners by EPA. Their simple refinery configuration does not make it cost effective 

for them to install and operate a hydrotreater to reduce distillate fuel sulfur content. 

As a result, they have been provided with additional flexibility to comply with the 

diesel sulfur standards. Transmix processors may choose to continue to produce all 

of their highway diesel fuel to the 500 ppm sulfur standard until 2010. They may 

further choose to continue to produce all of their NRLM diesel fuel as high sulfur 

diesel fuel until June 1, 2010, all of their NRLM diesel fuel to meet the 500 ppm 

sulfur standard until June 1, 2014, and all of their LM diesel fuel to meet a 500 ppm 

sulfur limit indefinitely. 

III. Nonroad Pre-Compliance Reporting Requirements 

The Nonroad Rule requires that any refiner or importer planning to produce or 

import 15 ppm NRLM diesel fuel after June 1, 2010 must submit annual precompliance reports to EPA. The first pre-compliance report was due on June 1, 2005 

and subsequent reports are due annually through 2011, or until the production of 15 

ppm sulfur NR and LM diesel fuel commences, whichever is later. 

The pre-compliance reports must contain the following information: 

1. Any changes in the refiner's or importer's basic company or facility 

information since registration. 

2. Estimates of the average daily volumes (gallons) of each sulfur grade of 

highway and NRLM diesel fuel produced or imported at each refinery 

1

 Rural areas are defined as areas of Alaska not served by the federal aid highway system (FAHS) 

3
 III. Nonroad Pre-Compliance Reporting Requirements 

(facility). The volume estimates must include both fuel produced from crude 

oil and other sources for the periods of June 1, 2010 through December 31, 

2010, calendar years 2011-2013, January 1, 2014 through May 31, 2014, and 

June 1, 2014 through December 31, 2014. 

3. For refiners or importers expecting to participate in the NRLM credit 

program, estimates of the number of credits generated and/or used during the 

periods above. 

4. Information on project schedule by known or projected completion date (by 

quarter) for each stage of the project (strategic planning, frontend engineering, detailed engineering and permitting, procurement and 

construction, and commissioning and startup). 

5. Basic information regarding the selected technology pathway for compliance 

(e.g. conventional hydrotreating versus other technologies, revamp versus 

grassroots, etc.). 

6. Whether capital investments have been made or are projected to be made. 

7. An update of the progress in each of these areas. 

We recognize that the pre-compliance reports contain preliminary information 

and that final decisions on desulfurization plans may not have been made in all cases 

as of the reporting deadline. Accordingly, the information in this summary and 

analysis is based on the best available refinery information as of June 1, 2007. The 

information presented here will be updated with more current analyses as subsequent 

pre-compliance reports are received annually in 2008 through 2011. 

IV. NRLM Summary Statistics 

A. Nationwide Analysis 

1. Refineries and Importers – Numbers and Volumes 

According to the Energy Information Administration (EIA), 140 refineries 

reported producing either high or low sulfur (or both) distillate fuels in 2003. This 

reported production includes data from four refiner/importers that are located outside of 

the continental United States (in the U.S. Virgin Islands, Aruba, and Eastern Canada) 

whose production is targeted to the U.S. market. We received 2007 pre-compliance 

reports for 129 refineries, all of which produced high and/or low sulfur diesel fuel in 

2003. The 11 refineries which did not send pre-compliance reports may be planning to 

produce high sulfur distillate fuel for the heating oil market, or may be planning to sell 

their high sulfur distillate fuel to other refineries that can desulfurize it. 

Refiners indicated that, for most of their refineries, they have made decisions 

whether or not to produce 15 ppm NRLM diesel fuel. Table 1 shows that a total of 123 

refineries reported they anticipate producing 15 and/or 500 ppm diesel fuel beginning 

June 1, 2010. The remaining 6 refineries that sent pre-compliance reports said they either 

4
IV. NRLM Summary Statistics 

plan to produce only high sulfur distillate for the heating oil market, or are still deciding 

whether to produce 15 ppm NRLM diesel fuel. 

Table 1. 

U.S. Aggregated Report Information 

Highway and NRLM Diesel Fuel Refinery Statistics 2010-2014 

Year 2010 2011 2012 2013 2014a2 2014b 

# refineries producing diesel fuel 123 123 124 123 123 122 

# refineries at 100% 15 ppm 106 106 108 114 115 122 

# refineries at 100% 500 ppm 5 5 3 2 2 0 

# refineries with 15/500 ppm mix 12 12 13 7 6 0 

The 2007 nonroad pre-compliance reports indicated that production of 15 ppm 

and 500 ppm total diesel fuel beginning June 1, 2010 is projected to be 4.42 million 

bbls/day, as shown in Table 2 below. The reported information does not allow for any 

distinction between highway and NRLM volume. However, from EIA’s weekly supply 

estimates (http://tonto.eia.doe.gov/dnav/pet/pet_sum_sndw_dcus_nus_w.htm), 

production and importation of 15 ppm and 500 ppm diesel fuel for the first annual 

compliance period in the highway diesel program (June 1, 2006 through May 31, 2007) 

averaged approximately 3.4 million bbls/day. Thus, by comparing total production and 

importation from the 2007 reports with the average from the first annual compliance 

period, refiners appear to be planning to produce approximately 1.0 million bbls/day total 

additional 15 ppm and 500 ppm NRLM diesel fuel beginning June 1, 2010. 

Table 2 and Figure 1 also illustrate that production of total 15 ppm diesel fuel is 

projected to increase by 230 thousand bbls/day from 2010 to 2014, to 4.55 million 

bbls/day. However, this projected increase is offset by a projected decrease in 500 ppm 

NRLM diesel fuel production of 105 thousand bbls/day from 2010 to 2014. Thirty 

thousand bbls/day of the projected decrease in 500 ppm production occurs by June 1, 

2012 as some refiners begin producing 15 ppm sulfur LM diesel fuel. The remaining 500 

ppm diesel fuel production ends by May 31, 2014, when the flexibilities for small refiners 

and NRLM credit use end. 

Projected total production should be sufficient to meet future demand of 15 ppm 

and 500 ppm total diesel fuel. Total demand for 15 ppm and 500 ppm diesel fuel 

calculated from EIA’s Annual Energy Outlook (AEO) 2007 is 4.11 million bbls/day in 

2010 and 4.44 million bbls/day in 2015, compared to projected total production of 4.42 

million bbls/day in 2010 and 4.55 million bbls/day in 20143

. 

2

 Data from the pre-compliance reports is divided into two sections for 2014 throughout this report. In all 

tables and figures, data for the first five months of 2014 is labeled 2014a, and data for the last seven months 

of 2014 is labeled 2014b. 3 AEO 2007 projected a total distillate fuel oil demand of 4.53 million bbls/day in 2010 and 4.86 million 

bbls/day in 2015 (see Table A11 in http://www.eia.doe.gov/oiaf/aeo/aeoref_tab.html). Both of these totals 

include 425 thousand bbls/day distillate fuel oil (heating oil) for residential energy consumption (see Table 

5
IV. NRLM Summary Statistics 

As mentioned previously, 140 refineries reported to EIA that they produced low 

and/or high sulfur distillate fuel in 2003. Eighteen of these refineries either reported that 

they have no plans at present to produce 15 ppm diesel fuel by June 1, 2014, or did not 

send an NRLM pre-compliance report to EPA in 2007. In 2003, these 18 refineries 

produced a total of 76 thousand bbls/day of diesel fuel containing less than 500 ppm 

sulfur, and 70 thousand bbls/day of distillate fuel containing more than 500 ppm sulfur. 

We cannot tell at this time if or when these refineries might choose to produce 15 ppm 

diesel fuel, or whether they will simply choose to continue to serve the heating oil market 

indefinitely. 

Table 2. 

U.S. Aggregated Report Information 

Diesel Fuel Volume 2010-2014 

Year 2010 2011 2012 2013 2014a 2014b 

Total 15 ppm (highway + NRLM), bbls/day 4,323,553 4,348,778 4,431,146 4,500,089 4,503,560 4,552,242 

Total 500 ppm NRLM, bbls/day 105,656 101,485 72,523 50,130 50,099 0 

15 + 500 ppm total (highway + NRLM), bbls/day 4,429,209 4,450,263 4,503,668 4,550,219 4,553,659 4,552,2424 

0 

500,000 

1,000,000 

1,500,000 

2,000,000 

2,500,000 

3,000,000 

3,500,000 

4,000,000 

4,500,000 

5,000,000 

2010 2011 2012 2013 2014a 2014b 

Year 

T

otal (

Highw

a

y + N

R

L

M) Diesel Fuel, 

b

bls/d

ay 

15 ppm sulfur 500 ppm sulfur 

Figure 1. Projected (Highway + NRLM) Diesel Fuel Production by Type, 2010-2014 

A2 at http://tonto.eia.doe.gov/dnav/pet/pet_sum_sndw_dcus_nus_w.htm). EPA does not require heating oil 

to meet either the 15 ppm or 500 ppm sulfur standard, so total demand for 15 ppm and 500 ppm diesel fuel 

can be calculated by subtracting heating oil demand from total distillate fuel oil demand. 4

 Total 15 + 500 ppm production decreases slightly during the last 7 months of 2014 because some 

refineries plan to shut down for maintenance during this time. 

6 
IV. NRLM Summary Statistics 

2. Projected Credit Generation and Use 

Table 3 shows total reported nonroad diesel sulfur credits generated and used for 

each year of the nonroad diesel sulfur credit program. High sulfur credits are shown for 

the last 7 months of 2006 (refiners could not begin generating high sulfur NRLM credits 

until June 1, 2006), the full calendar years 2007 through 2009, and the first 5 months of 

2010. 500 ppm credits are shown for the last 7 months of 2009, the full calendar years 

2010 through 2013, and the first 5 months of 2014. Nineteen refineries indicated they 

plan to generate a total of 1,583 million high sulfur credits (1 credit = 1 gallon diesel 

fuel), mostly during the high sulfur early credit generation period from June 1, 2006 

through May 31, 2007, including two refineries owned by small refiners who plan to 

continue generating high sulfur credits after May 31, 2007. Ten refineries indicated that 

they plan to use a total of 2,114 million high sulfur credits in 2007, including four 

refineries that plan to continue using high sulfur credits through May 31, 2010. 

Nine refineries indicated they plan to generate a total of 1,177 million 500 ppm 

credits during the credit generation period from June 1, 2009 through May 31, 2010, 

including two refineries owned by small refiners who plan to continue generating 500 

ppm credits through December 31, 2009. One refinery indicated that it plans to use a 

total of 40 million 500 ppm credits from June 1, 2010 through May 31, 2014. 

Table 3. 

U.S. Aggregated Report Information 

Nonroad Diesel Fuel Credits 2006-2014 

Year 

# refineries generating high sulfur credits 

2006 

19 

2007 

18 

2008 

2 

2009 

2 

2010 

1 

total 

# refineries using high sulfur credits 

High sulfur credit generation, millions 

High sulfur credit usage, millions 

Year 2009 

691 

2010 

10 

762 

573 

2011 

6 

82 

691 

2012 

5 

42 

675 

2013 

4 

7 

176 

2014 

1,583 

2,114 

total 

# refineries generating 500 ppm credits 10 10 2 2 2 

# refineries using 500 ppm credits 1 1 1 1 1 

500 ppm credit generation, millions 519 419 79 79 82 1,177 

500 ppm credit usage, millions 6 10 10 10 4 40 

Figures 2 and 3 illustrate cumulative projected generation and usage of high sulfur 

credits and 500 ppm credits by year. Although Figure 3 shows that 500 ppm credit 

generation significantly exceeds 500 ppm credit usage, Figure 2 shows a projected 

shortfall in high sulfur credits beginning in 2009. EPA will have a clearer picture of high 

sulfur credit supply after we have analyzed the high sulfur credit generation and usage 

reports for the first annual compliance period (June 1, 2006 through May 31, 2007), 

submitted to EPA by August 31, 2007, since the pre-compliance reports indicated that 

most high sulfur credits would be generated during the first annual compliance period. 

7
IV. NRLM Summary Statistics 

Additionally, we have talked with refiners who had indicated in their pre-compliance 

reports that they planned to use more high sulfur credits than they generated, and learned 

that they have flexibility to use fewer high sulfur credits, if necessary. Based on our 

conversations with these refiners, we believe they have sufficient flexibility to reduce 

their usage of high sulfur credits in order to match the available supply of high sulfur 

credits. 

0 

500 

1,000 

1,500 

2,000 

2,500 

Millio

n Cre

dits 

2006 2007 2008 2009 2010 

Year 

cumulative HSC generated cumulative HSC used 

Figure 2. Total U.S. High Sulfur Credits 

0 

200 

400 

600 

800 

1,000 

1,200 

Millio

n Cre

dits 

2009 2010 2011 2012 2013 2014 

Year 

cumulative 500 ppm credits generated cumulative 500 ppm credits used 

Figure 3. Total U.S. 500 ppm Credits 

8
IV. NRLM Summary Statistics 

3. Project Scope and Timing 

In addition to providing diesel fuel volume and credit projections, refineries must 

also include information outlining both their timeline for compliance with the 15 ppm 

sulfur standard and their engineering plans (e.g., design and construction) in their precompliance reports. We requested that refineries report their progress according to the 

following five stages: 1) strategic planning, 2) planning and front-end engineering, 3) 

detailed engineering and permitting, 4) procurement and construction, and 5) 

commissioning and start-up. In last year’s nonroad pre-compliance reports, most 

refineries indicated they were either just starting to develop their plans to produce 15 ppm 

NRLM diesel, or did not plan to produce any more 15 or 500 ppm diesel than indicated in 

their highway pre-compliance reports. 

In the 2007 NRLM pre-compliance reports, refiners indicated they have plans to 

install new desulfurization capacity at 29 refineries specifically to produce 15 ppm 

NRLM diesel fuel. All of these refineries are generally in the early stages of their 

projects to produce 15 ppm NRLM diesel fuel. Many have completed their strategic 

planning, are well into, or just beginning, their front-end engineering design work, and 

will soon be ordering, or have ordered, long lead time equipment like reactor vessels. 

All 29 refineries indicated that they would either be revamping existing 

hydrotreating or hydrocracking units, or installing new hydrotreating or hydrocracking 

units. Twenty two of these refineries indicated specific project scopes to produce 15 ppm 

NRLM diesel. Of those 22 refineries, 9 are planning to install a new desulfurization unit, 

9 are planning to revamp an existing desulfurization unit, and 4 refineries are planning to 

both install at least one new desulfurization unit and revamp at least one existing 

desulfurization unit. The other 7 refineries did not report detailed project information. 

4. Small Refiner Options 

As discussed in greater detail above, the Nonroad Diesel fuel regulations contain 

four options which provide qualified small refiners with flexibilities regarding production 

of 15 ppm NRLM diesel fuel. Option 1 allows a refinery owned by an approved small 

refiner to delay production of 500 ppm sulfur NRLM diesel fuel until June 1, 2010. 

Option 1 was chosen by 4 refineries. These 4 refineries produced eighteen thousand 

bbls/day high sulfur distillate fuel in 2003. 

Option 2 allows a refinery owned by an approved small refiner to delay 

production of 15 ppm NRLM diesel fuel until June 1, 2014. Option 2 was chosen by 4 

refineries. These 4 refineries produced eighteen thousand bbls/day high sulfur distillate 

fuel in 2003. (As Options 1 and 2 are not mutually exclusive, there are some small 

refiners that chose both Options 1 and 2.) 

Option 3 allows a small refiner utilizing Option 1 to generate credits for any 500 

ppm sulfur NRLM diesel fuel produced between June 1, 2006 and May 31, 2010, and/or 

9
IV. NRLM Summary Statistics 

allows a small refiner utilizing Option 2 to generate credits for any 15 ppm sulfur NRLM 

diesel fuel produced between June 1, 2009 and December 31, 2013. Option 3 was chosen 

by 4 refineries. These 4 refineries produced six thousand bbls/day high sulfur distillate 

fuel in 2003. 

Lastly, Option 4 allows a refinery owned by a small refiner the ability to increase 

its gasoline sulfur standards by 20 percent, provided that the refinery begins producing 15 

ppm NRLM on June 1, 2006 and the refinery’s 15 ppm NRLM production is at least 85 

percent of the refinery’s NRLM baseline production. Option 4 was chosen by 5 

refineries. These 5 refineries produced fourteen thousand bbls/day high sulfur distillate 

fuel in 2003. 

The volumes reported by refineries regarding the small refiner options, and the 

number of refineries by option chosen, are shown in Table 4 below. 

Table 4. 

Intended Small Refiner Compliance Options by Number of Refineries and 

High Sulfur Distillate Fuel Production Capacity 

Option Description Number of 

Refineries 

2003 High Sulfur Distillate 

Fuel Production 

(thousand bbls/day) 

1. Delay 500 ppm NRLM Production 4 18 

2. Delay 15 ppm NRLM Production 4 18 

3. NRLM Credit Option 4 6 

4. NRLM Diesel/Gasoline Compliance Option 5 14 

B. PADD Analysis 

This section presents information specific to each PADD. Tables 5 and 6 show, 

by PADD, the number of refineries producing 15 and/or 500 ppm diesel fuel for 2010 

(from June 1 through December 31) and 2014 (from June 1 through December 31). The 

total number of refineries producing diesel fuel decreases by one from 2010 to 2014, as 

one refinery enters the diesel fuel market in 2012, and two refineries exit in 2012 and 

2104 respectively. In 2010, 17 refineries are using flexibilities in the rules (producing 

500 ppm LM diesel fuel, producing 500 ppm NR diesel fuel using NRLM credits, small 

refiner flexibilities) to produce some or all 500 ppm diesel fuel. However, by 2014 all 

but one of these refineries will be producing only 15 ppm diesel fuel. 

Tables 7 and 8 show, by PADD, anticipated production rates of 15 ppm and 500 

ppm total diesel fuel for 2010 (from June 1 through December 31) and 2014 (from June 1 

through December 31), and Figure 4 illustrates the average anticipated production of 15 

10
IV. NRLM Summary Statistics 

ppm and 500 ppm total diesel fuel by PADD from June 1, 2010 through December 31, 

2014. Tables 7 and 8 show that from 2010 through 2014, the projected total diesel fuel 

production in PADDs 1, 3 and 5 increases by a total of 117 thousand bbls/day, while 

projected total diesel fuel production remains nearly constant in PADDs 2 and 4. 

More detailed information for each PADD is shown below in Tables 9 through 

13. 

Table 5. 

Projected Number of Highway and NRLM Diesel Fuel Refineries by PADD for 2010 

PADD 1 2 3 4 5 Total U.S. 

# refineries producing diesel fuel 14 25 44 14 26 123 

# refineries at 100% 15 ppm 13 23 37 12 21 106 

# refineries at 100% 500 ppm 0 1 3 0 1 5 

# refineries with 15/500 ppm mix 1 1 4 2 4 12 

Table 6. 

Projected Number of Highway and NRLM Diesel Fuel Refineries by PADD for 2014b 

PADD 1 2 3 4 5 Total U.S. 

# refineries producing diesel fuel 15 25 43 14 25 122 

# refineries at 100% 15 ppm 15 25 43 14 25 122 

# refineries at 100% 500 ppm 0 0 0 0 0 0 

# refineries with 15/500 ppm mix 0 0 0 0 0 0 

Table 7. 

Projected Volumes of (Highway + NRLM) Diesel Fuel by PADD for 2010 

PADD 1 2 3 4 5 

Total 

U.S. 

Total 15 ppm (highway + NRLM), bbls/day 562,357 1,026,871 2,056,162 182,069 496,094 4,323,553 

Total 500 ppm (highway + NRLM), bbls/day 267 6,207 81,355 6,500 11,326 105,656 

15 + 500 ppm total (highway + NRLM), bbls/day 562,624 1,033,078 2,137,518 188,569 507,420 4,429,209 

Table 8. 

Projected Volumes of (Highway + NRLM) Diesel Fuel by PADD for 2014b 

PADD 1 2 3 4 5 

Total 

U.S. 

Total 15 ppm (highway + NRLM), bbls/day 607,820 1,035,090 2,194,391 192,369 522,571 4,552,242 

Total 500 ppm (highway + NRLM), bbls/day 0 0 0 0 0 0 

15 + 500 ppm total (highway + NRLM), bbls/day 607,820 1,035,090 2,194,391 192,369 522,571 4,552,242 

11
IV. NRLM Summary Statistics 

0 

500,000 

1,000,000 

1,500,000 

2,000,000 

2,500,000 

3,000,000 

3,500,000 

4,000,000 

4,500,000 

5,000,000 

2010 2011 2012 2013 2014a 2014b 

Year 

Tot

al (

Highw

a

y + 

N

RLM) Die

s

el Fuel, 

bbls/day 

PADD 5 

PADD 4 

PADD 3 

PADD 2 

PADD 1 

Figure 4. Projected (Highway + NRLM) Diesel Fuel Production by PADD, 2010-

2014 

12
IV. NRLM Summary Statistics 

1. PADD 1 

Reported totals for all PADD 1 refineries and importers are summarized below in 

Table 9. Table 9 shows that for 2010, 14 refineries anticipate producing nearly 563 

thousand bbls/day total (15 ppm and 500 ppm sulfur) diesel fuel. Thirteen refineries 

reported that they intend to produce 100 percent of their diesel fuel at 15 ppm or less of 

sulfur, and one refinery reported they intend to produce a small amount of 500 ppm 

NRLM diesel fuel through May, 2014. Table 9 also shows that total diesel fuel 

production in PADD 1 is projected to increase by approximately 45 thousand bbls/day 

from 2010 through 2014, including one refinery that enters the diesel fuel market in 2012. 

Table 9 

PADD 1 Diesel Fuel Statistics 2010-2014 

Year 2010 2011 2012 2013 2014a 2014b 

# refineries producing diesel fuel 14 14 15 15 15 15 

# refineries at 100% 15 ppm 13 13 14 14 15 15 

# refineries at 100% 500 ppm 0 0 0 0 0 0 

# refineries with 15/500 ppm mix 1 1 1 1 0 0 

Total 15 ppm (bbls/day) 562,357 562,600 587,290 607,938 607,426 607,820 

Total 500 ppm (bbls/day) 267 424 228 98 0 0 

Total 15 + 500 ppm (bbls/day) 562,624 563,024 587,518 608,035 607,426 607,820 

13
IV. NRLM Summary Statistics 

2. PADD 2 

The reported totals for all PADD 2 refineries are summarized below in Table 10. 

Table 10 shows that for 2010, 25 refineries anticipate producing 1.03 million bbls/day 

total (15 ppm and 500 ppm sulfur) diesel fuel. Twenty-three refineries reported that they 

intend to produce 100 percent of their diesel fuel at or below 15 ppm sulfur, and two 

refineries reported that they intend to produce a small amount of 500 ppm sulfur diesel 

fuel. Table 10 also shows that total diesel fuel production in PADD 2 is projected to 

remain essentially constant from 2010 through 2014. 

Table 10. 

PADD 2 Diesel Fuel Statistics 2010-2014 

Year 2010 2011 2012 2013 2014a 2014b 

# refineries producing diesel fuel 25 25 25 25 25 25 

# refineries at 100% 15 ppm 23 23 23 25 25 25 

# refineries at 100% 500 ppm 1 1 0 0 0 0 

# refineries with 15/500 ppm mix 1 1 2 0 0 0 

Total 15 ppm (bbls/day) 1,026,871 1,035,923 1,034,731 1,037,875 1,038,896 1,035,090 

Total 500 ppm (bbls/day) 6,207 5,921 2,595 0 0 0 

Total 15 + 500 ppm (bbls/day) 1,033,078 1,041,844 1,037,326 1,037,875 1,038,896 1,035,090 

14
IV. NRLM Summary Statistics 

3. PADD 3 

Reported totals for all PADD 3 refineries are summarized below in Table 11. 

Table 11 shows that 44 refineries anticipate producing nearly 2.14 million bbls/day total 

(15 ppm and 500 ppm sulfur) diesel fuel in 2010. Thirty-seven refineries reported they 

intend to produce 100 percent of their diesel fuel at or below 15 ppm, and seven 

refineries reported that they intend to produce some amount of 500 ppm diesel fuel. 

Although one refinery currently plans to exit the diesel fuel market in 2014, total diesel 

fuel production is projected to increase by 57 thousand bbls/day from 2010 through 2014. 

Table 11. 

PADD 3 Diesel Fuel Statistics 2010-2014 

Year 2010 2011 2012 2013 2014a 2014b 

# refineries producing diesel fuel 44 44 44 43 43 43 

# refineries at 100% 15 ppm 37 37 37 40 40 43 

# refineries at 100% 500 ppm 3 3 2 1 1 0 

# refineries with 15/500 ppm mix 4 4 5 2 2 0 

Total 15 ppm (bbls/day) 2,056,162 2,058,745 2,105,163 2,147,463 2,149,566 2,194,391 

Total 500 ppm (bbls/day) 81,355 81,355 62,265 45,015 45,015 0 

Total 15 + 500 ppm (bbls/day) 2,137,518 2,140,100 2,167,428 2,192,479 2,194,582 2,194,391 

15
IV. NRLM Summary Statistics 

4. PADD 4 

Reported totals for all PADD 4 refineries are summarized below in Table 12. 

Table 12 shows that 14 refineries anticipate producing nearly 189 thousand bbls/day total 

(15 ppm and 500 ppm sulfur) diesel fuel in 2010. Twelve refineries reported that they 

intend to produce 100 percent of their diesel fuel with 15 ppm or less of sulfur and two 

refineries reported that they intend to produce some amount of 500 ppm diesel fuel. 

Table 12 also shows that the projected total diesel fuel production in PADD 4 remains 

relatively constant from 2010 through 2014. 

Table 12. 

PADD 4 Diesel Fuel Statistics 2010-2014 

Year 2010 2011 2012 2013 2014a 2014b 

# refineries producing diesel fuel 14 14 14 14 14 14 

# refineries at 100% 15 ppm 12 12 12 13 13 14 

# refineries at 100% 500 ppm 0 0 0 0 0 0 

# refineries with 15/500 ppm mix 2 2 2 1 1 0 

Total 15 ppm (bbls/day) 182,069 184,271 189,722 192,571 192,858 192,369 

Total 500 ppm (bbls/day) 6,500 6,500 2,982 500 500 0 

Total 15 + 500 ppm (bbls/day) 188,569 190,771 192,704 193,071 193,358 192,369 

16
IV. NRLM Summary Statistics 

5. PADD 55 

Reported totals for all refineries in PADD 5 are summarized below in Table 13. 

Table 13 shows that 26 refineries anticipate producing over 507 thousand bbls/day total 

(15 ppm and 500 ppm sulfur) diesel fuel in 2010. Twenty-one of these refineries 

indicated that they expect to produce 100 percent of their diesel fuel with 15 ppm sulfur 

or less, and five refineries reported that they intend to produce some amount of 500 ppm 

diesel fuel. Although one refinery plans to exit the diesel fuel market in 2014, total diesel 

fuel production is projected to increase by 15 thousand bbls/day from 2010 through 2014. 

Table 13. 

PADD 5 Diesel Fuel Statistics 2010-2014 

Year 2010 2011 2012 2013 2014a 2014b 

# refineries producing diesel fuel 26 26 26 26 26 25 

# refineries at 100% 15 ppm 21 21 22 22 22 25 

# refineries at 100% 500 ppm 1 1 1 1 1 0 

# refineries with 15/500 ppm mix 4 4 3 3 3 0 

Total 15 ppm (bbls/day) 496,094 507,238 514,240 514,241 514,814 522,571 

Total 500 ppm (bbls/day) 11,326 7,284 4,452 4,517 4,583 0 

Total 15 + 500 ppm (bbls/day) 507,420 514,523 518,692 518,758 519,397 522,571 

5

 Alaska refineries are included in this analysis 

17 
IV. NRLM Summary Statistics 

C. Comparison of 2006 and 2007 NRLM Pre-Compliance Reports 

Total production of 15 ppm and 500 ppm diesel fuel increased significantly in the 

2007 NRLM pre-compliance reports, compared to the 2006 NRLM pre-compliance 

reports. Table 14 shows the projected volumes of 15 ppm and 500 ppm diesel fuel from 

the 2006 and 2007 NRLM pre-compliance reports for 2010 (in bbls/day, from June 1 to 

December 31). Total reported production of diesel fuel in 2007 was 280 thousand 

bbls/day greater than total reported production in the 2006 reports. Several refineries in 

each PADD reported increases in anticipated production, most significantly in PADDs 1, 

2 and 3. This includes two refineries in PADD 1 and two refineries in PADD 3 which 

reported in 2006 that they were not planning to produce any 15 ppm diesel fuel beginning 

June 1, 2010, but are now planning to begin producing 15 ppm diesel fuel by June 1, 

2010. 

Table 14. 

Projected Volumes of (Highway + NRLM) Diesel Fuel by PADD for 2010 

PADD 1 2 3 4 5 

Total 

U.S. 

2006 NRLM reports 

Total 15 ppm, bbls/day 461,843 1,001,381 1,920,020 166,439 488,758 4,038,441 

Total 500 ppm, bbls/day 71 9,936 78,920 14,054 7,548 110,529 

Total (15 + 500) ppm , bbls/day 461,915 1,011,317 1,998,940 180,492 496,306 4,148,970 

2007 NRLM reports 

Total 15 ppm, bbls/day 562,357 1,026,871 2,056,162 182,069 496,094 4,323,553 

Total 500 ppm, bbls/day 267 6,207 81,355 6,500 11,326 105,656 

Total (15 + 500) ppm , bbls/day 562,624 1,033,078 2,137,518 188,569 507,420 4,429,209 

Increase in reported production, bbls/day 100,710 21,761 138,577 8,077 11,114 280,239 

Table 15 shows the projected volumes of 15 and 500 ppm diesel fuel from the 

2005 and 2006 NRLM pre-compliance reports for 2014 (from June 1 to December 31). 

Total reported production of diesel fuel in the 2007 reports was 262 thousand bbls/day 

greater than the total reported production in the 2006 reports. Several refineries in each 

PADD reported increases in anticipated production, most significantly in PADDs 1, 2 and 

3. 

18
IV. NRLM Summary Statistics 

Table 15. 

Projected Volumes of (Highway + NRLM) Diesel Fuel by PADD for 2014b 

PADD 1 2 3 4 5 

Total 

U.S. 

2006 NRLM reports 

Total 15 ppm, bbls/day 465,822 1,006,079 2,113,326 186,615 518,202 4,290,045 

Total 500 ppm, bbls/day 0 0 0 0 0 0 

Total (15 + 500) ppm , bbls/day 465,822 1,006,079 2,113,326 186,615 518,202 4,290,045 

2007 NRLM reports 

Total 15 ppm, bbls/day 607,820 1,035,090 2,194,391 192,369 522,571 4,552,242 

Total 500 ppm, bbls/day 0 0 0 0 0 0 

Total (15 + 500) ppm , bbls/day 607,820 1,035,090 2,194,391 192,369 522,571 4,552,242 

Increase in reported production, bbls/day 141,998 29,011 81,065 5,754 4,370 262,197 

19
V. Appendix 

Appendix - List of Acronyms 

bbls/day barrels per day 

bpcd barrels per calendar day 

EIA Energy Information Administration 

EPA (or, “the Agency”) U.S. Environmental Protection Agency 

FR Federal Register 

LM Locomotive and Marine 

NR Nonroad 

NRLM Nonroad, Locomotive, and Marine 

PADD Petroleum Administration for Defense District 

ppm parts-per-million 

ULSD Ultra Low Sulfur Diesel 

20