Summary and Analysis of the 2011 

Nonroad Diesel Fuel Pre-Compliance 

Reports 
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.

EPA-420-R-12-006 

January 2012

Compliance Division 

Office of Transportation and Air Quality 

U.S. Environmental Protection Agency

Summary and Analysis of the 2011 

Nonroad Diesel Fuel Pre-Compliance 

Reports 
Table of Contents

I. Executive Summary...............................................................................................................................................1

II. Nonroad Diesel Program Overview ................................................................................................................2

III. Nonroad Pre-Compliance Reporting Requirements ........................................................................................4

IV. NRLM Summary Data ....................................................................................................................................5

A. Nationwide Analysis .......................................................................................................................................5

1. Refineries and Importers – Numbers and Production.................................................................................5

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

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

4. Small Refiner Options ..............................................................................................................................10

B. PADD Analysis ........................................................................................................................................11

1. PADD 1 ....................................................................................................................................................14

2. PADD 2 ....................................................................................................................................................15

3. PADD 3 ....................................................................................................................................................16

4. PADD 4 ....................................................................................................................................................17

5. PADD 5 ....................................................................................................................................................18

C. Comparison of 2010 and 2011 NRLM Pre-Compliance Reports..................................................................19
II. Nonroad Diesel Program Overview

1

I. Executive Summary

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

or marine (NRLM) diesel fuel containing 15 parts per million (ppm) sulfur or less

after June 1, 2010 was required to submit annual pre-compliance reports to the U.S.

Environmental Protection Agency (EPA). Reports were due annually by June 1 from

2005 through 2011 under the diesel sulfur regulations. This report summarizes the

results of the 2011 nonroad pre-compliance reports, and is the last such report that

will be issued under the diesel sulfur regulations.

Refiners’ and importers’ nonroad pre-compliance reports had to contain

estimates of the volume of diesel fuel containing 15 ppm sulfur or less (“15 ppm

diesel fuel”) and diesel fuel containing 500 ppm sulfur or less (“500 ppm diesel fuel”)

produced or imported from June 1, 2010 through December 31, 2014. For those

refiners and importers planning on participating in the credit trading program, the

reports had to contain a projection of how many credits will be generated and/or used

by each refinery or importer. The pre-compliance reports had to 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 2011 nonroad pre-compliance reports showed that:

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

- 28 refineries are either undecided as to their plans, or are choosing to stop

producing NRLM diesel fuel by June 1, 2014

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

(20 refineries said they generated high sulfur credits in 2006 and 2007, 24

refineries said they generated 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 is projected to grow from 2010 through 2014

- total diesel fuel production and importation beginning June 1, 2010

decreased compared to the 2010 nonroad pre-compliance reports

This data represents estimates made by refiners, some of whose compliance

plans may change. While the reported information is subject to change, the results

provide the clearest snapshot of refiners’ aggregate nonroad diesel sulfur compliance

plans available as of June 1, 2011. They represent the assessment of those who have

first-hand knowledge of the unique situation faced by each refinery.
II. Nonroad Diesel Program Overview

2

II. Nonroad Diesel Program Overview

The Nonroad Diesel final rule (69 FR 38958, June 29, 2004) contains a 3-step

approach to reducing the sulfur content of nonroad, locomotive, and marine (NRLM)

diesel fuel from uncontrolled levels down to 15 ppm or less. Beginning June 1, 2007,

refiners and importers were required to produce or import NRLM diesel fuel with a

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

were 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.

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

early efforts to reduce NRLM diesel sulfur. “High sulfur” credits could be generated

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

2007. Similarly, “500 ppm” credits could 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 sulfur standard for NRLM diesel fuel

beginning June 1, 2007, while “500 ppm” credits could be used to comply with the 15

ppm sulfur standard for NR diesel fuel beginning June 1, 2010 and the 15 ppm sulfur

standard for LM diesel fuel beginning 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 after June 1, 2010. NRLM diesel sulfur

credits may be transferred nationwide. No credit trading area restrictions exist such

as those 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 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 barrels per calendar day

(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 gasoline sulfur standards. These small refiner options are

described in more detail below.
II. Nonroad Diesel Program Overview

3

Option 1 – Delay production of 500 ppm NRLM diesel fuel

This option allowed approved small refiners an additional 3 years to comply

with the 500 ppm sulfur standard for NRLM diesel fuel. Small refiners had a 500

ppm NRLM compliance date of June 1, 2010, compared to a compliance date of June

1, 2007 for non-small refiners. Small refiners could continue to produce high sulfur

(greater than 500 ppm) NRLM diesel fuel until June 1, 2010. However, production of

high sulfur NRLM diesel fuel from a small refiner’s refinery between June 1, 2007

and June 1, 2010 was limited to 105 percent of the refinery’s average NRLM diesel

fuel production from 2003 through 2005.

Option 2 – Delay production of 15 ppm NRLM diesel fuel

This option allows approved small refiners additional time to comply with the

15 ppm sulfur standard for NRLM diesel fuel. Small refiners have a single 15 ppm

NRLM compliance date of June 1, 2014, compared to 15 ppm compliance dates for

non-small refiners of June 1, 2010 and June 1, 2012 for NR and LM diesel fuel,

respectively. Small refiners may continue to produce 500 ppm NRLM diesel fuel

until June 1, 2014. However, production of 500 ppm 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

The NRLM Credit Option allows approved small refiners additional time to

generate nonroad diesel sulfur credits, compared to non-small refiners. Small refiners

could generate “High Sulfur” credits if their refinery’s annual average 500 ppm

NRLM diesel fuel production between June 1, 2006 and June 1, 2010 exceeded the

refinery’s annual average NRLM diesel fuel production from 2003 through 2005

(non-small refiners could only generate “High Sulfur” credits between June 1, 2006

and June 1, 2007). Small refiners could also generate “500 ppm” credits if their

refinery’s annual average 15 ppm NRLM diesel fuel production between June 1, 2009

and December 31, 2013 exceeded the refinery’s average annual NRLM diesel fuel

production from 2006 through 2008 (non-small refiners could only generate “500

ppm” credits between June 1, 2009 and June 1, 2010). These credits can be banked

for future use or sold to another refiner.

Option 4 - NRLM Diesel/Gasoline Compliance Option

This option was available to small refiners that elected not to use Options 1, 2

or 3. Under this option, at least 95 percent of the NRLM diesel fuel produced at a

small refiner’s refinery had to meet the 15 ppm sulfur standard by June 1, 2006.

Annual average production of 15 ppm NRLM diesel fuel at the refinery had to be

equal to or greater than 85 percent of the refinery’s annual average NRLM diesel fuel

production from 2003 through 2005. Small refiners who chose this option received a
II. Nonroad Diesel Program Overview

4

modest relaxation in their interim refinery gasoline sulfur standards beginning

January 1, 2004. Specifically, the applicable refinery annual average and per-gallon

cap standards were increased by 20 percent through 2007. A small refiner could elect

to further extend the duration of the refinery interim gasoline sulfur standards through

2010 by producing all highway diesel fuel at the refinery containing less than 15 ppm

sulfur or less by June 1, 2006. However, in no case could the per-gallon gasoline

sulfur cap exceed 450 ppm.

Other Flexibilities

Unlike the Highway Diesel rule, the Nonroad Diesel rule did 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 sulfur standards by the NRLM

compliance dates discussed above. NRLM diesel fuel used in rural areas 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 had to meet the 15 ppm sulfur

standard beginning June 1, 2010.1This fuel is regulated under a special rule for

Alaska which was finalized in June 2006 (71 FR 32450, June 6, 2006).

Transmix processors distill 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

were provided with additional flexibility to comply with the diesel sulfur standards.

Transmix processors could choose to continue to produce all of their highway diesel

fuel to meet the 500 ppm sulfur standard until June 1, 2010. They could further

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

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

standard until June 1, 2014.

III. Nonroad Pre-Compliance Reporting Requirements

The diesel sulfur regulations required that any refiner or importer planning to

produce or import 15 ppm NRLM diesel fuel after June 1, 2010 had to submit annual

pre-compliance reports to EPA. The first nonroad pre-compliance report was due on

June 1, 2005 and subsequent reports were due annually through 2011.

The pre-compliance reports had to contain the following information:

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

information since registration.

1 Rural areas are defined as areas of Alaska not served by the federal aid highway system (FAHS)
III. Nonroad Pre-Compliance Reporting Requirements

5

2. Estimates of the average daily volumes of each sulfur grade of highway and

NRLM diesel fuel produced at each refinery or imported at each import

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, front-end

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, 2011.

IV. NRLM Summary Data

A. Nationwide Analysis

1. Refineries and Importers – Numbers and Production

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 4 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 2011 pre-compliance reports for

130 refineries, all of which produced high and/or low sulfur diesel fuel in 2003, including

reports for 4 refineries that were shut down in 2009 or 2010. The 10 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 they have made decisions for most of their refineries

whether or not to produce 15 ppm NRLM diesel fuel. Table 1 shows that a total of 118

refineries reported they produced 15 and/or 500 ppm diesel fuel beginning June 1, 2010.

The remaining 8 operational refineries that sent pre-compliance reports said that after

June 1, 2010, they either plan to produce only high sulfur distillate for the heating oil
IV. NRLM Summary Data

6

market, or may sell their high sulfur distillate fuel to other refineries that can desulfurize

it.

Table 1.

U.S. Aggregated Report Information

Highway and NRLM Diesel Fuel Refinery Data 2010-2014

Year 2010 2011 2012 2013 2014a22014b

# refineries producing diesel fuel 118 118 117 116 114 112

# refineries at 100% 15 ppm 92 93 95 104 105 112

# refineries at 100% 500 ppm 6 7 5 4 2 0

# refineries with 15/500 ppm mix 20 18 17 8 7 0

The 2011 nonroad pre-compliance reports indicated that production of 15 ppm

and 500 ppm total diesel fuel beginning June 1, 2010 was 3.82 million bbls/day, as shown

in Table 2 below. Table 2 and Figure 1 also illustrate that national production of 15 ppm

diesel fuel is projected to increase by 498,000 bbls/day from 2010 to 2014, from 3.66

million to 4.15 million bbls/day. However, this projected increase is offset by a projected

decrease in 500 ppm NRLM diesel fuel production of 160,000 bbls/day from 2010 to

2014. Production of 500 ppm NRLM diesel fuel decreases from 160,000 bbls/day in

2010 to 100,000 bbls/day in 2012, as some refiners begin producing 15 ppm LM diesel

fuel by June 1, 2012. Production of 500 ppm NRLM diesel fuel ends completely by May

31, 2014, when the flexibilities for small refiners and NRLM credit use end.

Projected total diesel fuel production should be sufficient to meet future diesel

fuel demand. Although projected total production from the 2011 pre-compliance reports

has decreased compared to the 2010 pre-compliance reports, projected total production is

still greater than projected total diesel fuel demand from EIA’s Annual Energy Outlook

(AEO) 2011. Total diesel fuel demand calculated from AEO 2011 is 3.86 million

bbls/day in 2015, compared to projected total diesel fuel production of 4.15 million

bbls/day in 2014.3

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

high sulfur distillate fuel in 2003. Eighteen of these refineries reported that they have no

plans at present to produce 15 ppm diesel fuel by June 1, 2014, and 10 refineries did not

send an NRLM pre-compliance report to EPA in 2011. In 2003, these 28 refineries

produced a total of 124,000 bbls/day of diesel fuel containing less than 500 ppm sulfur,

2 Data from the pre-compliance reports is divided into two sections for 2014 throughout this summary and

analysis. 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 2011 projected a total distillate fuel oil demand of 4.13 million bbls/day in 2015 (see Table A11 in

http://www.eia.doe.gov/oiaf/aeo/pdf/appa.pdf). This total includes 266,000 bbls/day of distillate fuel oil

(heating oil) for residential energy consumption (see Table A2 at previous link). EPA does not require

heating oil to meet either a 15 ppm or 500 ppm sulfur standard, so total demand for 15 ppm and 500 ppm

diesel fuel was calculated by subtracting heating oil demand from total distillate fuel oil demand.
IV. NRLM Summary Data

7

and 190,000 bbls/day of distillate fuel containing more than 500 ppm sulfur.4 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 produce high sulfur distillate indefinitely.

Table 2.

U.S. Aggregated Report Information

Diesel Fuel Production 2010-2014

Year 2010 2011 2012 2013 2014a 2014b

Total 15 ppm (highway + NRLM), bbls/day 3,656,561 3,952,808 4,044,563 4,145,313 4,144,082 4,154,886

Total 500 ppm NRLM, bbls/day 159,897 159,566 99,921 36,130 28,206 0

Total 15 ppm and 500 ppm (highway + NRLM),

bbls/day 3,816,458 4,112,374 4,144,483 4,181,443 4,172,288 4,154,886

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

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

Total (Highway + NRLM) Diesel Fuel,

bbls/day

500 ppm sulfur

15 ppm sulfur

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. Twenty refineries indicated they

generated a total of 2,006 million high sulfur credits (1 credit = 1 gallon early-compliant

4

2003 EIA data has been used as a baseline for comparison in all summary reports published since 2003.
IV. NRLM Summary Data

8

diesel fuel), mostly during the early credit generation period from June 1, 2006 through

May 31, 2007, including 4 refineries owned by small refiners who generated high sulfur

credits after May 31, 2007. Nine refineries indicated they used a total of 1,820 million

high sulfur credits from June 1, 2007 through May 31, 2010.

Twenty four refineries indicated they plan to generate a total of 2,546 million 500

ppm credits, mostly during the early credit generation period from June 1, 2009 through

May 31, 2010, including 2 refineries owned by small refiners who plan to continue

generating 500 ppm credits after May 31, 2010. Seven refineries indicated they planned

to use a total of 1,959 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 2006 2007 2008 2009 2010 total

# refineries generating high sulfur credits 19 20 4 4 2

# refineries using high sulfur credits 9 8 7 2

High sulfur credit generation, millions 742 984 128 117 34 2,006

High sulfur credit usage, millions 563 777 464 16 1,820

Year 2009 2010 2011 2012 2013 2014 total

# refineries generating 500 ppm credits 24 24 2 1 1

# refineries using 500 ppm credits 5 5 7 6 3

500 ppm credit generation, millions 1,217 1,018 111 95 106 2,546

500 ppm credit usage, millions 367 319 818 407 47 1,959

Figures 2 and 3 below illustrate cumulative projected generation and usage of

high sulfur credits and 500 ppm credits by year. Both figures show that based on current

plans, refiners should generate more than enough of each type of credit to meet the

demand for each type of credit.
IV. NRLM Summary Data

9

Figure 2. Total U.S. High Sulfur Credits

0

500

1,000

1,500

2,000

2,500

Million Credits

2006 2007 2008 2009 2010

Year

cumulative HSC generated cumulative HSC used

Figure 3. Total U.S. 500 ppm Credits

0

500

1,000

1,500

2,000

2,500

3,000

Million Credits

2009 2010 2011 2012 2013 2014

Year

cumulative 500 ppm credits generated cumulative 500 ppm credits used

3. Project Scope and Timing

In addition to providing projections of diesel fuel production and credit

generation/usage, refiners had to also include information outlining both their timeline for

compliance with the 15 ppm sulfur standard for NRLM diesel fuel and their engineering

plans (e.g., design and construction) in their pre-compliance reports. We requested that

refiners report their progress according to the following five stages: 1) strategic planning,

2) planning and front-end engineering, 3) detailed engineering and permitting,
IV. NRLM Summary Data

10

4) procurement and construction, and 5) commissioning and start-up. In the 2010

nonroad pre-compliance reports, most refiners indicated they were generally in the final

stages of their projects to produce 15 ppm NRLM diesel fuel, or did not plan to produce

any more 15 ppm diesel fuel than indicated in their highway pre-compliance reports.

Most were well into the procurement and construction stage, and some had completed the

commissioning and start-up stage.

In the 2011 NRLM pre-compliance reports, refiners indicated they have plans to

install new desulfurization capacity at 20 refineries specifically to produce 15 ppm

NRLM diesel fuel. Most of these refineries have completed and started up their

desulfurization units, and a few expect to start their desulfurization units up in 2011 or

2012.

All 20 refineries are either revamping existing hydrotreating or hydrocracking

units, or installing new hydrotreating or hydrocracking units. Of these 20 refineries, 7 are

planning to install a new desulfurization unit, 8 are planning to revamp an existing

desulfurization unit, and 5 refineries are planning to both install at least one new

desulfurization unit and revamp at least one existing desulfurization unit.

4. Small Refiner Options

As discussed previously, the diesel sulfur regulations contain 4 options which

provide qualified small refiners with flexibilities regarding production of 500 ppm or 15

ppm NRLM diesel fuel. Option 1 allowed a refinery owned by an approved small refiner

to delay production of 500 ppm NRLM diesel fuel until June 1, 2010. Refiners chose

Option 1 for 9 refineries. These 9 refineries produced 37,000 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. Refiners chose Option 2 for

7 refineries. These 7 refineries produced 22,000 bbls/day high sulfur distillate fuel in

2003. (Options 1 and 2 are not mutually exclusive, small refiners could choose both

Options 1 and 2)

Option 3 allowed a small refiner to generate credits for 500 ppm NRLM diesel

fuel produced between June 1, 2006 and May 31, 2010 in excess of their refinery baseline

production, and also allows a small refiner to generate credits for 15 ppm NRLM diesel

fuel produced between June 1, 2009 and December 31, 2013 in excess of their refinery

baseline production. Refiners chose Option 3 for 4 refineries. These 4 refineries

produced 9,000 bbls/day high sulfur distillate fuel in 2003.

Lastly, Option 4 allowed a small refiner the ability to increase their refinery

gasoline sulfur standards by 20 percent, provided they began producing 15 ppm NRLM

diesel fuel by June 1, 2006 at their refinery, and their refinery’s annual average 15 ppm

NRLM diesel fuel production was at least 85 percent of the refinery’s annual average
IV. NRLM Summary Data

11

NRLM diesel fuel production from 2003 through 2005. Refiners chose Option 4 for 5

refineries. These 5 refineries produced 18,000 bbls/day high sulfur distillate fuel in 2003.

The number of refineries owned by small refiners, and the production of high

sulfur distillate fuel from these refineries in 2003, are shown below in Table 4 for each

option.

Table 4.

Intended Small Refiner Compliance Options by Number of Refineries and

High Sulfur Distillate Fuel Production

Option Description Number of

Refineries

2003 High Sulfur Distillate

Fuel Production

(thousand bbls/day)

1. Delay 500 ppm NRLM Production 9 37

2. Delay 15 ppm NRLM Production 7 22

3. NRLM Credit Option 4 9

4. NRLM Diesel/Gasoline Compliance Option 5 18

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 6 from 2010 to 2014. In

2010, 26 refineries were 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 June 1, 2014, all of these

refineries will only be producing 15 ppm diesel fuel and/or heating oil, or will have

exited the diesel fuel market.

Tables 7 and 8 show, by PADD, production 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 production of 15 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, projected total diesel fuel production increases in all

PADDs.
IV. NRLM Summary Data

12

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 11 24 43 15 25 118

# refineries at 100% 15 ppm 9 20 33 10 20 92

# refineries at 100% 500 ppm 0 0 3 1 2 6

# refineries with 15/500 ppm mix 2 4 7 4 3 20

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 11 24 40 14 23 112

# refineries at 100% 15 ppm 11 24 40 14 23 112

# 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 Production 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 308,667 903,856 1,773,032 176,460 494,545 3,656,561

Total 500 ppm (highway + NRLM), bbls/day 5,326 29,387 91,692 9,437 24,056 159,897

Total 15 ppm and 500 ppm total (highway + NRLM),

bbls/day 313,993 933,243 1,864,724 185,897 518,600 3,816,458

Table 8.

Projected Production 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 391,300 1,067,790 1,974,322 186,996 534,477 4,154,886

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

Total 15 ppm and 500 ppm total (highway + NRLM),

bbls/day 391,300 1,067,790 1,974,322 186,996 534,477 4,154,886
IV. NRLM Summary Data

13

Figure 4. Projected (Highway+NRLM) Diesel Fuel Production by PADD, 2010-2014

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

Total (Highway + NRLM) Diesel Fuel,

bbls/day

PADD 5

PADD 4

PADD 3

PADD 2

PADD 1

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

13.
IV. NRLM Summary Data

14

1. PADD 1

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

Table 9. Table 9 shows that for 2010, 11 refineries produced approximately 314,000

bbls/day total (15 ppm and 500 ppm sulfur) diesel fuel. Nine refineries reported they

produced all of their diesel fuel containing 15 ppm sulfur or less in 2010, and 2 refineries

reported they intend to produce some 500 ppm NRLM diesel fuel between 2010 and

2014. Table 9 also shows that total diesel fuel production in PADD 1 is projected to

increase by approximately 77,000 bbls/day from 2010 through 2014.

Table 9

PADD 1 Diesel Fuel Data: 2010-2014

Year 2010 2011 2012 2013 2014a 2014b

# refineries producing diesel fuel 11 11 11 11 11 11

# refineries at 100% 15 ppm 9 9 9 10 10 11

# 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) 308,667 357,181 388,562 390,943 390,943 391,300

Total 500 ppm (bbls/day) 5,326 8,857 3,899 357 357 0

Total 15 ppm and 500 ppm (bbls/day) 313,993 366,038 392,461 391,300 391,300 391,300
IV. NRLM Summary Data

15

2. PADD 2

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

Table 10 shows that for 2010, 24 refineries produced approximately 933,000 bbls/day

total (15 ppm and 500 ppm sulfur) diesel fuel. Twenty refineries reported they produced

all of their diesel fuel containing 15 ppm sulfur or less in 2010, and 4 refineries reported

they intend to produce some 500 ppm NRLM diesel fuel between 2010 and 2014. Table

10 also shows that total diesel fuel production in PADD 2 is projected to increase by

approximately 135,000 bbls/day from 2010 through 2014.

Table 10.

PADD 2 Diesel Fuel Data: 2010-2014

Year 2010 2011 2012 2013 2014a 2014b

# refineries producing diesel fuel 24 24 24 24 24 24

# refineries at 100% 15 ppm 20 20 20 23 23 24

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

# refineries with 15/500 ppm mix 4 4 4 1 1 0

Total 15 ppm (bbls/day) 903,856 1,012,800 1,017,086 1,070,671 1,074,937 1,067,790

Total 500 ppm (bbls/day) 29,387 23,963 17,572 4,915 4,752 0

Total 15 ppm and 500 ppm (bbls/day) 933,243 1,036,762 1,034,658 1,075,586 1,079,689 1,067,790
IV. NRLM Summary Data

16

3. PADD 3

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

Table 11 shows that for 2010, 43 refineries produced 1.86 million bbls/day total (15 ppm

and 500 ppm sulfur) diesel fuel. Thirty three refineries reported they produced all of their

diesel fuel containing 15 ppm sulfur or less in 2010, and 10 refineries reported they

intend to produce some 500 ppm NRLM diesel fuel between 2010 and 2014. Table 11

also shows that total diesel fuel production in PADD 3 is projected to increase by

approximately 110,000 bbls/day from 2010 through 2014, even though 2 refineries plan

to exit the diesel fuel market by January 1, 2014, and another refinery plans to exit the

diesel fuel market by June 1, 2014.

Table 11.

PADD 3 Diesel Fuel Data: 2010-2014

Year 2010 2011 2012 2013 2014a 2014b

# refineries producing diesel fuel 43 43 43 43 41 40

# refineries at 100% 15 ppm 33 34 36 38 38 40

# refineries at 100% 500 ppm 3 4 3 3 1 0

# refineries with 15/500 ppm mix 7 5 4 2 2 0

Total 15 ppm (bbls/day) 1,773,032 1,915,927 1,949,210 1,954,247 1,956,822 1,974,322

Total 500 ppm (bbls/day) 91,692 87,168 48,521 20,571 16,381 0

Total 15 ppm and 500 ppm (bbls/day) 1,864,724 2,003,094 1,997,732 1,974,819 1,973,203 1,974,322
IV. NRLM Summary Data

17

4. PADD 4

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

shows that 15 refineries produced approximately 186,000 bbls/day total (15 ppm and 500

ppm sulfur) diesel fuel in 2010. Ten refineries reported they produced all of their diesel

fuel containing 15 ppm sulfur or less in 2010, and 5 refineries reported they intend to

produce some 500 ppm NRLM diesel fuel between 2010 and 2014. Table 12 also shows

that total diesel fuel production in PADD 4 is projected to increase by approximately

1,000 bbls/day from 2010 through 2014, even though one refinery plans to exit the diesel

fuel market by January 1, 2012.

Table 12.

PADD 4 Diesel Fuel Data: 2010-2014

Year 2010 2011 2012 2013 2014a 2014b

# refineries producing diesel fuel 15 15 14 14 14 14

# refineries at 100% 15 ppm 10 10 10 13 13 14

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

# refineries with 15/500 ppm mix 4 4 4 1 1 0

Total 15 ppm (bbls/day) 176,460 170,782 175,087 187,238 186,582 186,996

Total 500 ppm (bbls/day) 9,437 13,173 5,903 500 500 0

Total 15 ppm and 500 ppm (bbls/day) 185,897 183,955 180,991 187,738 187,082 186,996
IV. NRLM Summary Data

18

5. PADD 5

Reported totals for all refineries in PADD 5 are summarized below in Table 13.5

Table 13 shows that for 2010, 25 refineries produced approximately 519,000 bbls/day

total (15 ppm and 500 ppm sulfur) diesel fuel. Twenty refineries reported they produced

all of their diesel fuel containing 15 ppm sulfur or less in 2010, and 5 refineries reported

they intend to produce some 500 ppm NRLM diesel fuel between 2010 and 2014. Table

13 also shows that total diesel fuel production in PADD 5 is projected to increase by

approximately 16,000 bbls/day from 2010 through 2014, even though one refinery plans

to exit the diesel fuel market by January 1, 2013, and another refinery plans to exit the

market by June 1, 2014.

Table 13.

PADD 5 Diesel Fuel Data: 2010-2014

Year 2010 2011 2012 2013 2014a 2014b

# refineries producing diesel fuel 25 25 25 24 24 23

# refineries at 100% 15 ppm 20 20 20 20 21 23

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

# refineries with 15/500 ppm mix 3 3 3 3 2 0

Total 15 ppm (bbls/day) 494,545 496,117 514,617 542,213 534,799 534,477

Total 500 ppm (bbls/day) 24,056 26,406 24,025 9,787 6,215 0

Total 15 ppm and 500 ppm (bbls/day) 518,600 522,523 538,642 551,999 541,014 534,477

5 Alaska refineries are included in this analysis
IV. NRLM Summary Data

19

C. Comparison of 2010 and 2011 NRLM Pre-Compliance Reports

Total reported production of 15 ppm and 500 ppm diesel fuel in the 2011 precompliance reports decreased, compared to the 2010 pre-compliance reports. Table 14

shows the production of 15 ppm and 500 ppm diesel fuel from the 2010 and 2011 precompliance reports for 2010 (from June 1 to December 31). Total production of diesel

fuel from the 2011 reports was approximately 110,000 bbls/day less than total production

from the 2010 reports. Reported production decreased in PADDs 1, 2 and 3, while

reported production increased in PADDs 4 and 5.

Table 14.

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

PADD 1 2 3 4 5

Total

U.S.

2010 NRLM reports

Total 15 ppm, bbls/day 313,328 922,541 1,857,510 170,443 483,814 3,747,634

Total 500 ppm, bbls/day 5,673 26,834 100,340 13,039 32,715 178,602

Total 15 ppm and 500 ppm , bbls/day 319,000 949,375 1,957,850 183,482 516,529 3,926,236

2011 NRLM reports

Total 15 ppm, bbls/day 308,667 903,856 1,773,032 176,460 494,545 3,656,561

Total 500 ppm, bbls/day 5,326 29,387 91,692 9,437 24,056 159,897

Total 15 ppm and 500 ppm , bbls/day 313,993 933,243 1,864,724 185,897 518,600 3,816,458

Change in reported production, bbls/day -5,008 -16,132 -93,125 2,415 2,071 -109,779

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

2010 and 2011 pre-compliance reports for 2014 (from June 1 to December 31). Total

production of diesel fuel from the 2011 reports was approximately 139,000 bbls/day less

than the total production from the 2010 reports. Reported production decreased in

PADDs 3 and 4, while reported production increased in PADDs 1, 2 and 5. However,

projected total diesel fuel production in 2015 is still expected to be sufficient to meet

demand. Projected total diesel fuel production in 2014 is 4.15 million bbls/day,

compared to projected total diesel fuel demand from AEO 2011 of 3.86 million bbls/day

in 2015.
IV. NRLM Summary Data

20

Table 15.

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

PADD 1 2 3 4 5

Total

U.S.

2010 NRLM reports

Total 15 ppm, bbls/day 363,277 1,031,688 2,202,372 189,234 507,334 4,293,905

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

Total 15 ppm and 500 ppm , bbls/day 363,277 1,031,688 2,202,372 189,234 507,334 4,293,905

2011 NRLM reports

Total 15 ppm, bbls/day 391,300 1,067,790 1,974,322 186,996 534,477 4,154,886

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

Total 15 ppm and 500 ppm , bbls/day 391,300 1,067,790 1,974,322 186,996 534,477 4,154,886

Change in reported production, bbls/day 28,024 36,103 -228,050 -2,238 27,143 -139,019
V. Appendix

21

Appendix - List of Acronyms

bbls/day barrels per day

bpcd barrels per calendar day

EIA Energy Information Administration

EPA 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

AEO Annual Energy Outlook