Summary and Analysis of the 

2010 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-10-028 

December 2010

Compliance and Innovative Strategies Division 

Office of Transportation and Air Quality 

U.S. Environmental Protection Agency

Summary and Analysis of the 

2010 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 ......................................................................................................... 8

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 2009 and 2010 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 is required to submit annual pre-compliance reports to the U.S. 

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

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

results of the 2010 nonroad pre-compliance reports.

Refiners’ and importers’ nonroad pre-compliance reports must 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 must contain a projection of how many credits will be generated and/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 2010 nonroad pre-compliance reports showed that: 

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

- 25 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 

(19 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 is 

projected to decrease compared to the 2009 nonroad pre-compliance 

reports

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

fuel than what they indicated in their 2009 pre-compliance reports, although these 

plans are still subject to change. EPA expects that next year’s nonroad precompliance reports will contain more definite information on refiners’ plans to 

produce 15 ppm NRLM diesel fuel. 
 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 allows approved small refiners an additional 3 years to comply 

with the 500 ppm sulfur standard for NRLM diesel fuel. Small refiners have 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 may 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 is 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 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 is available to small refiners that elect 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 must meet the 15 ppm sulfur standard by June 1, 2006. Annual 

average production of 15 ppm NRLM diesel fuel at the refinery must also 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 may 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 may the per-gallon gasoline 

sulfur cap exceed 450 ppm. 

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 must meet the 15 ppm sulfur 

standard beginning June 1, 2010.

Other Flexibilities

1

 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 meet the 500 ppm sulfur standard until June 1, 2010. 

They may 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 require that any refiner or importer planning to 

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

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

June 1, 2005 and subsequent reports are due annually through 2011, or until the 

refiner or importer begins producing or importing 15 ppm NR or NRLM diesel fuel. 

 

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.

 

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, 2010. The 

information presented here will be updated with more current information from the 

annual pre-compliance reports submitted in 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 2010 pre-compliance reports for 

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

reports for 3 refineries that have been shut down since refiners submitted their 2009 precompliance reports. 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, 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 119 

refineries reported they anticipate producing 15 and/or 500 ppm diesel fuel beginning 
 IV. NRLM Summary Data

6

June 1, 2010. The remaining 8 operational refineries that sent pre-compliance reports 

said they either 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 Data 2010-2014

Year 2010 2011 2012 2013 2014a2 2014b

# refineries producing diesel fuel 119 120 119 118 118 115

# refineries at 100% 15 ppm 92 94 95 107 109 115

# refineries at 100% 500 ppm 8 8 5 4 3 0

# refineries with 15/500 ppm mix 19 18 19 7 6 0 

 

The 2010 nonroad pre-compliance reports indicated that production of 15 ppm 

and 500 ppm total diesel fuel beginning June 1, 2010 is projected to be 3.93 million 

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

distinction between highway and NRLM production. 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 fourth annual 

compliance period in the highway diesel program (July 1, 2009 through May 31, 2010) 

averaged approximately 3.65 million bbls/day. This average production and importation 

includes all highway diesel fuel and nearly all NRLM diesel fuel produced in or imported 

into the U.S. during the compliance period.3 Thus, by comparing total production and 

importation from the 2010 reports with average production and importation from the 

fourth annual compliance period, refiners and importers are planning to produce and 

import approximately 280,000 bbls/day additional 15 ppm and 500 ppm total diesel fuel 

beginning June 1, 2010. 

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

is projected to increase by 546,000 bbls/day from 2010 to 2014, from 3.75 to 4.29 million 

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

NRLM diesel fuel production of 179,000 bbls/day from 2010 to 2014. Production of 500 

ppm NRLM diesel fuel decreases from 179,000 bbls/day in 2010 to 92,000 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 2010 pre-compliance reports 

 

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 The average does not include a relatively small amount of high sulfur NRLM diesel fuel produced by 

small refiners and hardship refiners.
 IV. NRLM Summary Data

7

has decreased compared to the 2009 pre-compliance reports, projected total diesel fuel 

demand from EIA’s Annual Energy Outlook (AEO) 2010 has also decreased compared to 

projected demand from AEO 2009. Total diesel fuel demand calculated from AEO 2010 

is 3.80 million bbls/day in 2015, compared to projected total diesel fuel production of 

4.29 million bbls/day in 2014.4 

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

and/or high sulfur distillate fuel in 2003. Fifteen 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 2010. In 2003, these 25

refineries produced a total of 137,000 bbls/day of diesel fuel containing less than 500 

ppm sulfur, and 169,000 bbls/day of distillate fuel containing more than 500 ppm sulfur.5

 

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 heating oil 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 3,747,684 4,076,849 4,115,018 4,188,946 4,282,377 4,294,205

Total 500 ppm NRLM, bbls/day 178,602 111,727 91,657 34,454 26,291 0 

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

bbls/day 3,926,286 4,188,575 4,206,675 4,223,400 4,308,669 4,294,205

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

 

4 AEO 2010 projected a total distillate fuel oil demand of 4.08 million bbls/day in 2015 (see Table A11 in 

http://www.eia.doe.gov/oiaf/aeo/pdf/appa.pdf). This total includes 280,000 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. 5 2003 EIA data has been used as a baseline for comparison in all summary reports published since 2003.
 IV. NRLM Summary Data

8

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 1,998 million high sulfur credits (1 credit = 1 gallon 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 planned to continue generating 

high sulfur credits after May 31, 2007. Nine refineries indicated they planned to use a 

total of 1,844 million high sulfur credits from June 1, 2007 through May 31, 2010. 

Twenty four refineries indicated they plan to generate a total of 2,295 million 500 

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

May 31, 2010, including 3 refineries owned by small refiners who plan to continue 

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

use a total of 1,525 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 742 984 131 106 34 1,998

High sulfur credit usage, millions 563 777 466 39 1,844

Year 2009 2010 2011 2012 2013 2014 total

# refineries generating 500 ppm credits 24 24 3 2 2

# refineries using 500 ppm credits 5 4 5 5 2

500 ppm credit generation, millions 1,048 862 136 120 131 2,295

500 ppm credit usage, millions 461 141 423 394 106 1,525

Figures 2 and 3 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

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 diesel fuel production and credit projections, refiners 

must 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, 4) procurement and 
 IV. NRLM Summary Data

10

construction, and 5) commissioning and start-up. In the 2009 nonroad pre-compliance 

reports, most refiners indicated they had completed their detailed engineering and were 

well into the procurement and construction stage, or did not plan to produce any more 15 

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

In the 2010 NRLM pre-compliance reports, refiners indicated they have plans to 

install new desulfurization capacity at 21 refineries specifically to produce 15 ppm 

NRLM diesel fuel. Most of these refineries are generally in the final stages of their 

projects to produce 15 ppm NRLM diesel fuel. Most are well into the procurement and 

construction stage, and some are into or have completed the commissioning and start-up 

stage. 

All 21 refineries are planning to either revamp existing hydrotreating or 

hydrocracking units, or install new hydrotreating or hydrocracking units. Of these 21 

refineries, 9 are planning to install a new desulfurization unit, 7 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 allows 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 may choose both 

Options 1 and 2) 

Option 3 allows 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 allows a small refiner the ability to increase their refinery 

gasoline sulfur standards by 20 percent, provided they begin 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 is 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 4 from 2010 to 2014, as 1 

refinery enters the diesel fuel market in 2011, and 5 refineries exit by 2014. In 2010, 27 

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 June 1, 2014, all of these 

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

Tables 7 and 8 show, by PADD, anticipated 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 anticipated 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 PADDs 1 through 4 and decreases in PADD 5. 
 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 25 43 15 25 119

# refineries at 100% 15 ppm 9 20 32 11 20 92

# refineries at 100% 500 ppm 0 1 4 1 2 8

# refineries with 15/500 ppm mix 2 4 7 3 3 19

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 26 41 14 23 115

# refineries at 100% 15 ppm 11 26 41 14 23 115

# 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 313,328 922,541 1,857,510 170,493 483,814 3,747,684

Total 500 ppm (highway + NRLM), bbls/day 5,673 26,834 100,340 13,039 32,715 178,602

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

bbls/day 319,000 949,375 1,957,850 183,532 516,529 3,926,286

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 363,277 1,031,688 2,202,372 189,534 507,334 4,294,205

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

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

bbls/day 363,277 1,031,688 2,202,372 189,534 507,334 4,294,205
 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 anticipate producing approximately 

319,000 bbls/day total (15 ppm and 500 ppm sulfur) diesel fuel. Nine refineries reported 

they intend to produce 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 44,000 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) 313,328 350,062 362,562 362,562 362,562 363,277

Total 500 ppm (bbls/day) 5,673 9,214 4,256 714 714 0

Total 15 ppm and 500 ppm (bbls/day) 319,000 359,277 366,818 363,277 363,277 363,277
 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, 25 refineries anticipate producing approximately 950,000 

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

intend to produce 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 10 also shows that total diesel fuel production in PADD 2 is 

projected to increase by approximately 82,000 bbls/day from 2010 through 2014, 

including production from one refinery which plans to enter the diesel fuel market in 

2011. 

Table 10. 

PADD 2 Diesel Fuel Data: 2010-2014 

Year 2010 2011 2012 2013 2014a 2014b

# refineries producing diesel fuel 25 26 26 26 26 26

# refineries at 100% 15 ppm 20 22 22 25 25 26

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

# refineries with 15/500 ppm mix 4 3 4 1 1 0

Total 15 ppm (bbls/day) 922,541 1,000,045 1,021,745 1,039,474 1,038,834 1,031,688

Total 500 ppm (bbls/day) 26,834 17,598 11,224 4,915 4,752 0

Total 15 ppm and 500 ppm (bbls/day) 949,375 1,017,643 1,032,969 1,044,388 1,043,586 1,031,688
 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 43 refineries anticipate producing 1.96 million bbls/day total (15 

ppm and 500 ppm sulfur) diesel fuel in 2010. Thirty two refineries reported they intend 

to produce all of their diesel fuel containing 15 ppm sulfur or less in 2010, and 11 

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

2010 and 2014. One refinery plans to exit the diesel fuel market in 2011, and another 

refinery plans to exit the diesel fuel market in 2014. Table 11 also shows that total diesel 

fuel production in PADD 3 is projected to increase by approximately 244,000 bbls/day 

from 2010 through 2014. 

Table 11. 

PADD 3 Diesel Fuel Data: 2010-2014 

Year 2010 2011 2012 2013 2014a 2014b

# refineries producing diesel fuel 43 43 42 42 42 41

# refineries at 100% 15 ppm 32 33 34 39 40 41

# refineries at 100% 500 ppm 4 4 2 2 1 0

# refineries with 15/500 ppm mix 7 6 6 1 1 0 

Total 15 ppm (bbls/day) 1,857,510 2,060,786 2,059,594 2,092,397 2,184,872 2,202,372

Total 500 ppm (bbls/day) 100,340 38,658 37,491 17,000 14,000 0

Total 15 ppm and 500 ppm (bbls/day) 1,957,850 2,099,444 2,097,084 2,109,397 2,198,872 2,202,372
 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 anticipate producing approximately 189,000 bbls/day total (15 

ppm and 500 ppm sulfur) diesel fuel in 2010. Eleven refineries reported they intend to 

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

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

refinery plans to exit the diesel fuel market in 2014. Table 12 also shows that total diesel 

fuel production in PADD 4 is projected to increase by approximately 6,000 bbls/day from 

2010 through 2014. 

Table 12. 

PADD 4 Diesel Fuel Data: 2010-2014 

Year 2010 2011 2012 2013 2014a 2014b

# refineries producing diesel fuel 15 15 15 15 15 14

# refineries at 100% 15 ppm 11 10 10 13 13 14

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

# refineries with 15/500 ppm mix 3 4 4 1 1 0 

Total 15 ppm (bbls/day) 170,493 176,695 183,523 189,776 189,120 189,534

Total 500 ppm (bbls/day) 13,039 13,541 5,971 610 610 0

Total 15 ppm and 500 ppm (bbls/day) 183,532 190,236 189,494 190,386 189,730 189,534
 IV. NRLM Summary Data

18

5. PADD 5

 Reported totals for all refineries in PADD 5 are summarized below in Table 13.6

 

Table 13 shows that 25 refineries anticipate producing approximately 517,000 bbls/day 

total (15 ppm and 500 ppm sulfur) diesel fuel in 2010. Twenty refineries reported they 

intend to produce 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 decrease by approximately 9,000 bbls/day from 2010 through 2014, as one 

refinery plans to exit the diesel fuel market in 2012 and another refinery plans to exit the 

market in 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) 483,814 489,260 487,594 504,736 506,989 507,334

Total 500 ppm (bbls/day) 32,715 32,715 32,715 11,215 6,215 0

Total 15 ppm and 500 ppm (bbls/day) 516,529 521,976 520,309 515,952 513,204 507,334

 

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

19

C. Comparison of 2009 and 2010 NRLM Pre-Compliance Reports

Total reported production of 15 ppm and 500 ppm diesel fuel in the 2010 precompliance reports decreased, compared to the 2009 pre-compliance reports. Table 14 

shows the projected production of 15 ppm and 500 ppm diesel fuel from the 2009 and 

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

of diesel fuel from the 2010 reports was approximately 247,000 bbls/day less than total 

production from the 2009 reports. Most of this decrease occurred in PADDs 1 and 3, 

while reported production in PADDs 2, 4, and 5 showed smaller decreases. 

Table 14.

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

PADD 1 2 3 4 5

Total 

U.S.

2009 NRLM reports

Total 15 ppm, bbls/day 363,304 902,942 2,064,882 180,046 499,463 4,010,638

Total 500 ppm, bbls/day 8,310 47,425 68,171 8,500 30,403 162,808

Total 15 ppm and 500 ppm , bbls/day 371,613 950,367 2,133,053 188,546 529,866 4,173,446

2010 NRLM reports

Total 15 ppm, bbls/day 313,328 922,541 1,857,510 170,493 483,814 3,747,684

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 1,957,850 183,532 516,529 3,926,286

Change in reported production, bbls/day -52,613 -992 -175,204 -5,014 -13,337 -247,160

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

2009 and 2010 pre-compliance reports for 2014 (from June 1 to December 31). Total 

production of diesel fuel from the 2010 reports was approximately 118,000 bbls/day less 

than the total production from the 2009 reports. Most of this decrease occurred in 

PADDs 1 and 3, while reported production in PADDs 2, 4 and 5 showed slight increases. 

Projected total diesel fuel demand in 2015 has also decreased so that production is 

expected to be sufficient to meet demand. Projected total diesel fuel demand from AEO 

2009 was 4.16 million bbls/day, while projected total diesel fuel demand from AEO 2010 

was only 3.80 million bbls/day, a decrease of 360,000 bbls/day. 
 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.

2009 NRLM reports

Total 15 ppm, bbls/day 424,205 1,023,862 2,277,361 189,165 497,525 4,412,117

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

Total 15 ppm and 500 ppm , bbls/day 424,205 1,023,862 2,277,361 189,165 497,525 4,412,117

2010 NRLM reports

Total 15 ppm, bbls/day 363,277 1,031,688 2,202,372 189,534 507,334 4,294,205

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

Total 15 ppm and 500 ppm , bbls/day 363,277 1,031,688 2,202,372 189,534 507,334 4,294,205

Change in reported production, bbls/day -60,929 7,826 -74,989 369 9,810 -117,913
 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