Are refiners required to produce No. 1 diesel (kerosene) at ultra low sulfur levels?
A. The 80% production/import requirement applies to all highway diesel fuel (No. 1 plus No. 2). EPA requirements do not stipulate the percentages of No. 1 and No. 2 that must be produced or imported. Refiners are producing Ultra Low Sulfur Kerosene (ULSK) for wintertime blending. Consumers are advised to communicate with their fuel suppliers about acquiring ULSK before winter begins. According to the EIA, since the ULSD production requirement took effect in June 2006, both overall kerosene production and stocks are down compared to prior years. EIA does not report kerosene production or inventory segregated by sulfur level so it is not possible to determine the extent to which ULSK is available. Last winter, diesel additives were more heavily relied upon to improve the cold weather performance of ULSD in certain areas. To winterize ULSD, it is necessary to add ULSK, cold flow improvers, or a combination of both. Market participants at every level will need to continue to ensure that th
