No, this is not correct. Kerosene that is blended with ULSD must meet the 15 ppm standard, as stated in § 80.525.
Kerosene is not an additive ((per § 80.2(xx)), nor is it considered as such with respect to the 1% additive blending provisions. § 80.525 states that kerosene blended with MVNRLM must meet the applicable standard of the MVNRLM. The accompanying PTD must also state that the kerosene meets the applicable standard, and the kerosene blender must have test results indicating that the kerosene complies with that standard.
This question and answer was originally posted on http://www.epa.gov/otaq/diesel/documents/420b06010.pdf.
Kerosene with a sulfur level in excess of 15 ppm can be blended with ULSD up to a max of 1% volume provided it does not alter the quality specs of the ULSD (and sulfur level of the ULSD does not exceed 15 ppm). I assume because of the 1% volume limitation
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