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KERN DIESEL FUEL CONTAINING UP TO 10 PERCENT RENEWABLE DIESEL

Pursuant to the Federal EPAs Renewable Fuel Standard (RFS2) and the Low Carbon Fuel Standard (LCFS) provisions of Californias AB32, effective on or after November 1, 2017, all CARB No. 2 Diesel Fuel sold at Kern's Bakersfield refinery rack may contain up to 10  percent renewable diesel. Kern's CARB No.2 Diesel Fuel will continue to meet ASTM D-975 specifications. Unlike biodiesel, renewable diesel is considered a drop in fuel that can be blended with conventional CARB diesel and used with existing infrastructure and diesel engines. Furthermore, renewable diesel is not subject to Alternative Diesel Fuel (ADF) reporting and recordkeeping requirements because it meets the definition for CARB diesel.

The FTCs Fuel Rating Rule refers to renewable diesel as biomass-based diesel and requires retailers to label their dispensers of biomass-based diesel blends at and above five percent. For your convenience, Kern will provide these orange labels to all customers who require them.

For more information about renewable diesel, please refer to ARBs website:

https://www.arb.ca.gov/fuels/diesel/altdiesel/07312013_RDjointstatement.pdf

For more information about labeling requirements, please refer to the FTC's Fuel Rating Rule: https://ecfr.io/Title-16/pt16.1.306#se16.1.306_112

and

The California Department of Food & Agriculture, Division of Measurement Standards regulations regarding fuels and lubricants:

https://www.cdfa.ca.gov/dms/programs/publications/BPC/Chapter_14_FuelsandLubricants_13400-13630-REV2017.pdf.

Thank you for your business, as well as your attention to and understanding regarding the above.

Please contact Steve Preheim or Philip Vejarano at 661.845.0761 if you have any questions.