1. Fuel which is sold or is kept, offered, or exposed for sale as kerosene shall be labeled as kerosene. The label shall include the word “kerosene” or the designation “K1 kerosene”, and shall indicate that the kerosene is in compliance with the standard specification adopted by ASTM international specification D3699, or a successor ASTM international specification, established by rules adopted by the department.
 2. A product commonly known as kerosene and a distillate or a petroleum product of lower gravity (Baume scale), when not used to propel a motor vehicle or for compounding or combining with a motor fuel, are exempt from this chapter except as provided in this section.