Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...

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Ethanol Production, MMgal 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Figure VI.A.2-1 U.S. Ethanol Production versus Time 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 Year 1,770 1,630 2,130 2,810 3,410 4,000 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: Renewable Fuels Association, From Niche to Nation: Ethanol Industry Outlook 2006 - 118 -
EPA forecasts ethanol production to continue to grow into the future. In addition to the past impacts of federal and state tax incentives, as well as the more recent impacts of state ethanol mandates and the removal of MTBE from all U.S. gasoline, record-high crude oil prices are expected to continue to drive up demand for ethanol. As a result, the nation is on track to exceed the renewable fuel volume requirements contained in the Act. Today’s ethanol production capacity (4.9 billion gallons) is already exceeding the 2006 renewable fuel requirement (4.0 billion gallons). In addition, there is another 2.5 billion gallons of ethanol production capacity currently under construction. 40 A summary of the new construction and expansion projects currently underway (as of June 2006) is found in Table VI.A.2-1. Table VI.A.2-1 Under Construction U.S. Ethanol Plant Capacity 2006 ETOH Baseline New Construction 2006 Baseline + UC MMGal/yr Plants MMGal/yr Plants MMGal/yr Plants MMGal/yr Plants a Plant Expansions PADD 1 0.4 1 0 0 0 0 0.4 1 PADD 2 4,710 93 2,048 35 252 8 7,010 128 PADD 3 30 1 30 1 0 0 60 2 PADD 4 98 4 50 1 7 1 155 5 PADD 5 34 3 90 2 0 0 124 5 Total 4,872 102 2,218 39 259 9 7,349 141 a Under Construction A select group of builders, technology providers, and construction contractors are completing the majority of the construction projects described in Table VI.A.2-1. As such, the completion dates of these projects are staggered over approximately 18 months, resulting in the gradual phase-in of ethanol production shown in Figure VI.A.2-2. 40 Under construction plant locations, capacities, feedstocks, and energy sources as well as planned/proposed plant locations and capacities were derived from a variety of data sources including Renewable Fuels Association (RFA), Ethanol Biorefinery Locations (Updated June 19, 2006); Ethanol Producer Magazine (EPM), U.S. & Canada Fuel Ethanol Plant Map (Spring 2006); and International Fuel Quality Center (IFQC), Special Biofuels Report #75 (April 11, 2006) as well as ethanol producer websites. - 119 -
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The Administrator signed the follow
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Ave., NW, Washington DC. This Docke
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Table of contents: I. Background A.
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C. Requirements for Producers and I
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G. Executive Order 13045: Protectio
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The increased use of renewable fuel
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establish the applicable national v
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Today's proposal outlines the full
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enewable fuel feedstock market pric
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Unlike VOC and NOx, emissions of CO
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These renewable feedstocks are then
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5. Potential Water Quality Impacts
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enewable fuel volume which each par
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certain volume of renewable fuel. E
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est practices would have the option
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As stated, the renewable fuel stand
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enewable fuel volumes in the calcul
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For illustrative purposes, we have
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These credit provisions have meanin
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Stdi = The RFS program standard for
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gasoline. The Act is unclear on whe
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. Ethanol Made From Any Feedstock I
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generate thermal energy used to pro
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animal wastes, including poultry fa
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limit this program solely to a stra
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presence of the denaturant. For ins
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First, doing so could create an inc
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For purposes of this preamble, the
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capability for all of the small ref
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trading program, without any per ga
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obligated parties. However, there i
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particular importance for 2013 and
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have to significantly change their
Page 67 and 68: The D code would identify cellulosi
Page 69 and 70: Another case in which a RIN may not
Page 71 and 72: Section IV. In the context of demon
Page 73 and 74: equired volumes shown in Table I.B-
Page 75 and 76: We request comment on the valid lif
Page 77 and 78: e used for current year compliance.
Page 79 and 80: equirements by roughly 10 to 30 per
Page 81 and 82: 4. Provisions For Exporters Of Rene
Page 83 and 84: Previous-year RINs: RINs that came
Page 85 and 86: a. Responsibilities Of Renewable Fu
Page 87 and 88: another, in electronic or paper for
Page 89 and 90: e a one-to-one correspondence betwe
Page 91 and 92: Parent batch Actual volume (gal) Ba
Page 93 and 94: should also have the right to separ
Page 95 and 96: 3. Distribution Of Separated RINs O
Page 97 and 98: obligated parties to exercise marke
Page 99 and 100: Our proposed program is designed to
Page 101 and 102: As discussed in Section III.D, it i
Page 103 and 104: additional enforcement burdens plac
Page 105 and 106: B. Requirements for Obligated Parti
Page 107 and 108: fuel and containing identifying inf
Page 109 and 110: We request comment on our proposed
Page 111 and 112: We also request comment on our prop
Page 113 and 114: The refiner or importer would be li
Page 115 and 116: Plant Feedstock Corn a Table VI.A.1
Page 117: Leading the Midwest in ethanol prod
Page 121 and 122: As shown in Table VI.A.2-1 and Figu
Page 123 and 124: 3. Current Ethanol and MTBE Consump
Page 125 and 126: Oxygenate Use (Bgal) 4.5 4.0 3.5 3.
Page 127 and 128: change from the 2004 base case. 53
Page 129 and 130: per gallon to biodiesel produced fr
Page 131 and 132: ased on the assumption that the ble
Page 133 and 134: Modifications to the rail, barge, t
Page 135 and 136: other waste materials as discussed
Page 137 and 138: elatively small fraction of the tot
Page 139 and 140: production costs using prices for s
Page 141 and 142: the capital cost of making the nece
Page 143 and 144: information on biodiesel freight co
Page 145 and 146: For further details on RVP reductio
Page 147 and 148: assuming only that blending of etha
Page 149 and 150: costs). At a $70 per barrel crude o
Page 151 and 152: gasoline use scenarios will cost th
Page 153 and 154: the incentive to blend in ethanol b
Page 155 and 156: supporting this rulemaking. We hope
Page 157 and 158: We base our estimates of fuel quali
Page 159 and 160: Table VIII.A.1.b-2 Effect of MTBE a
Page 161 and 162: pre-1998 model year onroad diesel e
Page 163 and 164: 1. Primary Analysis The national em
Page 165 and 166: Table VIII.B.1-4 Annual Emissions N
Page 167 and 168: RFG due to the absence of an RVP wa
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increase in ambient ozone levels is
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developing a model of secondary org
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IX. Impacts On Fossil Fuel Consumpt
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intended to help fuel producers est
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efficiency and to reduce air emissi
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combined those displacement indexes
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3. Displacement Indexes (DI) The di
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Table IX.C.1-1 Fossil fuel impacts
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as on the exports of agricultural p
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which may change in response to an
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X. Agricultural Sector Economic Imp
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XI. Public Participation We request
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ways to comply with any previously
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small refiner under this proposal.
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meet these criteria to be considere
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“economically significant” as d
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40 CFR Part 80 is proposed to be am
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(b) Renewable Fuel Standard for 200
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(2) The term “Renewable fuel” i
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RFStdi = Renewable Fuel Standard in
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a party’s renewable volume obliga
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(a) YYYY is the calendar year in wh
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(ii) The value for EEEEEE in an ext
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(2) A deficit is calculated accordi
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(a) (1) Any party that exports any
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(e) If a refiner is complying on an
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calendar year; however, disqualific
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§80.76, if such information has no
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(1) A summary report of the annual
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(4) Reports shall be submitted on f
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(1) Fail to acquire sufficient RINs
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(b) The following attest procedures
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(B) That the RFS-FRGAS remained seg
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EPA employees or EPA contractors, f
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(iv) Determine the date and time th
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(ii) Be licensed as a Certified Pub
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