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

exclusively on corn as a feedstock. As for the remaining plants: two would rely on both
corn and milo, one would process molasses and sweet sorghum, and the last would start
off processing corn and then transition into processing bagasse, rice hulls, and wood.
Under the Energy Act, the RFS program requires that 250 million gallons of the
renewable fuel consumed in 2013 and beyond meet the definition of cellulosic biomass
ethanol. As discussed in Section III.B.1, the Act defines cellulosic biomass ethanol as
ethanol derived from any lignocellulosic or hemicellulosic matter that is available on a
renewable or recurring basis including dedicated energy crops and trees, wood and wood
residues, plants, grasses, agricultural residues, fibers, animal wastes and other waste
materials, and municipal solid waste. The term also includes any ethanol produced in
facilities where animal or other waste materials are digested or otherwise used to displace
90 percent of more of the fossil fuel normally used in the production of ethanol.
Of the 60 forecasted plants, only one is expected to meet the definition of
“cellulosic biomass ethanol” based on feedstocks. The planned 108 MMgal/yr facility
would start off processing corn and then transition into processing bagasse, rice hulls, and
wood (cellulosic feedstocks). It is unclear as to whether this facility would be processing
cellulosic material by 2013, however there are several other facilities that could
potentially meet the Act's definition of cellulosic ethanol based on plant energy sources.
In total, there are seven ethanol plants that burn or plan to burn renewable feedstocks to
generate steam for their processes. As shown in Table VI.A.1-2, two existing plants burn
renewable feedstocks. One plant burns a combination of coal and biomass and the other
burns syrup from the production process. Together these existing plants have a combined
ethanol production capacity of 99 MMgal/yr. Additionally, there are four under
construction ethanol plants which plan to burn renewable fuels. One plant plans to burn a
combination of coal and biomass, two plants plan to rely on manure/syngas, and the other
plans to start up burning natural gas and then transition to biomass. Together these under
construction facilities have a combined ethanol production capacity of 87 MMgal/yr.
Finally, a planned 275 MMgal/yr ethanol production facility plans to burn a combination
of coal, tires, and biomass. Depending on how much fossil fuel is displaced by these
renewable feedstocks (on a plant-by-plant basis), a portion or all of the aforementioned
ethanol production (up to 461 MMgal/yr) could potentially qualify as “cellulosic biomass
ethanol” under the Act. Combined with the 108 MMgal/yr plant planning to process
renewable feedstocks, the total cellulosic potential could be as high as 569 MMgal/yr in
2013. Even if only half of this ethanol were to end up qualifying as cellulosic biomass
ethanol, it would still be more than enough to satisfy the Act’s cellulosic requirement
(250 million gallons) 41 .
41 We anticipate a ramp-up in cellulosic ethanol production in the years to come so that capacity exists to
satisfy the 2013 Act's requirement (250 million gallons of cellulosic biomass ethanol). Therefore, for
subsequent analysis purposes, we have assumed that 250 million gallons of ethanol would come from
cellulosic biomass sources by 2012.
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