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

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e $1.43 per gallon, the average of the conversion costs for captive, ethylene cracker and propylene oxide MTBE plants. This projected percent of MTBE plant conversion results in 0.84 gallons of alkylate produced for each gallon of MTBE no longer produced. The alkylate production cost is adjusted by PADD to account for the blending octane of alkylate, which varies by 1 to 2 cents per gallon depending on the value of octane in each PADD. Including its octane value, the cost of producing alkylate varies from $1.38 to $ 1.41 per gallon. For further information on production of alkylate from MTBE feedstocks, see section 7.4.4 of the RIA. 4. Changes In Refinery Produced Gasoline Volume And Its Costs In the sections above, we estimated changes in gasoline volume and the cost associated with those volume changes for ethanol, MTBE, alkylate and butane. As these various gasoline blendstocks are added to or removed from the gasoline pool, they affect the refinery production of gasoline (or oxygenate blendstock). To estimate the changes in refinery gasoline production volumes, it was necessary to balance the total energy production of each control case to the reference case. The energy content of the reference case was estimated by multiplying the volumetric energy content of each gasoline pool blendstock, including MTBE, ethanol and refinery produced gasoline, by the associated gallons. The increase or decrease in ethanol content in summertime RFG assumed under the different scenarios resulted in the change in the volumes of butane in RFG as described above. We identified that the increase or decrease in ethanol in wintertime RFG and CG could cause reductions or increases in the amount of butanes blended into wintertime gasoline. Wintertime gasoline is limited in vapor pressure by the American Standard for Testing Materials (ASTM) RVP and V/L (vapor-liquid) standards. According to a refiner with extensive refining capacity, and also Jacobs Engineering, a refining industry consulting firm, refineries are blending their wintertime gasoline up to those standards today and are limited from blending more butane available to them. If this is the case, for each gallon of summertime RFG and wintertime RFG and CG blended with ethanol 2 percent of the base gasoline volume would be lost in terms of butane removed. However, some refineries may have room to blend more butane. Also, we are aware that some states offer 1 PSI waivers for blending of ethanol into wintertime gasoline, presumably to accommodate splash blending of ethanol. 78 Consequently, it may be possible to accommodate the 1 PSI vapor pressure increase without forcing the removal of some or all of this butane. For this reason we assessed the costs as a range, on the upper end assuming that butane content would have to be removed to account for new ethanol blended into summertime RFG and wintertime RFG and CG , and on the low end 78 Most people are aware of the 1 PSI RVP waiver that ethanol is provided for the summertime, but some states offer a similar waiver to ethanol for wintertime blending as well. - 146 -
assuming only that blending of ethanol into summertime RFG cause butanes to be removed. For estimating the volume of butane which must be removed from the gasoline because of the addition of ethanol, we assumed that ethanol will be used at 10 volume percent except for California where it would continue to be used at 5.7 volume percent. Development of the estimates for winter vs. summer ethanol consumption for the control cases is discussed in Chapter 2.1 of the RIA. For the reference case we estimated that 55 percent of the ethanol would be used in the winter and 45 percent in the summer. Table VII.C.4-1 summarizes the summertime RFG and wintertime RFG and CG volumes of ethanol and estimated change in butane content. Table VII.C.4-1 Estimated Changes in U.S. Summertime RFG Ethanol Volumes and their Impact on Butane Blending into Gasoline (million gallons in 2012) Reference 7.2 Bil Gals 7.2 Bil Gals 9.6 Bil Gals 9.6 Bil Gals Case Max RFG Min RFG Max RFG Min RFG Summertime RFG Ethanol 1,155 1,932 244 1,932 244 Wintertime RFG & CG Ethanol 2,178 3,999 4,812 5,303 6,132 Change in Butane -140 to -456 164 to -297 -140 to -690 164 to -535 The change in volume of ethanol, MTBE, alkylate, and butane for each control case is adjusted for energy content. The volume of refinery gasoline is then adjusted to maintain the same energy content as that of the reference gasoline pool. The refinery gasoline production is estimated by dividing the BTU content of gasoline, estimated to be 115,000 BTU per gallon, into the total amount of BTUs for the entire gasoline pool after accounting for the BTUs of the other blendstocks. The BTU-balanced gasoline pool volumes for each control case are shown in Table VII.C.4-2. The changes are shown for both assumptions with respect to the need to remove butane from winter gasoline to accommodate more ethanol blending. - 147 -
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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
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The D code would identify cellulosi
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Another case in which a RIN may not
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Section IV. In the context of demon
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equired volumes shown in Table I.B-
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We request comment on the valid lif
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e used for current year compliance.
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equirements by roughly 10 to 30 per
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4. Provisions For Exporters Of Rene
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Previous-year RINs: RINs that came
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a. Responsibilities Of Renewable Fu
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another, in electronic or paper for
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e a one-to-one correspondence betwe
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Parent batch Actual volume (gal) Ba
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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 and 118: Leading the Midwest in ethanol prod
Page 119 and 120: EPA forecasts ethanol production to
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: For further details on RVP reductio
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
Page 169 and 170: increase in ambient ozone levels is
Page 171 and 172: developing a model of secondary org
Page 173 and 174: IX. Impacts On Fossil Fuel Consumpt
Page 175 and 176: intended to help fuel producers est
Page 177 and 178: efficiency and to reduce air emissi
Page 179 and 180: combined those displacement indexes
Page 181 and 182: 3. Displacement Indexes (DI) The di
Page 183 and 184: Table IX.C.1-1 Fossil fuel impacts
Page 185 and 186: as on the exports of agricultural p
Page 187 and 188: which may change in response to an
Page 189 and 190: X. Agricultural Sector Economic Imp
Page 191 and 192: XI. Public Participation We request
Page 193 and 194: ways to comply with any previously
Page 195 and 196: 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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