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

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Protection Agency under section 7545 of this title, and includes biodiesel derived from animal wastes, including poultry fats and poultry wastes, and other waste materials, or municipal solid waste and sludges and oils derived from wastewater and the treatment of wastewater. This definition of biodiesel would include both mono-alkyl esters which meet ASTM specification D-6751 16 (the most common meaning of the term "biodiesel") that have been registered with EPA, and any non-esters that are intended for use in engines that are designed to run on conventional, petroleum-derived diesel fuel, have been registered with the EPA, and are made from any of the feedstocks listed above. To implement the above definition of biodiesel in the context of the RFS rulemaking while still recognizing the unique history and role of mono-alkyl esters meeting ASTM D-6751, we propose to divide the Act's definition of biodiesel into two separate parts: biodiesel (mono-alkyl esters) and non-ester renewable diesel. The combination of "biodiesel (mono-alkyl esters)" and "non-ester renewable diesel" in the regulations would fulfill the Act's definition of biodiesel. The Agency solicits comment on this approach and specifically asks whether the “non-ester renewable diesel” definition be referenced explicitly to ASTM D-975. a. Biodiesel (Mono-Alkyl Esters) Under this part, the term “biodiesel (mono-alkyl esters)” means a motor vehicle fuel which: 1) meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 7545 of this title (Clean Air Act Section 211); 2) is a mono-alkyl ester; 3) meets ASTM specification D-6751-02a; 4) is intended for use in engines that are designed to run on conventional, petroleum-derived diesel fuel, and 5) is derived from nonpetroleum renewable resources including, but not limited to, animal wastes, including poultry fats and poultry wastes, and other waste materials, or municipal solid waste and sludges and oils derived from wastewater and the treatment of wastewater. b. Non-Ester Renewable Diesel The term “non-ester renewable diesel” means a motor vehicle fuel which: 1) meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 7545 of this title (Clean Air Act Section 211); 2) is not a mono-alkyl ester; 3) is intended for use in engines that are designed to run on conventional, petroleum-derived diesel fuel, and 4) is derived from nonpetroleum renewable resources including, but not limited to, 16 In the event that the ASTM specification D-6751 is succeeded with a different number in the future, EPA may revise the regulations accordingly at such time. - 46 -
animal wastes, including poultry fats and poultry wastes, and other waste materials, or municipal solid waste and sludges and oils derived from wastewater and the treatment of wastewater. Current examples of a non-ester renewable diesel include: “renewable diesel” produced by the Neste process, or diesel fuel produced by processing fats and oils through a refinery hydrotreating process. 3. Is Motor Fuel that Is Made from a Renewable Feedstock a Renewable Fuel? We interpret the statutory definition of renewable fuels to include all gasoline or diesel that is made from a class of feedstocks called “biocrudes”, which are defined as biologically derived feedstocks (such as fats and greases). We are providing a definition of “biocrude-based renewable fuels” to mean gasoline or diesel products resulting from the processing of biocrudes in production units within refineries that process crude oil and other petroleum based feedstocks and which make gasoline and diesel fuel. 17 A particular batch of biocrude used as feedstock to a production unit would replace crude oil or other petroleum based feedstocks which ordinarily would be the feedstock in that process unit. The non-ester renewable diesel defined in Section III.B.2.b above could be one such type. We are assuming that all of the biocrude used as a feedstock in a refinery unit will end up as a biocrude-based renewable fuel. Rather than requiring the refiner to document what portion of the biocrude-based renewable fuel is other than diesel or gasoline (e.g., jet fuel), we are proposing to have the volume of the biocrude itself count as the volume of renewable fuel produced for the purposes of determining the volume block codes that are in the RIN (discussed in further detail in Section III.D). While this approach may result in some products such as jet fuel being counted as renewable fuel, we believe the majority of the products produced will be motor vehicle fuel because we assume refiners who elect to use biocrudes would do so to help meet the requirements of this rule. Furthermore, both diesel and gasoline presently make up about 85 percent of the product slate of refineries on average. This amount that has been steadily increasing for over time, and we expect that the percentage will continue to increase as demand for gasoline and diesel increases. We are also proposing that the Equivalence Value assigned to biocrude-based renewable fuels be designated as 1.0, despite the fact that they might warrant a higher value based on their energy content as described in the next section. 18 This approach should balance out the likelihood that some of the biocrude-based renewable fuel is not a motor vehicle fuel. 17 Biocrude-based renewable fuels will need to be registered under the provisions contained in 40 CFR 79 Part 4 before they can be sold commercially. 18 With respect to biodiesel, however, since such fuel is typically not made in a traditional petroleum-based refinery, it would not be a biocrude-based renewable fuel and would thus not be limited to the 1.0 Equivalence Value. - 47 -
Page 1 and 2: The Administrator signed the follow
Page 3 and 4: Ave., NW, Washington DC. This Docke
Page 5 and 6: Table of contents: I. Background A.
Page 7 and 8: C. Requirements for Producers and I
Page 9 and 10: G. Executive Order 13045: Protectio
Page 11 and 12: The increased use of renewable fuel
Page 13 and 14: establish the applicable national v
Page 15 and 16: Today's proposal outlines the full
Page 17 and 18: enewable fuel feedstock market pric
Page 19 and 20: Unlike VOC and NOx, emissions of CO
Page 21 and 22: These renewable feedstocks are then
Page 23 and 24: 5. Potential Water Quality Impacts
Page 25 and 26: enewable fuel volume which each par
Page 27 and 28: certain volume of renewable fuel. E
Page 29 and 30: est practices would have the option
Page 31 and 32: As stated, the renewable fuel stand
Page 33 and 34: enewable fuel volumes in the calcul
Page 35 and 36: For illustrative purposes, we have
Page 37 and 38: These credit provisions have meanin
Page 39 and 40: Stdi = The RFS program standard for
Page 41 and 42: gasoline. The Act is unclear on whe
Page 43 and 44: . Ethanol Made From Any Feedstock I
Page 45: generate thermal energy used to pro
Page 49 and 50: limit this program solely to a stra
Page 51 and 52: presence of the denaturant. For ins
Page 53 and 54: First, doing so could create an inc
Page 55 and 56: For purposes of this preamble, the
Page 57 and 58: capability for all of the small ref
Page 59 and 60: trading program, without any per ga
Page 61 and 62: obligated parties. However, there i
Page 63 and 64: particular importance for 2013 and
Page 65 and 66: 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
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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
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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
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assuming only that blending of etha
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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.
Page 197 and 198:
meet these criteria to be considere
Page 199 and 200:
“economically significant” as d
Page 201 and 202:
40 CFR Part 80 is proposed to be am
Page 203 and 204:
(b) Renewable Fuel Standard for 200
Page 205 and 206:
(2) The term “Renewable fuel” i
Page 207 and 208:
RFStdi = Renewable Fuel Standard in
Page 209 and 210:
a party’s renewable volume obliga
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(a) YYYY is the calendar year in wh
Page 213 and 214:
(ii) The value for EEEEEE in an ext
Page 215 and 216:
(2) A deficit is calculated accordi
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(a) (1) Any party that exports any
Page 219 and 220:
(e) If a refiner is complying on an
Page 221 and 222:
calendar year; however, disqualific
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§80.76, if such information has no
Page 225 and 226:
(1) A summary report of the annual
Page 227 and 228:
(4) Reports shall be submitted on f
Page 229 and 230:
(1) Fail to acquire sufficient RINs
Page 231 and 232:
(b) The following attest procedures
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(B) That the RFS-FRGAS remained seg
Page 235 and 236:
EPA employees or EPA contractors, f
Page 237 and 238:
(iv) Determine the date and time th
Page 239:
(ii) Be licensed as a Certified Pub
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