EPA is proposing - Petroleum Equipment Institute

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IX.B. Distribution Costs1. Ethanol Distribution Costsa. Capital Costs to Upgrade the Distribution System for Increased Ethanol Volumeb. Ethanol Freight Costs2. Biodiesel and Renewable Diesel Distribution Costsa. Capital Costs to Upgrade the Distribution System for Increased FAME Biodiesel Volumeb. Biodiesel Freight Costsc. Renewable Diesel Distribution System Capital and Freight CostsC. Reduced Refining Industry CostsD. Total Estimated Cost Impacts1. Refinery Modeling Methodology2. Overall Impact on Fuel Costa. Costs without Federal Tax Subsidiesb. Gasoline and Diesel Costs Reflecting the Tax SubsidiesEconomic Impacts and Benefits of the ProposalA. Agricultural Impacts1. Commodity Price Changes2. Impacts on U.S. Farm Income3. Commodity Use Changes4. U.S. Land Use Changes5. Impact on U.S. Food Prices6. International ImpactsB. Energy Security Impacts1. Implications of Reduced Petroleum Use on U.S. Imports2. Energy Security Implicationsa. Effect of Oil Use on Long-Run Oil Price, U.S. Import Costs, and Economic Outputb. Short-Run Disruption Premium from Expected Costs of Sudden Supply Disruptionsc. Costs of Existing U.S. Energy Security Policiesd. Anticipated Future Efforte. Total Energy Security BenefitsC. Benefits of Reducing GHG Emissions1. Introduction2. Marginal GHG Benefits Estimates3. Discussion of Marginal GHG Benefits Estimates4. Total Monetized GHG Benefits EstimatesD. Co-pollutant Health and Environmental Impacts1. Human Health and Environmental Impacts2. Monetized Impacts3. Other Unquantified Health and Environmental ImpactsE. Economy-Wide ImpactsX. Impacts on WaterA. Background1. Ecological Impacts2. Gulf of MexicoB. Upper Mississippi River Basin Analysis1. SWAT Model2. Baseline Model Scenario3. Alternative Scenarios12
XI.C. Additional Water Issues1. Chesapeake Bay Watershed2. Ethanol Productiona. Distillers Grain with Solublesb. Ethanol Leaks and Spills3. Biodiesel Plants4. Water Quantity5. Drinking WaterXII.D. Request for Comment on Options for Reducing Water Quality ImpactsPublic ParticipationA. How Do I Submit Comments?B. How Should I Submit CBI to the Agency?C. Will There Be a Public Hearing?D. Comment PeriodE. What Should I Consider as I Prepare My Comments for EPA?Statutory and Executive Order ReviewsA. Executive Order 12866: Regulatory Planning and ReviewB. Paperwork Reduction ActC. Regulatory Flexibility Act1. Overview2. Background3. Summary of Potentially Affected Small Entities4. Potential Reporting, Record Keeping, and Compliance5. Related Federal Rules6. Summary of SBREFA Panel Process and Panel Outreacha. Significant Panel Findingsb. Panel Processc. Panel Recommendationsi. Delay in Standardsii. Phase-iniii. RIN-Related Flexibilitiesiv. Program Reviewv. Extensions of the Temporary Exemption Based on a Study of Small Refinery Impactsvi. Extensions of the Temporary Exemption Based on Disproportionate Economic HardshipD. Unfunded Mandates Reform ActE. Executive Order 13132: FederalismF. Executive Order 13175: Consultation and Coordination with Indian TribalGovernmentsG. Executive Order 13045: Protection of Children from Environmental Health Risksand Safety RisksH. Executive Order 13211: Actions Concerning Regulations That Significantly AffectEnergy Supply, Distribution, or UseI. National Technology Transfer Advancement Act13
Page 1 and 2: The Administrator signed the follow
Page 3 and 4: DATES: Comments must be received on
Page 5 and 6: Category NAICS 1CodesIndustryIndust
Page 7 and 8: 3. Renewable Fuel Exempt from 20 Pe
Page 9 and 10: E. Concept for EPA Moderated Transa
Page 11: F. Total GHG Emission ReductionsG.
Page 15 and 16: I. IntroductionThe current Renewabl
Page 17 and 18: analyzed the lifecycle GHG impacts
Page 19 and 20: II.Overview of the Proposed Program
Page 21 and 22: iofuel or biomass-based diesel is a
Page 23 and 24: For other renewable fuels, EISA mak
Page 25 and 26: of important trends in agricultural
Page 27 and 28: not been assessed to participate in
Page 29 and 30: finalized. Rather, the current RFS1
Page 31 and 32: However, for the 2010 compliance ye
Page 33 and 34: In a similar fashion, while we reco
Page 36 and 37: for the final rule, along with impa
Page 38 and 39: Table II.B.3-1 RFS2 “Less Sensiti
Page 40 and 41: the leading problems facing our nat
Page 42 and 43: II.B.5-1 summarizes the changes in
Page 44 and 45: the RFS program and minimizing the
Page 46 and 47: gasoline or diesel that the renewab
Page 48 and 49: Section III.B.4 of this preamble ou
Page 50 and 51: “Advanced biofuel” also may be
Page 52 and 53: must therefore specify whether or n
Page 54 and 55: sugarcane sugar has been estimated
Page 56 and 57: Air Act, served this purpose. (40 C
Page 58 and 59: enewable fuels produced by the faci
Page 60 and 61: limit the initial grandfathering on
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value of the modifications exceeds
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(2) Expiration date of 15 years for
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would be 15 years from the time the
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a. Definitions of TermsEISA’s des
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Therefore, we believe that there ma
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option, and specifically request co
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specify in the regulations a time p
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propose to adopt the definition of
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iv.Biomass Obtained from Certain Ar
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The effect of adding EISA's definit
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and a concurrent increase in the pr
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We also examined third-party organi
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their feedstock does not meet the d
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definition of renewable biomass, bu
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producers would also be delayed. Du
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enewable fuel for which RINs were g
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Under the existing RFS1 program, pr
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already. However, the foreign renew
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2. All liquid renewable fuels would
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The same amount of petroleum energy
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ethanol made from corn stover or sw
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For RFS2 we are proposing a similar
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Our proposed approach to foreign pr
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describe its feedstock(s), fuel typ
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amount of the different types of fe
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energy in the fossil feedstock. Jus
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Under our proposed approach, the pr
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will not replace or supersede other
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1. Calculation of Standardsa. How W
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enewable fuel use in the equations
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GE i =DE i =The amount of gasoline
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No adjustment was made for small re
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fuel for 2009. As described in Sect
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approach would also require that we
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Similarly, the combination of the 0
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The above discussion assumes that t
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As discussed above in Section II.A.
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lendstocks and unfinished fuels as
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In 2009, the RFS1 regulations will
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4. Alternative Approach to Designat
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approach to RIN distribution as des
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the resulting expansion in the numb
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enewable fuel with gasoline or dies
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than they needed, another company m
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emaining obligated parties to purch
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Monthly Reporting ScheduleMonth Cov
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information (e.g. the average price
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determination about the adequacy of
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IV.What Other Program Changes Have
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a. Extension of Existing RFS1 Tempo
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and a consideration of EPA’s ongo
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enewable fuel per year. We also req
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higher volume requirements. However
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transaction report is to document R
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oth the buyer and the seller upon c
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damage to the vehicle. 45 We antici
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Table V.A.1-1 AEO 2007 Reference Ca
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Table V.A.2-1 Control Case Projecte
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European market with diesel fuel an
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The economic competitiveness of cel
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production of RD is currently under
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Butanol is another potential motor
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is not limited due to environmental
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and less than half a percent is pro
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Since the majority of ethanol is ma
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Table V.B.1-4 Potential Industry Ex
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Table V.B.1-6 Projected Near-Term C
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cellulosic diesel plant in addition
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To date, the majority of cellulosic
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Increased public interest, governme
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Company or Organization NameTable V
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energy intensity of ethanol product
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today and which incurs a fee for it
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Sustainable removal rates for agric
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could be available for producing bi
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In addition to estimating the exten
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Table V.B.2-5 Projected Cellulosic
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Ethanol imports have traditionally
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consumption estimates. The most cur
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From there, we looked at 2006-2007
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Table V.B.4-1U.S. Biodiesel Capacit
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processed with petroleum (thus proh
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number of companies and universitie
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transport by pipeline. However, the
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USDA estimated that in 2005 approxi
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volumes also tend to be smaller tha
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We intend to incorporate the result
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Given the broad importance to the U
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classified as hazardous liquids. Th
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producing E85, and whether we shoul
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lower energy density of ethanol. Th
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eing consumed by today’s vehicle
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The maximum amount of ethanol our c
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There are a number of states promot
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According to a recent online fuel p
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to gasoline) by 2012. This number w
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directs the Administrator of EPA to
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egulations including those pertaini
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may be that certain vehicles and en
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had pumps dispensing both leaded an
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Prior to and after 1981, several wa
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contain up to 2.7% by weight oxygen
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marketplace. In addition, the subst
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States and also those that occur in
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changes in agricultural commodity p
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1. Scenario DescriptionTo quantify
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the refinery, the production of gas
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for uncertainty in our estimates, i
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Currently, no single model can capt
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conversions. Winrock has used 2001-
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can relatively accurately capture e
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working with Colorado State Univers
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We are also addressing GHG emission
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increasing productivity on existing
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iii.What Type of Land is ConvertedI
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come from grassland, 45% of that la
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changes in particular in other coun
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diesel. In simulating land use chan
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enefits may be small compared to th
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decreased, it is likely that renewa
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assessing the stream of GHG benefit
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the reduction in GHG emissions. 295
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Therefore, lower discount rates suc
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appropriately reflects the uneven r
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combustion of biomass fuel source a
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marginal displacement approach and,
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a. Corn EthanolTable VI.C.1-1 prese
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local market is available such as a
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Table VI.C.1-3 Corn Ethanol Lifecyc
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will not significantly impact other
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In addition, FASOM predicts that sw
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International Land UseChange 2,474,
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Assessments are made in comparison
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D. ThresholdsEISA established GHG t
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The lifecycle analyses that we cond
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2. Assignments for Pathways Subject
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3. Assignments for Additional Pathw
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the land use impacts could signific
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would need to use a minimum of 48%
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generic renewable fuel. Therefore,
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EthanolEthanolBiodiesel (monoalkyl
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As stated earlier, there may be oth
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• We estimate the largest overall
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coupled with the MAGICC (Model for
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The results in Table VI.G.2-1 and F
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VII.How Would the Proposal Impact C
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PM2.5 14,321 0.4% 11,452 0.3% 5,376
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The fuel production and distributio
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As shown in Tables VII.C-1 and VII.
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1. Current Levels of PM 2.5 , Ozone
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known and well-established tool and
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Ground-level ozone pollution is typ
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effects from exposure to the class
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increased proliferation of bone mar
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The IARC has classified “alcoholi
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diesel exhaust compared with evapor
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in these areas. For more informatio
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concrete and limestone. Particles c
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379
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Table VIII.A.1-1a Projected 2022 Br
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ethanol plants in the U.S. Likewise
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operations, or is available from mi
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must be sorted at the facility. Thi
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install secondary storage. We assum
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Thermochemical or gasification unit
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Table VIII.A.1-3 Biochemical Cellul
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pathway in our analysis and based o
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there could also be cost and effici
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Table VIII.A.1-6 Average Imported E
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unit at a refinery and 33% at rende
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investment environment and to 2006
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Table VIII.B.1-1 Estimated Ethanol
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assumed to be filled first from loc
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diesel fuel at $53/bbl crude oil, a
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estimated first, compared to the co
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Table VIII.D.2-2 Total Projected U.
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IX.Economic Impacts and Benefits of
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Biofuel Reference Case Control Case
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production of 90 million tons of co
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Changes to the global commodity tra
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it consumed. This compares roughly
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economy for 2022. The U.S. net expo
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soliciting comments on how to incor
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U.S. military costs are excluded fr
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estimates, and a consistent set of
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3%, and 7%, where 2% and 3% are con
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enefit and cost estimates, and the
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estimates. We are also interested i
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Though EPA is characterizing the ch
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Endpoint Pollutant Study Study Popu
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Nitrogen and SulfateDeposition Welf
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thirty-five industries of the U.S.
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Tile drainage is another important
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Alexander, et al. 524 modeled the s
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BGY for 2015 to 2022. These volumes
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2. Ethanol ProductionThere are thre
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3. Biodiesel PlantsBiodiesel plants
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XI.Public ParticipationWe request c
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You may find the following suggesti
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or for a Federal agency. This inclu
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sources of petroleum, increase dome
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on small businesses as a result of
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The RFS1 program regulations provid
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small refinery study, specifically
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accountable process to ensure “me
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XIII. Statutory AuthorityStatutory
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80.1452 What are the reporting requ
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Combined heat and power (CHP), also
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applicable air permits issued by th
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for calendar year 2006 (as determin
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RFV AB,i =RFV RF,i =G i =D i =RG i
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GV i =DV i =The non-renewable gasol
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D x = Volume of batch x of diesel p
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§§ 80.1417-80.1424 [Reserved]§ 8
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(iii) Foreign producers may generat
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Non-esterrenewabledieselCellulosicg
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V s,RF = Standardized volume of the
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V RIN = EV * V sWhere:V RIN = RIN v
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(∑RINNUM) BBD,i = Sum of all owne
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(iii)(iv)RINs generated in 2008 or
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(d) Any batch-RIN can be divided by
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RVO BBD,i = The Renewable Volume Ob
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(a)(b)Renewable fuel blenders who h
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(3) The waiver must be sent to EPA
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fuel standards of §80.1405 and the
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(3) The number of RINs expected to
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(1) Any producer of renewable fuel
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(c) Beginning January 1, 2010, any
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(viii) The total current-year RINs
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(i) The submitting party’s name.(
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(4) The date of the transfer.(5) Wh
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(e)provided by the Bureau of Labor
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(A)(B)(C)(ii)(iii)(iv)(v)The obliga
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(4) Independent Third Party Enginee
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(i) Designation of the transportati
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(4) United States substantive and p
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prepared by the foreign refiner as
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(6) In order to complete the requir
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(i) The foreign producer, containin
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(8) In any case where RFS-FRRF prod
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(6) Any United States importer shal
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“I hereby certify: (1) That I hav
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G = the total of the number of gall
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Pursuant to Clean Air Act section 1
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EPA is proposing - Petroleum Equipment Institute

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