EPA is proposing - Petroleum Equipment Institute

would achieve alone. In addition, EISA specifies four separate categories of renewablefuels, each with a separate volume mandate. The categories are renewable fuel, advancedbiofuel, biomass-based diesel, and cellulosic biofuel. There is a notable increase in themandate for cellulosic biofuels in particular. EISA increased the cellulosic biofuelmandate from 250 million in EPAct to 1.0 billion gallons by 2013, with additional yearlyincreases to 16 billion gallons by 2022. These requirements will provide a strongfoundation for investment in cellulosic production and position cellulosic fuel to becomea major portion of the renewable fuel pool over the next decade.The implications of the volume expansion of the program are not trivial.Development of infrastructure capable of delivering, storing and blending these volumesin new markets and expanding existing market capabilities will be needed. For example,the market's absorption of increased volumes of ethanol may ultimately require new“outlets” beyond E10 blends (i.e., gasoline containing 10% ethanol by volume), such asan expansion of the number of flexible-fuel E85 vehicles and the number of retail outletsselling E85.B. Renewable Fuels and Greenhouse Gas EmissionsAnother significant aspect of the RFS2 program is the focus on the greenhousegas impact of renewable fuels, from a lifecycle perspective. The lifecycle GHGemissions means the aggregate quantity of GHGs related to the full fuel cycle, includingall stages of fuel and feedstock production and distribution, from feedstock generationand extraction through distribution and delivery and use of the finished fuel. EISAestablished specific greenhouse gas emission thresholds for each of four types ofrenewable fuels, requiring a percentage improvement compared to a baseline of thegasoline and diesel used in 2005. EPA must conduct a lifecycle analysis to determinewhether or not renewable fuels produced under varying conditions will meet thegreenhouse gas (GHG) thresholds for the different fuel types for which EISA establishesmandates. While these thresholds do not constitute a control on greenhouse gases fortransportation fuels (such as a low carbon fuel standard 1 ), they do require that the volumemandates be met through the use of renewable fuels that meet certain lifecycle GHGreduction thresholds when compared to the baseline lifecycle emissions of petroleum fuelthey replace. Compliance with the thresholds requires a comprehensive evaluation ofrenewable fuels, as well as of gasoline and diesel, on the basis of their lifecycleemissions. As mandated by EISA, the greenhouse gas emission assessments mustevaluate the full lifecycle emission impacts of fuel production including both direct andindirect emissions, including significant emissions from land use changes. We recognizethe significance of using lifecycle greenhouse gas emission assessments that includeindirect impacts such as emission impacts of indirect land use changes. Therefore, in thispreamble, we have been transparent in breaking out the various sources of greenhousegas emissions included in the analysis. As described in detail in Section VI, EPA has1 See Section IV.D of EPA’s advanced notice of proposed rulemaking, Regulating Greenhouse GasEmissions under the Clean Air Act, for a discussion of EPA’s possible authority under section 211(c) of theCAA to establish GHG standards for renewable and alternative fuels. 73 FR 44354, July 30, 2008.16