EPA is proposing - Petroleum Equipment Institute

ule. Additionally, between this proposal and the final rule, we will conduct peer-reviewsof key components of our analysis. As explained in more detail in the Section VI, EPA isspecifically seeking peer review of: our use of satellite data to project future type of landuse changes; the land conversion GHG emissions factors estimates we have used fordifferent types of land use; our estimates of GHG emissions from foreign cropproduction; methods to account for the variable timing of GHG emissions; and how theseveral models we have relied upon are used together to provide overall lifecycle GHGestimates.Some renewable fuel is not required to meet the 20% GHG threshold. Section211(o)(2)(A) provides that only renewable fuel produced from new facilities whichcommenced construction after December 19, 2007 must meet the 20% threshold.Facilities that commenced construction on or before December 19, 2007 are exempt or“grandfathered” from the 20% threshold requirement. In addition, section 210(a) ofEISA provides a further exemption from the 20% threshold requirement for ethanolplants that commenced construction in 2008 or 2009 and are fired with natural gas,biomass, or any combination thereof. The renewable fuel from such facilities is deemedto be in compliance with the 20% threshold, and would thus also be "grandfathered."We are proposing and taking comment on one approach to the grandfatheringprovisions in today’s rule, and seeking comment on five additional options. Theproposed approach would provide an indefinite time period for grandfathering status butwith restrictions to the baseline volume of renewable fuel that is grandfathered. Thealternative options are 1) Expiration of exemption for grandfathered status when facilitiesundergo sufficient changes to be considered “reconstructed”; 2) Expiration of exemption15 years after EISA enactment , industry-wide; 3) Expiration of exemption 15 years afterEISA enactment with limitation of exemption to baseline volume; 4) “Significant”production components are treated as facilities and grandfathered or deemed compliantstatus ends when they are replaced; and 5) Indefinite exemption and no limitations placedon baseline volumes. Our proposal and the alternative options are discussed in furtherdetail in Section III.B.3.c.While renewable fuels would be required to meet the GHG thresholds shown inTable II.A.3-1 in order to be valid for compliance purposes under the RFS2 program, weare not proposing that an individual facility-specific lifecycle GHG emissions valuewould have to be determined in order to show that the biofuel produced or imported at anindividual facility complies with the threshold. Instead, EPA has determined lifecycleGHG values for specific combinations of fuel type, feedstock, and production process,using average values for various lifecycle model inputs. As a result of these assessments,we propose to assign each combination of fuel type, feedstock, and production process toone of the four renewable fuel categories specified in EISA or, alternatively, make adetermination that the biofuel combination has been disqualified from generating RINs(except as may be allowed for grandfathered renewable fuel) due to a failure to meet theminimum 20% GHG threshold. Section VI.E discusses our proposed assignments. Weare also proposing a mechanism to allow biofuels whose lifecycle GHG emissions have26