EPA is proposing - Petroleum Equipment Institute

d. Biomass-Based DieselUnder today’s proposed rule “Biomass-based diesel” includes both biodiesel(mono-alkyl esters) and non-ester renewable diesel (including cellulosic diesel). Thedefinition is the same very broad definition of “biodiesel” that was in EPAct and inRFS1, with three exceptions. First, EISA requires that such fuel be made from renewablebiomass. Second, its lifecycle GHG emissions must be at least 50% less than thegasoline or diesel fuel it displaces. Third, the statutory definition of “Biomass-baseddiesel” excludes renewable fuel derived from co-processing biomass with a petroleumfeedstock. In drafting the proposed definition, we considered two options for how coprocessingcould be treated. The first option would consider co-processing to occur onlyif both petroleum and biomass feedstock are processed in the same unit simultaneously.The second option would consider co-processing to occur if renewable biomass andpetroleum feedstock are processed in the same unit at any time; i.e., either simultaneouslyor sequentially. Under the second option, if petroleum feedstock was processed in theunit, then no fuel produced from such unit, even from a biomass feedstock, would bedeemed to be biomass-based diesel.We are proposing the first option to be used in the definition in today’s rule.Under this approach, a batch of fuel qualifying for the D code of 2 that is produced in aprocessing unit in which only renewable biomass is the feedstock for such batch, wouldmeet the definition of “Biomass-Based Diesel. Thus, serial batch processing in which100% vegetable oil is processed one day/week/month and 100% petroleum the nextday/week/month could occur without the activity being considered “co-processing.” Theresulting products could be blended together, but only the volume produced fromvegetable oil would count as biomass-based diesel. We believe this is the moststraightforward approach and an appropriate one, given that it would allow RINs to begenerated for volumes of fuel meeting the 50% GHG reduction threshold that is derivedfrom renewable biomass, while not providing any credit for fuel derived from petroleumsources. In addition, this approach avoids the need for potentially complex provisionsaddressing how fuel should be treated when existing or even mothballed petroleumhydrotreating equipment is retrofitted and placed into new service for renewable fuelproduction or vice versa.Under today’s proposal, any fuel that does not satisfy the definition of biomassbaseddiesel only because it is co-processed with petroleum would still meet thedefinition of “Advanced Biofuel” provided it meets the 50% GHG threshold and othercriteria for the D code of 3. Similarly it would meet the definition of renewable fuel if itmeets a GHG emission reduction threshold of 20%. In neither case, however, would itmeet the definition of biomass-based diesel.This restriction is only really an issue for renewable diesel and biodiesel producedvia the fatty acid methyl ester (FAME) process. For other forms of biodiesel, it is nevermade through any sort of co-processing with petroleum 6 . Producers of renewable diesel6 The production of biodiesel (mono alkyl esters) does require the addition of methanol which is usuallyderived from natural gas, but which contributes a very small amount to the resulting product. We do not51