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

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VI. Current and Projected Renewable Fuel Production and Use While the definition of renewable fuel does not limit compliance with the standard to any one particular type of renewable fuel, ethanol is currently the most prevalent renewable fuel blended into gasoline today. Biodiesel represents another renewable fuel, which while not as widespread as ethanol use (in terms of volume), has been increasing in production capacity and use over the last several years. This section provides a brief overview of the ethanol and biodiesel industries today and how they are projected to grow into the future. A. Overview of U.S. Ethanol Industry and Future Production/Consumption 1. Current Ethanol Production As of June 2006, there were 102 ethanol production facilities operating in the United States with a combined production capacity of approximately 4.9 billion gallons per year 39 . All of the ethanol currently produced comes from grain or starch-based feedstocks that can easily be broken down into ethanol via traditional fermentation processes. The majority of ethanol (almost 93 percent by volume) is produced exclusively from corn. Another 7 percent comes from a blend of corn and/or similarly processed grains (milo, wheat, or barley) and less than 1 percent is produced from waste beverages, cheese whey, and sugars/starches combined. A summary of ethanol production by feedstock is presented in Table VI.A.1-1. 39 The June 2006 ethanol production baseline was generated from a variety of data sources including Renewable Fuels Association (RFA), Ethanol Biorefinery Locations (Updated June 19, 2006); Ethanol Producer Magazine (EPM), U.S. & Canada Fuel Ethanol Plant Map (Spring 2006); and International Fuel Quality Center (IFQC), Special Biofuels Report #75 (April 11, 2006) as well as ethanol producer websites. The production baseline includes small-scale ethanol production facilities as well as former food-grade ethanol plants that have since transitioned into the fuel-grade ethanol market. Where applicable, current ethanol plant production levels were used to represent plant capacity, as nameplate capacities are often underestimated. - 114 -
Plant Feedstock Corn a Table VI.A.1-1 2006 U.S. Ethanol Production by Feedstock Capacity MMGal/yr % of Capacity No. of Plants % of Plants 4,516 92.7% 85 83.3% Corn/Milo 162 3.3% 5 4.9% Corn/Wheat 90 1.8% 2 2.0% Corn/Barley 40 0.8% 1 1.0% Milo/Wheat 40 0.8% 1 1.0% Waste Beverage b 16 0.3% 5 4.9% Cheese Whey 8 0.2% 2 2.0% Sugars & Starches 2 0.0% 1 1.0% Total 4,872 100.0% 102 100.0% a Includes seed corn b Includes brewery waste There are a total of 94 plants processing corn and/or other similarly processed grains. Of these facilities, 84 utilize dry milling technologies and the remaining 10 plants rely on wet-milling processes. Dry mill ethanol plants grind the entire kernel and produce only one primary co-product: distillers’ grains with solubles (DGS). The coproduct is sold wet (WDGS) or dried (DDGS) to the agricultural market as animal feed. Carbon dioxide is also produced in the process and may be recovered as a saleable product. In contrast to dry mill plants, wet mill facilities separate the kernel prior to processing and in turn produce other co-products (usually gluten feed, gluten meal, and oil) in addition to DGS. Wet mill plants are generally more costly to build but are larger in size on average. As such, approximately 23 percent of the current ethanol production comes from the 10 previously-mentioned wet mill facilities. The remaining 8 plants which process waste beverages, cheese whey, or sugars/starches, operate differently than their grain-based counterparts. These facilities do not require milling and instead operate a more simplistic enzymatic fermentation process. In addition to grain and starch-to-ethanol production, another method exists for producing ethanol from a more diverse feedstock base. This process involves converting cellulosic feedstocks such as bagasse, wood, straw, switchgrass, and other biomass into ethanol. Cellulose consists of tightly-linked polymers of starch, and production of ethanol from it requires additional steps to convert these polymers into fermentable sugars. Scientists are actively pursuing acid and enzyme hydrolysis to achieve this goal, but the technologies are still not fully developed for large-scale commercial production. As of June 2006, there were no U.S ethanol plants processing cellulosic feedstocks. Currently, the only known cellulose-to-ethanol plant in North America is Iogen in Canada, which produces approximately one million gallons of ethanol per year from wood chips. For more a more detailed discussion on cellulosic ethanol - 115 -
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The Administrator signed the follow
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Ave., NW, Washington DC. This Docke
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Table of contents: I. Background A.
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C. Requirements for Producers and I
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G. Executive Order 13045: Protectio
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The increased use of renewable fuel
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establish the applicable national v
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Today's proposal outlines the full
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enewable fuel feedstock market pric
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Unlike VOC and NOx, emissions of CO
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These renewable feedstocks are then
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5. Potential Water Quality Impacts
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enewable fuel volume which each par
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certain volume of renewable fuel. E
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est practices would have the option
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As stated, the renewable fuel stand
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enewable fuel volumes in the calcul
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For illustrative purposes, we have
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These credit provisions have meanin
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Stdi = The RFS program standard for
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gasoline. The Act is unclear on whe
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. Ethanol Made From Any Feedstock I
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generate thermal energy used to pro
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animal wastes, including poultry fa
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limit this program solely to a stra
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presence of the denaturant. For ins
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First, doing so could create an inc
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For purposes of this preamble, the
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capability for all of the small ref
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trading program, without any per ga
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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
Page 107 and 108: 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: The refiner or importer would be li
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
Page 129 and 130: per gallon to biodiesel produced fr
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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
Page 147 and 148: assuming only that blending of etha
Page 149 and 150: 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
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Table VIII.B.1-4 Annual Emissions N
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RFG due to the absence of an RVP wa
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increase in ambient ozone levels is
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developing a model of secondary org
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IX. Impacts On Fossil Fuel Consumpt
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intended to help fuel producers est
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efficiency and to reduce air emissi
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combined those displacement indexes
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3. Displacement Indexes (DI) The di
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Table IX.C.1-1 Fossil fuel impacts
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as on the exports of agricultural p
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which may change in response to an
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X. Agricultural Sector Economic Imp
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XI. Public Participation We request
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ways to comply with any previously
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small refiner under this proposal.
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meet these criteria to be considere
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“economically significant” as d
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40 CFR Part 80 is proposed to be am
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(b) Renewable Fuel Standard for 200
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(2) The term “Renewable fuel” i
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RFStdi = Renewable Fuel Standard in
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a party’s renewable volume obliga
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(a) YYYY is the calendar year in wh
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(ii) The value for EEEEEE in an ext
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(2) A deficit is calculated accordi
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(a) (1) Any party that exports any
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(e) If a refiner is complying on an
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calendar year; however, disqualific
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§80.76, if such information has no
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(1) A summary report of the annual
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(4) Reports shall be submitted on f
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(1) Fail to acquire sufficient RINs
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(b) The following attest procedures
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(B) That the RFS-FRGAS remained seg
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EPA employees or EPA contractors, f
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(iv) Determine the date and time th
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(ii) Be licensed as a Certified Pub
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