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

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production/technologies, refer to Section 7.1.2 of the Draft Regulatory Impact Analysis (DRIA). The ethanol production process is relatively resource-intensive and requires the use of water, electricity and steam. Steam needed to heat the process is generally produced onsite or by other dedicated boilers. Of today’s 102 ethanol production facilities, 98 burn natural gas, 2 burn coal, 1 burns coal and biomass, and 1 burns syrup from the process to produce steam. A summary of ethanol production by plant energy source is found below in Table VI.A.1-2. Table VI.A.1-2 2006 U.S. Ethanol Production by Energy Source Capacity % of No. of % of Energy Source MMGal/yr Capacity Plants Plants Natural Gas a 4,671 95.9% 98 96.1% Coal 102 2.1% 2 2.0% Coal & Biomass 50 1.0% 1 1.0% Syrup 49 1.0% 1 1.0% Total 4,872 100.0% 102 100.0% a Includes a natural gas facility which is considering transitioning to coal Currently, 7 of the 102 ethanol plants utilize co-generation or combined heat and power (CHP) technology. CHP is a mechanism for improving overall plant efficiency. CHP facilities produce their own electricity (or coordinate with the local municipality) and use otherwise-wasted exhaust gases to help heat their process, reducing the overall demand for boiler fuel. The majority of ethanol is produced in the Midwest within PADD 2 – not surprisingly, where most of the corn is grown. Of the 102 U.S. ethanol production facilities, 93 are located in Midwest. The PADD 2 facilities account for about 97 percent (or 4.7 billion gallons per year) of the total domestic ethanol production, as shown in Table VI.A.1-3 Table VI.A.1-3 2006 U.S. Ethanol Production by PADD Capacity % of No. of % of PADD MMgal/yr Capacity Plants Plants PADD 1 0.4 0.0% 1 1.0% PADD 2 4,710 96.7% 93 91.2% PADD 3 30 0.6% 1 1.0% PADD 4 98 2.0% 4 3.9% PADD 5 34 0.7% 3 2.9% Total 4,872 100.0% 102 100.0% - 116 -
Leading the Midwest in ethanol production are Iowa, Illinois, Nebraska, Minnesota, and South Dakota with a combined capacity of 3.9 billion gallons per year. Together, these five states’ 69 ethanol plants account for 80 percent of the total domestic product. Although the majority of ethanol production comes from the Midwest, there is a sprinkling of plants situated outside the corn belt ranging from California to Tennessee all the way down to Georgia. The U.S. ethanol industry is currently comprised of a mixture of corporations and farmer-owned cooperatives (co-ops). More than half (55) of today’s plants are owned by corporations and, on average, these plants are larger in size than farmer-owned co-ops. Accordingly, company-owned plants account for nearly 65 percent of the total U.S. ethanol production capacity. Additionally, 45 percent of the total capacity comes from 22 plants owned by just 8 different companies. 2. Expected Growth in Ethanol Production Over the past 25 years, domestic fuel ethanol production has steadily increased due to technological advances, environmental regulation (e.g., oxygenate requirements in ozone and carbon monoxide non-attainment areas), and the rising cost of crude oil. More recently, ethanol production has soared due to state MTBE bans, steep increases in crude oil prices, and producer tax incentives. As shown below in Figure VI.A.2-1, over the past three years, domestic ethanol production has nearly doubled from 2.1 billion gallons in 2002 to 4.0 billion gallons in 2005. - 117 -
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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
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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 and 114: The refiner or importer would be li
Page 115: Plant Feedstock Corn a Table VI.A.1
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
Page 131 and 132: ased on the assumption that the ble
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
Page 165 and 166: 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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