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

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To produce ethanol from cellulosic feedstocks, pretreatment is necessary to hydrolyze cellulosic and hemicellulosic polymers and break down the lignin sheath. In so doing, the structure of the cellulosic feedstock is opened to allow efficient and effective enzyme hydrolysis of the cellulose/hemicellulose to glucose and xylose. The central problem is that the β-linked saccharide polymers in the cellulose/hemicellulose structure prevent the microbial fermentation reaction. By comparison, when corn kernels are used as feedstock, fermentation of the starch produced from the corn kernels which have α-linked saccharide polymers takes place much more readily. An acid hydrolysis process was developed to pretreat cellulosic feedstocks (through hydrolysis which breaks up the β-links), but it continues to be prohibitively expensive for producing ethanol. Some technologies that are being developed may solve some of the problems associated with production of ethanol from cellulosic sources. Specifically, one problem with cellulosic feedstocks is that the hydrolysis reactions produce both glucose, a sixcarbon sugar, and xylose, a five-carbon sugar (pentose sugar, C5H10O5; sometimes called “wood sugar”). Early conversion technology required different microbes to ferment each sugar. Recent research has developed better cellulose hydrolysis enzymes and ethanol-fermenting organisms. Now, glucose and xylose can be co-fermented—hence, the present-day terminology: weak-acid enzymatic hydrolysis and co-fermentation. In addition, several research groups, using recently developed genome modifying technology, have been able to produce a variety of new or modified enzymes and microbes that show promise for use in a process known as weak-acid, enzymaticprehydrolysis. Cellulosic biomass can come from a variety of sources. Because the conversion of cellulosic biomass to ethanol has not yet been commercially demonstrated, we cannot say at this time which feedstocks are superior to others. In particular, there is only one cellulosic ethanol plant in North America (Iogen, Ottawa, Ontario, Canada). To the best of our knowledge, the technology that Iogen employs is not yet fully developed or optimized. Generally, the industry seems to be moving toward a process that uses dilute acid enzymatic prehydrolysis with simultaneous saccharification (enzymatic) and cofermentation. 3. Renewable Fuel Distribution System Capability Ethanol and biodiesel blended fuels are not shipped by petroleum product pipeline due to operational issues and additional cost factors. Hence, a separate distribution system is needed for ethanol and biodiesel up to the point where they are blended into petroleum-based fuel as it is loaded into tank trucks for delivery to retail and fleet operators. In cases where ethanol and biodiesel are produced within 200 miles of a terminal, trucking is often the preferred means of distribution. For longer shipping distances, the preferred method of bringing renewable fuels to terminals is by rail and barge. - 132 -
Modifications to the rail, barge, tank truck, and terminal distribution systems will be needed to support the transport of the anticipated increased volumes of renewable fuels. These modifications include the addition of terminal blending systems for ethanol and biodiesel, additional storage tanks at terminals, additional rail delivery systems at terminals for ethanol and biodiesel, and additional rail cars, barges, and tank trucks to distribute ethanol and biodiesel to terminals. Terminal storage tanks for 100 percent biodiesel will also need to be heated during cold months to prevent gelling. In the past the refining industry has raised concerns regarding whether the distribution infrastructure can expand rapidly enough to accommodate the increased demand for ethanol. The most comprehensive study of the infrastructure requirements for an expanded fuel ethanol industry was conducted for the Department of Energy (DOE) in 2002 . 58 The conclusions reached in that study indicate that the changes needed to handle the anticipated increased volume of ethanol by 2012 will not represent a major obstacle to industry. While some changes have taken place since this report was issued, including an increased reliance on rail over marine transport, we continue to believe that the rail and marine transportation industries can manage the increased growth in demand in an orderly fashion. This belief is supported by the demonstrated ability for the industry to handle the rapid increases and redistribution of ethanol use across the country over the last several years as MTBE was removed. The necessary facility changes at terminals and at retail stations to dispense ethanol containing fuels have been occurring at a record pace. Given that future growth is expected to progress at a steadier pace and with greater advance warning in response to economic drivers, we anticipate that the distribution system will be able to respond appropriately. A discussion of the costs associated making the changes discussed above is contained in section VII.B. of this preamble. 58 "Infrastructure Requirements for an Expanded Fuel Ethanol Industry," Downstream Alternatives Inc., January 15, 2002. - 133 -
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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
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have to significantly change their
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The D code would identify cellulosi
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Another case in which a RIN may not
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Section IV. In the context of demon
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equired volumes shown in Table I.B-
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We request comment on the valid lif
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e used for current year compliance.
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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 and 116: Plant Feedstock Corn a Table VI.A.1
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
Page 131: ased on the assumption that the ble
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
Page 167 and 168: RFG due to the absence of an RVP wa
Page 169 and 170: increase in ambient ozone levels is
Page 171 and 172: developing a model of secondary org
Page 173 and 174: IX. Impacts On Fossil Fuel Consumpt
Page 175 and 176: intended to help fuel producers est
Page 177 and 178: efficiency and to reduce air emissi
Page 179 and 180: combined those displacement indexes
Page 181 and 182: 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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