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

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efficiency <strong>and</strong> to reduce air emissions. This technology, in the face <strong>of</strong> increasing natural<br />

gas prices, may make coal a more attractive energy source for new ethanol plants.<br />

GREET assumes that 20 percent <strong>of</strong> plants will be powered by coal. However, our<br />

review <strong>of</strong> plants under construction <strong>and</strong> those planned for the near future indicates that<br />

coal will only be used for approximately 10% <strong>of</strong> the plants. This is the value we assumed<br />

in GREET for our analysis. However, as new plants are constructed to meet the dem<strong>and</strong>s<br />

<strong>of</strong> the RFS, this percentage is expected to go up. Future work in preparation for the final<br />

rule will evaluate the potential trends for combined heat <strong>and</strong> power <strong>and</strong> coal as process<br />

fuel.<br />

c. Ethanol Production Yield<br />

It is generally assumed that 1 bushel <strong>of</strong> corn yields 2.7 gallons <strong>of</strong> ethanol.<br />

However, the development <strong>of</strong> new enzymes continues to increase the potential ethanol<br />

yield. We used a value <strong>of</strong> 2.71 gal/bu in our analysis. This value represents pure ethanol<br />

production (i.e. no denaturant). This value is consistent with the cost modeling <strong>of</strong> corn<br />

ethanol discussed in Section VII.<br />

2. Controversy Concerning The Ethanol Energy Balance<br />

Although we have made use <strong>of</strong> lifecycle impact estimates from ANL's GREET<br />

model, there are a variety <strong>of</strong> lifecycle impact analyses from other researchers that provide<br />

alternative <strong>and</strong> sometimes significantly different estimates. The lifecycle energy balance<br />

for corn-ethanol, in particular, has been the subject <strong>of</strong> numerous <strong>and</strong> sometimes<br />

contentious debates.<br />

Several metrics are commonly used to describe the energy efficiency <strong>of</strong><br />

renewable fuels. We have chosen to use displacement indexes for this proposal because<br />

they provide the least ambiguous <strong>and</strong> most relevant mechanism for estimating the<br />

impacts <strong>of</strong> renewable fuels on GHGs <strong>and</strong> petroleum consumption. However, other<br />

metrics, such as the net energy balance <strong>and</strong> energy efficiency, have more commonly been<br />

used in the past. The use <strong>of</strong> these metrics has served to complicate the issue since they<br />

do not involve a direct comparison to the gasoline that the ethanol is replacing.<br />

Among researchers who have studied the lifecycle energy balance <strong>of</strong> cornethanol,<br />

the primary differences <strong>of</strong> opinion appear to center on fossil energy associated<br />

with fertilizers, the energy required to convert corn into ethanol, <strong>and</strong> the value <strong>of</strong> coproducts.<br />

As a result <strong>of</strong> these differences, the net energy balance has been estimated to<br />

be somewhere between -34 <strong>and</strong> + 31 thous<strong>and</strong> Btu/gal, <strong>and</strong> the energy efficiency has<br />

been estimated to be somewhere between 0.6 <strong>and</strong> 1.4 89 . A concern arises in cases where<br />

89 A net energy balance <strong>of</strong> zero, or an energy efficiency <strong>of</strong> 1.0, would indicate that the full lifecycle fossil<br />

fuels used in the production <strong>and</strong> transportation <strong>of</strong> ethanol are exactly equal to the energy in the ethanol<br />

itself.<br />

- 177 -

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