Vol. 77 Thursday, No. 3 January 5, 2012

Part V

Environmental Protection Agency

40 CFR Part 80 Regulation of Fuels and Fuel Additives: Identification of Additional Qualifying Renewable Fuel Pathways Under the Renewable Fuel Standard Program; Direct Final Rule

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ENVIRONMENTAL PROTECTION ADDRESSES: Submit your comments, Docket: All documents in the docket AGENCY identified by Docket ID No. EPA–HQ– are listed in the www.regulations.gov OAR–2011–0542, by one of the index. Although listed in the index, 40 CFR Part 80 following methods: some information is not publicly • [EPA–HQ–OAR–2011–0542; FRL–9502–2] www.regulations.gov: Follow the available, e.g., CBI or other information on-line instructions for submitting whose disclosure is restricted by statute. RIN 2060–AR07 comments. Certain other material, such as • Email: [email protected], copyrighted material, will be publicly Regulation of Fuels and Fuel Attention Air and Radiation Docket ID available only in hard copy. Publicly Additives: Identification of Additional EPA–HQ–OAR–2011–0542 available docket materials are available Qualifying Renewable Fuel Pathways • Fax: [Insert fax number]. either electronically in Under the Renewable Fuel Standard • Mail: Air and Radiation Docket, www.regulations.gov or in hard copy at Program Docket No. EPA–HQ–OAR–2011–0542, the Air and Radiation Docket and Environmental Protection Agency, AGENCY: Environmental Protection Information Center, EPA/DC, EPA West, Mailcode: 6406J, 1200 Pennsylvania Agency (EPA). Room 3334, 1301 Constitution Ave. Ave. NW., Washington, DC 20460. NW., Washington, DC. The Public ACTION: Direct final rule. • Hand Delivery: EPA Docket Center, Reading Room is open from 8:30 a.m. to EPA/DC, EPA West, Room 3334, 1301 SUMMARY: EPA is issuing a direct final 4:30 p.m., Monday through Friday, Constitution Ave. NW., Washington, rule identifying additional fuel excluding legal holidays. The telephone DC, 20460, Attention Air and Radiation pathways that EPA has determined meet number for the Public Reading Room is Docket, ID No. EPA–HQ–OAR–2011– the biomass-based diesel, advanced 0542. Such deliveries are only accepted (202) 566–1744, and the telephone biofuel or cellulosic biofuel lifecycle during the Docket’s normal hours of number for the Air Docket is (202) 566– greenhouse gas (GHG) reduction operation, and special arrangements 1742). requirements specified in Clean Air Act should be made for deliveries of boxed FOR FURTHER INFORMATION CONTACT: section 211(o), the Renewable Fuel information. Vincent Camobreco, Office of Standard Program, as amended by the Instructions: Direct your comments to Transportation and Air Quality Energy Independence and Security Act Docket ID No. EPA–HQ–OAR–2011– (MC6401A), Environmental Protection of 2007 (EISA). This direct final rule 0542. EPA’s policy is that all comments Agency, 1200 Pennsylvania Ave. NW., describes EPA’s evaluation of biofuels received will be included in the public Washington, DC 20460; telephone produced from camelina oil, energy docket without change and may be number: (202) 564–9043; fax number: cane, giant reed, and napiergrass; it also made available online at (202) 564–1686; email address: includes an evaluation of renewable www.regulations.gov, including any [email protected]. gasoline and renewable gasoline personal information provided, unless SUPPLEMENTARY INFORMATION: blendstocks, as well as biodiesel from the comment includes information esterification, and clarifies our claimed to be Confidential Business I. Why is EPA using a direct final rule? definition of renewable diesel. We are Information (CBI) or other information EPA is publishing this rule without a also finalizing two changes to regulation whose disclosure is restricted by statute. prior proposed rule because we view that were proposed on July 1, 2011(76 Do not submit information that you this as a noncontroversial action. These FR 38844). The first change adds ID consider to be CBI or otherwise new pathway determinations did not letters to pathways to facilitate protected through www.regulations.gov require new agricultural sector references to specific pathways. The or email. The www.regulations.gov Web modeling and involved relatively second change adds ‘‘rapeseed’’ to the site is an ‘‘anonymous access’’ system, straightforward analyses that largely existing pathway for renewable fuel which means EPA will not know your relied upon work done for the RFS2 made from canola oil. identity or contact information unless final rule. If EPA receives relevant This direct final rule adds these you provide it in the body of your adverse comment or a hearing request pathways to Table in regulation as comment. If you send an email on a distinct provision of this pathways which have been determined comment directly to EPA without going rulemaking, we will publish a timely to meet one or more of the GHG through www.regulations.gov your email withdrawal in the Federal Register reduction thresholds specified in CAA address will be automatically captured indicating which portion of the rule is 211(o), and assigns each pathway a and included as part of the comment being withdrawn. Any distinct corresponding D-Code. It allows that is placed in the public docket and amendment, paragraph, or section of producers or importers of fuel produced made available on the Internet. If you today’s rule not withdrawn will become pursuant to these pathways to generate submit an electronic comment, EPA effective on the date set out above. Renewable Identification Numbers recommends that you include your In the ‘‘Proposed Rules’’ section of (RINs), providing that the fuel meets the name and other contact information in today’s Federal Register, we are other requirements specified in the RFS the body of your comment and with any publishing a separate document that regulations to qualify it as renewable disk or CD–ROM you submit. If EPA will serve as the proposed rule to fuel. cannot read your comment due to update Table 1 of § 80.1426 to add any DATES: This rule is effective on March 5, technical difficulties and cannot contact additional renewable fuel production 2012 without further notice, unless EPA you for clarification, EPA may not be pathways or regulatory provisions receives adverse comment or a hearing able to consider your comment. which may be withdrawn from the request by February 6, 2012. If EPA Electronic files should avoid the use of direct final rule. We will not institute a receives a timely adverse comment or a special characters, any form of second comment period on this action. hearing request, we will publish a encryption, and be free of any defects or Any parties interested in commenting withdrawal in the Federal Register viruses. For additional information must do so at this time. For further informing the public that the portions of about EPA’s public docket visit the EPA information about commenting on this the rule with adverse comment will not Docket Center homepage at http:// rule, see the ADDRESSES section of this take effect. www.epa.gov/epahome/dockets.htm. document. We will address all public

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comments in any subsequent final rule II. Does this action apply to me? transportation fuels, including gasoline based on the proposed rule. and diesel fuel or renewable fuels such Entities potentially affected by this as ethanol and biodiesel. Regulated action are those involved with the categories and entities affected by this production, distribution, and sale of action include:

NAICS 1 SIC 2 Category Codes Codes Examples of potentially regulated entities

Industry ...... 324110 2911 Petroleum Refineries. Industry ...... 325193 2869 Ethyl alcohol manufacturing. Industry ...... 325199 2869 Other basic organic chemical manufacturing. Industry ...... 424690 5169 Chemical and allied products merchant wholesalers. Industry ...... 424710 5171 Petroleum bulk stations and terminals. Industry ...... 424720 5172 Petroleum and petroleum products merchant wholesalers. Industry ...... 454319 5989 Other fuel dealers. 1 North American Industry Classification System (NAICS) 2 Standard Industrial Classification (SIC) system code.

This table is not intended to be • Follow directions—The agency may Energy Cane, Giant Reed, and exhaustive, but rather provides a guide ask you to respond to specific questions Napiergrass Cellulosic Biomass (New for readers regarding entities likely to be or organize comments by referencing a Feedstocks) regulated by this action. This table lists Code of Federal Regulations (CFR) part • Ethanol, renewable diesel the types of entities that EPA is now or section number. • (including renewable jet fuel and aware could be potentially regulated by Explain why you agree or disagree; heating oil), and naphtha — qualifying this action. Other types of entities not suggest alternatives and substitute as cellulosic biofuel listed in the table could also be language for your requested changes. regulated. To determine whether your • Describe any assumptions and Renewable Gasoline and Renewable entity is regulated by this action, you provide any technical information and/ Gasoline Blendstock (New Fuel Types) should carefully examine the or data that you used. • Produced from crop residue, slash, • applicability criteria of Part 80, subparts If you estimate potential costs or pre-commercial thinnings, tree residue, D, E and F of title 40 of the Code of burdens, explain how you arrived at annual cover crops, and cellulosic Federal Regulations. If you have any your estimate in sufficient detail to components of separated yard waste, question regarding applicability of this allow for it to be reproduced. • separated food waste, and separated action to a particular entity, consult the Provide specific examples to municipal solid waste (MSW) person in the preceding FOR FURTHER illustrate your concerns, and suggest • Using the following processes — all INFORMATION CONTACT section above. alternatives. utilizing natural gas, biogas, and/or • Explain your views as clearly as III. What should I consider as I prepare biomass as the only process energy possible, avoiding the use of profanity sources — qualifying as cellulosic my comments for EPA? or personal threats. • biofuel: A. Submitting information claimed as Make sure to submit your Æ Thermochemical pyrolysis CBI. Do not submit information you comments by the comment period Æ Thermochemical gasification deadline identified. Æ Biochemical direct fermentation claim as CBI to EPA through Æ www.regulations.gov or email. Clearly C. Docket Copying Costs. You may be Biochemical fermentation with charged a reasonable fee for catalytic upgrading mark the part or all of the information Æ that you claim to be CBI. For CBI photocopying docket materials, as Any other process that uses biogas information in a disk or CD ROM that provided in 40 CFR part 2. and/or biomass as the only process energy sources you mail to EPA, mark the outside of the IV. Identification of additional disk or CD ROM as CBI and then qualifying renewable fuel pathways Esterification (New Production Process) identify electronically within the disk or under the renewable fuel standard • Process used to produce biodiesel CD ROM the specific information that is (RFS) program from soy bean oil, oil from annual claimed as CBI). In addition to one EPA is issuing a direct final rule to covercrops, algal oil, biogenic waste complete version of the comment that identify in the RFS regulations oils/fats/greases, non-food grade corn includes information claimed as CBI, a additional renewable fuel production oil, Canola/rapeseed oil, and camelina copy of the comment that does not pathways that we have determined meet oil—qualifying as biomass-based diesel contain the information claimed as CBI the greenhouse gas (GHG) reduction and advanced biofuel must be submitted for inclusion in the requirements of the RFS program. This This direct final rule adds these public docket. Information so marked direct final rule describes EPA’s pathways to Table 1 to § 80.1426 and will not be disclosed except in evaluation of: assigns each pathway one or more D– accordance with procedures set forth in Codes. This final rule allows producers 40 CFR part 2. Camelina Oil (New Feedstock) or importers of fuel produced under B. Tips for Preparing Your Comments. • Biodiesel and renewable diesel these pathways to generate Renewable When submitting comments, remember (including jet fuel and heating oil) — Identification Numbers (RINs) in to: qualifying as biomass-based diesel and accordance with the RFS regulations, • Identify the rulemaking by docket advanced biofuel providing that the fuel meets other number and other identifying • Naphtha and liquefied petroleum definitional criteria for renewable fuel. information (subject heading, Federal gas (LPG) — qualifying as advanced Determining whether a fuel pathway Register date and page number). biofuel satisfies the CAA’s lifecycle GHG

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reduction thresholds for renewable fuels to many other oilseeds, camelina has a for biofuel production. Given the requires a comprehensive evaluation of relatively short growing season (less information currently available, the lifecycle GHG emissions of the than 100 days), and can be grown either camelina is expected to be primarily renewable fuel as compared to the as a spring annual or in the winter in planted in the U.S. as a rotation crop on lifecycle GHG emissions of the baseline milder climates. 23 Camelina can also be acres that would otherwise remain gasoline or diesel fuel that it replaces. used to break the continuous planting fallow during the camelina planting. As mandated by CAA section 211(o), the cycle of certain grains, effectively Since substituting fallow land with GHG emissions assessments must reducing the disease, insect, and weed camelina production would not evaluate the aggregate quantity of GHG pressure in fields planted with such typically displace another crop, EPA emissions (including direct emissions grains (like wheat) in the following does not believe new acres would need and significant indirect emissions such year.4 to be brought into agricultural use to as significant emissions from land use Although camelina has been increase camelina production. In changes) related to the full fuel cultivated in Europe in the past for use addition, camelina currently has only lifecycle, including all stages of fuel and as food, medicine, and as a source for limited high-value niche markets for feedstock production, distribution, and lamp oil, commercial production using uses other than renewable fuels. Unlike use by the ultimate consumer. modern agricultural techniques has commodity crops that are tracked by In examining the full lifecycle GHG been limited.5 In addition to being used USDA, camelina does not have a well- impacts of renewable fuels for the RFS as a renewable fuel feedstock, small established, internationally traded program, EPA considers the following: quantities of camelina (less than 5% of • market that would be significantly Feedstock production—based on total U.S. camelina production) are affected by an increase in the use of agricultural sector models that include currently used as a dietary supplement camelina to produce biofuels. For these direct and indirect impacts of feedstock and in the cosmetics industry. reasons, which are described in more production Approximately 95% of current US • detail below, EPA has determined that Fuel production—including process production of camelina has been used production of camelina-based biofuels is energy requirements, impacts of any raw for testing purposes to evaluate its use not expected to result in significant materials used in the process, and as a feedstock to produce primarily jet GHG emissions related to direct land benefits from co-products produced. 6 fuel. The FDA has not approved use change since it is grown on fallow • Fuel and feedstock distribution— camelina for food uses, although it has land. Furthermore, due to the limited including impacts of transporting approved the inclusion of certain feedstock from production to use, and non-biofuel uses for camelina, quantities of camelina meal in production of camelina-based biofuels is transport of the final fuel to the commercial feed.7 consumer. not expected to have a significant • Camelina is currently being grown on impact on other agricultural crop Use of the fuel—including approximately 50,000 acres of land in combustion emissions from use of the production or commodity markets the U.S., primarily in Montana, eastern (either camelina or other crop markets) fuel in a vehicle. Washington, and the Dakotas.8 USDA Many of the pathways evaluated in and consequently would not result in does not systematically collect camelina this rulemaking rely on a comparison to significant GHG emissions related to production information; therefore data the lifecycle GHG analysis work that indirect land use change. To the extent on historical acreage is limited. was done as part of the Renewable Fuel camelina-based biofuel production However, available information Standard Program (RFS2) Final Rule, decreases the demand for alternative indicates that camelina has been grown published March 26, 2010. The biofuels, some with higher GHG on trial plots in 12 U.S. states.9 evaluations here rely on comparisons to emissions, this biofuel could have some For the purposes of analyzing the beneficial GHG impact. However, it is the existing analysis. EPA plans to lifecycle GHG emissions of camelina, periodically review and revise the uncertain which mix of biofuel sources EPA has considered the likely the market will demand so this potential methodology and assumptions production pattern for camelina grown associated with calculating the GHG GHG impact cannot be quantified. emissions from all renewable fuel oilseed. p. 314–322. In: J. Janick and J.E. Simon a. Growing Practices pathways. (eds.), New crops. Wiley, New York. 2 Moser, B.R., Vaughn, S.F. 2010. Evaluation of Current market conditions indicate A. Analysis of Lifecycle Greenhouse Gas Alkyl Esters from Camelina Sativa Oil as Biodiesel that camelina will most likely be grown Emissions for Biodiesel, Renewable and as Blend Components in Ultra Low Sulfur in rotation with wheat on dryland wheat Diesel, Jet Fuel, Naphtha, and Liquefied Diesel Fuel. Bioresource Technology. 101:646–653. acres replacing a period that they would Petroleum Gas (LPG) Produced From 3 McVay, K.A., and P.F. Lamb. 2008. Camelina otherwise be left fallow.10 In areas with Camelina Oil production in Montana. MSU Ext. MT200701AG (revised). http://msuextension.org/publica™tions/ lower precipitation, dryland wheat 1. Feedstock Production AgandNaturalResources/MT200701AG.pdf. farmers currently leave acres fallow 4 Putnam et al., 1993. once every three to four years to allow Camelina sativa (camelina) is an 5 Lafferty, Ryan M., Charlie Rife and Gus Foster. additional moisture and nutrients to oilseed crop within the flowering plant 2009. Spring camelina production guide for the accumulate and to control pests. Current Central High Plains. Blue Sun Biodiesel special family Brassicaceae that is native to research indicates that camelina could Northern Europe and Central Asia. publication. Blue Sun Agriculture Research & Development, Golden, CO. http:// be introduced into this rotation in Camelina’s suitability to northern www.gobluesun.com/upload/Spring%20Cam- certain areas without adversely climates and low moisture requirements elina%20Production%20Guide%202009.pdf. impacting moisture or nutrient 6 allows it to be grown in areas that are Telephone conversation with Scott Johnson, accumulation (see Figure 1). Because unsuitable for other major oilseed crops Sustainable Oils, January 11, 2011. 7 camelina has shallow roots with such as soybeans, sunflower, and See http://agr.mt.gov/camelina/FDAletter11– 09.pdf. drought resistant characteristics, the canola/rapeseed. Camelina also requires 8 McCormick, Margaret. ‘‘Oral Comments of 1 the use of little to no tillage. Compared Targeted Growth, Incorporated’’ Submitted to the 10 See Shonnard, D. R., Williams, L., & Kalnes, T. EPA on June 9, 2009. N. 2010. Camelina-Derived Jet Fuel and Diesel: 1 Putnam, D.H., J.T. Budin, L.A. Field, and W.M. 9 See https://www.camelinacompany.com/ Sustainable Advanced Biodiesel. Environmental Breene. 1993. Camelina: A promising low-input Marketing/PressRelease.aspx?Id=25. Progress & Sustainable Energy, 382–392.

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land can be returned to wheat In addition, camelina uses the same equipment for harvesting as wheat; cultivation the following year with therefore, farmers would not need to moisture and soil nutrients intact 12 Wheeler, P and F. Guillen-Portal. 2007. invest in new equipment to add quantitatively similar to a fallow year.11 Camelina Production in Montana: A survey study camelina to the rotation with wheat.12 sponsored by Targeted Growth, Inc. and Barkley Ag. BILLING CODE 6560–50–P 11 See Shonnard et al., 2010; Lafferty et al., 2009. Enterprises, LLP (unpublished).

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BILLING CODE 6560–50–C

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b. Land Availability does not have other significant markets, d. Indirect Impacts USDA estimates that there are expanding production and use of Although wheat can in some cases be approximately 60 million acres of wheat camelina for biofuel purposes is not grown in rotation with other crops such in the U.S.13 USDA and wheat state likely to have other agricultural market as lentils, flax, peas, garbanzo, and cooperative extension reports through impacts and therefore, would not result millet, cost and benefit analysis indicate 2008 indicate that 83% of U.S. wheat in any significant indirect land use that camelina is most likely to be 15 production is under non-irrigated, impacts. This assessment is based on planted on soil with lower moisture and dryland conditions. Of the a three year rotation cycle in which only nutrients where other rotation crops are approximately 50 million non-irrigated one third of the 9 million available acres not viable.20 Because expected returns acres, at least 45% are estimated to would be fallow in any given year. on camelina are relatively uncertain, follow a wheat/fallow rotation. Thus, Yields of camelina are expected to farmers are not expected to grow approximately 22 million acres are approach the yields of similar oilseed camelina on land that would otherwise potentially suitable for camelina crops over the next few years, as be used to grow cash crops with well production. However, according to experience with growing camelina established prices and markets. Instead, industry projections, only about 9 improves cultivation practices and the farmers are most likely to grow camelina million of these wheat/fallow acres have application of existing technologies are on land that would otherwise be left the appropriate climate, soil profile, and more widely adopted.16 Yields of 1650 fallow for a season. The opportunity market access for camelina pounds per acre have been achieved on cost of growing camelina on this type of production.14 Therefore, our analysis test plots, and are in line with expected land is much lower. As previously uses the estimate that only 9 million yields of other oilseeds such as canola/ discussed, this type of land represents wheat/fallow acres are available for rapeseed. Assuming average US yields the 9 million acres currently being camelina production. of 1650 pounds per acre,17 targeted for camelina production. approximately 200 MG of camelina- Current returns on camelina are c. Projected Volumes based renewable fuels could be relatively low ($13.24 per acre), given Based on these projections of land produced on existing wheat/fallow average yields of approximately 800 availability, EPA estimates that at acres. Finally, if investment in new seed pounds per acre and the current current yields (approximately 800 technology allows yields to increase to contract price of $0.145 per pound.21 pounds per acre), approximately 100 levels assumed by Shonnard et al (3000 See Table 1. For comparison purposes, million gallons (MG) of camelina-based pounds per acre), approximately 400 the USDA projections for wheat returns renewable fuels could be produced with MG of camelina-based renewable fuels are between $88–$105 per acre between camelina grown in rotation with could be produced on existing acres.18 2010 and 2020. Over time, existing crop acres without having Depending on future crop yields, we advancements in seed technology, direct land use change impacts. Also, project that roughly 100 MG to 400 MG improvements in planting and since camelina will likely be grown on of camelina-based biofuels could be harvesting techniques, and higher input fallow land and thus not displace any produced on currently fallow land with usage could significantly increase future other crop and since camelina currently no impacts on land use.19 camelina yields and returns.

TABLE 1—CAMELINA COSTS AND RETURNS

Inputs Rates 2010 Camelina 22 2022 Camelina 23 2030 Camelina 24

Herbicides: Glysophate (Fall) ...... 16 oz. ( $0.39/oz) ...... $7.00 ...... $7.00 ...... $7.00. Glysophate (Spring) ...... 16 oz. ( $0.39/oz) ...... $7.00 ...... $7.00 ...... $7.00. Post ...... 12 oz ( $0.67/oz) ...... $8.00 ...... $8.00 ...... $8.00. Seed: Camelina seed ...... $1.44/lb ...... $5.76 ...... $7.20 ...... $7.20 (4 lbs/acre) ...... (5 lbs/acre) ...... (5 lbs/acre). Fertilizer: Nitrogen Fertilizer ...... $1/pd ...... $25.00 ...... $40.00 ...... $75 (25 lb/acre) ...... (40 lb/acre) ...... (75 lbs/acre). Phosphate Fertilizer ...... $1/pd ...... $15.00 ...... $15.00 ...... $15 (15 lb/acre) ...... (15 lb/acre) ...... (15 lb/acre).

Sub-Total ...... $67.76 ...... $84.20 ...... $119.20.

Logistics: Planting Trip ...... $10.00 ...... $10.00 ...... $10.00. Harvest & Hauling ...... $25.00 ...... $25.00 ...... $25.00.

13 2009 USDA Baseline. See http:// State University Agronomy Facts 72. See http:// 20 See Lafferty et al., 2009; Shonnard et al., 2010; www.ers.usda.gov/publications/oce091/. pubs.cas.psu.edu/freepubs/pdfs/uc212.pdf. Sustainable Oils Memo dated November 5, 2010, 14 Johnson, S. and McCormick, M., Camelina: an 17 Ehrensing, D.T. and S.O. Guy. 2008. Oilseed 21 Wheeler & Guillen-Portal, 2007. Annual Cover Crop Under 40 CFR Part 80 Subpart Crops—Camelina. Oregon State Univ. Ext. Serv. 22 See Sustainable Oils Memo dated November 5, M, Memorandum, dated November 5, 2010. EM8953–E. See http://extension.oregonstate.edu/ 2010, 15 Wheeler, P. and Guillen-Portal F. 2007. catalog/pdf/em/em8953-e.pdf; McVay & Lamb, Camelina Production in Montana: A survey study 2008. 23 Based on yields technically feasible. See sponsored by Targeted Growth, Inc. and Barkley Ag. 18 See Shonnard et al., 2010. McVey and Lamb, 2008; Ehrenson & Guy, 2008. Enterprises, LLP. 19 This assumes no significant adverse climate 24 Adapted from Shonnard et al, 2010. 16 See Hunter, J and G. Roth. 2010. Camelina impacts on world agricultural yields over the Production and Potential in Pennsylvania, Penn analytical timeframe.

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TABLE 1—CAMELINA COSTS AND RETURNS—Continued

Inputs Rates 2010 Camelina 22 2022 Camelina 23 2030 Camelina 24

Total Cost ...... $102.76 ...... $119.20 ...... $154.20.

Yields ...... lb/acre ...... 800 ...... 1650 ...... 3000. Price ...... $/lb ...... $0.145 ...... $0.120 ...... $0.090. Total Revenue at avg prod/pricing ...... $116.00 ...... $198 ...... $270. Returns ...... $13.24 ...... $78.80 ...... $115.80.

While replacing the fallow period in The determination in this final rule is would not be expected to have land use a wheat rotation is expected to be the based on our projection that camelina is impacts beyond what was considered primary means by which the majority of likely to be produced on what would for international soybean production all domestic camelina is commercially otherwise be fallow land. However, the (soybean oil is the expected major harvested in the short- to medium- term, rule applies to all camelina regardless of feedstock source for U.S. biodiesel fuel in the long term camelina may expand where it is grown. EPA does not expect production and thus the feedstock of to other regions and growing methods.25 that significant camelina would be reference for the camelina evaluation). For example, if camelina production grown on non-fallow land, and small Because of these factors along with the expanded beyond the 9 million acres quantities that may be grown elsewhere small amounts of fuel potentially assumed available from wheat fallow and used for biofuel production will not coming from other countries, we believe land, it could impact other crops. significantly impact our analysis. that incorporating fuels produced in However, as discussed above this is not Furthermore, although we expect other countries will not impact our likely to happen in the near term due to most camelina used as a feedstock for threshold analysis for camelina-based uncertainties in camelina financial renewable fuel production that would biofuels. returns. Camelina production could also qualify in the RFS program would be e. Crop Inputs occur in areas where wheat is not grown in the U.S., today’s rule would commonly grown. For example, testing apply to qualifying renewable fuel made For comparison purposes, Table 2 of camelina production has occurred in from camelina grown in any country. shows the inputs required for camelina Florida in rotation with kanaf, peanuts, For the same reasons that pertain to U.S. production compared to the FASOM cotton, and corn. However, only 200 production of camelina, we expect that agricultural input assumptions for acres of camelina were harvested in camelina grown in other countries soybeans. Since yields and input 2010 in Florida. While Florida acres of would also be produced on land that assumptions vary by region, a range of camelina are expected to be higher in would otherwise be fallow and would values for soybean production are 2011, very little research has been done therefore have no significant land use shown in Table 2. The camelina input on growing camelina in Florida. For change impacts. The renewable biomass values in Table 2 represent average example, little is known about potential provisions under the Energy values, camelina input values will also seedling disease in Florida or how Independence and Security Act would vary by region, however, less data is camelina may be affected differently prohibit direct land conversion into new available comparing actual practices by than in colder climates.26 Therefore, agricultural land for camelina region due to limited camelina camelina grown outside of a wheat production for biofuel internationally. production. More information on fallow situation was not considered as Additionally, any camelina production camelina inputs is available in materials part of this analysis. on existing cropland internationally provided in the docket.

Regarding crop inputs per acre, it higher percentage of oil per pound of approximately 18% oil, therefore should be noted that camelina has a seed than soybeans. Soybeans are crushing one pound of soybeans yields

25 See Sustainable Oils Memo dated November 5, camelina is likely to be grown in wheat fallow 26 Wright & Marois, 2011. 2010 for a map of the regions of the country where conditions.

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0.18 pounds of oil. In comparison, are similar to those for growing soy produce more oil per pound than camelina is approximately 36% oil, beans, direct land use impact is soybeans. As a result, the lifecycle GHG therefore crushing one pound of expected to be negligible due to planting emissions associated with crushing and camelina yields 0.36 pounds of oil. The on land that would be otherwise fallow, oil extraction are lower for camelina difference in oil yield is taken into and the limited production and use of than soybeans, per pound of vegetable account when calculating the emissions camelina indicates no expected impacts oil produced. Table 3 summarizes data per mmBTU included in Table 2. As on other crops and therefore no indirect on inputs, outputs and estimated shown in Table 2, GHG emissions from land use impacts. lifecycle GHG emissions from crushing feedstock production for camelina and and oil extraction. The data on soybean soybeans are relatively similar when f. Crushing and Oil Extraction crushing comes from the RFS2 final factoring in variations in oil yields per We also looked at the seed crushing and oil extraction process and compared rule, based on a process model acre and fertilizer, herbicide, pesticide, 27 and petroleum use. the lifecycle GHG emissions from this developed by USDA–ARS. The data In summary, EPA concludes that the stage for soybean oil and camelina oil. on camelina crushing is from Shonnard agricultural inputs for growing camelina As discussed above, camelina seeds et al. (2010).

TABLE 3—COMPARISON OF CAMELINA AND SOYBEAN CRUSHING AND OIL EXTRACTION

Item Soybeans Camelina Units

Material Inputs: Beans or Seeds ...... 5.38 2.90 Lbs. Energy Inputs: Electricity ...... 374 47 Btu. Natural Gas & Steam ...... 1,912 780 Btu. Outputs: Refined vegetable oil ...... 1.00 1 .00 Lbs. Meal ...... 4 .08 1.85 Lbs. GHG Emissions ...... 213 64 gCO2e/lb refined oil.

2. Feedstock Distribution, Fuel glycerin co-product. The hydrotreating biodiesel pathways (e.g., based on soy Distribution, and Fuel Use process can be configured to produce oil) that were analyzed as part of the For this analysis, EPA projects that renewable diesel either primarily as RFS2 final rule. Therefore the same co- the feedstock distribution emissions diesel fuel (including heating oil) or product credit would apply to glycerin will be the same for camelina and primarily as jet fuel. Possible additional from camelina biodiesel as glycerin soybean oil. To the extent that camelina products from hydrotreating include produced in the biodiesel pathways contains more oil per pound of seed, as naphtha, LPG, and propane. Both modeled for the RFS2 final rule. The discussed above, the energy needed to processes and the fuels produced are assumption is that the GHG reductions move the camelina would be lower than described in the following sections. associated with the replacement of soybeans per gallon of fuel produced. Both processes use camelina oil as a residual oil with glycerin on an energy To the extent that camelina is grown on feedstock and camelina crushing is also equivalent basis represents an more disperse fallow land than soybean included in the analysis. appropriate midrange co-product credit of biodiesel produced glycerin. and would need to be transported a. Biodiesel further, the energy needed to move the As part of our RFS2 proposal, we camelina could be higher than soybean. For this analysis, we assumed the assumed the glycerin would have no Based on this, we believe the same biodiesel production facility value and would effectively receive no assumption to use the same distribution designs and conversion efficiencies as co-product credits in the soy biodiesel impacts for camelina as soybean is a modeled for biodiesel produced from pathway. We received numerous reasonable estimate of the GHG soybean oil and canola/rapeseed oil. comments, however, stating that the emissions from camelina feedstock Camelina oil biodiesel is produced glycerin would have a beneficial use distribution. In addition, the final fuel using the same methods as soybean oil and should generate co-product produced from camelina is also biodiesel, therefore plant designs are benefits. Therefore, the biodiesel expected to be similar in composition to assumed to not significantly differ glycerin co-product determination made the comparable fuel produced from between fuels made from these as part of the RFS2 final rule took into soybeans, therefore we are assuming feedstocks. As was the case for soybean consideration the possible range of co- GHG emissions from the distribution oil biodiesel, we have not projected in product credit results. The actual co- and use of fuels made from camelina our assessment of camelina oil biodiesel product benefit will be based on what will be the same as emissions of fuel any significant improvements in plant products are replaced by the glycerin produced from soybeans. technology. Unanticipated energy and what new uses develop for the co- saving improvements would further product glycerin. The total amount of 3. Fuel Production improve GHG performance of the fuel glycerin produced from the biodiesel There are two main fuel production pathway. industry will actually be used across a processes used to convert camelina oil The glycerin produced from camelina number of different markets with into fuel. The trans-esterification biodiesel production is equivalent to the different GHG impacts. This could process produces biodiesel and a glycerin produced from the existing include for example, replacing

27 A. Pradhan, D.S. Shrestha, A. McAloon, W. Biodiesel’’, United States Department of Energy Policy and New Uses, Agricultural Yee, M. Haas, J.A. Duffield, H. Shapouri, September Agriculture, Office of the Chief Economist, Office of Economic Report Number 845. 2009, ‘‘Energy Life-Cycle Assessment of Soybean

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petroleum glycerin, replacing fuel diesel is defined to include the products configured to maximize diesel fuel products (residual oil, diesel fuel, diesel fuel, jet fuel and heating oil, the replacement production, all of the natural gas, etc.), or being used in new following discussion uses the term emissions from the process would be products that don’t have a direct renewable diesel to also include diesel attributed to diesel fuel, but we would replacement, but may nevertheless have fuel, jet fuel and heating oil. The yield then assume the other co-products were indirect effects on the extent to which of renewable diesel is relatively displacing alternative products, for existing competing products are used. insensitive to feedstock source.28 While example, naphtha would displace The more immediate GHG reduction any propane produced as part of the gasoline, LPG would displace natural credits from glycerin co-product use hydrotreating process will most likely gas, etc. This assumes the other will likely range from fairly high be combusted within the facility for alternative products are not produced or reduction credits when petroleum process energy, the other co-products used, so we would subtract the glycerin is replaced to lower reduction that can be produced (i.e., renewable emissions of gasoline production and credits if it is used in new markets that diesel, naphtha, LPG) are higher value use, natural gas production and use, etc. have no direct replacement product, and products that could be used as This would show up as a GHG emission therefore no replaced emissions. transportation fuels or, in the case of credit associated with the production of EPA does not have sufficient naphtha, a blendstock for production of diesel fuel replacement. information (and received no relevant transportation fuel. The hydrotreating comments as part of the RFS2 rule) on process maximized for producing a To account for the case where RINs which to allocate glycerin use across the diesel fuel replacement as the primary are generated for the jet fuel, naphtha range of likely uses. Therefore, EPA fuel product requires more overall and LPG in addition to the diesel believes that the approach used in RFS2 material and energy inputs than replacement fuel produced, we would of picking a surrogate use for modeling transesterification to produce biodiesel, not give the diesel replacement fuel a purposes in the mid-range of likely but it also results in a greater amount of displacement credit for these co- glycerin uses, and the GHG emissions other valuable co-products as listed products. Instead, the lifecycle GHG results tied to such use, is reasonable. above. The hydrotreating process can emissions from the fuel production The replacement of an energy also be maximized for jet fuel processes would be allocated to each of equivalent amount of residual oil is a production which requires even more the RIN-generating products on an simplifying assumption determined by process energy than the process energy content basis. This has the effect EPA to reflect the mid-range of possible optimized for producing a diesel fuel of tending to increase the fuel glycerin uses in terms of GHG credits. replacement, and produces a greater production lifecycle GHG emissions EPA believes that it is appropriately amount of co-products per barrel of associated with the diesel replacement representative of GHG reduction credit feedstock, especially naphtha. fuel because there are less co-product across the possible range without Producers of renewable diesel from displacement credits to assign than necessarily biasing the results toward camelina have expressed interest in would be the case if RINs were not high or low GHG impact. Given the generating RINs under the RFS2 generated for the co-products.29 On the fundamental difficulty of predicting program for the slate of products other hand, the upstream lifecycle GHG possible glycerin uses and impacts of resulting from the hydrotreating emissions associated with producing those uses many years into the future process. Our lifecycle analysis accounts and transporting the plant oil feedstocks under evolving market conditions, EPA for the various uses of the co-products. will be distributed over a larger group believes it is reasonable to use the more There are two main approaches to of RIN-generating products. Assuming simplified approach to calculating co- accounting for the co-products product GHG benefit associated with each product (except propane) produced produced, the allocation approach, and glycerin production. via the camelina oil hydrotreating Given the fact that GHG emissions the displacement approach. In the process will generate RINs results in from camelina-based biodiesel would be allocation approach all the emissions higher lifecycle GHG emissions for similar to the GHG emissions from from the hydrotreating process are diesel fuel replacement as compared to soybean- based biodiesel at all stages of allocated across all the different co- the case where the co-products are not the lifecycle but would not result in products. There are a number of ways to used to generate RINs. This general land use change as was the case for soy do this but since the main use of the co- principle is also true when the oil used as a feedstock, we believe products would be to generate RINs as hydrotreating process is maximized for biodiesel from camelina oil will also a fuel product we allocate based on the jet fuel production. As a result, the meet the 50% GHG emissions reduction energy content of the co-products worst GHG performance (i.e., greatest threshold to qualify as a biomass based produced. In this case, emissions from lifecycle GHG emissions) for diesel diesel and an advanced fuel. Therefore, the process would be allocated equally replacement fuel and jet fuel produced EPA is including biodiesel produced to all the Btus produced. Therefore, on from camelina oil via hydrotreating will from camelina oil under the same a per Btu basis all co-products would occur when all of the co-products are pathways for which biodiesel made have the same emissions. The RIN-generating (we assume propane will from soybean oil qualifies under the displacement approach would attribute be used for process energy). Thus, if RFS2 final rule. all of the emissions of the hydrotreating these fuels meet the 50% GHG process to one main product and then reduction threshold for biomass based b. Renewable Diesel (Including Jet Fuel account for the emission reductions diesel or advanced biofuel when co- and Heating Oil), Naphtha, and LPG from the other co-products displacing products are RIN-generating, they will The same feedstocks currently used alternative product production. For for biodiesel production can also be example, if the hydrotreating process is 29 For a similar discussion see page 46 of Stratton, used in a hydrotreating process to R.W., Wong, H.M., Hileman, J.I. 2010. Lifecycle produce a slate of products, including 28 Kalnes, T., N., McCall, M., M., Shonnard, D., Greenhouse Gas Emissions from Alternative Jet R., 2010. Renewable Diesel and Jet-Fuel Production Fuels. PARTNER Project 28 report. Version 1.1. diesel fuel, heating oil (defined as No. from Fats and Oils. Thermochemical Conversion of PARTNER–COE–2010–001. June 2010, http:// 1 or No. 2 diesel), jet fuel, naphtha, LPG, Biomass to Liquid Fuels and Chemicals, Chapter 18, web.mit.edu/aeroastro/partner/reports/proj28/ and propane. Since the term renewable p. 475. partner-proj28–2010–001.pdf.

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also do so in the case when RINs are not evaluation considers information on the mass and energy balance data in generated for co-products. published in peer-reviewed journal Pearlson (2011) which analyzes a We have evaluated information about articles and publicly available literature hydrotreating process maximized for the lifecycle GHG emissions associated (Kalnes et al, 2010, Pearlson, M., N., diesel replacement fuel production and with the hydrotreating process which 2011,30 Stratton et al., 2010, Huo et al., a hydrotreating process maximized for can be maximized for jet fuel or diesel 2008).31 Our analysis of GHG emissions jet fuel production.32 This data is replacement fuel production. Our from the hydrotreating process is based summarized in Table 4.

TABLE 4—HYDROTREATING PROCESSES TO CONVERT CAMELINA OIL INTO DIESEL REPLACEMENT FUEL AND JET FUEL33

Maximized for Units (per gallon diesel fuel Maximized for jet of fuel production fuel production produced)

Inputs: Refined camelina oil ...... 9.56 12 .84 Lbs. Hydrogen ...... 0.04 0.08 Lbs. Electricity ...... 652 865 Btu. Natural Gas ...... 23,247 38,519 Btu. Outputs: Diesel Fuel ...... 123,136 55,845 Btu. Jet fuel ...... 23,197 118,669 Btu. Naphtha ...... 3,306 17,042 Btu. LPG ...... 3,084 15,528 Btu. Propane ...... 7,454 9,881 Btu.

Table 5 compares lifecycle GHG We also assume that the naphtha is used generate RINs. This is because, as emissions from oil extraction and fuel as blendstock for production of discussed above, lifecycle GHG production for soybean oil biodiesel and transportation fuel to generate RINs. In emissions per Btu of diesel or jet fuel for camelina-based diesel and jet fuel. this case we assume that RINs are would be lower if the naphtha or LPG The lifecycle GHG estimates for generated for the use of LPG in a way is not used to generate RINs and is camelina oil diesel and jet fuel are based that meets the EISA definition of instead used for process energy on the input/output data summarized in transportation fuel, for example it could displacing fossil fuel such as natural Table 3 (for oil extraction) and Table 4 be used in a nonroad vehicle. The gas. Supporting information for the (for fuel production). We assume that lifecycle GHG results in Table 5 values in Table 5, including key the propane co-product does not represent the worst case scenario (i.e., assumptions and data, is provided generate RINs; instead, it is used for highest GHG emissions) because all of through the docket. process energy displacing natural gas. the eligible co-products are used to

TABLE 5—FUEL PRODUCTION LIFECYCLE GHG EMISSIONS (KGCO2e/MMBTU) 34

RIN–Generating Feedstock Production process products Other co-products Oil extraction Processing Total

Soybean Oil ...... Trans-Esterification Biodiesel ...... Glycerin ...... 14 (1) 13 Camelina Oil ...... Trans-Esterification Biodiesel ...... Glycerin ...... 4 (1) 3 Camelina Oil ...... Hydrotreating Maxi- Diesel ...... Propane ...... 4 8 12 mized for Diesel. Jet Fuel. Naphtha. LPG.

Camelina Oil ...... Hydrotreating Maxi- Jet Fuel ...... Propane ...... 4 11 14 mized for Jet Fuel. Diesel. Naphtha. LPG.

As discussed above, for a process that naphtha) we allocate lifecycle GHG each fuel product. Therefore, each RIN- produces more than one RIN-generating emissions to the RIN generating generating product from the same output (e.g., the hydrotreating process products on an energy equivalent basis. process will be assigned equal lifecycle summarized in Table 5 which produces We then normalize the allocated GHG emissions per mmBtu from fuel diesel replacement fuel, jet fuel, and lifecycle GHG emissions per mmBtu of processing. For example, based on the

30 Pearlson, M., N. 2011. A Techno-Economic and 32 We have also considered data submitted by 34 Lifecycle GHG emissions are normalized per Environmental Assessment of Hydroprocessed companies involved in the hydrotreating industry mmBtu of RIN-generating fuel produced. Totals Renewable Distillate Fuels. which is claimed as confidential business may not be the sum of the rows due to rounding 31 Huo, H., Wang., M., Bloyd, C., Putsche, V., information (CBI). The conclusions using the CBI error. Parentheses indicate negative numbers. 2008. Life-Cycle Assessment of Energy and data are consistent with the analysis presented here. Process emissions for biodiesel production are Greenhouse Gas Effects of Soybean-Derived 33 negative because they include the glycerin offset Biodiesel and Renewable Fuels. Argonne National Based on Pearlson (2011), Table 3.1 and Table Laboratory. Energy Systems Division. ANL/ESD/08– 3.2. credit. 2. March 12, 2008.

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lifecycle GHG estimates in Table 5 for increased production of camelina-based are assumed to be not significant for the the hydrotreating process maximized to renewable fuel is not expected to result camelina pathway considered. Thus, produce jet fuel, the jet fuel and the in significant land use change EPA is including camelina oil as a naphtha both have lifecycle GHG emissions. For the purposes of this potential feedstock under the same emissions of 14 kgCO2e/mmBtu. For the analysis, EPA is projecting there will be biodiesel and renewable diesel (which same reasons, the lifecycle GHG no land use emissions associated with includes diesel fuel, jet fuel, and heating emissions from the jet fuel and naphtha camelina production for use as a oil) pathways for which soybean oil will stay equivalent if we consider renewable fuel feedstock. currently qualifies. We are also upstream GHG emissions, such as However, while production of including a pathway for naphtha and emissions associated with camelina camelina on acres that would otherwise LPG produced from camelina oil cultivation and harvesting. Lifecycle remain fallow is expected to be the through hydrotreating. This is based on GHG emissions from fuel distribution primary means by which the majority of the fact that our analysis shows that and use could be somewhat different for all camelina is commercially harvested even when all of the co-products are the jet fuel and naphtha, but since these in the short- to medium- term, in the used to generate RINs the lifecycle GHG stages produce a relatively small share long term camelina may expand to other emissions for RIN-generating co- of the emissions related to the full fuel growing methods and lands if demand products including diesel replacement lifecycle, the overall difference will be increases substantially beyond what fuel, jet fuel, naphtha and LPG quite small. EPA is currently predicting. While the produced from camelina oil will all Given that GHG emissions from impacts are uncertain, there are some meet the 50% GHG emissions reduction camelina oil would be similar to the indications demand could increase threshold. GHG emissions from soybean oil at all significantly. For example, camelina is We are also clarifying that two stages of the lifecycle but would not included under USDA’s Biomass Crop existing pathways for RIN generation in result in land use change emissions (soy Assistance Program (BCAP) and there is the RFS regulations that list ‘‘renewable oil feedstock did have a significant land growing support for the use of camelina diesel’’ as a fuel product produced use change impact but still met a 50% oil in producing drop-in alternative through a hydrotreating process include GHG reduction threshold), and aviation fuels. EPA plans to monitor the jet fuel. This applies to two pathways in considering differences in process expansion of camelina production to Table 1 to § 80.1426 of the RFS emissions between soybean biodiesel verify whether camelina is primarily regulations which both list renewable and camelina-based renewable diesel, grown on existing acres once camelina diesel made from soy bean oil, oil from we conclude that renewable diesel from is produced at larger-scale volumes. annual covercrops, algal oil, biogenic camelina oil will also meet the 50% Similarly, we will consider market waste oils/fats/greases, or non-food GHG emissions reduction threshold to impacts if alternative uses for camelina grade corn oil using hydrotreating as a qualify as biomass based diesel and expand significantly beyond what was process. If parties produce jet fuel from advanced fuel. Although some of the described in the above analysis. Just as the hydrotreating process and co- potential configurations result in fuel EPA plans to periodically review and process renewable biomass and production GHG emissions that are revise the methodology and petroleum they can generate advanced higher than fuel production GHG assumptions associated with calculating biofuel RINs (D code 5) for the jet fuel emissions for soybean oil biodiesel, land the GHG emissions from all renewable produced. If they do not co-process use change emissions account for fuel feedstocks, EPA expects to review renewable biomass and petroleum they approximately 80% of the soybean oil to and revise as necessary the analysis of can generate biomass-based diesel RINs biodiesel lifecycle GHGs. Since camelina in the future. (D code 4) for the jet fuel produced. camelina is assumed not to have land Taking into account the assumption of § 80.1401 of the RFS regulations use change emissions, our analysis no land use change emissions when currently defines non-ester renewable shows that camelina renewable diesel camelina is used to produce renewable diesel as a fuel that is not a mono-alkyl will qualify for advanced renewable fuel fuel, and considering that other sources ester and which can be used in an and biomass-based diesel RINs even for of GHG emissions related to camelina engine designed to operate on the cases with the highest lifecycle biodiesel or renewable diesel conventional diesel fuel or be heating GHGs (e.g., when all of the co-products production have comparable GHG oil or jet fuel. The reference to jet fuel are used to generate RINs.) Because the emissions to biodiesel from soybean oil, in this definition was added by direct lifecycle GHG emissions for RIN- we have determined that camelina- final rule dated May 10, 2010. Table 1 generating co-products are very similar, based biodiesel and renewable diesel to § 80.1426 identifies approved fuel we can also conclude naphtha and LPG should be treated in the same manner as pathways by fuel type, feedstock source produced from camelina oil will also soy-based biodiesel and renewable and fuel production processes. The meet the 50% GHG emissions reduction diesel in qualifying as biomass-based table, which was largely adopted as part threshold. If the facility does not diesel and advanced biofuel for of the March 26, 2010 RFS2 final rule, actually generate RINs for one or more purposes of RIN generation, since the identifies jet fuel and renewable diesel of these co-products, we estimate that GHG emission performance of the as separate fuel types. Accordingly, in the lifecycle GHG emissions related to camelina-based fuels will be at least as light of the revised definition of the RIN-generating products would be good and in some respects better than renewable diesel enacted after the RFS2 lower, thus renewable diesel (which that modeled for fuels made from rule, there is ambiguity regarding the includes diesel fuel, jet fuel, and heating soybean oil. EPA found as part of the extent to which references in Table 1 to oil) from camelina would still meet the Renewable Fuel Standard final ‘‘renewable diesel’’ include jet fuel. 50% emission reduction threshold. rulemaking that soybean biodiesel The original lifecycle analysis for the resulted in a 57% reduction in GHG renewable diesel from hydrotreating 4. Summary emissions compared to the baseline pathways listed in Table 1 to § 80.1426 Current information suggests that petroleum diesel fuel. Furthermore, was not based on producing jet fuel but camelina has limited niche markets and approximately 80% of the lifecycle rather other transportation diesel fuel will be produced on land that would impacts from soybean biodiesel were products, namely a diesel fuel otherwise remain fallow. Therefore, from land use change emissions which replacement. As discussed above, the

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hydrotreating process can produce a (pennisetum purpureum), also known as and napiergrass. As with the mix of products including jet fuel, elephant grass. In the proposed and switchgrass analysis, we have attributed diesel, naphtha, LPG and propane. Also, final RFS2 rule, EPA analyzed the all land use impacts and resource inputs as discussed, there are differences in the lifecycle GHG impacts of producing and from use of these feedstocks to the process configured for maximum jet fuel using cellulosic ethanol and cellulosic portion of the fuel produced that is production vs. the process maximized Fischer-Tropsch diesel from derived from the cellulosic components for diesel fuel production and the switchgrass. The midpoint of the range of the feedstocks. Based on this analysis lifecycle results vary depending on what of switchgrass results showed a 110% and currently available information, we approach is used to consider co- GHG reduction (range of 102%–117%) conclude that biofuel (ethanol, products (i.e., the allocation or for cellulosic ethanol (biochemical cellulosic diesel, jet fuel, heating oil and displacement approach). process), a 72% (range of ¥64% to naptha) produced from the cellulosic In cases where there are no pathways ¥79%) reduction for cellulosic ethanol biomass of energy cane, giant reed, or for generating RINs for the co-products (thermochemical process), and a 71% napiergrass has similar lifecycle GHG from the hydrotreating process it would (range of ¥62% to ¥77%) reduction for impacts to switchgrass biofuel and be appropriate to use the displacement cellulosic diesel (F–T process) meets the 60% GHG reduction threshold method for capturing the credits of co- compared to the petroleum baseline. In required for cellulosic biofuel. products produced. This is the case for the RFS2 final rule, we indicated that 1. Feedstock Production and most of the original feedstocks included some feedstock sources can be Distribution in Table 1 to § 80.1426.35 As was determined to be similar enough to discussed previously, if the those modeled that the modeled results For the purposes of this rulemaking, displacement approach is used when jet could reasonably be extended to these energy cane refers to varieties of fuel is the primary product produced it similar feedstock types. For instance, perennial grasses in the Saccharum results in lower emissions then the information on miscanthus indicated genus which are intentionally bred for production maximized for diesel fuel that this perennial grass will yield more high cellulosic biomass productivity but production. Therefore, since the feedstock per acre than the modeled have characteristically low sugar hydrotreating process maximized for switchgrass feedstock without content making them unsuitable as a diesel fuel meets the 50% lifecycle GHG additional inputs with GHG primary source of sugar as compared to threshold for the feedstocks in question, implications (such as fertilizer). other varieties of grasses commonly the process maximized for jet fuel Therefore in the final rule EPA known as ‘‘sugarcane’’ in the would also qualify. concluded that since biofuel made from Saccharum genus. Energy cane varieties Thus, we are interpreting the the cellulosic biomass in switchgrass developed to date have low tolerance for references to ‘‘renewable diesel’’ in was found to satisfy the 60% GHG cold temperatures but grow well in Table 1 to include jet fuel, consistent reduction threshold for cellulosic warm, humid climates. Energy cane with our regulatory definition of ‘‘non- biofuel, biofuel produced form the originated from efforts to improve ester renewable diesel,’’ since doing so cellulosic biomass in miscanthus would disease resistance and hardiness of clarifies the existing regulations while also comply. In the final rule we commercial sugarcane by crossbreeding ensuring that Table 1 to § 80.1426 included cellulosic biomass from commercial and wild sugarcane strains. appropriately identifies fuel pathways switchgrass and miscanthus as eligible Certain higher fiber, lower sugar that meet the GHG reduction thresholds feedstocks for the cellulosic biofuel varieties that resulted were not suitable associated with each pathway. pathways included in Table 1 to for commercial sugar production, and We note that although the definition § 80.1426. are now being developed as a high- We did not include other perennial of renewable diesel includes jet fuel and biomass energy crop. There is currently grasses such as energy cane, giant reed, heating oil, we have also listed in Table no commercial production of energy or napiergrass as feedstocks for the 1 of section 80.1426 of the RFS2 cellulosic biofuel pathways in Table 1 at cane. Current plantings are mainly regulations jet fuel and heating oil as that time, since we did not have limited to research field trials and small specific co-products in addition to sufficient time to adequately consider demonstrations for bioenergy purposes. listing renewable diesel to assure them. Based in part on additional However, based in part on discussions clarity. This clarification also pertains to information received through the with industry, EPA anticipates all the feedstocks already included in petition process for EPA approval of continued development of energy cane Table 1 for renewable diesel. energy cane, giant reed, and napiergrass particularly in the south-central and southeastern United States due to its B. Lifecycle Greenhouse Gas Emissions pathways, EPA has evaluated these high yields in these regions. Analysis for Ethanol, Diesel, Jet Fuel, feedstocks and is now including the Heating Oil, and Naphtha Produced cellulose, hemicelluloses and lignin Giant reed refers to the perennial From Energy Cane, Giant Reed, and portions of renewable biomass from grass Arundo donax of the Gramineae Napiergrass energy cane, giant reed, and napiergrass family. Giant reed thrives in subtropical in Table 1 to § 80.1426 as approved and warm-temperate areas and is grown For this rulemaking, EPA considered feedstocks for cellulosic biofuel throughout Asia, southern Europe, the lifecycle GHG impacts of three new pathways. Africa, the Middle East, and warmer types of high-yielding perennial grasses As described in detail in the following U.S. states for multiple uses such as similar in cellulosic composition to sections of this preamble, because of the paper and pulp, musical instruments, switchgrass and comparable in status as similarity of these feedstocks to rayon, particle boards, erosion control, an emerging energy crop. Energy cane switchgrass and miscanthus, EPA and ornamental purposes.36 37 Based in (related to sugarcane), giant reed believes that new agricultural sector (Arundo donax), and napiergrass modeling is not needed to analyze them. 36 See http://www.fs.fed.us/database/feis/plants/ We have instead relied upon the graminoid/arudon/all.html. 35 The exception is naphtha produced from waste 37 See Lewandowski, I., Scurlock, J.M.O., categories, but these would pass the lifecycle switchgrass analysis to assess the Lindvall, E., Christou, M. (2003). The development thresholds regardless of the allocation approach relative GHG impacts of biofuel and current status of perennial rhizomatous grasses used given their low feedstock GHG impacts. produced from energy cane, giant reed, Continued

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part on discussions with industry, EPA Fertilized field trials have shown yields Based on these yield assumptions, in anticipates continued development of around 13 to 28 dry tons per acre in areas with suitable growing conditions, giant reed as an energy crop particularly Spain, and 12 dry tons per acre in Italy energy cane would require in the Mediterranean region and warmer (based on annual yields of 3, 14, 17, 16, approximately 26% to 47% of the land U.S. states. and 12).42 High yields have been area required by switchgrass to produce Napiergrass is a tall bunch-type grass demonstrated with unimproved giant the same amount of biomass, giant reed that has traditionally been grown as a reed populations, and therefore there is would require less than 40% of the land high-yielding forage crop across the wet potential for increased biomass area required by switchgrass to produce tropics. There is a considerable body of productivity through improved growing the same amount of biomass, and agronomic research on the production of methods and breeding efforts.43 napiergrass would require napiergrass as a forage crop. More Napiergrass field trials have produced approximately 33% of the land area recently, researchers have investigated dry biomass yields exceeding 20 tons required by switchgrass to produce the ways to maximize traits desirable in per acre per year in north-central same amount of biomass due to their bioenergy crops. Practices have been Florida. Using currently available higher yields. Even without yield developed by USDA and other technology, average yields for full- growth assumptions, their currently researchers to lower fertilization rates season napiergrass should range from 14 higher crop yield rates means the land and increase biomass production. Based to 18 tons per acre with future use required for these crops would be in part on discussions with industry, improvements expected. Yield depends lower than for switchgrass. Therefore EPA anticipates continued development greatly on the type of cultivar and the less crop area would be converted and of napiergrass as an energy crop amount and distribution of rainfall and displaced resulting in smaller land-use particularly in Gulf Coast Region of the fertilization rates. There is potential for change GHG impacts than that assumed United States (more specifically the increased biomass productivity through for switchgrass to produce the same growing region includes Florida and improved growing methods and amount of fuel. Furthermore, we believe southern portions of Texas, Louisiana, breeding efforts.44 In general, the yields energy cane and napiergrass will have a Georgia, Alabama and Mississippi).38 for all three of the energy grasses similar impact on international markets considered here will have higher yields as assumed for switchgrass. Like a. Crop Yields than switchgrass, so from a crop yield switchgrass, energy cane and perspective, the switchgrass analysis napiergrass are not expected to be For the purposes of analyzing the traded internationally and their impacts GHG emissions from energy cane, giant would be a conservative estimate when comparing against the energy cane, on other crops are expected to be reed, and napiergrass production, EPA limited. Increased giant reed demand in examined crop yields and production napier grass, and giant reed pathways. Furthermore, EPA’s analysis of the U.S. for biofuels is not expected to inputs in relation to switchgrass to impact existing markets for giant reed, assess the relative GHG impacts. Current switchgrass for the RFS2 rulemaking assumed a 2% annual increase in yield which are relatively small niche markets national yields for switchgrass are (e.g., musical instrument reeds). approximately 4.5 to 5 dry tons per acre. that would result in an average national Average energy cane yields exceed yield of 6.6 dry tons per acre in 2022. b. Land Use switchgrass yields in both unfertilized EPA anticipates a similar yield In EPA’s RFS2 analysis, switchgrass and fertilized trails conducted in the improvement for energy cane, giant plantings displaced primarily soybeans southern United States. Unfertilized reed, and napiergrass due to their and wheat, and to a lesser extent hay, yields are around 7.3 dry tons per acre similarity as perennial grasses and their rice, sorghum, and cotton. Energy cane while fertilized trials show energy cane comparable status as energy crops in and napiergrass, with production yields range from approximately 11 to their early stages of development. Given focused in the southern United States, 20 dry tons per acre.39 40 Until recently this, our analysis assumes an average are likely to be grown on land once used there have been few efforts to improve energy cane yield of 19 dry tons per acre for pasture, rice, commercial sod, cotton energy cane yields, but several energy in the southern United States by 2022; or alfalfa, which would likely have less cane development programs are now an average giant reed yield of of an international indirect impact than underway to further increase its biomass approximately 18 dry tons per acre by switchgrass because some of those productivity. Giant reed field trials 2022; and an average napiergrass yield commodities are not as widely traded as conducted in Alabama over a 9-year of approximately 20 dry tons per acre by soybeans or wheat. Given that energy period showed an average yield of 15 2022.45 The ethanol yield for all of the cane and napiergrass will likely dry tons per acre with no nitrogen grasses is approximately the same so the displace the least productive land first, fertilizer applied after the first year.41 higher crop yields for energy cane, EPA concludes that the land use GHG napiergrass, and giant reed result impact for energy cane and napiergrass as energy crops in the US and Europe. Biomass and directly in greater ethanol production per gallon should be no greater and Bioenergy 25, 335–361. compared to switchgrass per acre of likely less than estimated for 38 For a map depicting the northern limit for production. switchgrass. Given that giant reed is in sustained napiergrass production in the United States see Figure 1 in Woodard, K., R. and early stages of development as an energy Sollenberger, L, E. 2008. Production of Biofuel Revolution 2.0; 2010 Oct 31–Nov 4; Long Beach, crop, there is limited information on Crops in Florida: Elephantgrass. Institute of Food CA. where it will be grown and what crops 42 and Agricultural Sciences, University of Florida. SS Mantineo, M., D’Agnosta, G.M., Copani, V., it will displace. We expect giant reed AGR 297. Patane`, C., and Cosentino, S.L. (2009). Biomass 39 See Bischoff, K.P., Gravois, K.A., Reagan, T.E., yield and energy balance of three perennial crops will displace the least productive land Hoy, J.W., Kimbeng, C.A., LaBorde, C.M., Hawkins, for energy use in the semi-arid Mediterranean first and would likely have a similar or G.L. Plant Regis. 2008, 2, 211–217. environment. Field Crops Research 114, 204–213. smaller indirect impact associated with 40 See Hale, A.L. Sugar Bulletin, 2010, 88, 28–29. 43 Lewandowski et al. 2003. crop displacement than what we 44 41 Huang, P., Bransby, D., and Sladden, S. (2010). Based on discussions with industry and USDA assumed for switchgrass. Exceptionally high yields and soil carbon and Woodard and Sollenberger (2008). sequestration recorded for giant reed in Alabama. 45 These yields assume no significant adverse Considering the total land potentially Poster session presented at: ASA, CSSA, and SSSA climate impacts on world agricultural yields over impacted by all the new feedstocks 2010 International Annual Meetings, Green the analytical timeframe. included in this rulemaking would not

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impact these conclusions (including the and transporting energy cane, giant This assessment assumes production camelina discussed in the previous reed, and napiergrass feedstocks in of all three new feedstocks uses section and the three energy grasses comparison to switchgrass. Table 6 electricity for irrigation given that considered here). As discussed shows the assumed 2022 commercial- growers will likely irrigate when previously, the camelina is expected to scale production inputs for switchgrass possible to improve yields. Irrigation be grown on fallow land in the (used in the RFS2 rulemaking analysis), rates will vary depending on the timing Northwest, while energy grasses are average energy cane, giant reed, and and amount of rainfall, but for the expected to be grown mainly in the napiergrass production inputs (USDA purpose of estimating GHG impacts of south on existing cropland or projections and industry data) and the electricity use for irrigation, we pastureland. In the switchgrass ethanol associated GHG emissions. assumed a rate similar to what we scenario done for the Renewable Fuel Available data gathered by EPA assumed for other irrigated crops in the Standard final rulemaking, total suggest that energy cane requires on cropland acres increases by 4.2 million Southwest, South Central, and acres, including an increase of 12.5 average less nitrogen, phosphorous, Southeast as shown in Table 6. million acres of switchgrass, a decrease potassium, and pesticide than Applying the GHG emission factors of 4.3 million acres of soybeans, a 1.4 switchgrass per dry ton of biomass, but used in the RFS2 final rule, energy cane million acre decrease of wheat acres, a more herbicide, lime, diesel, and production results in slightly higher electricity per unit of biomass. Giant decrease of 1 million acres of hay, as GHG emissions relative to switchgrass reed may require on average less well as decreases in a variety of other production (an increase of nitrogen and insecticide than crops. Given the higher yields of the approximately 4 kg CO eq/mmbtu). switchgrass, but more phosphorous, 2 energy grasses considered here Giant reed production results in slightly compared to switchgrass, there would potassium, herbicide, diesel, and electricity per unit of biomass. lower GHG emissions relative to be ample land available for production switchgrass production (a decrease of without having any adverse impacts Napiergrass may require similar amounts of nitrogen fertilizer approximately 2 kg CO2eq/mmbtu). beyond what was considered for Napiergrass production results in switchgrass production. application as switchgrass, less phosphorous, potassium and insecticide slightly higher GHG emissions relative c. Crop Inputs and Feedstock Transport than switchgrass, but more herbicide, to switchgrass production (an increase EPA also assessed the GHG impacts lime, diesel, and electricity per unit of of approximately 6 kg CO2eq/mmbtu). associated with planting, harvesting, biomass. TABLE 6—PRODUCTION INPUTS AND GHG EMISSIONS FOR SWITCHGRASS, ENERGY CANE, GIANT REED, AND NAPIERGRASS (BIOCHEMICAL ETHANOL), 2022

Switchgrass Energy Cane Giant Reed Napiergrass Emission factors Inputs (per Inputs (per Inputs (per Inputs (per dry ton of Emissions (per dry ton of Emissions (per dry ton of Emissions (per dry ton of Emissions (per biomass) mmBtu fuel) biomass) mmBtu fuel) biomass) mmBtu fuel) biomass) mmBtu fuel)

Nitrogen Fertilizer 3,29 kgCO2e/ton 15.2 lbs .... 3.6 kgCO2e .... 8.4 lbs ...... 2 kgCO2e ...... 5 lbs ...... 1 kgCO2e ...... 10 lbs ...... 2.4 kgCO2e. of nitrogen. N2O ...... N/A ...... N/A ...... 7.6 kgCO2e .... N/A ...... 5.9 kgCO2e .... N/A ...... 4.8 kgCO2e .... N/A ...... 7.6 kgCO2e. Phosphorus Fer- 1,12 kgCO2e/ton 6.1 lbs ...... 0.5 kgCO2e .... 3.2 lbs ...... 0.3 kgCO2e .... 7.4 lbs ...... 0.6 kgCO2e .... 1.1 lbs ...... 0.1 kgCO2e. tilizer. of phosphate. Potassium Fer- 743 kgCO2e/ton 6.1 lbs ...... 0.3 kgCO2e .... 4.2 lbs ...... 0.2 kgCO2e .... 7.4 lbs ...... 0.4 kgCO2e .... 4.0 lbs ...... 0.2 kgCO2e. tilizer. of potassium. Herbicide ...... 23,45 kgCO2e/ 0.002 lbs .. 0.003 kgCO2e 1.0 lbs ...... 1.8 kgCO2e .... 0.02 lbs .... 0.03 kgCO2e .. 0.4 lbs ...... 0.6 kgCO2e. tons of herbi- cide. Insecticide (aver- 27,22 kgCO2e/ 0.025 lbs .. 0.04 kgCO2e .. 0 lbs ...... 0 kgCO2e ...... 0 lbs ...... 0 kgCO2e ...... 0 lbs ...... 0 kgCO2e. age across re- tons of pes- gions). ticide. Lime ...... 408 kgCO2e/ton 0 lbs ...... 0 kgCO2e ...... 104.7 lbs .. 3.1 kgCO2e .... 0 lbs ...... 0 kgCO2e ...... 100 lbs ..... 2.9 kgCO2e. of lime. Diesel ...... 97 kgCO2e/ 0.4 gal ...... 0.8 kgCO2e .... 1.3 gal ...... 2.4 kgCO2e .... 1.4 gal ...... 2.5 kgCO2e .... 1.3 gal ...... 2.2 kgCO2e. mmBtu diesel. Electricity (irriga- 220 kgCO2e/ 0 kWh ...... 0 kgCO2e ...... 14.7 kWh .. 1.6 kgCO2e .... 10 kWh ..... 1 kgCO2e ...... 25 kWh ..... 2.7 kgCO2e. tion). mmBtu.

Total Emis- ...... 13 kgCO2e/ ...... 17 kgCO2e/ ...... 11 kgCO2e/ ...... 19 kgCO2e/ sions. mmBtu. mmBtu. mmBtu. mmBtu. Assumes 2022 switchgrass yield of 6.59 dry tons/acre and 92.3 gal ethanol/dry ton, 2022 energy cane yield of 19.1 dry tons/acre and 92 gal ethanol/dry ton, 2022 giant reed yield of 18 dry tons/acre and 92.3 gal ethanol/dry ton, and 2022 napiergrass yield of 20 dry tons/acre and 92.3 gal ethanol/dry ton. More detail on calcula- tions and assumptions is included in materials to the docket.

GHG emissions associated with analysis therefore assumes the same production facilities per gallon or Btu of distributing energy cane, giant reed, and GHG impact for feedstock distribution final fuel produced. napiergrass feedstocks are expected to as we assumed for switchgrass, although 2. Fuel Production, Distribution, and be similar to EPA’s estimates for distributing energy cane, giant reed, and Use switchgrass feedstock because they are napiergrass feedstocks could be less all herbaceous agricultural crops GHG intensive because higher yields Energy cane, giant reed, and requiring similar transport, loading, could translate to shorter overall napiergrass are suitable for the same unloading, and storage regimes. Our hauling distances to storage or biofuel conversion processes as other cellulosic

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feedstocks, such as switchgrass and corn approximately 6 kg CO2eq/mmBtu renewable fuel production. stover. Currently available information higher than switchgrass. These are small Furthermore, any energy grass on energy cane, giant reed, and changes in the overall lifecycle, production on existing cropland napiergrass composition shows that representing at most a 6% change in the internationally would not be expected their hemicellulose, cellulose, and energy grass lifecycle impacts in to have land use impacts beyond what lignin content are comparable to other comparison to the petroleum fuel was considered for switchgrass crops that qualify under the RFS baseline. Furthermore, the three production. Even if there were regulations as feedstocks for the feedstocks considered are expected to unexpected larger differences, EPA production of cellulosic biofuels. Based have similar or lower GHG emissions believes the small amounts of feedstock on this similar composition as well as than switchgrass associated with other or fuel potentially coming from other conversion yield data provided by components of the biofuel lifecycle. countries will not impact our threshold industry, we applied the same Under a hypothetical worst case, if analysis. production processes that were modeled the calculated increases in growing and Based on our assessment of for switchgrass in the final RFS2 rule harvesting the new feedstocks are switchgrass in the RFS2 final rule and (biochemical ethanol, thermochemical incorporated into the lifecycle GHG this comparison of GHG emissions from ethanol, and Fischer-Tropsch (F–T) emissions calculated for switchgrass, switchgrass and energy cane, giant reed, 46 diesel ) to energy cane, giant reed, and and other lifecycle components are and napiergrass, we do not expect napiergrass. We assumed the GHG projected as having similar GHG variations to be large enough to bring emissions associated with producing impacts to switchgrass (including land the overall GHG impact of fuel made biofuels from energy cane, giant reed, use change associated with switchgrass from energy cane, giant reed or napier and napiergrass are similar to what we production), the overall lifecycle GHG grass to come close to the 60% estimated for switchgrass and other reductions for biofuel produced from threshold for cellulosic biofuel. cellulosic feedstocks. EPA also assumes energy cane, giant reed, and napiergrass Therefore, EPA is including cellulosic that the distribution and use of biofuel still meet the 60% reduction threshold biofuel produced from the cellulose, for cellulosic biofuel, the lowest being a made from energy cane, giant reed, and hemicelluloses and lignin portions of 64% reduction (for napiergrass F–T napiergrass will not differ significantly energy cane, giant reed, and napiergrass diesel) compared to the petroleum from similar biofuel produced from under the same pathways for which baseline. We believe these are other cellulosic sources. As was done cellulosic biomass from switchgrass conservative estimates, as use of energy for the switchgrass case, this analysis qualifies under the RFS2 final rule. assumes energy grasses grown in the cane, giant reed, or napiergrass as a United States for production purposes. feedstock is expected to have smaller C. Lifecycle Greenhouse Gas Emissions If crops were grown internationally, land-use GHG impacts than switchgrass, Analysis for Certain Renewable used for biofuel production, and the fuel due to their higher yields. The docket Gasoline and Renewable Gasoline was shipped to the U.S., shipping the for this rule provides additional detail Blendstocks Pathways finished fuel to the U.S. could increase on the analysis of energy cane, giant In this rule, EPA is also adding transport emissions. However, reed, and napiergrass as biofuel pathways to Table 1 to § 80.1426 for the considering the increased transport feedstocks. production of renewable gasoline and emissions associated with sugarcane Although this analysis assumes renewable gasoline blendstock using ethanol distribution to the U.S., this energy cane, giant reed, and napiergrass specified feedstocks, fuel production would at most add 1–2% to the overall biofuels produced for sale and use in processes, and process energy sources. lifecycle GHG impacts of the energy the United States will most likely come The feedstocks we considered are grasses. from domestically produced feedstock, we also intend for the approved generally considered waste feedstocks 3. Summary pathways to cover energy cane, giant such as crop residues or cellulosic Based on our comparison of reed, and napiergrass from other components of separated yard waste. switchgrass and the three feedstocks countries. We do not expect incidental These feedstocks have been identified considered here, EPA believes that amounts of biofuels from feedstocks by the industry as the most likely cellulosic biofuel produced from the produced in other nations to impact our feedstocks for use in making renewable cellulose, hemicellulose and lignin average GHG emissions. Moreover, gasoline or renewable gasoline portions of energy cane, giant reed, and those countries most likely to be blendstock in the near term due to their napiergrass has similar or better exporting energy cane, giant reed, or availability and low cost. Additionally, lifecycle GHG impacts than biofuel napiergrass or biofuels produced from these feedstocks have already been produced from the cellulosic biomass these feedstocks are likely to be major analyzed by EPA as part of the RFS2 from switchgrass. Our analysis suggests producers which typically use similar rulemaking for the production of other that the three feedstocks considered cultivars and farming techniques. fuel types. Consequently, no new have GHG impacts associated with Therefore, GHG emissions from modeling is required and we rely on growing and harvesting the feedstock producing biofuels with energy cane, earlier assessments of feedstock that are similar to switchgrass. giant reed, or napiergrass grown in other production and distribution for Emissions from growing and harvesting countries should be similar to the GHG assessing the likely lifecycle impact on energy cane are approximately 4 kg emissions we estimated for U.S. energy renewable gasoline and renewable CO2eq/mmBtu higher than switchgrass, cane, giant reed, or napiergrass, though gasoline blendstock. We have also relied emissions from growing and harvesting they could be slightly (and on the petroleum gasoline baseline giant reed are approximately 2 kg insignificantly) higher or lower. For assessment from the RFS2 rule for CO2eq/mmBtu lower than switchgrass, example, the renewable biomass estimating the fuel distribution and use and emissions from growing and provisions under the Energy GHG emissions impacts for renewable harvesting napiergrass are Independence and Security Act would gasoline and renewable gasoline prohibit direct conversion of previously blendstock. Consequently, the only new 46 The F–T diesel process modeled applies to unfarmed land in other countries into analysis required is of the technologies cellulosic diesel, jet fuel, heating oil, and naphtha. cropland for energy grass-based for turning the feedstock into renewable

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gasoline and renewable gasoline and F–T diesel pathways as part of the process to a biochemical renewable blendstock. RFS2 rulemaking. gasoline or renewable gasoline In this rulemaking we are analyzing blendstock fermentation process. In 1. Feedstock Production and renewable gasoline and renewable some cases, the available data sources Distribution gasoline blendstock produced from corn included process yields for renewable EPA has evaluated renewable gasoline stover (and, by extension, other waste gasoline or renewable gasoline and renewable gasoline blendstock feedstocks). The number of gallons of blendstock produced from wood chips pathways that utilize cellulosic fuel produced from a ton of corn stover rather than corn stover which was feedstocks currently included in Table 1 (modeled process yields) is specific to specifically modeled as a feedstock in to § 80.1426 of the regulations. The the process used to produce renewable the RFS2 final rule. We believe that the following feedstocks were evaluated: fuel. EPA has adjusted the results of the process yields are not significantly • Cellulosic biomass from crop earlier corn stover modeling to reflect impacted by the source of cellulosic residue, slash, pre-commercial the different process yields and heating material whether the cellulosic material thinnings and tree residue, annual cover value of renewable gasoline or comes from residue such as corn stover crops; or wood material such as from tree • renewable gasoline blendstock product. Cellulosic components of separated The results of this calculation are shown residues. We made the simplifying yard waste; • below in Table 7. assumption that one dry ton of wood Cellulosic components of separated We based our process yields and feedstock produces the same volume of food waste; and heating values for renewable gasoline renewable gasoline or renewable • Cellulosic components of separated and renewable gasoline blendstock on gasoline blendstock as one dry ton of MSW. corn stover. We believe this is The FASOM and FAPRI models were several process technologies reasonable considering that the RFS2 used to analyze the GHG impacts of the representative of technologies rulemaking analyses for biochemical feedstock production portion of a fuel’s anticipated to be used in producing ethanol and thermochemical F–T diesel lifecycle. In the RFS2 rulemaking, these fuels. As discussed later in this processes showed limited variation in FASOM and FAPRI modeling was section, there are four main types of fuel process yields between different performed to analyze the emissions production technologies available for feedstocks for a given process impact of using corn stover as a biofuel producing renewable gasoline. These four processes can be characterized as technology.48 In addition, since the feedstock and this modeling was renewable gasoline and renewable extended to some additional feedstock (1) thermochemical gasification, (2) catalytic pyrolysis and upgrading to gasoline blendstock pathways include sources considered similar to corn feedstocks that were already considered stover. This approach was used for crop renewable gasoline or renewable gaoline blendstock (‘‘catalytic pyrolysis’’), (3) as part of the RFS2 final rule, the residues, slash, pre-commercial existing feedstock lifecycle GHG thinnings, tree residue and cellulosic biochemical fermentation with upgrading to renewable gasoline or impacts for distribution of corn stover components of separated yard, food, and were also applied to this analysis.49 MSW. These feedstocks are all excess renewable gasoline blendstock via carboxylic acid (‘‘fermentation and Feedstock production emissions are materials and thus, like corn stover, shown in Table 7 below for corn stover. were determined to have little or no upgrading’’), and (4) direct biochemical fermentation to renewable gasoline and Corn stover feedstock production land use change GHG impacts. Their emissions are mainly a result of corn GHG emission impacts are mainly renewable gasoline blendstock (‘‘direct fermentation’’). The thermochemical stover removal increasing the associated with collection, transport, profitability of corn production and processing into biofuel. See the gasification process was modeled as part of the RFS2 final rule, included as (resulting in shifts in cropland and thus RFS2 rulemaking preamble for further slight emission impacts) and also the discussion. We used the results of the producing naptha via the F–T process. Our analysis of the catalytic pyrolysis need for additional fertilizer inputs to corn stover modeling in this analysis to replace the nutrients lost when corn estimate the upper bound of agricultural process was based on the modeling work completed by the National stover is removed. However, corn stover sector impacts from the production of removal also has an emissions benefit as the various cellulosic feedstocks noted Renewable Energy Laboratory (NREL) for this rule for a process to make it encourages the use of no-till farming above. 47 which results in the lowering of The agriculture sector modeling renewable gasoline blendstock. The fermentation and upgrading process was domestic land use change emissions. results for corn stover represent all of This change to no-till farming results in the direct and significant indirect modeled based on confidential business information (CBI) from industry for a a negative value for domestic land use emissions in the agriculture sector change emission impacts (see also Table (feedstock production emissions) for a unique process which uses biochemical conversion of cellulose to renewable 13 below). For other waste feedstocks certain quantity of corn stover (e.g., tree residues and cellulosic gasoline via a carboxylic acid route. In produced. For the RFS2 rulemaking, components of separate yard, food, and addition, we have qualitatively assessed this was roughly 62 million dry tons of MSW), the feedstock production the direct fermentation to renewable corn stover to produce 5.7 billion emissions are even lower than the gasoline process based on similarities to gallons of ethanol assuming biochemical values shown for corn stover since the the biochemical ethanol process already fermentation to ethanol processing. We use of such feedstocks does not require analyzed as part of the RFS2 have calculated GHG emissions from land use changes or additional rulemaking. The fuel production section feedstock production for that amount of agricultural inputs. Therefore, we below provides further discussion on corn stover. The GHG emissions were conclude that if the use of corn stover then divided by the total heating value extending the GHG emissions results of of the fuel to get feedstock production the biochemical ethanol fermentation 48 Aden, Andy. Feedstock Considerations and emissions per mmBtu of fuel. In Impacts on Biorefining. National Renewable Energy 47 addition to the biochemical ethanol Kinchin, Christopher. Catalytic Fast Pyrolysis Laboratory (NREL). December 2009. with Upgrading to Gasoline and Diesel Blendstocks. 49 Results for feedstock distribution are process, a similar analysis was National Renewable Energy Laboratory (NREL). aggregated along with fuel distribution and are completed for thermochemical ethanol 2011. reported in a later section, see conclusion section.

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as a feedstock in the production of (i.e., it has at least a 60% lifecycle GHG renewable gasoline or renewable renewable gasoline and renewable reduction as compared to conventional gasoline blendstock that qualifies as gasoline blendstock yields lifecycle fuel), then the use of other waste cellulosic biofuel. GHG emissions results for the resulting feedstocks with little or no land use fuel that qualify it as cellulosic biofuel change emissions will also result in

TABLE 7—FEEDSTOCK PRODUCTION EMISSIONS FOR RENEWABLE GASOLINE AND RENEWABLE GASOLINE BLENDSTOCK PATHWAYS USING CORN STOVER

Direct biochemical Catalytic pyrolysis Biochemical fer- fermentation proc- to renewable gas- mentation to re- ess to renewable newable gasoline gasoline and re- Feedstock production emission sources oline blendstock via carboxylic acid (g CO2-eq./ newable gasoline (g CO2-eq./ mmBtu) mmBtu) blendstock (g CO2-eq./mmBtu)

Domestic Livestock ...... 7,648 6,770 ∼ 9,086 Domestic Farm Inputs and Fertilizer N2O ...... 1,397 1,237 ∼ 1,660 Domestic Rice Methane ...... 366 324 ∼ 434 Domestic Land Use Change ...... ¥9,124 ¥8,076 ∼ ¥10,820 International Livestock ...... 0 0 0 International Farm Inputs and Fertilizer N2O ...... 0 0 0 International Rice Methane ...... 0 0 0 International Land Use Change ...... 0 0 0

Total Feedstock Production Emissions ...... 287 254 ∼ 361

The results in Table 7 differ for the 4. Fuel Production of 3.50 For the reasons described below, different pathways considered because we have decided to authorize the of the different amounts of corn stover In the RFS2 rulemaking, EPA generation of RINs with a D code of 3 used to produce the same amount of analyzed several of the main cellulosic for renewable gasoline and renewable fuel in each case. Table 7 only considers biofuel pathways: a biochemical gasoline blendstock produced using the feedstock production impacts fermentation process to ethanol and two specified cellulosic feedstocks for the associated with the renewable gasoline thermochemical gasification processes, processes considered here. pathways, other aspects of the lifecycle one producing mixed alcohols Several routes have been identified as are discussed in the following sections. (primarily ethanol) and the other one available for the production of renewable gasoline and renewable 2. Fuel Distribution producing mixed hydrocarbons (primarily diesel fuel). These pathways gasoline blendstock from renewable A petroleum gasoline baseline was all exceeded the 60% lifecycle GHG biomass. These include catalytic developed as part of the RFS2 final rule threshold requirements for cellulosic pyrolysis and upgrading to renewable which included estimates for fuel biofuel using the specified feedstocks. gasoline or renewable gasoline distribution emissions. Since renewable Refer to the preamble and regulatory blendstock (‘‘catalytic pyrolysis’’), gasoline and renewable gasoline biochemical fermentation with impact analysis (RIA) from the final blendstocks when blended into gasoline upgrading to renewable gasoline or RFS2 rule for more details. From these are similar to petroleum gasoline, it is renewable gasoline blendstock via reasonable to assume similar fuel analyses, it was determined that ethanol carboxylic acid (‘‘fermentation and distribution emissions. Therefore, the and diesel fuel produced from the upgrading’’), and direct biochemical existing fuel distribution lifecycle GHG specified cellulosic feedstocks and fermentation to renewable gasoline and impacts of the petroleum gasoline processes would be eligible for renewable gasoline blendstock (‘‘direct baseline from the RFS2 final rule were cellulosic and advanced biofuel RINs. fermentation’’).51 52 applied to this analysis. The thermochemical gasification Similar to how we analyzed several of the main routes for cellulosic ethanol 3. Use of the Fuel process to diesel fuel (via F–T synthesis) also produces a smaller portion of and cellulosic diesel for the final RFS2 A petroleum gasoline baseline was naphtha, a gasoline blendstock. In the rule, we have chosen to analyze the developed as part of the RFS2 final rule final RFS2 rule, naphtha produced with main renewable gasoline and renewable which estimated the tailpipe emissions specified cellulosic feedstocks by a F–T gasoline blendstock pathways in order from fuel combustion. Since renewable to estimate the potential GHG reduction process was included as exceeding the gasoline and renewable gasoline profile for renewable gasoline and 60% lifecycle GHG threshold, with an blendstock are similar to petroleum renewable gasoline blendstock across a applicable D–Code of 3, in Table 1 to gasoline, the non-CO2 combustion emissions calculated as part of the RFS2 § 80.1426. 50 See http://www.epa.gov/otaq/fuels/ final rule for petroleum gasoline were Since the final RFS2 rule was renewablefuels/compliancehelp/rfs2-lca- pathways.htm for list of petitions received by EPA. applied to our analysis of the renewable released, EPA has received several 51 Regalbuto, John. ‘‘An NSF perspective on next gasoline and renewable gasoline petitions and inquiries that suggest that generation hydrocarbon biorefineries,’’ Computers blendstock pathways. Only non-CO2 renewable gasoline or renewable and Chemical Engineering 34 (2010) 1393–1396. emissions were included since carbon February 2010. gasoline blendstock produced using 52 fluxes from land use change are Serrano-Ruiz, J., Dumesic, James. ‘‘Catalytic processes other than the F–T process routes for the conversion of biomass into liquid accounted for as part of the biomass could also qualify for a similar D–Code hydrocarbon transportation fuels,’’ Energy feedstock production. Environmental Science (2011) 4, 83–99.

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range of other production technologies further in a technical report available which any excess displaces U.S. average for which we are confident will have at through the docket.53 Catalytic pyrolysis grid electricity. Excess electricity is least as great of GHG emission involves the rapid heating of biomass to generated from the use of co-product reductions as those specifically about 500°C at slightly above coke/char and product gases and is analyzed. atmospheric pressure. The rapid heating available because internal electricity a. Catalytic Pyrolysis to Renewable thermally decomposes biomass, demands are fully met. The estimated Gasoline and Renewable Gasoline converting it into pyrolysis vapor, energy inputs and electricity credits Blendstock which is condensed into a liquid bio-oil. shown in Table 8, below, utilize the The liquid bio-oil can then be upgraded data provided by the NREL process The first production process we investigated for this rule is a catalytic using conventional hydroprocessing modeling. However, Industry sources fast pyrolysis route to bio-oils with technology and further separated into also identified potential areas for upgrading to a renewable gasoline or a gasoline and diesel blendstock streams improvements in energy use, such as the renewable gasoline blendstock. We (cellulosic diesel from catalytic use of biomass fired dryers instead of utilized process modeling results from pyrolysis is already included as an natural gas fired dryers for drying the National Renewable Energy acceptable pathway in the RFS2 incoming wet feedstocks and increased Laboratory (NREL). Information program). Some industry sources also turbine efficiencies for electricity provided by industry and claimed as expect to produce smaller fractions of production which may result in lower CBI are based on similar processing heating oil in addition to gasoline and energy consumption than estimated by methods and suggest similar results diesel blendstocks. Excess electricity NREL and thus improve GHG than those reported by NREL. Details on from the process is also accounted for in performance compared to our estimates the NREL modeling are described our modeling as a co-product credit in here.

TABLE 8—2022 ENERGY USE AT CELLULOSIC BIOFUEL FACILITIES [Btu/gal]

Purchased Technology Biomass use Natural gas use electricity Sold electricity

Catalytic Pyrolysis to Renewable Gasoline Blendstock ...... 136,000 51,000 0 ¥2,000

The emissions from energy inputs TABLE 9—FUEL PRODUCTION EMIS- renewable gasoline blendstock. This were calculated by multiplying the SIONS FOR CATALYTIC PYROLYSIS process involves the fermentation of amount of energy by emission factors for TO RENEWABLE GASOLINE biomass using a mixed-culture of fuel production and combustion, based BLENDSTOCK USING CORN STOVER microorganisms that produce a variety on the same method and factors used in of carboxylic acids. If the feedstock has the RFS2 final rulemaking. The Catalytic pyrol- high lignin content, then the biomass is emission factors for the different fuel ysis to renewable pretreated to enhance digestibility. The types are from GREET and were based Lifecycle stage gasoline acids are then neutralized to carboxylate blendstock (g salts and further converted to ketones on assumed carbon contents of the CO2-eq./mmBtu) different process fuels. The emissions and alcohols for refining into gasoline, from producing electricity in the U.S. On-Site & Upstream Emis- diesel, and jet fuel. were also taken from GREET and sions (Natural Gas & The process requires the use of Biomass*) ...... 31,000 natural gas and hydrogen inputs.55 No represent average U.S. grid electricity Electricity Co-Product purchased electricity is required as production emissions. Credit ...... ¥3,000 lignin is projected to be used to meet all The major factors influencing the Total Fuel Production facility demands as well as provide Emissions: ...... 28,000 emissions from the fuel production excess electricity to the grid. EPA used stage of the catalytic pyrolysis pathway Only non-CO2 combustion emissions from the estimated energy and material are the use of natural gas (mainly due biomass. inputs along with emission factors to to hydrogen production for b. Fermentation and Upgrading to estimate the GHG emissions from this hydroprocessing) and the co-products Renewable Gasoline and Renewable process. The energy inputs and available for additional heat and power Gasoline Blendstock electricity credits are shown in Table generation.54 See Table 9 for a summary The second production process we 10, below. These inputs are based on of emissions from fuel production. investigated is a biochemical Confidential Business Information (CBI), fermentation process to intermediate rounded to the nearest 1000 units, carboxylic acids with catalytic provided by industry as part of the upgrading to renewable gasoline or petition process for new fuel pathways.

53 Kinchin, Christopher. Catalytic Fast Pyrolysis is currently produced via steam reforming (DOE, not as efficient or cost effective as the use of fossil with Upgrading to Gasoline and Diesel Blendstocks. 2002 ‘‘A National Vision of America’s Transition to fuels and therefore we conservatively estimate National Renewable Energy Laboratory (NREL). a Hydrogen Economy to 2030 and Beyond’’). Other emissions from hydrogen production using the 2011. alternatives are available, such as renewable or more commonly used SMR technology. 54 A steam methane reformer (SMR) is used to nuclear resources used to extract hydrogen from 55 Hydrogen emissions are modeled as natural gas produce the hydrogen necessary for water or the use of biomass to produces hydrogen. hydroprocessing. In the U.S. over 95% of hydrogen These alternative methods, however, are currently and electricity demands.

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TABLE 10—2022 ENERGY USE AT CELLULOSIC FACILITY [Btu/gal]

Purchased Technology Biomass use Natural gas use electricity Sold electricity

Biochemical Fermentation to Renewable Gasoline or Renewable Gasoline Blendstock via Carboxylic Acid ...... 49,000 59,000 0 ¥2,000

The process also uses a small amount c. Direct Fermentation to Renewable poisoned when interacting with of buffer material as neutralizer which Gasoline and Renewable Gasoline accumulated products. We also expect was not included in the GHG lifecycle Blendstock that the lignin/byproduct portions of the results due to its likely negligible The third production process we biomass from the fermentation to emissions impact. The GHG emissions investigated involves the use of hydrocarbon process could be converted estimates from the fuel production stage microorganisms to ferment sugars into heat and electricity for internal are seen in Table 11. hydrolyzed from cellulose directly into demands or for export, similar to the hydrocarbons which could be either a biochemical fermentation to ethanol TABLE 11—FUEL PRODUCTION EMIS- complete fuel as renewable gasoline or pathway. SIONS FOR BIOCHEMICAL FERMENTA- a renewable gasoline blendstock. The Therefore, we can conservatively TION TO RENEWABLE GASOLINE OR process is similar to the biochemical extend our final RFS2 rule biochemical fermentation to ethanol process results RENEWABLE GASOLINE BLENDSTOCK fermentation to ethanol pathway modeled for the final RFS2 rule with the to a similar (but likely slightly VIA CARBOXYLIC ACID USING CORN major difference being the end fuel improved) process that instead produces STOVER product, hydrocarbons instead of hydrocarbons. Since the final RFS2 rule ethanol. Researchers believe that this cellulosic ethanol GHG results were GHG Emissions new technology could achieve well above the 60% GHG reduction Lifecycle stage (g CO2-eq./ mmBtu) improvements over classical threshold for cellulosic biofuels, if fermentation approaches because actual emissions from other necessary On-Site & Upstream Emis- hydrocarbons separate spontaneously changes to the direct biochemical sions (Natural Gas & from the aqueous phase, thereby fermentation to hydrocarbons process Biomass*) ...... 33,000 avoiding poisoning of microbes by the represent some small increment in GHG Electricity Co-Product accumulated products and facilitating emissions, the pathway would still Credit ...... ¥3,000 separation/collection of alkanes from likely meet the threshold. Table 12 is the reaction medium.56 In other words, our qualitative assessment of the Total Fuel Production some energy savings may result because potential emissions reductions from a Emissions: ...... 30,000 fewer separation unit operations could process using biochemical fermentation

*Only non-CO2 combustion emissions from be required for separating the final to cellulosic hydrocarbons assuming biomass product from other reactants and there similarities to the biochemical may be better conversion yields as the fermentation to cellulosic ethanol route fermentation microorganisms are not from the final RFS2 rule.

TABLE 12—FUEL PRODUCTION EMISSIONS FOR RFS2 CELLULOSIC BIOCHEMICAL ETHANOL COMPARED TO DIRECT BIOCHEMICAL FERMENTATION TO RENEWABLE GASOLINE OR RENEWABLE GASOLINE BLENDSTOCK USING CORN STOVER

Direct biochemical fermentation to re- RFS2 Cellulosic newable gasoline biochemical eth- and renewable Lifecycle stage anol emissions (g gasoline CO2-eq./mmBtu) blendstock emis- sions (g CO2-eq./ mmBtu)

On-Site Emissions & Upstream (biomass) ...... 3,000 < or = 3,000 Electricity Co-Product Credit ...... ¥35,000 = ¥35,000

Total Fuel Production Emissions 57 ...... ¥33,000 < or = ¥33,000

Table 13 below breaks down by stage contribution of each stage in the fuel assume natural gas as the process energy the lifecycle GHG emissions for the pathway and its relative significance in when needed; using biogas or biomass renewable gasoline and renewable terms of GHG emissions. These results as process energy would result in an gasoline blendstock pathways using are also presented in graphical form in even better lifecycle GHG impact. corn stover and the 2005 petroleum a supplemental memorandum to the baseline. The table demonstrates the docket.58 As noted above, these analyses

56 Serrano-Ruiz, J., Dumesic, James. ‘‘Catalytic 57 Numbers do not add up due to rounding. Information for Renewable Gasoline and Renewable routes for the conversion of biomass into liquid 58 Memorandum to the Air and Radiation Docket Gasoline Blendstock Pathways Under the hydrocarbon transportation fuels,’’ Energy EPA–HQ–OAR–2011–0542 ‘‘Supplemental Renewable Fuel Standard (RFS2) Program’’. Environmental Science (2011) 4, 83–99.

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TABLE 13—LIFECYCLE GHG EMISSIONS FOR RENEWABLE GASOLINE AND RENEWABLE GASOLINE BLENDSTOCK PATHWAYS USING CORN STOVER, 2022

[kg CO2-eq./mmBtu]

Direct biochemical Biochemical fer- fermentation to re- Catalytic pyrolysis mentation to re- newable gasoline 2005 gasoline Fuel type to renewable gas- newable gasoline and renewable baseline oline blendstock via carboxylic acid gasoline blendstock

Net Domestic Agriculture (w/o land use change) ...... 9 8 ∼ 11 ...... Net International Agriculture (w/o land use change): Domestic Land Use Change ...... ¥9 ¥8 ∼ ¥11 ...... International Land Use Change: Fuel Production ...... 28 30 < or = ¥33 19 Fuel and Feedstock Transport ...... 2 2 ∼ 2 * Tailpipe Emissions ...... 2 2 ∼ 1 79

Total Emissions ...... 32 34 < or = ¥29 98

% Change from Baseline ...... ¥67% ¥65% ¥129% ...... * Emissions included in fuel production stage.

d. Extension of Modeling Results to from cellulosic feedstock as shown in pyrolysis, direct fermentation, and Other Production Processes Producing literature. 59 60 The two primary routes fermentation with catalytic upgrading Renewable Gasoline or Renewable for renewable gasoline and renewable are considered in this rule and the Gasoline Blendstock gasoline blendstock production from gasification route was already included In the RFS2 rulemaking, we modeled cellulosic feedstock can be classified as in the RFS2 final rule. In all cases, the the GHG emissions results from the either thermochemical or biological. processes that we have considered meet biochemical fermentation process to Each of these two major categories has the 60% lifecycle GHG reduction ethanol, thermochemical gasification two subcategories. The processes under required for cellulosic biofuels. the thermochemical category include: Furthermore, we believe that the results processes to mixed alcohols (primarily • ethanol) and mixed hydrocarbons Pyrolysis—in which cellulosic from our modeling would cover all the (primarily diesel fuel). We extended biomass is decomposed with likely variations within these potential these modeled process results to apply temperature to bio-oils and requires routes for producing renewable gasoline when the biofuel was produced from further catalytic processing to produce a and renewable gasoline blendstock ‘‘any’’ process. We determined that finished fuel. which also use natural gas, biogas or • Gasification—in which cellulosic since we modeled multiple cellulosic biomass for process energy and that all biomass is decomposed to syngas with biofuel processes and all were shown to such production variations would also further catalytic processing of methanol exceed the 60% lifecycle GHG threshold meet the 60% lifecycle threshold. to gasoline or through Fischer-Tropsch requirements for cellulosic biofuel using The main reason for this is that we the specified feedstocks its was (F–T) synthesis to gasoline. believe that our energy input The processes under the biochemical reasonable to extend to other processes assumptions are reasonable at this time category include: but probably in some cases conservative that might develop as these would likely • Direct fermentation—requires the for commercial scale cellulosic represent improvements over existing release of sugars from biomass and the facilities. The cellulosic industry is in processes as the industry works to use of ‘‘synthetic biology’’ in which its early stages of development and improve the economics of cellulosic microorganisms are altered to ferment many of the estimates of process biofuel production by, for example, sugars straight into hydrocarbons technology GHG impacts is based on reducing energy consumption and instead of alcohols. pre-commercial scale assessments and improving process yields. Similarly, this • Fermentation w/catalytic demonstration programs. Commercial rule assesses multiple processes for the upgrading—requires the release of scale cellulosic facilities will continue production of renewable gasoline and sugars from biomass and aqueous- or to make efficiency improvements over renewable gasoline blendstocks and all liquid-phase processing of sugars or time to maximize their fuel products/co- were shown to exceed the 60% lifecycle intermediate fermentation products into products and minimize wastes. For GHG threshold requirements for hydrocarbons using solid catalysts, cellulosic biofuel using specified As part of the modeling effort here, as cellulosic facilities, such improvements feedstocks. well as for the RFS2 final rule, we have include increasing conversion yields As was the case in our earlier considered the lifecycle GHG impacts of and fully utilizing the biomass input for rulemaking, a couple reasons in the four possible production valuable products. particular support extending our technologies mentioned above. The An example of increasing the amount modeling results to other production of biomass utilized is the combustion of process producing renewable gasoline 59 Regalbuto, John. ‘‘An NSF perspective on next undigested or unconverted biomass for or renewable gasoline blendstock from generation hydrocarbon biorefineries,’’ Computers heat and power. The three routes that cellulosic feedstock. Under this rule we and Chemical Engineering 34 (2010) 1393–1396. we analyzed for the production of analyzed the core technologies most February 2010. renewable gasoline and renewable 60 Serrano-Ruiz, J., Dumesic, James. ‘‘Catalytic likely available through 2022 for routes for the conversion of biomass into liquid gasoline blendstock in today’s rule production of renewable gasoline and hydrocarbon transportation fuels,’’ Energy assume an electricity production credit renewable gasoline blendstock routes Environmental Science (2011) 4, 83–99. from the economically-driven use of

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lignin or waste byproducts; we also ran further minimized under certain allowing the pathway to meet the GHG a sensitivity case where no electricity scenarios. We believe that as performance threshold. credit was given. We found that all of commercial scale cellulosic facilities There is an even wider gap between the routes analyzed would still pass the develop, more of these improvements the results modeled for the direct GHG threshold without an electricity will be made to maximize the use of all fermentation route and the cellulosic credit, providing confidence that over the biomass and waste byproducts lifecycle GHG threshold. The variation the range of technology options, these available to bring the facility closer to we considered for the direct process technologies will surely allow energy self-sufficiency. These fermentation process resulted in an the cellulosic biofuel produced to improvements could help to increase approximately 129% reduction in exceed the threshold for cellulosic the economic profitability for cellulosic lifecycle GHG emissions compared to biouel GHG performance. Without facilities where fossil energy inputs the petroleum baseline. This process did excess electricity production the become costly to purchase. Therefore consider production of electricity as catalytic pyrolysis pathway results in a we can extend the modeling results for part of the process but as mentioned 65% lifecycle GHG reduction, the our pyrolysis route to all variations of even if this was not the case the biochemical fermentation via carboxylic this production technology which use pathway would still easily fall below acid pathway results in a 62% lifecycle natural gas, biogas or biomass for the 60% lifecycle threshold for GHG reduction, and the direct production energy for producing cellulosic biofuels. If actual emissions biochemical fermentation pathway renewable gasoline or renewable from other necessary changes to the results in a 93% reduction in lifecycle gasoline blendstock. direct biochemical fermentation to hydrocarbons process represent some GHG emissions compared to the The F–T gasification technology route small increment in GHG emissions, the petroleum fuel baseline. considered as part of the RFS2 final rule pathway would still likely meet the Additionally, while the final results resulted in an approximately 91% threshold. Therefore, we can extend the reported in this rule include an reduction in lifecycle GHG emissions results to all variations of the direct electricity credit, this electricity credit compared to the petroleum baseline. biochemical route for renewable is based on current technology for This could be considered a conservative gasoline or renewable gasoline generating electricity; it is possible that estimate as the process did not assume blendstock production which use over the next decade as cellulosic any excess electricity production, which natural gas, biogas or biomass for biofuel production matures, the as mentioned above could lead to efficiency with which electricity is production energy. additional GHG reductions. The F–T The biochemical with catalytic generated at these facilities will also process involves gasifying biomass into improve. Such efficiency improvements upgrading route that we evaluated syngas (mix of H2 and CO) and then resulted in a 65% reduction in GHG will tend to improve the GHG converting the syngas through a performance for cellulosic biofuel emissions compared to the petroleum catalytic process into a hydrocarbon mix baseline. However, this can be technologies in general including those that is further refined into finished used to produce renewable gasoline. considered a conservative estimate. For product. The F–T process considered instance, the biochemical fermentation Furthermore, industry has identified was based on producing both gasoline other areas for energy improvements to gasoline via carboxylic acid route and diesel fuel so that it was not considered did not include the potential which our current pathway analyses do optimized for renewable gasoline not include. Therefore, the results we for generating steam from the production. A process for producing combustion of undigested biomass and have come up with for the individual primarily renewable gasoline rather pathway types represent conservative then using this steam for process energy. than diesel from a gasification route If this had been included, natural gas estimates and any variations in the should not result in a significantly pathways considered are likely to result consumption could potentially be worse GHG impacts compared to the decreased which would lower the in greater GHG reductions that what is mixed fuel process analyzed. considered here. For example, the potential GHG emissions estimated from Furthermore, as the lifecycle GHG the process. Therefore, the scenario variation of the catalytic pyrolysis route reduction from the F–T process considered here resulted in a 67% analyzed could be considered considered was around 91%, there is conservative in estimating actual natural reduction in lifecycle GHG emissions considerable room for variations in this gas usage. As was the case with the compared to the petroleum baseline. route to still meet the 60% lifecycle pyrolysis route considered, we believe However, as was mentioned this was GHG reduction threshold for cellulosic that as commercial scale cellulosic based on data from our NREL modeling fuels. Therefore, in addition to the F–T facilities develop, improvements will be and industry CBI data indicated more process orginially analyzed for made to maximize the use of all the efficient energy performance which, if producing naphtha, we can extend the biomass and waste byproducts available realized, would improve GHG results based on the above analyses to to bring the facility closer to energy self- performance. Another area for include all variations of the gasification sufficiency. These improvements help improvement in this pathway could be route which use natural gas, biogas or to increase the economic profitability the use of anaerobic digestion to treat biomass for production energy for for cellulosic facilities where fossil organics in waste water. If the anaerobic producing renewable gasoline or energy inputs become costly to digestion is on-site, then enough biogas renewable gasoline blendstock. These purchase. The processes we analyzed could potentially be produced to replace variations include for example different for this rulemaking utilized a mix of all of the fossil natural gas used as fuel catalysts and different refining natural gas and biomass for process and about half the natural gas fed for processes to produce different mixes of energy, with biogas replacing natural 61 hydrogen production. Thus, fossil final fuel product. While the current gas providing improved GHG natural gas consumption could be Table 1 entry in the regulations does not performance. We have not analyzed specify process energy sources, we are other fuel types (e.g., coal) and are 61 Kinchin, Christopher. Catalytic Fast Pyrolysis with Upgrading to Gasoline and Diesel Blendstocks. adding these specific eligible energy therefore not approving processes that National Renewable Energy Laboratory (NREL). sources since we have not analyzed utilized other fuel sources at this point. 2011. other energy sources (e.g. coal) as also Therefore, we are extending our results

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to include all variations of the value for baseline gasoline as in the cellulosic biofuel RINs for renewable biochemical with catalytic upgrading RFS2 final rule analysis. The results of gasoline or renewable gasoline process utilizing natural gas, biogas or the analysis indicate that the renewable blendstock produced by catalytic biomass for process energy. gasoline and renewable gasoline pyrolysis and upgrading, gasification While actual cellulosic facilities may blendstock pathways result in a GHG and upgrading, direct fermentation, show some modifications to the process emissions reduction of 65–129% or fermentation and upgrading, all scenarios we have already analyzed, our better compared to the gasoline fuel it utilizing natural gas, biogas, and/or results give a good indication of the would replace using corn stover as a biomass as the only process energy range of emissions we could expect feedstock. Since the renewable gasoline sources or any process utilizing biogas from processes producing renewable and renewable gasoline blendstock and/or biomass as the only energy gasoline and renewable gasoline pathways which use corn stover as a sources, and using corn stover as a blendstock from cellulosic feedstock, all feedstock all exceed the 60% lifecycle feedstock or the feedstocks noted above. of which meet the 60% cellulosic GHG threshold requirements for In order to qualify for RIN generation, biofuel threshold (assuming they are cellulosic biofuel, and since these the fuel must meet the other definitional utilizing natural gas, biogas or biomass pathways capture the likely current criteria for renewable fuel (e.g., for process energy). Technology changes technologies and since future produced from renewable biomass, and in the future are likely to increase technology improvements are likely to used to reduce or replace petroleum- efficiency to maximize profits, while increase efficiency and lower GHG based transportation fuel, heating oil or also lowering lifecycle GHG emissions. emissions, we have determined that all jet fuel) specified in the Clean Air Act Therefore, we have concluded that since processes producing renewable gasoline and the RFS regulations. all of the renewable gasoline or or renewable gasoline blendstock from A manufacturer of a renewable motor renewable gasoline blendstock fuel corn stover can qualify if they fall in the vehicle gasoline (including parties using processing methods we have analyzed following process characterizations: a renewable blendstock obtained from exceed the 60% threshold using specific • Catalytic pyrolysis and upgrading another party), must satisfy EPA motor cellulosic feedstock types, we can utilizing natural gas, biogas, and/or vehicle registration requirements in 40 conclude that processes producing biomass as the only process energy CFR Part 79 for the fuel to be used as renewable gasoline or renewable sources. a transportation fuel. Per 40 CFR gasoline blendstock that fit within the • Gasification and upgrading utilizing 79.56(e)(3)(i), a renewable motor vehicle categories of process analyzed here and natural gas, biogas, and/or biomass as gasoline would be in the Non-Baseline are produced from the same feedstock the only process energy sources. Gasoline category or the Atypical types and using natural gas, biogas or • Direct fermentation utilizing natural Gasoline category (depending on its biomass for process energy use will also gas, biogas, and/or biomass as the only properties) since it is not derived only meet the 60% GHG reduction threshold. process energy sources. from conventional petroleum, heavy oil In addition, while other technologies • Fermentation and upgrading deposits, coal, tar sands and/or oil sands may develop, we expect that they will utilizing natural gas, biogas, and/or (40 CFR 79.56(e)(3)(i)(5)).In either case, only become commercially competitive biomass as the only process energy the Tier 1 requirements at 40 CFR 79.52 if they have better yield (more gallons sources. (emissions characterization) and the per ton of feedstock) or lower • Any process utilizing biogas and/or Tier 2 requirements at 40 CFR 79.53 production cost due to lower energy biomass as the only process energy (animal exposure) are conditions for consumption. Both of these factors sources. registration unless the manufacturer would suggest better GHG performance. As was the case for extending corn qualifies for a small business provision This would certainly be the case if such stover results to other feedstocks in the at 40 CFR 79.58(d). For a non-baseline processes also relied upon using biogas RFS2 final rule, these results are also gasoline, a manufacturer under $50 and/or biomass as the primary energy reasonably extended to feedstocks with million in annual revenue is exempt source. Therefore based on our review similar or lower GHG emissions from Tier 1 and Tier 2. For an atypical of the existing primary cellulosic biofuel profiles, including the following gasoline there is no exemption from Tier production processes, likely GHG feedstocks: 1, but a manufacturer under $10 million emission improvements for existing or • Cellulosic biomass from crop in annual revenue is exempt from Tier new technologies, and consideration of residue, slash, pre-commercial 2. the positive GHG emissions benefits thinnings and tree residue, annual cover Registration for a motor vehicle associated with using biogas and/or crops; gasoline at 40 CFR 79 is via EPA Form biomass for process energy, we are • Cellulosic components of separated 3520–12, Fuel Manufacturer approving for cellulosic RIN generation yard waste; Notification for Motor Vehicle Fuel, any process for renewable gasoline and • Cellulosic components of separated available at: http://www.epa.gov/otaq/ renewable gasoline blendstock food waste; and regs/fuels/ffarsfrms.htm. • Cellulosic components of separated production using specified cellulosic D. Esterification Production Process biomass feedstocks as long as the MSW. For more information on the Inclusion for Specified Feedstocks process utilizes biogas and/or biomass Producing Biodiesel for all process energy. reasoning for extension to these other feedstocks refer to the feedstock Table 14, shown below, includes 5. Summary production and distribution section or pathways for biodiesel using specified Three renewable gasoline and the RFS2 rulemaking (75 FR 14793– feedstocks and the production process renewable gasoline blendstock 14795). transesterification. Transesterification is pathways were compared to baseline Based on these results, today’s rule the most commonly used method to petroleum gasoline, using the same includes pathways for the generation of produce biodiesel (i.e., methyl esters) by

62 Commonly used base catalysts include sodium hydroxide (NaOH), potassium hydroxide (KOH) and sodium methoxide (NaOCH3).

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reacting triglycerides with methanol catalyst, see the simplified form in typically under the presence of a base Equation 1.62

TABLE 14—EXCERPTS OF EXISTING FUEL PATHWAYS FROM § 40 CFR 80.1426

Fuel type Feedstock Production process requirements D-Code

Biodiesel, and renewable diesel...... Soy bean oil; Oil from annual One of the following: Trans- 4 (Biomass-Based Diesel). covercrops; Algal oil; Biogenic Esterification Hydrotreating Ex- waste oils/fats/greases; Non-food cluding processes that co-process grade corn oil. renewable biomass and petro- leum. Biodiesel, and renewable diesel...... Soy bean oil; Oil from annual One of the following: Trans- 5 (Advanced Biofuel). covercrops; Algal oil; Biogenic Esterification Hydrotreating In- waste oils/fats/greases; Non-food cludes only processes that co- grade corn oil. process renewable biomass and petroleum.

While triglycerides are usually the TABLE 15—RANGES OF FFA IN esterification of the FFAs and the main component of oils, fats, and grease BIODIESEL FEEDSTOCKS 63 64 transesterification of the triglycerides. feedstocks, there are other components The simplified form of the esterification such as free fatty acids (FFAs) that are Biodiesel feedstock Percentage process is given below in Equation 2. typically removed prior to FFA Acid esterification can be applied to transesterification. Removal or Refined vegetable oils ...... <0.05 feedstocks with FFA contents above 5%. conversion of FFAs is important if the Crude vegetable oils ...... 0.3–0.7 Because the transesterification of traditional base-catalyzed Restaurant waste grease ...... 2–7 triglycerides is slow under acid transesterification production process is Yellow grease ...... <15 catalysis, a technique commonly used to used since FFAs will react with base Animal fat ...... 5–30 overcome the reaction rate issue is to catalysts to produce soaps that inhibit Brown grease ...... >15 first convert the FFAs through an acid Trap grease ...... 40–100 the transesterification reaction. Table 15 esterification (also known as an acid below gives the usual ranges for FFAs ‘‘pretreatment’’ step), and then follow- found in biodiesel feedstocks. One of the most widely used methods up with the traditional base-catalyzed for treating biodiesel feedstocks with transesterification of triglycerides. See higher FFA content is acid catalysis. Figure 2 for a general flow diagram of Acid catalysis typically uses a strong the acid esterification and subsequent acid such as sulfuric acid to catalyze the transesterification biodiesel process.

62 Commonly used base catalysts include sodium 63 Van Gerpen, J., Shanks, B., Pruszko, R., 64 Van Gerpen, J., ‘‘Used and Waste Oil and hydroxide (NaOH), potassium hydroxide (KOH) and Clements, D., Knothe, G., ‘‘Biodiesel Production Grease for Biodiesel,’’ NC State University A&T sodium methoxide (NaOCH3). Technology,’’ NREL/SR–510–36244, July 2004. State University Cooperative Extension, http:// www.extension.org/pages/Used_and_Waste_Oil_ and_Grease_for_Biodiesel.

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Under the RFS2 final rule, biodiesel higher levels of FFAs. As described these maximum observed inputs for from biogenic waste oils/fats/greases below, EPA has evaluated the use of energy used plus a high estimate for qualifies for D-Codes 4 and 5 using a these higher FFA feedstocks to make process materials used will estimate the ‘‘transesterification’’ process. This biodiesel and has determined that use of highest GHG emissions profile for conclusion was based on the analysis of such feedstocks also results in a biodiesel production GHG emissions. yellow grease as a feedstock in a process biodiesel with lifecycle GHG emissions When combined with the feedstock where there was an acid ‘‘pretreatment’’ at least 50% less than that of GHG emissions impact (see discussion or ‘‘esterification’’ process to treat the conventional fuel. below), the results still predict a GHG FFAs contained in the feedstock. In fact, The National Biodiesel Board (NBB) emissions reduction comfortably one of the material inputs assumed in has conducted a comprehensive survey exceeding 50% as compared to the the modeling for the final RFS2 rule of the actual energy used by commercial petroleum fuel it displaces. Therefore, yellow grease pathway is sulfuric acid, biodiesel production plants in the U.S.65 there is little risk in predicting that any which is the catalyst commonly used for The survey depicts the amount of facility that utilizes esterification and acid esterification. However, we had not energy and incidental process materials feedstock over the range of likely FFA stipulated ‘‘esterification’’ as a qualified such as acids used to produce a gallon content can meet the 50% biomass- production process in Table 1 to § 40 of biodiesel. The survey data returned based diesel and advanced biofuel CFR 80.1426. We believe this ambiguity represents 37% of the surveyed 230 threshold. could unnecessarily cause confusion as NBB biodiesel members in 2008 and According to the survey, the to whether esterification can also be includes producers using a variety of maximum electricity use for a producer used for the production of biodiesel virgin oils and recycled or reclaimed reached as high as 3,071 Btu per gallon under the currently approved pathways. fats and oils. While there is no specific biodiesel. This is about 5 times higher Since the biodiesel modeling data on the FFA content of the than the industry average. The completed for the final RFS2 rule feedstocks used, the feedstocks did maximum natural gas usage for a actually includes esterification include reclaimed greases which producer reached as high as 12,324 Btu upstream of the transesterification represent the feedstocks which typically per gallon biodiesel, which is about 3.5 process, we find it appropriate to clarify have the highest FFA content. As the times higher than the industry average. Table 1 to § 40 CFR 80.1426 to include data is partially aggregated, we used the For ‘‘materials used’’ only an industry ‘‘esterification’’ as a qualified process in maximum surveyed electricity and average for each material was provided which to produce biodiesel. As the natural gas used at the facilities and a in the survey. Therefore, as a modeling for yellow grease met an 86% high estimate of ‘‘materials used’’ based conservative estimate, we totaled all the GHG reduction emissions level, and on a sum of industry averages for all average material inputs to equal 0.51 kg/ yellow grease is typically <15% FFA process materials for calculating gal biodiesel.66 We believe that this is content, it is reasonable to conclude that potential GHG emissions. Even though conservative because not all facilities esterification and subsequent some of the facilities might be are likely to use each and every one of transesterification with a yellow grease processing feedstocks with relatively the process materials listed in the feedstock containing FFAs at the very low FFA content, we believe that using survey (e.g., we totaled all the acids least up to 15% can meet the GHG reduction threshold for biomass-based 65 National Biodiesel Board, Comprehensive 66 The material inputs include methanol, sodium diesel and advanced biofuel of 50%. Survey on Energy Use for Biodiesel Production methylate, sodium hydroxide, potassium (2008) http://www.biodiesel.org/news/RFS/ hydroxide, hydrochloric acid, sulfuric acid, As noted in Table 15, however, there rfs2docs/NBB%20Energy%20Use%20Survey%20 phosphoric acid, and citric acid. The majority of are feedstocks that may contain even FINAL.pdf. material input is from methanol.

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used even though a facility is not likely determination, we had not intended the VI. Statutory and Executive Order to use each different acid). Thus, our supplemental determination to cover Reviews estimate of materials used will estimate just those varieties or sources of A. Executive Order 12866: Regulatory a level of maximum usage of materials rapeseed that are identified as canola, Planning and Review at a given facility. In addition, we did but to all rapeseed. As described in the not include a glycerin co-product credit July 1, 2011 NPRM, we currently This action is not a ‘‘significant when calculating emissions since the interpret the reference to ‘‘canola’’ in regulatory action’’ under the terms of esterification reaction does not produce Table 1 to § 80.1426 to include any Executive Order 12866 (58 FR 51735, glycerin (see Equation 2). Using the rapeseed. To eliminate ambiguity October 4, 1993) and is therefore not same methodology as was used for the caused by the current language, subject to review under Executive yellow grease modeling under RFS2, but however, we proposed to replace the Orders 12866 and 13563 (76 FR 3821, using the high energy and materials use term ‘‘canola’’ in that table with the January 21, 2011). assumptions per the above discussion term ‘‘canola/rapeseed’’. Canola is a B. Paperwork Reduction Act and omitting the glycerin co-product type of rapeseed. While the term credit, we estimate the emissions from ‘‘canola’’ is often used in the American This action does not impose any new information collection burden. The biodiesel processing at 23,708 gCO2eq continent and in Australia, the term per mmBtu of biodiesel. The estimated ‘‘rapeseed’’ is often used in Europe and corrections, clarifications, and GHG emissions reduction for the entire other countries to describe the same modifications to the final RFS2 process is ¥71%. Since the GHG crop. We received no adverse comments regulations contained in this rule are threshold is at ¥50% for biomass-based on our proposal, and thus are finalizing within the scope of the information diesel and advanced biofuel, we believe it as proposed. This change will collection requirements submitted to the that there is a large enough margin in enhance the clarity of the regulations Office of Management and Budget the results to reasonably conclude that regarding the feedstocks that qualify (OMB) for the final RFS2 regulations. OMB has approved the information biodiesel using esterification of under the approved canola biodiesel collection requirements contained in the specified feedstocks with any level of pathway. existing regulations at 40 CFR part 80, FFA content meets the biomass-based Second, we wish to clarify that diesel and advanced biofuel 50% subpart M under the provisions of the although the GHG emissions of lifecycle GHG reduction threshold. Paperwork Reduction Act, 44 U.S.C. producing fuels from canola feedstock Therefore, we are including the process 3501 et seq. and has assigned OMB grown in the U.S. and Canada was ‘‘esterification’’ as an approved control numbers 2060– 0637 and 2060– specifically modeled as the most likely biodiesel production process in Table 1 0640. The OMB control numbers for source of canola (or rapeseed) oil used to § 40 CFR 80.1426. In addition, EPA’s regulations in 40 CFR are listed for biodiesel produced for sale and use consistent with the modeling conducted in 40 CFR part 9. in the U.S., we also intended that the for RFS2, we interpret the RFS approved pathway cover canola/ C. Regulatory Flexibility Act regulations as they existed prior to rapeseed oil from other countries, and today’s rule as including a direct The Regulatory Flexibility Act (RFA) esterification process as part of the we interpret our regulations in that generally requires an agency to prepare biodiesel pathways for which only manner. We expect the vast majority of a regulatory flexibility analysis of any ‘‘trans-esterification’’ was specifically biodiesel used in the U.S. and produced rule subject to notice and comment referenced in Table 1 to § 40 CFR from canola/rapeseed oil will come from rulemaking requirements under the 80.1426. U.S. and Canadian crops. Incidental Administrative Procedure Act or any amounts from crops produced in other other statute unless the agency certifies V. Additional Changes to Listing of nations will not impact our average that the rule will not have a significant Available Pathways in Table 1 of GHG emissions for two reasons. First, economic impact on a substantial 80.1426 our analyses considered world-wide number of small entities. Small entities We are also finalizing two changes to impacts and thus considered canola/ include small businesses, small Table 1 to 80.1426 that were proposed rapeseed crop production in other organizations, and small governmental on July 1, 2011 (76 FR 38844). The first countries. Second, other countries most jurisdictions. change adds ID letters to pathways to likely to be exporting canola/rapeseed For purposes of assessing the impacts facilitate references to specific or biodiesel product from canola/ of today’s rule on small entities, small pathways. The second change adds rapeseed are likely to be major entity is defined as: (1) A small business ‘‘rapeseed’’ to the existing pathway for producers which typically use similar as defined by the Small Business renewable fuel made from canola oil. cultivars and farming techniques. Administration’s (SBA) regulations at 13 On September 28, 2010, EPA Therefore, GHG emissions from CFR 121.201; (2) a small governmental published a ‘‘Supplemental producing biodiesel with canola/ jurisdiction that is a government of a Determination for Renewable Fuels rapeseed grown in other countries city, county, town, school district or Produced Under the Final RFS2 should be very similar to the GHG special district with a population of less Program from Canola Oil’’ (FR Vol. 75, emissions we modeled for Canadian and than 50,000; and (3) a small No. 187, pg 59622–59634). In the July 1, U.S. canola, though they could be organization that is any not-for-profit 2011 NPRM (76 FR 38844) we proposed slightly (and insignificantly) higher or enterprise which is independently to clarify two aspects of the lower. At any rate, even if there were owned and operated and is not supplemental determination. First we unexpected larger differences, EPA dominant in its field. proposed to amend the regulatory believes the small amounts of feedstock After considering the economic language in Table 1 to § 80.1426 to or fuel potentially coming from other impacts of this action on small entities, clarify that the currently-approved countries will not impact our threshold I certify that this rule will not have a pathway for canola also applies more analysis. Therefore, EPA interprets the significant economic impact on a generally to rapeseed. While ‘‘canola’’ approved canola pathway as covering substantial number of small entities. was specifically described as the canola/rapeseed regardless of country This rule will not impose any new feedstock evaluated in the supplemental origin. requirements on small entities. The

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relatively minor corrections and governments. Thus, Executive Order justice. Its main provision directs modifications this rule makes to the 13175 does not apply to this action. Federal agencies, to the greatest extent final RFS2 regulations do not impact practicable and permitted by law, to G. Executive Order 13045: Protection of small entities. make environmental justice part of their Children From Environmental Health mission by identifying and addressing, D. Unfunded Mandates Reform Act Risks and Safety Risks as appropriate, disproportionately high This rule does not contain a Federal EPA interprets EO 13045 (62 FR and adverse human health or mandate that may result in expenditures 19885, April 23, 1997) as applying only environmental effects of their programs, of $100 million or more for State, local, to those regulatory actions that concern policies, and activities on minority and tribal governments, in the aggregate, health or safety risks, such that the populations and low-income or the private sector in any one year. We analysis required under section 5–501 of populations in the United States. the EO has the potential to influence the have determined that this action will EPA has determined that this rule will not result in expenditures of $100 regulation. This action is not subject to EO 13045 because it does not establish not have disproportionately high and million or more for the above parties adverse human health or environmental and thus, this rule is not subject to the an environmental standard intended to mitigate health or safety risks. effects on minority or low-income requirements of sections 202 or 205 of populations because it does not affect UMRA. H. Executive Order 13211: Actions the level of protection provided to This rule is also not subject to the Concerning Regulations That human health or the environment. requirements of section 203 of UMRA Significantly Affect Energy Supply, These amendments would not relax the because it contains no regulatory Distribution, or Use control measures on sources regulated requirements that might significantly or This rule is not subject to Executive by the RFS regulations and therefore uniquely affect small governments. It Order 13211 (66 FR 18355 (May 22, would not cause emissions increases only applies to gasoline, diesel, and 2001)), because it is not a significant from these sources. renewable fuel producers, importers, regulatory action under Executive Order distributors and marketers and makes K. Congressional Review Act 12866. relatively minor corrections and modifications to the RFS2 regulations. I. National Technology Transfer and The Congressional Review Act, 5 Advancement Act U.S.C. 801 et seq., as added by the Small E. Executive Order 13132 (Federalism) Business Regulatory Enforcement Section 12(d) of the National This action does not have federalism Fairness Act of 1996, generally provides Technology Transfer and Advancement that before a rule may take effect, the implications. It will not have substantial Act of 1995 (‘‘NTTAA’’), Public Law direct effects on the States, on the agency promulgating the rule must 104–113, 12(d) (15 U.S.C. 272 note) submit a rule report, which includes a relationship between the national directs EPA to use voluntary consensus government and the States, or on the copy of the rule, to each House of the standards in its regulatory activities Congress and to the Comptroller General distribution of power and unless to do so would be inconsistent responsibilities among the various of the United States. A major rule with applicable law or otherwise cannot take effect until 60 days after it levels of government, as specified in impractical. Voluntary consensus Executive Order 13132. This action only is published in the Federal Register. standards are technical standards (e.g., EPA will submit a report containing this applies to gasoline, diesel, and materials specifications, test methods, renewable fuel producers, importers, rule and other required information to sampling procedures, and business the U.S. Senate, the U.S. House of distributors and marketers and makes practices) that are developed or adopted relatively minor corrections and Representatives, and the Comptroller by voluntary consensus standards General of the United States prior to modifications to the RFS2 regulations. bodies. NTTAA directs EPA to provide Thus, Executive Order 13132 does not publication of the rule in the Federal Congress, through OMB, explanations Register. This action is not a ‘‘major apply to this action. when the Agency decides not to use rule’’ as defined by 5 U.S.C. 804(2). F. Executive Order 13175 (Consultation available and applicable voluntary and Coordination With Indian Tribal consensus standards. VII. Statutory Provisions and Legal Governments) This action does not involve technical Authority standards. Therefore, EPA did not This rule does not have tribal consider the use of any voluntary Statutory authority for the rule implications, as specified in Executive consensus standards. finalized today can be found in section Order 13175 (65 FR 67249, November 9, 211 of the Clean Air Act, 42 U.S.C. 2000). It applies to gasoline, diesel, and J. Executive Order 12898: Federal 7545. Additional support for the renewable fuel producers, importers, Actions To Address Environmental procedural and compliance related distributors and marketers. This action Justice in Minority Populations and aspects of today’s rule, including the makes relatively minor corrections and Low-Income Populations recordkeeping requirements, come from modifications to the RFS regulations, Executive Order (EO) 12898 (59 FR Sections 114, 208, and 301(a) of the and does not impose any enforceable 7629 (Feb. 16, 1994)) establishes Federal Clean Air Act, 42 U.S.C. 7414, 7542, and duties on communities of Indian tribal executive policy on environmental 7601(a).

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List of Subjects in 40 CFR Part 80 PART 80—REGULATION OF FUELS which meets the definition of gasoline AND FUEL ADDITIVES in § 80.2(c). Environmental protection, Renewable gasoline blendstock means Administrative practice and procedure, ■ 1. The authority citation for part 80 a blendstock made from renewable Agriculture, Air pollution control, continues to read as follows: biomass that is composed of only Confidential business information, hydrocarbons and which meets the Diesel Fuel, Energy, Forest and forest Authority: 42 U.S.C. 7414, 7521(1), 7545 and 7601(a). definition of gasoline blendstock in products, Fuel additives, Gasoline, § 80.2(s). Imports, Labeling, Motor vehicle ■ 2. Section 80.1401 is amended by * * * * * pollution, Penalties, Petroleum, addition of the following definitions of ■ 3. Section 80.1426 is amended by Reporting and recordkeeping ‘‘Renewable Gasoline’’ and ‘‘Renewable requirements. revising Table 1 in paragraph (f)(1) to Gasoline Blendstock’’ in alphabetical read as follows: Dated: November 30, 2011. order to read as follows: § 80.1426 How are RINs generated and Lisa P. Jackson, § 80.1401 Definitions. assigned to batches of renewable fuel by Administrator. * * * * * renewable fuel producers or importers? For the reasons set forth in the Renewable gasoline means renewable * * * * * preamble, 40 CFR part 80 is amended as fuel made from renewable biomass that (f) * * * follows: is composed of only hydrocarbons and (1) * * *

TABLE 1 TO § 80.1426—APPLICABLE D CODES FOR EACH FUEL PATHWAY FOR USE IN GENERATING RINS

Fuel type Feedstock Production process requirements D-Code

A Ethanol ...... Corn starch ...... All of the following: Dry mill process, using natural 6 gas, biomass, or biogas for process energy and at least two advanced technologies from Table 2 to this section. B Ethanol ...... Corn starch ...... All of the following: Dry mill process, using natural 6 gas, biomass, or biogas for process energy and at least one of the advanced technologies from Table 2 to this section plus drying no more than 65% of the distillers grains with solubles it mar- kets annually. C Ethanol ...... Corn starch ...... All of the following: Dry mill process, using natural 6 gas, biomass, or biogas for process energy and drying no more than 50% of the distillers grains with solubles it markets annually. D Ethanol ...... Corn starch ...... Wet mill process using biomass or biogas for proc- 6 ess energy. E Ethanol ...... Starches from crop residue and annual covercrops Fermentation using natural gas, biomass, or biogas 6 for process energy. F Biodiesel, renewable Soy bean oil; Oil from annual covercrops; Algal oil; One of the following: Trans-Esterification, 4 diesel, jet fuel and heat- Biogenic waste oils/fats/greases; Non-food grade Esterification Hydrotreating Excluding processes ing oil. corn oil; Camelina oil. that co-process renewable biomass and petro- leum. G Biodiesel, heating oil .. Canola/Rapeseed oil ...... Trans-Esterification using natural gas or biomass 4 for process energy. H Biodiesel, renewable Soy bean oil; Oil from annual covercrops; Algal oil; One of the following: Trans-Esterification, 5 diesel, jet fuel and heat- Biogenic waste oils/fats/greases; Non-food grade Esterification Hydrotreating Includes only proc- ing oil. corn oil Camelina oil. esses that co-process renewable biomass and petroleum. I Naphtha, LPG ...... Camelina oil ...... Hydrotreating ...... 5 J Ethanol ...... Sugarcane ...... Fermentation ...... 5 K Ethanol ...... Cellulosic Biomass from crop residue, slash, pre- Any ...... 3 commercial thinnings and tree residue, annual covercrops, switchgrass, miscanthus, napiergrass, giant reed, and energy cane; cellu- losic components of separated yard waste; cellu- losic components of separated food waste; and cellulosic components of separated MSW. L Cellulosic Diesel, jet Cellulosic Biomass from crop residue, slash, pre- Any ...... 7 fuel and heating oil. commercial thinnings and tree residue, annual covercrops, switchgrass, miscanthus, napiergrass, giant reed and energy cane; cellu- losic components of separated yard waste; cellu- losic components of separated food waste; and cellulosic components of separated MSW.

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TABLE 1 TO § 80.1426—APPLICABLE D CODES FOR EACH FUEL PATHWAY FOR USE IN GENERATING RINS—Continued

Fuel type Feedstock Production process requirements D-Code

M Renewable Gasoline Cellulosic Biomass from crop residue, slash, pre- Catalytic Pyrolysis, Gasification and Upgrading, Di- 3 and Renewable Gaso- commercial thinnings, tree residue, annual cover rect Fermentation, Fermentation and Upgrading, line Blendstock. crops; cellulosic components of separated yard all utilizing natural gas, biogas, and/or biomass waste; cellulosic components of separated food as the only process energy sources. Any proc- waste; and cellulosic components of separated ess utilizing biogas and/or biomass as the only MSW. process energy sources. N Butanol ...... Corn starch ...... Fermentation; dry mill using natural gas, biomass, 6 or biogas for process energy. O Ethanol, renewable The non-cellulosic portions of separated food Any ...... 5 diesel, jet fuel, heating waste. oil, and naphtha. P Biogas ...... Landfills, sewage waste treatment plants, manure Any ...... 5 digesters.

* * * * * [FR Doc. 2011–31580 Filed 1–4–12; 8:45 am] BILLING CODE 6560–50–P

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