Vol. 78 Friday, No. 115 June 14, 2013

Part II

Environmental Protection Agency

40 CFR Part 80 Regulation of and Additives: RFS Pathways II and Technical Amendments to the RFS 2 Standards; Proposed Rule

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ENVIRONMENTAL PROTECTION to sections dealing with labeling, E15 through www.regulations.gov, your AGENCY surveys, product transfer documents, email address will be automatically and prohibited acts. We also propose to captured and included as part of the 40 CFR Part 80 amend the definitions in order to comment that is placed in the public [EPA–HQ–OAR–2012–0401; FRL–9816–3] address a concern about the rounding of docket and made available on the test results for content Internet. If you submit an electronic RIN 2060—AR21 violations. comment, EPA recommends that you Lastly, EPA is proposing changes to include your name and other contact Regulation of Fuels and Fuel the survey requirements associated with information in the body of your Additives: RFS Pathways II and the ultra-low sulfur diesel (ULSD) comment and with any disk or CD–ROM Technical Amendments to the RFS 2 program. you submit. If EPA cannot read your Standards DATES: Comments must be received on comment due to technical difficulties AGENCY: Environmental Protection or before July 15, 2013. We do not and cannot contact you for clarification, Agency (EPA). expect a request for a public hearing. EPA may not be able to consider your comment. Electronic files should avoid ACTION: Notice of Proposed Rulemaking. However, if we receive a request for a public hearing by July 1, 2013 we will the use of special characters, any form SUMMARY: In this Notice of Proposed publish information related to the of encryption, and be free of any defects Rulemaking, EPA is proposing timing and location of the hearing and or viruses. For additional information amendments to three separate sets of the timing of a new deadline for public about EPA’s public docket visit the EPA regulations relating to fuels. First, EPA comments. Docket Center homepage at http:// www.epa.gov/epahome/dockets.htm. is proposing to amend certain of the ADDRESSES: Submit your comments, Docket: All documents in the docket renewable fuels standard (RFS2) identified by Docket ID No. EPA–HQ– are listed in the www.regulations.gov program regulations. We believe these OAR–2012–0401, by one of the index. Although listed in the index, proposals will facilitate the introduction following methods: some information is not publicly of new renewable fuels as well as • http://www.regulations.gov. Follow available, e.g., CBI or other information improve implementation of the the on-line instructions for submitting for which disclosure is restricted by program. This proposal includes various comments. changes related to , including • Email: [email protected], statute. Certain other material, such as changes related to the revised Attention Air and Radiation Docket ID copyrighted material, will be publicly (CNG)/liquefied No. EPA–HQ–OAR–2012–0401. available only in hard copy. Publicly natural gas (LNG) pathway and • Mail: Air and Radiation Docket, available docket materials are available amendments to various associated Docket No. EPA–HQ–OAR–2012–0401, either electronically in registration, recordkeeping, and Environmental Protection Agency, Mail www.regulations.gov or in hard copy at reporting provisions. This proposed code: 6406J, 1200 Pennsylvania Ave. the Air and Radiation Docket, EPA/DC, regulation includes the addition of new NW., Washington, DC 20460. Please EPA West, Room 3334, 1301 pathways for renewable diesel, include a total of two (2) copies. Constitution Ave. NW., Washington, renewable naphtha, and renewable • Hand Delivery: EPA Docket Center, DC. The Public Reading Room is open electricity (used in electric vehicles) EPA/DC, EPA West, Room 3334, 1301 from 8:30 a.m. to 4:30 p.m., Monday produced from landfill biogas. Adding Constitution Ave. NW., Washington, DC through Friday, excluding legal these new pathways will enhance the 20460, Attention Air and Radiation holidays. The telephone number for the ability of the industry to supply Docket, ID No. EPA–HQ–OAR–2012– Public Reading Room is (202) 566–1744, advanced biofuels, including cellulosic 0401. Such deliveries are only accepted and the telephone number for the Air biofuels, which greatly reduce the during the Docket’s normal hours of and Radiation Docket is (202) 566–1742. greenhouse gas emissions (GHG) operation, and special arrangements FOR FURTHER INFORMATION CONTACT: compared to the petroleum-based fuels should be made for deliveries of boxed Joseph Sopata, Chemist, Office of they replace. It also addresses information. Transportation and Air Quality, Mail ‘‘nameplate capacity’’ issues for certain Instructions: Direct your comments to Code: 6406J, U.S. Environmental production facilities that do not claim Docket ID No. EPA–HQ–OAR–2012– Protection Agency, 1200 Pennsylvania exemption from the 20% greenhouse gas 0401. EPA’s policy is that all comments Avenue NW., 20460; telephone number: (GHG) reduction threshold. In this received will be included in the public (202) 343–9034; fax number: (202) 343– notice, EPA addresses issues related to docket without change and may be 2801; email address: crop residue and corn kernel fiber and made available online at [email protected]. proposes an approach to determining www.regulations.gov, including any SUPPLEMENTARY INFORMATION: This the volume of cellulosic RINs produced personal information provided, unless preamble follows the following outline: from various cellulosic feedstocks. We the comment includes information I. Why is EPA taking this action? also include a lifecycle analysis of claimed to be Confidential Business II. Does this action apply to me? advanced and discuss the Information (CBI) or other information III. What should I consider as I prepare my potential to allow for commingling of whose disclosure is restricted by statute. comments for EPA? compliant products at the retail facility Do not submit information that you IV. Executive Summary level as long as the environmental consider to be CBI or otherwise V. Renewable Fuel Standard (RFS2) Program performance of the fuels would not be protected through www.regulations.gov Amendments detrimental. Several other amendments or email. The www.regulations.gov Web A. Approving Cellulosic Volumes From to the RFS2 program are included. site is an ‘‘anonymous access’’ system, Cellulosic Feedstocks 1. Variability in Cellulosic Content Second, EPA is also proposing various which means EPA will not know your Estimates of Feedstocks changes to the E15 misfueling identity or contact information unless 2. Characteristics of the Amount of the mitigation regulations (E15 MMR). you provide it in the body of your Final Fuel Derived From Cellulosic Among the E15 changes proposed are comment. If you send an email Materials technical corrections and amendments comment directly to EPA without going 3. Previous Precedents

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4. Alternative Approaches Reporting Method for Sell and Buy RFS2 program was required by the B. Lifecycle Greenhouse Gas Emissions Transactions for Assigned RINs Energy Independence and Security Act Analysis for Renewable Electricity, 5. Proposed Changes to Section 80.1463— of 2007 (EISA 2007), which amended Renewable Diesel and Naphtha Produced Confirm That Each Day an Invalid RIN the Clean Air Act (CAA). The final From Landfill Biogas Remains in the Market is a Separate Day 1. Feedstock Production of Violation regulations for RFS2 were published in 2. Determination of the Cellulosic 6. Proposed Changes to Section 80.1466— the Federal Register on March 26, 2010 Composition of Landfill Biogas Require Foreign Ethanol Producers, (75 FR 14670). In this notice, references 3. Fuel Production—General Importers and Foreign Renewable Fuel to the ‘‘RFS2 final rule’’ refer to the Considerations Producers That Sell to Importers to be March 26, 2010 Federal Register notice 4. Fuel Production for Renewable Subject to U.S. Jurisdiction and Post a unless otherwise noted. Second, EPA is Electricity Bond 5. Fuel Production, Transport and Tailpipe proposing to amend provisions of 40 7. Proposed Changes to Section CFR part 80, subpart N, related to Emissions for Renewable Diesel and 80.1466(h)—Calculation of Bond Naphtha Amount for Foreign Renewable Fuel misfueling mitigation for 15 volume C. Proposed Regulatory Amendments Producers, Foreign Ethanol Producers percent (%) ethanol blends (E15). The Related to Biogas and Importers final regulations for E15 were published 1. Changes Applicable to the Revised CNG/ 8. Proposed Changes to Facility’s Baseline in the Federal Register on July 25, 2011 LNG Pathway From Biogas Volume To Allow ‘‘Nameplate Capacity’’ (76 FR 44422). Several items in this 2. New Registration (Contract for Facilities not Claiming Exemption proposed action will assist regulated Requirements) for Renewable Electricity From the 20% GHG Reduction and Fuels Produced From Biogas That parties in complying with RFS2 and E15 Threshold requirements. This action is not Qualify as Renewable Fuel and That are G. Minor Corrections to RFS2 Provisions Registered for RIN Generation VI. Amendments to the E15 Misfueling expected to result in significant changes 3. Changes Applicable to all Biogas Related Mitigation Rule in regulatory burdens or costs associated Pathways for RIN Generation A. Proposed Changes to Section 80.1501— with the RFS2 and E15 programs. Third, 4. Changes Applicable To Process Label EPA is proposing a change to the ultra Electricity Production Requirement for B. Proposed Changes to Section 80.1502— the Biogas-Derived Cellulosic Diesel and low sulfur diesel (ULSD) program of 40 E15 Survey Naphtha Pathways CFR part 80, subpart I. Specifically, EPA C. Proposed Changes to Section 80.1503— D. Amendment to the Definition of ‘‘Crop is proposing an amendment to the Product Transfer Documents Residue’’ and Definition of a Pathway for survey provisions that would likely D. Proposed Changes to Section 80.1504— Corn Kernel Fiber result in decreasing the number of Prohibited Acts E. Consideration of Advanced Butanol samples that must be taken, and as such Pathway E. Proposed Changes to Section 80.1500— Definitions would be expected to result in a 1. Proposed New Pathway decrease in regulatory burdens or costs. 2. Butanol, Biobutanol, and Volatility VII. Proposed Amendments to the ULSD Diesel Survey Considerations II. Does this action apply to me? F. Amendments to Various RFS2 VIII. Statutory and Executive Order Reviews Compliance Related Provisions Entities potentially affected by this I. Why is EPA taking this action? 1. Proposed Changes to Definitions action include those involved with the 2. Provisions for Small Blenders of EPA is taking this action to amend production, distribution and sale of Renewable Fuels various provisions in its regulations transportation fuels, including 3. Proposed Changes to Section 80.1450— Registration Requirements pertaining to fuels and fuel additives. and , or renewable fuels such 4. Proposed Changes to Section 80.1452— First, EPA is proposing to amend 40 as ethanol and . Regulated EPA Moderated Transaction System CFR part 80, subpart M related to the categories and entities affected by this (EMTS) Requirements—Alternative renewable fuels standard (RFS2). The action include:

NAICS Category SIC Codes b Examples of potentially regulated parties Codes a

Industry ...... 324110 2911 Petroleum refiners, importers. Industry ...... 325193 2869 Ethyl alcohol manufacturers. Industry ...... 325199 2869 Other basic organic chemical manufacturers. 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. a North American Industry Classification System (NAICS). b Standard Industrial Classification (SIC) system code.

This table is not intended to be applicability criteria of Part 80, subparts www.regulations.gov or email. Clearly exhaustive, but rather provides a guide I, M and N of Title 40 of the Code of mark the part or all of the information for readers regarding entities likely to be Federal Regulations. If you have any that you claim to be CBI. For CBI regulated by this action. This table lists question regarding applicability of this information in a disk or CD–ROM that the types of entities that EPA is now action to a particular entity, consult the you mail to EPA, mark the outside of the aware could be potentially regulated by person in the preceding FOR FURTHER disk or CD–ROM as CBI and then this action. Other types of entities not INFORMATION CONTACT section above. identify electronically within the disk or listed in the table could also be III. What should I consider as I prepare CD–ROM the specific information that regulated. To determine whether your my comments for EPA? is claimed as CBI. In addition to one entity is regulated by this action, you A. Submitting CBI. Do not submit this complete version of the comment that should carefully examine the information to EPA through includes information claimed as CBI, a

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copy of the comment that does not registration, recordkeeping, and Third, in response to questions contain the information claimed as CBI reporting provisions. These fuels have received from regulated parties, we must be submitted for inclusion in the the potential to add notable volumes of propose to amend the ultra low sulfur public docket. Information so marked advanced including cellulosic diesel (ULSD) survey provisions in a will not be disclosed except in biofuel to the existing renewable fuel manner that will likely reduce the accordance with procedures set forth in volumes already being produced. Many number of samples required. This may 40 CFR part 2. of these changes are being proposed in mean a reduction in costs and burdens B. Tips for Preparing Your Comments. order to facilitate the introduction of associated with compliance for When submitting comments, remember new renewable fuels under the RFS2 regulated parties, with no expected to: program and have come at the degradation in the highly successful • Identify the rulemaking by docket suggestion of industry stakeholders. environmental performance of the number and other identifying This preamble includes the addition program. information (subject heading, Federal of new pathways for renewable diesel, V. Renewable Fuel Standard (RFS2) Register date and page number). and renewable naphtha, and renewable • Follow directions—The agency may electricity (used in electric vehicles) Program Amendments ask you to respond to specific questions produced from landfill biogas. It The RFS2 program was required by or organize comments by referencing a includes a proposal to address the Energy Independence and Security Code of Federal Regulations (CFR) part ‘‘nameplate capacity’’ issues for certain Act of 2007 (EISA 2007), which or section number. production facilities that do not claim amended the Clean Air Act (CAA). The • Explain why you agree or disagree; exemption from the 20% greenhouse gas final regulations for RFS2 were suggest alternatives and substitute (GHG) reduction threshold. EPA published in the Federal Register on language for your requested changes. proposes to address issues related to March 26, 2010 (75 FR 14670). The rule • Describe any assumptions and crop residue and corn kernel fiber. We took effect on July 1, 2010. In this provide any technical information and/ propose an approach for approving the notice, we are proposing several new or data that you used. cellulosic volumes from cellulosic renewable fuel pathway options for • If you estimate potential costs or feedstocks. We include a lifecycle advanced biofuels including new burdens, explain how you arrived at analysis of advanced butanol and cellulosic biofuel pathways. This your estimate in sufficient detail to discuss the potential to allow for proposed regulation would also provide allow for it to be reproduced. commingling of compliant products at modifications and technical • Provide specific examples to the retail facility level as long as the amendments to the existing RFS2 illustrate your concerns, and suggest environmental performance of the fuels program. alternatives. would not be detrimental when A. Approving Cellulosic Volumes From • Explain your views as clearly as compared to existing practices. We Cellulosic Feedstocks possible, avoiding the use of profanity specifically discuss this consideration or personal threats. for commingling in regards to the Since the inception of the RFS • Make sure to submit your volatility associated with butanol program, EPA has qualified several fuel comments by the comment period gasoline and ethanol gasoline blends. pathways that are able to generate deadline identified. We state when and how EPA may cellulosic biofuel RINs (D codes 3 and C. Docket Copying Costs. You may be cancel a company registration. Of a 7). See 40 CFR 80.1426. Each of the charged a reasonable fee for more minor scope, this preamble qualified cellulosic feedstocks listed in photocopying docket materials, as includes proposed amendments that section 80.1426 contain other provided in 40 CFR part 2. would define terminology used for components such as , sugars, lipids, and proteins. To date, EPA has IV. Executive Summary registration and reporting purposes and propose changes to registration and not provided detailed information on EPA is proposing amendments to reporting requirements. This preamble how other components should be three sets of regulations. First, EPA is also discusses some minor corrections, treated. This has led to uncertainty proposing to amend certain of the including adding language to amongst renewable fuel producers about renewable fuels standard (RFS2) registration, recordkeeping and whether their entire volume of fuel program regulations at 40 CFR part 80, reporting sections requiring English produced from a cellulosic feedstock Subpart M. Section V of this preamble language translation of documents. We would be eligible to generate cellulosic includes several proposed amendments have also proposed to correct obvious RINs. In this rulemaking, EPA proposes to the RFS2 regulations of 40 CFR part omissions and errors in citation in the to allow 100% of the volume of 80. The final regulations for RFS2 were existing RFS2 regulation. renewable fuel produced from certain published in the Federal Register on Second, EPA is also proposing various specified, currently approved cellulosic March 25, 2010 (75 FR 14670). EPA has changes to the E15 misfueling feedstocks to generate cellulosic (D–3 or issued technical corrections in the past. mitigation regulations (E15 MMR) at 40 D–7) RINs. We also take comment on We have identified several additional CFR part 80, subpart N. The final E15 two alternative approaches for how to changes. Some of the proposed changes MMR was published in the Federal treat non-cellulosic components of in this notice are of a substantive nature; Register on July 25, 2011 (76 FR 44406). cellulosic feedstocks. others are more in the nature of Among the E15 changes proposed are For purposes of the RFS program, technical corrections, including technical corrections and amendments cellulosic biofuel is defined as corrections of obvious omissions and to sections dealing with labeling, E15 ‘‘renewable fuel derived from any errors in citation. Among the more surveys, product transfer documents, , hemicellulose, or lignin that substantive modifications are various and prohibited acts. We also propose to is derived from renewable and proposed changes related to biogas, amend the definitions in order to that has lifecycle greenhouse gas including changes related to the revised address a concern about the rounding of emissions, as determined by the compressed natural gas (CNG)/liquefied Reid Vapor Pressure (RVP) test results, Administrator, that are at least 60 natural gas (LNG) pathway and in response to a question raised by some percent less than the baseline lifecycle amendments to various associated industry stakeholders. greenhouse gas emissions.’’ This

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definition was added in Section TABLE V.A.–1—AVERAGE CELLULOSIC characterizing the different components 211(o)(1)(E) by the Energy COMPOSITION OF DIFFERENT TYPES of feedstocks, mainly focused on how Independence and Security Act (EISA) OF FEEDSTOCKS4—Continued the materials could be broken down and of 2007, where Congress specified four converted into fuel. There has been different categories of renewable fuel Average work also in defining standardized and their associated volume Feedstock type adjusted cellulosic procedures and test methods for requirements. The threshold for composition (percent) analyzing the different components of reduction in greenhouse gases is set at biomass; 5 however, the studies a higher percentage for cellulosic Switchgrass ...... 85 considered all employ slightly different biofuel than the reduction for the other ...... 85 methods. For the purposes of this rule, categories of renewable fuels. While the Other Grasses ...... 81 EPA considered the amount of the volume requirements for cellulosic Wood and Branches ...... 92 feedstocks that is composed of biofuel start at a relatively low volume, cellulosic components i.e., how much Congress specified large volume EPA is proposing to allow 100% of comes from the cellulose, hemicellulose the volume of renewable fuel produced increases over time such that the main or lignin, as opposed to any other from specific cellulosic feedstock growth in the use of renewable fuels components of the feedstock. There is comes from cellulosic biofuels. This sources found in Table 1 of section significant variation in the data reported reflects a strong Congressional intention 80.1426 to generate D–3 or D–7 RINs on feedstock component compositions. to promote the use of cellulosic biofuel (depending on the type of finished fuel). The variation is due to a number of and achieve the associated greenhouse However separated food waste, separated yard waste, and separated causes, such as measurement gas emissions reductions. 67 However, no plant matter can ever MSW would continue to be treated as methods, variety within a generic 8 consist entirely of cellulose, before, as discussed below. There are feedstock type, and storage time. hemicellulose and lignin. Plants require three major justifications for this Although there are many factors that proteins, DNA, carbohydrates and many determination: (1) There can be contribute to the large variability in other types of compounds in order to significant variation in the amount of assessments of cellulosic content, all grow and function. Even feedstocks cellulosic content in any feedstock, studies confirm that the feedstocks in such as switchgrass, corn , and which varies within a growing season, Table 1 of section 80.1426 have an woody materials which are the most across samples, and across sites. adjusted cellulosic content of at least commonly cited ‘‘cellulosic’’ feedstocks, Attempting to account for this 70%, with an average content of around contain measurable proportions of other variability would impose a significant 85% cellulosic.9 A memorandum to the types of organic molecules. However, administrative burden on producers and docket provides more information on these ‘‘cellulosic’’ feedstocks contain EPA; (2) The amount of the final fuel cellulosic terminology, percent much more cellulose, hemicellulose and that is produced from the cellulosic composition of various feedstocks, and lignin than do other types of biomass. portion of the feedstock is likely to be the variability of different feedstock As shown in Table V.A.–1, most very high, particularly for fuels components.10 From this data, EPA ‘‘cellulosic’’ feedstocks consist of produced using a biochemical reaction; concludes that each of the qualified approximately 80–95% cellulose, (3) EPA has already made previous 1 feedstocks listed in section 80.1426 are hemicellulose, or lignin. In contrast, determinations in which a single RIN comprised predominantly of cellulose, corn kernels contain roughly 75% value was assigned to the fuel produced hemicellulose and lignin. and less than 10% fiber (which includes since it came primarily from one source the cellulosic components, as well as even though it was also produced from 5 2 See, e.g., the Standard Biomass Analytical other materials), and are incidental amounts of other sources. Procedures developed by the National Renewable roughly 60% oil and protein and only This determination is based on the Energy Laboratory, http://www.nrel.gov/biomass/ about 15% fiber.3 view that the statutory requirement does analytical_procedures.html. not mandate that in all cases the 6 Compositional Analysis of Lignocellulosic TABLE V.A.–1—AVERAGE CELLULOSIC renewable fuel must be produced solely Feedstocks. 2. Method Uncertainties, David W. Templeton, Christopher J. Scarlata, Justin B. Sluiter, COMPOSITION OF DIFFERENT TYPES from the cellulosic material in the And Edward J. Wolfrum, J. Agric. Food Chem. 2010, OF FEEDSTOCKS4 renewable biomass. EPA considers the 58, 9054–9062 statutory definition of cellulosic biofuel 7 Relative standard deviations (RSD) of 5–8% are Average to be flexible on this point. Given these reported for cellulose, hemicelluloses and lignin with the other minor components showing 16–22% Feedstock type adjusted cellulosic factors cited above, the Agency believes composition this interpretation of ‘‘derived from’’ is RSD. (percent) 8 Composition of Herbaceous Biomass Feedstocks, consistent with the Congressional intent DoKyoung Lee, Vance N. Owens, Arvid Boe, Peter Crop Residue ...... 90 to require increased use of cellulosic Jeranyama, Plant Science Department, South Dakota biofuels while ensuring that the State University, SGINC1–07, June 2007. program can be implemented in a 9 EPA only considered the organic components of 1 See Memorandum to Docket, ‘‘Cellulosic the materials when determining cellulosic content. Content of Various Feedstocks,’’ Docket EPA–HQ– reasonable way. Details on the Inorganic materials are not likely to end up in the OAR–2012–0401. variability in feedstocks, characteristics final fuel product and would not contribute to the 2 Peplinski et al. (1992) Physical, chemical and of the final fuel, previous precedents, fuel heating content in the event that they remained dry-mill properties of corn of varying density and and alternative proposals are included in the final fuel. This methodology is consistent breakage susceptibility. Cereal Chemistry, 69(4), with how RINs are determined. In this section, EPA 397–400. in the following sections. refers to this as ‘‘adjusted cellulosic.’’ Adjusted 3 Illinois Association. Facts and 1. Variability in Cellulosic Content cellulosic content does not consider other material Statistics for the Illinois Soybean Industry. http:// that is not converted into biofuel such as minerals www.ilsoy.org/_data/mediaCenter/files/1290.pdf. Estimates of Feedstocks or other components that would show up as part 4 Values have been adjusted to account for the The cellulosic components of of the ash remaining after a thermo-chemical presence of inorganic ash, which will not produce feedstock consist of the major structural conversion process. fuel, as described in the Memorandum to the 10 See Memorandum to Docket, ‘‘Cellulosic Docket, ‘‘Cellulosic Content of Various Feedstocks,’’ components; cellulose; hemicellulose; Content of Various Feedstocks,’’ Docket EPA–HQ– Docket EPA–HQ–OAR–2012–0401. and lignin. EPA has reviewed research OAR–2012–0401.

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2. Characteristics of the Amount of the intent of converting the cellulosic remaining after reasonably practicable Final Fuel Derived From Cellulosic components of a feedstock into fuel; separation efforts such as plastic and Materials conversion of the non-cellulosic rubber of fossil origin.’’ Testing could Process technology plays a key role in components can be achieved much identify the portion of the fuel produced how much of the final fuel product is more easily with less of a capital from biogenic materials, and these actually produced from cellulose, investment. Furthermore, since the fuel biogenic materials ‘‘will likely be largely hemicellulose, or lignin. There are two produced will be primarily the result of derived from cellulosic materials (yard basic processes for converting cellulosic the direct conversion of cellulosic waste, textiles, paper, and construction feedstocks into fuel: thermo-chemical content of the feedstock and considering materials), and to a much smaller extent and biochemical. Thermo-chemical the relatively small range of non- starch-based materials (food wastes).’’ processes mainly consist of pyrolysis— cellulosic portion of feedstock that However, EPA was not aware of a test in which cellulosic biomass is could contribute to the volume of fuel method to distinguish between produced, EPA believes it is reasonable renewable fuel produced from the decomposed with temperature to bio- to consider all the fuel produced when cellulose and fuel produced from the oils and could be further processed to relying on cellulosic conversion starch and under those circumstances produce a finished fuel—and processes to be cellulosic biofuel. determined that it was appropriate to gasification—in which cellulosic base the assignment of RINs on the biomass is decomposed to synthesis gas 3. Previous Precedents ‘‘predominant’’ component of the (‘‘syngas’’) with further catalytic EPA has already considered instances biogenic material. EPA thus determined processing to produce a finished fuel where one RIN value was assigned to that all of the fuel generated from the product. The biochemical process the fuel produced since it came biogenic portion of separated MSW requires the release of sugars from primarily from one source even though would be considered cellulosic biomass and the use of microorganisms it was also produced from some amount biofuel.12 to convert sugars into fuels. Thermo- of other chemical compounds. In the Thus, EPA has interpreted the chemical processes can accept a more March 2010 RFS rulemaking, EPA definition of cellulosic biofuel as heterogeneous mix of feedstock and discussed two different situations for including in some cases a renewable typically convert all of the organic fuel produced from separated yard fuel that is produced from both the components of the feedstock into waste and food waste as the renewable cellulosic and incremental amounts of finished fuel. The biochemical process biomass feedstock. The first involved non-cellulosic components of the generally accepts a more homogeneous food waste or yard waste that was kept feedstock. EPA has treated the resulting mix of feedstocks and typically converts separate, from generation, from fuel as all derived from cellulosic only the cellulosic and hemicellulosic municipal solid waste (MSW). EPA material where the feedstock is components of the feedstock into the determined that both of these feedstocks composed almost entirely of woody final fuel product. Therefore, regardless could be considered renewable biomass. materials and leaves, or where the of the feedstock used, the final fuel With respect to separated yard waste, predominant component of the produced from the biochemical process EPA determined that the yard waste was feedstock is likely cellulosic. The fuel will typically only come from the expected to be composed almost will be largely derived from this cellulosic or hemicellulosic portions of entirely of woody material or leaves, cellulosic material and to a much feedstock, while the final fuel produced and this would be deemed to be smaller extent from non-cellulosic from the thermo-chemical process could cellulosic material and would generate materials. There currently is no ready come from cellulosic and non-cellulosic cellulosic biofuel RINs. Separated food test to identify the portion of fuel components. waste, however, was likely to be produced from non-cellulosic materials. For thermo-chemical production in composed of both cellulosic and non- EPA has not considered the fuel as which the non-cellulosic components of cellulosic materials, and in certain cases cellulosic in cases where the feedstock the feedstock can contribute to the would likely be composed primarily of was likely to be largely non-cellulosic volume of fuel produced in addition to non-cellulosic materials, such as sugars materials. In all of these cases, EPA has the cellulosic components, the percent and starches from the food. EPA recognized that the fuel would be of fuel produced from the non-cellulosic determined that separated food waste produced from both the cellulosic and portion can vary due to such factors as would be deemed to be non-cellulosic non-cellulosic materials in the feedstock type and the time and location material, and would generate advanced feedstock, and has determined in some of feedstock harvest. Regardless, we biofuel RINs and not cellulosic RINs, cases to consider the fuel entirely believe that the majority of the fuel unless the renewable fuel producer cellulosic biofuel based on the relative produced will be from the cellulosic demonstrated the part of the food waste amounts of the cellulosic and non- components. As a practical matter, there that was cellulosic. This portion would cellulosic materials and, for fuel made is no simple test that can be used to then generate cellulosic RINs.11 from the biogenic portion of separated measure the amount of fuel end product The second situation EPA previously MSW, on the lack of availability of a test that originated from cellulosic materials. addressed involved separated MSW. procedure to differentiate how much of For fuel produced via the biochemical EPA determined that separated MSW the fuel came from the cellulosic process, 100% of the fuel produced is that met certain regulatory requirements materials. directly the result of conversion of the would qualify as a renewable biomass These determinations have been cellulosic content. for purposes of producing renewable based on the view that the statutory In selecting a cellulosic process, fuel. EPA recognized that the biogenic requirement that cellulosic biofuel be whether based on biochemical or portion of this feedstock would be ‘‘derived from cellulose, hemicellulose, thermo-chemical design, the fuel composed of a ‘‘variety of materials, or lignin’’ does not mandate that in all producer is clearly demonstrating that including yard waste (largely cellulosic) cases the renewable fuel must be its primary intent is to convert the and food waste (largely starches and produced solely from the cellulosic cellulosic portions of the feedstock. sugar), as well as incidental materials material in the renewable biomass. EPA Cellulosic fuel producers invest in expensive process technologies with the 11 75 FR 14670, 14706 (March 26, 2010). 12 75 FR at 14706.

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considers the statutory definition of EPA’s application of this approach to on the alternative approaches outlined cellulosic biofuel to be ambiguous on the specific fuel pathways and below. this point, providing EPA the discretion feedstocks discussed in this proposal is 4. Alternative Approaches to reasonably determine under what intended to ensure that cellulosic circumstances a fuel appropriately materials are the predominant portion of EPA seeks comment on two could be considered cellulosic biofuel the biogenic materials used to produce alternative approaches to assigning when the fuel is produced from a cellulosic biofuel. This approach avoids cellulosic RINs to fuels produced from feedstock that is a mixture of cellulosic administrative, technical and cost the cellulosic feedstocks discussed and non-cellulosic materials. To date, burdens on EPA and industry and above. Separate from the specific EPA has specified certain circumstances promotes the volume and greenhouse pathways addressed in this proposal, where the entire fuel will be considered gas objectives of Congress. EPA EPA also seeks comment on potential cellulosic biofuel. EPA has taken this proposes that this is a reasonable approaches for assigning cellulosic RINs action in cases where the cellulosic interpretation of the definition of for anticipated future pathways for material is almost entirely woody cellulosic biofuels, and invites comment renewable fuels produced from materials or leaves, or the fuel is on this approach.14 feedstocks that contain lower cellulosic content than those discussed in this produced from materials that are EPA is proposing that biofuel made rulemaking. predominantly composed of cellulosic from the following cellulosic feedstocks materials and to a much smaller extent will be able to generate applicable Cellulosic Content Threshold Approach non-cellulosic materials, with no cellulosic RINs for 100% of the volume An alternative approach for handling current test to identify the differing produced: crop residue; slash; pre- the variability in cellulosic content portions. There have been two elements commercial thinnings and tree residue; would be for EPA to set a minimum present in these decisions. One involves annual cover crops; switchgrass; threshold of cellulosic content in the a determination that the feedstock is miscanthus; and energy . EPA’s feedstock. Fuels produced from composed almost entirely or largely of prior treatment of separated yard waste, feedstocks with a cellulosic content cellulosic materials. EPA has also separated food waste, and separated above this minimum threshold would considered whether or not there is a test MSW is discussed above and is not be eligible to generate cellulosic RINs method to identify the actual portion of being changed. On January 5, 2012, EPA for 100% of their volume. Thresholds the fuel produced from cellulosic proposed to qualify napier grass and under consideration would range from materials. In this rulemaking EPA is donax as new feedstocks that 70% to 99.9%. A higher percentage proposing an approach that is consistent would be eligible to generate cellulosic would place more emphasis on the with and an outgrowth of the approach RINs. If those pathways are approved feedstock content having a higher actual taken in the RFS2 rulemaking. EPA is before this rule is final, EPA is cellulosic component, whereas the proposing to approve certain fuels as proposing to apply the approach lower percentages would place more cellulosic biofuel where the cellulosic discussed above to these feedstocks as emphasis on promoting the volume of components account for a predominant 15 well. To the extent that additional fuels that could be categorized as percentage of the biogenic material in cellulosic pathways are approved in the cellulosic biofuel. EPA invites comment the renewable biomass feedstock used to future, we would expect to apply this on this approach, and also invites produce the fuel, even where the non- same methodology to those feedstocks comment on the most appropriate value cellulosic components of the renewable as well, but will evaluate them on a to use as the threshold. Furthermore, biomass could be reasonably identified case-by-case basis. EPA invites comment on whether or estimated.13 EPA requests comments on this EPA is proposing to classify all of the individual producers should be proposed approach to allow 100% of the biofuel as cellulosic in the fuel responsible for submitting data that volume of renewable fuel produced pathways proposed today, where the their feedstock meets this threshold, or from the specified cellulosic feedstock cellulosic material makes up a whether EPA should determine whether sources found in Table 1 of section predominant percentage of the organic feedstocks meet this threshold based on 80.1426 to generate cellulosic RINs. We material from which the fuel is existing published data. also take comment on the cellulosic Since biochemical processes generally produced. This approach will avoid the content values presented for different only convert the cellulosic, administrative and technical burden on feedstocks. In addition, we request hemicellulosic, or lignin components of producers and EPA of trying to comments about any analytical methods the feedstock to fuel, EPA believes determine the specific amounts of that may exist to determine what under this alternative approach, it may cellulosic and non-cellulosic materials percent of a finished biofuel product still be appropriate to allow fuel in the specified high-cellulosic may have derived from cellulosic versus producers using biochemical processes feedstock sources, removing potential non-cellulosic components, and what to generate RINs for 100% of the fuel difficult and potentially time- the costs may be associated with these produced from cellulosic feedstocks. consuming and expensive impediment test methods. We also request comment EPA requests comments on our to expansion of the cellulosic biofuel assumption that biochemical processes industry. The growth in cellulosic 14 will be specific for the cellulosic biofuel volumes promoted by today’s See Bot v. IRS, 353 F.3d 595 (8th Cir. 2003), Wuebker v. IRS, 205 F.2d 897 (6th Cir. 2000), components, and we also request proposal is expected to result in greater Milligan v. IRS, 38 F.3d 1094 (9th Cir. 1994). See comment on whether to allow 100% of reductions in GHGs, as all of the biofuel also Hecla Mining Company v. US, 909 F.2d 1371 the fuel produced via biochemical qualified as cellulosic would have to (10th Cir. 1990) (DOE’s interpretation of the term processes to generate cellulosic RINs. achieve the minimum 60% reduction in ‘‘derived from’’ in the Uranium Mill Tailings Radiation Control Act of 1978 accepted as a GHG emissions specified in the Act. reasonable interpretation under Chevron). Specified Percentage Approach 15 In addition, in section B of this proposal, EPA As noted above, examining the range 13 By predominant, EPA means the very high is also proposing to include corn fiber, CNG, LNG, percentages for adjusted cellulosic content electricity, and renewable diesel and naphtha from of feedstock data compiled by EPA, it discussed in section V.A.1. above for the feedstocks landfill biogas as cellulosic pathways for the appears that 85% would be a reasonable at issue in this proposal. reasons discussed therein. approximation for the average adjusted

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cellulosic content across a range of same percentage of the fuel may come process as an approved advanced and/ assessments of the specific feedstocks from cellulosic materials. EPA invites or biomass-based diesel biofuel and that are qualified to produce cellulosic comments about what approaches could naphtha produced from landfill biogas fuel. Under this approach, fuels be taken for assigning cellulosic RINs to via the Fischer-Tropsch process as an produced from the cellulosic feedstocks the biofuel. For example, would one or approved advanced biofuel. If the discussed above would be eligible to more of the approaches outlined above Fischer-Tropsch facilities produce at generate cellulosic RINs for 85% of their be appropriate for assigning RINs to this least 20% of their electricity demand at volume, and the remaining 15% would fuel? Are there variations on these the facility from certain allowed be eligible to generate advanced RINs. approaches that EPA should consider? sources, we are proposing that the The specified percentage approach EPA also invites comments on how to renewable diesel and naphtha produced would reduce administrative burden but assign cellulosic RINs where processes would further qualify as cellulosic also incentivize renewable fuel other than thermochemical methods are biofuels. We are also proposing to production. For this approach, EPA used. amend the existing biogas pathway to would effectively be treating 85% of the list renewable CNG/LNG as the fuel B. Lifecycle Greenhouse Gas Emissions fuel produced from all of these types instead of biogas since the biogas Analysis for Renewable Electricity, feedstock sources as being derived from is converted into CNG or LNG before Renewable Diesel and Naphtha cellulosic material. However, EPA being used as a transportation fuel, as Produced from Landfill Biogas would consider allowing a larger discussed below. Renewable CNG/LNG percentage of the fuel to qualify for EPA has received several facility- produced from biogas from waste cellulosic RINs if the producer could specific petitions under § 80.1416 to treatment plants and waste digesters is submit data that demonstrates a allow renewable electricity, renewable still classified as an advanced biofuel. consistently higher cellulosic content in diesel and naphtha produced from However, renewable CNG/LNG their feedstock. Under this approach, landfill biogas to qualify as renewable produced from biogas from landfills producers could submit a written plan fuels under the RFS program. Since now qualifies as a cellulosic pathway. for approval under the registration these new pathways could be more The changes to the renewable CNG/LNG procedures in 40 CFR 80.1416(b)(vii). broadly applicable, EPA is proposing to pathway are described in section C.1. The plan would need to detail the add these pathways to Table 1 to ‘‘Changes Applicable to the Revised cellulosic content of the feedstock, the § 80.1426 through this rulemaking CNG/LNG pathway from Biogas’’ below. method used for quantifying the process. Based on questions from 1. Feedstock Production cellulosic and non-cellulosic contents, companies, EPA is also modifying the and the production process used. existing biogas pathway to specify that When waste materials are buried in a Since biochemical processes generally compressed natural gas (CNG) or landfill, decomposition of the organic only convert the cellulose, liquefied natural gas (LNG) is the fuel materials consumes all of the oxygen hemicellulose, or lignin components of and biogas is the feedstock. For this present within roughly one year, leaving the feedstock to fuel, EPA believes proposal, EPA considered both the the bulk of the material to undergo under this alternative approach it would cellulosic origin of landfill biogas and slower, anaerobic decomposition. This be appropriate to allow fuel producers the lifecycle GHG impacts of three types process produces large amounts of using biochemical processes to generate of fuel produced from landfill-derived methane for several decades, as well as RINs for 100% of the fuel produced biogas. In the final RFS2 rule, EPA other products, with the gases released from cellulosic feedstocks. EPA requests established biogas as a fuel type when as ‘‘biogas.’’ Biogas from landfills comments on our assumption that derived from landfills, sewage waste typically contains approximately 50% biochemical processes will be specific treatment plants, and manure digesters. methane and 50% carbon dioxide, with for the cellulosic components, and we This biogas was classified as an small or trace amounts of other gases. also request comment on whether to advanced biofuel eligible to generate Methane is a potent greenhouse gas allow 100% of the fuel produced via D-Code 5 RINs. EPA also established (GHG), with a global warming potential biochemical processes to generate cellulosic diesel and cellulosic naphtha of 21 times that of carbon dioxide, and cellulosic RINs. as cellulosic biofuels eligible to generate landfills are the third-largest D-Code 7 and 3 RINs, respectively. The anthropogenic source of methane to the Request for Comment on Potential eligible feedstocks for these biofuels atmosphere in the United States.16 Approaches for Fuels Produced From include cellulosic components of The methane present in biogas is also Feedstocks With Lower Cellulosic separated municipal solid waste but did a potential energy source that may be Content not include biogas from landfills. purified and compressed to be used Finally, EPA anticipates that in the Based in part on additional directly in CNG or LNG vehicles, future, we may address biofuels that are information received through the combusted to produce electricity or produced from feedstocks that contain petition process for EPA approval of converted to renewable diesel and lower cellulosic content than those renewable electricity and renewable naphtha via the Fischer-Tropsch discussed in this rulemaking. diesel and naphtha produced from process. The March 2010 RFS final rule Accordingly, we request comment on landfill biogas, EPA has evaluated these concluded that municipal solid waste how EPA should assign RINs to the pathways and is proposing to include has no agricultural or land use change fuels produced from feedstocks with renewable electricity produced from GHG emissions associated with its lower cellulosic content than those landfill biogas feedstock in Table 1 to production. Furthermore, the feedstock presented in this rulemaking but for § 80.1426 as a cellulosic fuel type. It is for these fuels is landfill biogas, which which some of the fuel is produced from important to note that RINs may only be already appears in Table 1 of the cellulosic components. One possible generated for electricity from biogas that example would be a feedstock that can be tracked to use in the 16 U.S. Environmental Protection Agency. 2013. contained in the range of 40–60% transportation sector, such as by an Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990–2011, Chapter 8: Waste. EPA 430–R– cellulose, hemicellulose and lignin, . We are also proposing 13– 001, available at http://www.epa.gov/ where the fuel was produced using to add renewable diesel produced from climatechange/Downloads/ghgemissions/US-GHG- thermochemical methods such that the landfill biogas via the Fischer-Tropsch Inventory-2013-Main-Text.pdf.

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§ 80.1426(f) of the RFS2 regulations and biogas as a feedstock will be eligible to generated is derived from landfills that has already been evaluated as part of the generate cellulosic RINs (D-Codes 3 and flare their gas and another 38% is RFS2 final rule lifecycle GHG 7) if the fuel also meets the required derived from landfills with gas-to- determinations. Therefore no new 60% GHG emissions reductions. EPA electricity projects. By mass balance, renewable feedstock production invites comment and data on the this suggests that 24% of the landfill modeling was required, no GHG cellulosic component of biogas. methane generated is from landfills that emissions were attributed to feedstock 3. Fuel Production—General vent their methane. production for any of these renewable Considerations In our lifecycle GHG analysis of these fuel pathways, and EPA focused our biofuels we need to consider what analysis on the new fuel production Landfills currently treat their methane would have happened to the landfill gas processes. in one of several ways. Municipal solid waste (MSW) landfills designed to if it was not used to produce 2. Determination of the Cellulosic collect at least 2.5 million megagrams transportation fuels. This is the baseline Composition of Landfill Biogas (Mg) and 2.5 million cubic meters of for comparison to calculate the GHG In order for fuels produced from waste and emitting at least 50 Mg of impacts of the fuels in question. Once landfill biogas as a feedstock to qualify non-methane organic compounds per we have chosen a baseline for to generate D-Code 3 or 7 (cellulosic) year are required by EPA regulations to comparison, we propose to treat biogas RINs, the renewable fuel must be capture and control their biogas.19 from all landfills the same regardless of derived from cellulosic materials and These large, regulated landfills how the biogas is processed at that must meet a 60% GHG emissions represent a small percentage of all landfill. This approach is consistent reduction threshold, as described in the landfills by number but are responsible with how we have treated the following sections. In this section, we for the majority of biogas emissions implementation of advanced discuss our determination that biogas from landfills. To comply with the technologies for all biofuels producers. derived from landfills is derived from regulations, these landfills must at a For the landfill gas-to-electricity cellulose, hemicellulose or lignin. minimum combust their biogas in a pathway we use landfills that flare their CAA 211(o) specifies ‘‘separated yard flare, converting the methane to carbon biogas as the baseline GHG emissions waste or food waste’’ as a type of dioxide, a less potent GHG. They may with which we compare scenarios renewable biomass, and in the March also use it to generate electricity from involving production of electricity from 2010 RFS final rule, EPA stated: combustion of the methane, in which the landfill biogas. We chose this As a result of the intermixing of wastes, the case, the electricity produced may baseline because these landfills are the fact that biogas is formed only from the displace electricity from other sources ones most likely to convert to gas-to- biogenic portion of landfill material, and the (such as gas-fired power plants) once it energy projects, since they already have fact that landfill material is as a practical enters the grid. If displacing other matter inaccessible for further separation, gas collections systems in place. They sources of electricity that on average are also the ones most likely to be the EPA believes that no further practical have greater GHG emissions, landfills separation is possible for landfill material alternative to gas to energy projects and biogas should be considered as produced that generate electricity may reduce since these projects will likely go into from separated yard and food waste for GHG emissions and are using the ‘‘best 20 larger landfills that are required by purposes of EISA. practices’’ in the industry. Many regulation to collect and treat the biogas. smaller, unregulated landfills do not The March 2010 RFS final rule stated We expect that small, unregulated that all landfill-derived biogas was collect their biogas, and this methane is landfills would be unlikely to generate therefore eligible to generate RINs. ‘‘vented’’ to the atmosphere. In 2010, enough biogas to justify collecting it for An in-depth study of methane 29% of the methane generated at conversion to renewable fuels. production from different chemical landfills was flared and 29% of the Furthermore, we expect that the capital components of municipal solid waste methane was used to generate 21 costs for such small landfills would found that roughly 90% of the methane electricity. Accounting for the 25% preclude them from making such generated in landfills derived was from average collection efficiency of biogas 22 changes. However, if such small cellulose and hemicellulose.17 collection systems, we estimate that landfills were to capture and use their Accordingly, EPA is proposing to approximately 38% of the methane biogas in transportation fuels, this classify renewable fuels produced from would result in significantly greater landfill biogas as derived from cellulose, 19 Standards of Performance for New Stationary Sources and Guidelines for Control of Existing reductions in GHG emissions at each hemicellulose or lignin. This Sources: Municipal Solid Waste Landfills, 61 FR landfill than assumed for landfills determination is discussed in more 9905, 9944 (March 12, 1996). already capturing biogas because of the detail in a memo to the docket.18 20 Some facilities also use the biogas directly in decrease in methane release, so that Consistent with the discussion in the boilers and other applications or purify the biogas biofuels produced from such facilities section above, ‘‘Approving Cellulosic to create CNG or LNG or inject it directly into natural gas pipelines. would easily meet the required Volumes from Cellulosic Feedstock,’’ 21 Environmental Protection Agency. 2012. emissions reduction thresholds. Since we are classifying all of the biofuel Inventory of U.S. Greenhouse Gas Emissions and landfills that currently have gas-to- volume produced from landfill biogas as Sinks: 1990–2010, Annex 3: Methodological energy projects in place at one point cellulosic in origin. Therefore the entire Descriptions for Additional Source or Sink Categories. http://epa.gov/climatechange/ either replaced flaring with a gas-to- volume of renewable fuels using landfill emissions/usinventoryreport.html. As of December energy project or installed a gas-to- 2012, landfills produced 1913 MW of electricity energy project as an alternative to the 17 Barlaz, M.A., R.K. Ham, and D.M. Schaefer. based on figures from LMOP. This electricity would minimal compliance route of flaring, we 1989. Mass-balance analysis of anaerobically be almost entirely sold for use on the grid. From decomposed refuse. Journal of Environmental http://www.epa.gov/lmop/projects-candidates/ are proposing to treat the emissions Engineering, 15(6) 1088–1102. index.html. from these landfills compared to the 18 ‘‘Support for Cellulosic Determination for 22 Environmental Protection Agency, Landfill same flaring baseline. We show lifecycle Landfill Biogas and Summary of Lifecycle Analysis Methane Outreach Program. 2010. LFG Energy results calculated using alternative Assumptions and Calculations for Biofuels Project Development Handbook: Chapter 2. Landfill Produced from Landfill Biogas,’’ which has been Gas Modeling. http://epa.gov/lmop/publications- baselines and discuss our choice of placed in docket EPA–HQ–2012–0401. tools/handbook.html. baseline in more depth in a memo to the

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docket.23 We invite comment on our believe a different baseline is to-energy project. For this calculation, baseline assumptions for the electricity appropriate, EPA specifically invites the we used emission factors from the pathway. If commenters believe a submission of data supporting this GREET model.24 The second involved different baseline is appropriate, EPA alternative baseline. calculation of the decrease in GHG specifically invites the submission of emissions caused by powering the gas 4. Fuel Production for Renewable data supporting this alternative blowers already in use with biogas- Electricity baseline. derived electricity rather than grid For gas to liquids projects we also use Landfills can generate electricity by electricity upon installation of a gas-to- landfills that flare their biogas as the combustion of the methane in their energy project. This calculation used baseline GHG emissions with which we biogas. Generating electricity at landfills data from the EPA Landfill Methane compare scenarios involving production requires collection of the biogas (using Outreach Project (LMOP).25 For each of gas to liquids, for the same reasons wells, piping and blowers), purification factor, we needed to first calculate how outlined above. We further consider that and compression of the biogas and much electricity could be generated and landfills that have already invested the electricity generation. Most landfills use delivered to the consumer. We used capital to generate electricity are internal combustion engines to generate values from LMOP as estimates of the unlikely to stop doing so in order to the electricity, but a significant relative shares of different types of generate liquid fuels from the biogas, proportion also use gas or steam engines or turbines, the electricity which would require considerable turbines or combined cycle systems. generation efficiency, parasitic losses, additional capital investments. These Once generated, the electricity enters energy use in collecting and preparing facilities are therefore an unlikely the electrical grid. the biogas, and a value from the U.S. baseline for the pathways generating In determining the lifecycle GHG Energy Information Agency to estimate renewable diesel and naphtha. We analysis of renewable electricity, we distribution losses. Values used are invite comment on our baseline examined two main factors. The first shown in Table V.B.–1, and the assumptions for the liquids pathway involved determining by how much assumptions and calculations are and whether a different baseline would emissions at the landfill (from flaring) discussed in more detail in a memo to be more appropriate. If commenters would change upon installation of a gas- the docket.26

TABLE V.B.–1—CALCULATION OF THE NET AMOUNT OF ELECTRICITY DELIVERED TO THE CONSUMER PRODUCED FROM A GIVEN AMOUNT OF LANDFILL BIOGAS 27

Value Units

Electricity generation efficiency ...... 11700 Btu/kWh. Gross electricity production ...... 0.292 mmBtu/mmBtu biogas. Electricity produced after parasitic losses ...... 0.267 mmBtu/mmBtu biogas. Energy used for blowers ...... 0.014 mmBtu/mmBtu biogas. Distribution losses ...... 0.017 mmBtu/mmBtu biogas. Net electricity delivered to consumer ...... 0.236 mmBtu/mmBtu biogas.

We used the value for the net city of conventional gasoline-powered distance compared to an EV powered by yield from biogas to calculate how GHG vehicles, meaning that any given EV electricity, so the emissions per mmBtu emissions from the landfill itself would would be able to travel about three fuel equivalent are approximately one change upon conversion from flaring to times as far per Btu of input. To account third as large as the emissions per a gas-to-energy project. We first for this difference, we also calculated mmBtu electricity. EPA invites calculated emissions per mmBtu emissions per mmBtu fuel equivalent. It comments on the assumptions regarding electricity (Table V.B.–2). However, the would take roughly three times the electricity equivalence.28 drivetrains of electric vehicles are amount of energy from liquid fuel to roughly three times as efficient as those drive a conventional vehicle a given

23 ‘‘Support for Cellulosic Determination for 26 ‘‘Support for Cellulosic Determination for gross electricity generation to different types of Landfill Biogas and Summary of Lifecycle Analysis Landfill Biogas and Summary of Lifecycle Analysis generators and using parasitic loss values for that Assumptions and Calculations for Biofuels Assumptions and Calculations for Biofuels particular type of generator. Produced from Landfill Biogas,’’ which has been Produced from Landfill Biogas,’’ which has been 28 Note that in order to determine the number of placed in docket EPA–HQ–2012–0401. placed in docket EPA–HQ–2012–0401. RINs generated from a given amount of renewable 24 Argonne National Laboratory (2011) 27 All values are derived from information electricity, section 80.1415(b)(6) of the regulations Greenhouse Gases, Regulated Emissions, and provided by the EPA Landfill Methane Outreach Energy Use in Transportation Model (GREET), Program except the distribution loss number, which states that 22.6 kW-hr of electricity shall represent Version 1 2011, http://greet.es.anl.gov/. is from the U.S. Energy Information Agency. one gallon of renewable fuel with an equivalence 25 EPA LMOP Data. Parasitic losses were calculated by apportioning the value of 1.0.

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TABLE V.B.–2—FUEL GHG EMISSIONS FOR THE RENEWABLE ELECTRICITY PATHWAY, CALCULATED PER MMBTU ELECTRICITY AND PER MMBTU FUEL EQUIVALENT COMPARED TO THE 2005 GASOLINE BASELINE

GHG emissions Renewable 2005 Gasoline U.S. Average Lifecycle stage electricity baseline grid electricity

kg CO2-eq/ kg CO2-eq/ kg CO2-eq/ kg CO2-eq/ mmBtu mmBtu fuel mmBtu mmBtu electricity equivalent fuel electricity

On-site emissions ...... 25 8 ...... Upstream (electricity production for blowers) ...... ¥13 ¥4 ......

Total Emissions: ...... 12 4 98 220 % Change from Gasoline Baseline ...... ¥87% ¥96% ...... % Change from Grid Electricity ...... ¥94% N/A ......

On-site emissions of facilities that 5. Fuel Production, Transport and We did the calculations assuming the generate electricity would be slightly Tailpipe Emissions for Renewable facility did not generate any electricity higher than emissions from facilities Diesel and Naphtha and then calculated what fraction of that flare because reciprocating engines, Renewable diesel and naphtha can be their electricity demands they would which are the dominant technology made from landfill biogas by a need to generate internally to meet the used to generate electricity from biogas, combination of methane reforming and 60% emissions reduction threshold to are less efficient at destroying methane the Fischer-Tropsch gas-to-liquids (GTL) qualify for cellulosic RINs. than flares. Facilities that originally process. For methane reforming, the To determine the lifecycle GHG flared their biogas are assumed to have biogas must first be purified and then be emissions, we used confidential been purchasing electricity from the reformed to create synthesis gas, known business information (CBI) data provided in a petition submitted to EPA. grid to power the blowers needed to as ‘‘syngas,’’ which is composed of a This process did not involve upgrading collect the biogas. Upon conversion to mixture of carbon monoxide and of wax to liquid fuels. For this scenario, gas-to-energy projects, the facilities gas. This process may occur via either steam methane reforming or we used the supplied information about would now generate that electricity inputs of biogas, outputs of fuel and co- themselves and thus no longer need to autothermal reforming. The syngas is next purified and then sent to a Fischer- product and electrical demand for the purchase this electricity from the grid. lifecycle analysis. We first determined The calculations above include a credit Tropsch (F–T) system in which the carbon monoxide and hydrogen are how many GHG emissions would be in GHG emissions for the avoided avoided on-site at the landfill by purchase of grid electricity (Table V.B.– combined in the presence of a catalyst to form a range of hydrocarbons. This changing from the baseline scenario of 2). Unlike traditional transportation flaring to collecting the biogas for fuels, there are no GHG emissions reaction produces relatively short-chain (naphtha), medium-length (diesel) and conversion to liquid fuels. This involved in transportation or calculation was similar to that described distribution of renewable electricity long-chain (wax) hydrocarbons. The wax can subsequently be upgraded by above for renewable electricity and (distribution losses are accounted for relied on values from GREET 29 for the above), nor are there any tailpipe hydroprocessing to form naphtha and diesel fuels. The different products are emissions factor for flaring. To calculate emissions from the direct use of the then separated by simple distillation. the emissions from electricity required fuel. Therefore, the only emissions Heat generated by the reaction can be by the process, we used the emissions considered are those from production of used to preheat gases in the system and factors for average U.S. electrical the fuel, as outlined in Table V.B.–2. to generate electricity for use in the production used in the RFS2 final rule. The total GHG emissions for conversion To assign a co-product credit to the system or for export. Unconverted fuels, we assumed that the wax from flaring to a gas-to-energy project syngas from the F–T process and fuel produced during the Fischer-Tropsch are 12 kg CO2-eq/mmBtu electricity, or gas from hydroprocessing can also be process would enter a market in which 4 kg CO2-eq/mmBtu fuel equivalent. combusted to generate electricity. GTL it would displace wax derived from Compared with the gasoline baseline plants may have substantially different petroleum. To determine the effects of GHG emissions of 98 kg CO2-eq/mmBtu, lifecycle GHG impacts depending on such a displacement on GHG emissions, these projects would be accompanied by whether they upgrade their waxes and we used data from a model by the an 87% reduction in GHG emissions whether they generate electricity as a Department of Energy’s National Energy when normalized per mmBtu electricity. side product of the reaction. Electricity Technology Laboratory (NETL) 30 for the Accounting for the improved efficiency generation can add to the capital costs yields and GHG emissions attributable of EV drivetrains increases the GHG of a facility but also greatly reduces the to wax production from petroleum emissions reductions to 96%. lifecycle GHG emissions of a plant. Renewable electricity therefore meets In determining the lifecycle GHG 29 the statutory baseline of 60% reductions Argonne National Laboratory, ‘‘Greenhouse impacts of GTL fuels, we considered Gases, Regulated Emissions, and Energy Use in in GHG emissions relative to the two main factors: on-site emissions at Transportation Model (GREET),’’ Version 1 2011, gasoline baseline and qualifies as a the landfill and upstream emissions http://greet.es.anl.gov/. cellulosic biofuel. EPA invites from electricity production to power the 30 Department of Energy: National Energy comments on the assumptions and Technology Laboratory. (2009) NETL: Petroleum- plant. Additionally, a facility that Based Fuels Life Cycle Greenhouse Gas Analysis— calculations of GHG emissions related to produced wax was assigned a co- 2005 Baseline Model. www.netl.doe.gov/energy- renewable electricity from landfill gas. product credit for the wax generated. analyses.

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feedstock. These values only include account for them in our lifecycle GHG and could potentially change the production emissions and do not analysis. classification of these fuels. include any emissions from combustion The results of this analysis are shown Accordingly, we request comments of the wax in, for example, candles on the ‘‘Fuel Production’’ line of Table about the assumptions and values used because we do not have information V.B.–3, and the assumptions and in the calculations, which are detailed about what fraction of wax is calculations are discussed in more in a memo to the docket.33 In particular, combusted. If combustion emissions detail in a memo to the docket.32 we request comment about the estimate were included, the co-product credit Emissions from electricity production for the on-site GHG emissions at the would be even larger. The global wax used to power the F–T plant is the Fischer-Tropsch facility. Data regarding market is growing, with demand greatest contributor to the overall fuel fugitive emissions from Fischer-Tropsch expected to outpace supply in the next production emissions. In addition to facilities using methane as a feedstock few years.31 As such, it is unlikely that emissions from fuel production, there appear to be limited, however, the F–T waxes would in reality displace were minor GHG emissions attributable GREET model assumed a loss factor of petroleum-derived waxes. Instead, to fuel transport and tailpipe emissions 1.0000 for the production of F–T diesel, waxes from both sources are likely to be of non-CO2 GHGs (Table V.B.–3). indicating their estimate that no used in parallel to fulfill demand, and Overall, renewable diesel and naphtha methane is lost during this process. produced from landfill biogas via this Several studies mentioned emissions such waxes would replace any process showed 52% and 51% from the steam methane reforming of substitutes that might be used to fill the reductions in GHG emissions, natural gas to produce hydrogen, and gap between supply and demand. The respectively, relative to the diesel or we assumed emissions would be similar nature of these alternatives is presently gasoline baseline (Table V.B.–3). These from a Fischer-Tropsch facility using unknown to EPA, as are their lifecycle fuels would therefore qualify as steam methane reforming. Two of these GHG emissions. As an alternative to advanced biofuels but not qualify as studies 34 35 found or estimated that assigning a displacement credit, we cellulosic biofuels. However, if the losses of methane from such facilities could allocate emissions to the waxes facility produced roughly 15% of its were negligible, agreeing with the along with the renewable diesel and process electricity internally, using GREET estimate. Accordingly, we naphtha products. In this case, the co- either waste heat from the reaction or assumed no emissions of methane from product credit disappears but total fuel combustion of unreacted chemicals, F–T facilities. However, another study 36 production emissions decrease to 30 kg emissions from purchased electricity estimated losses of 0.125% of the CO2-eq/mm Btu, leading to overall GHG would drop enough to reach the 60% natural gas processed. Using this last emissions reductions of 68%. Our use of GHG reduction threshold, qualifying value, the GHG emissions reductions for the displacement approach is these fuels as cellulosic. Because renewable diesel and naphtha would conservative compared to the allocation emissions from production of these decrease to 49% for both fuels, meaning approach, which would have resulted in biofuels (without internal production of that the biofuels would no longer a larger credit for the wax co-product. electricity) fall so close to the 50% qualify as advanced fuels. We request We welcome comment regarding what threshold to qualify as advanced comments and information about our kinds of materials these new waxes biofuels, the assumptions used to make estimates of fugitive emissions from might replace, as well as how to best the calculations are especially important Fischer-Tropsch facilities.

TABLE V.B.–3—TOTAL GHG EMISSIONS FOR RENEWABLE DIESEL AND NAPHTHA PRODUCED FROM LANDFILL BIOGAS AND COMPARED TO THE APPROPRIATE PETROLEUM BASELINE

GHG emissions (kg CO2-eq/mmBtu)

Lifecycle stage Biofuels Petroleum baselines Renewable 2005 diesel 2005 gasoline diesel Naphtha baseline baseline

Fuel Production ...... 44 44 18 19 Fuel Transport ...... 1 2 * * Tailpipe Emissions ...... 1 2 79 79

Total Emissions...... 47 48 97 98 % Change from Petroleum Baseline ...... ¥52% ¥51% ...... * Emissions included in fuel production stage.

For this lifecycle analysis, we have upgrade its wax and therefore produces other facilities may produce F–T only examined a facility that does not wax as a co-product. It is likely that renewable diesel and naphtha by a

31 Kline Group (2011) Global Wax Industry 2010: Assumptions and Calculations for Biofuels Gas Steam Reforming. NREL Technical Report Market Analysis and Opportunities. http:// Produced from Landfill Biogas,’’ which has been NREL/TP–570–27637, http://www.nrel.gov/docs/ www.klinegroup.com/reports/brochures/y635a/ placed in docket EPA–HQ–2012–0401. fy01osti/27637.pdf. brochure.pdf. 34 Skone, T.J. and Gerdes, K. (2008) NETL: 36 Contadini, J.F., Diniz, C.V., Sperling, D., and 32 ‘‘Support for Cellulosic Determination for Development of Baseline Data and Analysis of Life Moore, R.M. (2000) Hydrogen production plants: Landfill Biogas and Summary of Lifecycle Analysis Cycle Greenhouse Gas Emissions of Petroleum- Assumptions and Calculations for Biofuels Based Fuels. http://www.netl.doe.gov/energy- emissions and thermal efficiency analysis. ITS- Produced from Landfill Biogas,’’ which has been analyses/pubs/NETL%20LCA%20Petroleum- Davis. Presented at the Second International placed in docket EPA–HQ–2012–0401. Based%20Fuels%20Nov%202008.pdf. Symposium on Technological and Environmental 33 ‘‘Support for Cellulosic Determination for 35 Spath, P.M. and Mann, M.K. (2001) Lifecycle Topics in Transports, October 26–27, 2000. Milan, Landfill Biogas and Summary of Lifecycle Analysis Assessment of Hydrogen Production via Natural Italy. Publication No. UCD–ITS–RR–00–16.

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process that does involve upgrading requirements are discussed in greater section 1401 to provide additional waxes to increase the yield of the liquid length in Section C.4. ‘‘Changes clarity. In addition, we are proposing to fuels. Accordingly, we used assessments Applicable to Process Electricity revise and add new contracting, from other analyses of theoretical F–T 37 Production Requirement for the Biogas- registration, reporting and or steam methane reforming 38 plants Derived Cellulosic Diesel and Naphtha recordkeeping requirements along the using wax upgrading to estimate the Pathways’’ below. Facilities that can production chain. Furthermore, we are lifecycle GHG emissions from such supply data that demonstrate they meet specifying which company along the products. Based on this analysis (not the 60% GHG emissions reduction production chain is considered the shown), these facilities should threshold without production of 20% ‘‘producer’’ and eligible to generate theoretically have GHG emissions that electricity are welcome to petition the RINs under the RFS2 program. These are as low as or lower than those EPA individually under section proposed compliance requirements are calculated above. For this reason, we 80.1416. applicable to this revised CNG/LNG believe that the lifecycle analysis shown EPA invites comment and data on the pathway, and all the newly proposed above is a reasonable, if slightly GHG emissions associated with landfill pathways for renewable fuels produced conservative,39 representation of biogas renewable fuel pathways. We from landfill gas in this rulemaking. The expected landfill biogas-to-liquids also welcome comment on the details of the proposed new projects. We accordingly classify all methodology and assumptions requirements for contract, registration, renewable diesel and naphtha produced underlying this analysis. We do not at reporting and recordkeeping are via the F–T process from landfill biogas this point have sufficient information to discussed below in the section titled as advanced biofuel. evaluate the lifecycle greenhouse gas ‘‘Changes Applicable to All Biogas- The lifecycle analysis for these fuels emissions for production of renewable Related Pathways for RIN Generation.’’ considered that the renewable diesel electricity or renewable diesel and The existing biogas pathway in Table product produced from the Fischer- naphtha from biogas from waste 1 to section 80.1426(f) refers to ‘‘biogas’’ Tropsch process would be used as treatment plants or waste digesters. as the renewable fuel type and conventional diesel fuel. EPA does not Accordingly, we invite comments ‘‘landfills, manure digesters and sewage have sufficient information to evaluate providing information about these waste treatment plants’’ as the the lifecycle greenhouse gas emissions potential pathways. feedstock. Companies have raised for jet fuel or heating oil produced from questions whether the term ‘‘biogas’’ in landfill biogas using the Fischer- C. Proposed Regulatory Amendments this pathway could refer to the Tropsch process. Because the lifecycle Related to Biogas unprocessed or raw gas from the analysis results for this process fell so 1. Changes Applicable to the Revised landfills, manure digesters or sewage close to the threshold for advanced CNG/LNG Pathway From Biogas treatment plants, or processed ‘‘biogas’’ biofuels, in this pathway, we are that has been upgraded and could be proposing to only allow renewable In the existing RFS2 regulations, an used directly for transportation fuel or diesel for use as conventional diesel fuel approved fuel pathway in Table 1 to as an ingredient in the production of to qualify under the RFS program. We section 80.1426(f)(1) allows biogas from transportation fuel or as an energy invite comments and supporting data landfill gas, manure digesters or sewage source used in the production of about whether we should also allow jet treatment plants to qualify as an transportation fuel, or other fuel types fuel and heating oil produced from advanced biofuel and generate a D code that can be produced from the raw landfill biogas to qualify. of 5 for the biofuel produced under the biogas either through a physical or Our lifecycle analysis showed that if RFS2 program. Since the promulgation chemical process (such as CNG, LNG, the evaluated facility meets of the final rule, we have received many renewable electricity, renewable diesel approximately 15% of its electricity requests about what fuel qualifies under or naphtha). The companies further demand with internally produced this pathway, including: (1) The inquire if the various forms of biogas electricity from eligible sources, it will renewable fuel type that is qualified discussed above could qualify under meet the 60% threshold to qualify as under the term ‘‘biogas,’’ (2) what are this pathway, and therefore be eligible cellulosic. Because other facilities are the eligible sources of biogas, (3) what for RIN generation under the RFS2 likely to be somewhat different, and company along the production chain of program. because this analysis relies on a number biogas from generation to end user is We agree that the term ‘‘biogas’’ in of assumptions, we are using a slightly considered the producer that qualifies to this pathway is used broadly in the more conservative threshold of 20% of register under this pathway and industry to refer to various raw and electrical generation. Accordingly, we generate RINs, and (4) what are the processed forms of the biogas from are proposing that if a biogas-to-liquids contract requirements to track the biogas various sources. However, under the facility produces at least 20 percent of from generation to end use. existing requirements in sections its process electricity internally as In response, EPA is proposing in this 80.1426(f)(10) and (11), only biogas that discussed above, these biofuels will rulemaking to amend the existing biogas is used for transportation fuel can qualify as cellulosic. These pathway in Table 1 to section 80.1426(f) qualify as renewable fuel for RIN by changing the renewable fuel type in generation under the RFS2 program. We 37 Swanson, R.M., Satrio, J.A., Brown, R.C., the pathway from ‘‘biogas’’ to believe the stipulations in sections Platon, A., and Hsu, D.D. (2010) Techno-Economic ‘‘renewable compressed natural gas 80.1426(f)(10) and (11) are clear that Analysis of Biofuels Production Based on (renewable CNG) and renewable biogas used for non-transportation fuel Gasification. NREL Technical Report NREL/TP– 6A20–46587, http://www.nrel.gov/docs/fy11osti/ liquefied natural gas (renewable LNG)’’ purposes, such as an energy source for 46587.pdf. and to replace the feedstock type of providing process heat would not 38 Skone, T.J. and Gerdes, K. (2008) NETL: ‘‘landfills, manure digesters or sewage qualify under this biogas pathway for Development of Baseline Data and Analysis of Life waste treatment plants’’ with ‘‘biogas RIN generation. Similarly, raw biogas Cycle Greenhouse Gas Emissions of Petroleum- from landfills, waste treatment plants or would also not qualify under this Based Fuels. http://www.netl.doe.gov/energy- analyses/pubs/NETL%20LCA%20Petroleum- waste digesters.’’ We are also proposing pathway since unprocessed biogas Based%20Fuels%20Nov%202008.pdf. to revise the definition of biogas and cannot be used as transportation fuel. 39 Emissions estimates are conservatively high. add definitions for CNG and LNG to With regard to the fuel types that can be

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produced from the raw biogas such as To provide improvement for this electricity and biogas used to produce CNG, LNG, renewable electricity, revised pathway, we are proposing to fuel that qualifies as renewable fuel that renewable diesel, or naphtha, the revise the definition of biogas and add can either be distributed in a dedicated pathway determinations for the final new definitions for renewable CNG and pipeline or transmission line or rule did not account for all factors renewable LNG to section 80.1401 to distributed in a shared pipeline or relevant for the additional fuel types read as follows: power grid system. The purpose of these such as renewable electricity, renewable We are proposing Biogas would mean a requirements is to provide EPA diesel or naphtha produced from the mixture of hydrocarbons that is a gas at 60 assurance and verification that once the raw biogas through a chemical process. degrees Fahrenheit and 1 atmosphere of biogas or renewable electricity is put Therefore, renewable electricity, pressure that is produced through the into a dedicated or shared distribution renewable diesel and naphtha produced conversion of organic matter. We are also system that in fact an equivalent volume from biogas do not qualify under the proposing that Biogas would include landfill of biogas or renewable electricity will be existing pathway.40 For CNG and LNG, gas, gas from waste digesters, and gas from used for transportation fuel, and for no waste treatment plants. Waste digesters we concluded that these types of fuels would include digesters processing animal other purposes. The requirements are were close enough to the physical wastes, biogenic waste oils/fats/greases, also meant to address concerns of molecules of biogas since these fuels separated food and yard wastes, and crop double counting of the biogas or only go through a physical process in residues. Waste treatment plants would renewable electricity, especially in which the biogas is compressed or include wastewater treatment plants and situations that the biogas or renewable liquefied, and that because CNG and publicly owned treatment works. electricity is placed in or loaded onto LNG can be used directly for We are proposing that Renewable shared distribution systems that contain transportation purposes, thus meeting compressed natural gas (‘‘renewable CNG’’) gas or electricity from non-renewable would mean biogas that is processed to the the provisions in sections 80.1426(f)(10) standards of pipeline natural gas as defined biomass sources. EPA intended to and (11), we concluded that CNG and in 40 CFR 72.2 and that is compressed to require producers to submit the LNG could qualify under the existing pressures up to 3600 psi. We are also information and contract requirements pathway. For the reasons discussed proposing that only renewable CNG that in sections 1426(f)(10) and (11) as part above, we are proposing to amend the qualifies as renewable fuel and is used for of the registration requirements for existing biogas pathway to clearly state transportation fuel can generate RINs. renewable electricity and renewable that only CNG and LNG produced from We are proposing that Renewable liquefied fuels produced from biogas that are used biogas from landfills, waste treatment natural gas (‘‘renewable LNG’’) would mean for transportation 42 fuel, but had not plants and waste digesters, and used as biogas that is processed to the standards of done so in the prior rulemakings. pipeline natural gas as defined in 40 CFR transportation fuel, qualify as a 72.2 and that goes through the process of Therefore, as a natural outgrowth of the cellulosic or advanced biofuel for RIN liquefaction in which the biogas is cooled regulations for implementation and generation under the RFS2 program. below its boiling point and weighs less than compliance purposes, we are proposing The current regulations provide a half the weight of water so it will float if in this rulemaking to incorporate the pathway for biogas produced from a bio- spilled on water. We are also proposing that requirements in sections 1426(f)(10) and digester which uses manure. We are also only renewable LNG that qualifies as (11) as part of registration requirements proposing to expand the type of renewable fuel and is used for transportation for producers of renewable electricity materials that may be used to produce fuel can generate RINs. and renewable fuels produced from CNG/LNG in a digester to include 2. New Registration (Contract biogas that qualify as renewable fuel animal wastes, biogenic waste oils/fats/ Requirements) for Renewable Electricity under the regulations under section greases, separated food and yard wastes, and Fuels Produced From Biogas That 1450(b)(1)(iv)(C). and crop residues. These feedstock Qualify as Renewable Fuel and That Are Section 1426(f)(11)(ii) of the sources are already eligible in the Registered for RIN Generation regulations requires that, in order for existing rules pathways and therefore renewable fuel made from biogas The regulations as currently written should reasonably be added to the bio- withdrawn from a commercial allow a producer of biogas or renewable digester pathway. We are doing so in distribution system for use as a electricity 41 that qualifies as renewable response to a petition request to transportation fuel to generate RINs, the fuel and has an approved fuel pathway generate RINs from biogas which is biogas introduced into the system must in Table 1 of section 1426(f)(1) to produced from bio-feedstock sources in have been added to a common carrier register and generate RINs for the addition to the already allowed manure, pipeline. We propose to add a similar volume it produces under the RFS2 either individually or in combination provision to section 1426(f)(11)(i) for program. We modified the existing with manure in a bio-digester. As with renewable electricity, requiring a regulations to state that biogas is the other LCA pathways using these company to load the renewable feedstock used to produce renewable materials, EPA is proposing to assume electricity to a power grid shared by the fuel, as described above. The revised these waste materials do not have second company that withdraws the regulations in sections 1426(f)(10) and emissions associated with feedstock electricity, such that the two companies (11) detail the requirements for production, and therefore qualify as must be physically connected to the distribution and tracking for renewable cellulosic or advanced renewable fuels same grid or located within the same area. when used to produce CNG/LNG. 41 EPA notes that currently, producers of renewable electricity that may qualify as a EPA is requesting comments about 40 For this rulemaking, we conducted lifecycle renewable fuel cannot register and generate RINs whether the other existing requirements analysis for renewable electricity, renewable diesel, because there is no approved pathway in Table 1 in sections 1426(f)(10) and (11) for naphtha produced from landfill gas, and are for renewable electricity from any approved renewable electricity and renewable proposing new fuel pathways to Table 1 to Section feedstock. But in the event that an approved 80.1426 for these fuel types. Please see section pathway for renewable electricity is added to Table fuels from biogas used for transportation titled, ‘‘Lifecycle Greenhouse Gas Emissions 1, EPA notes there are existing requirements such Analysis for Renewable Electricity, Renewable as tracking and distribution requirements 42 Distribution and registration requirements for Diesel and Naphtha Produced from Landfill Biogas’’ recordkeeping and reporting that are applicable for biogas used as process heat, and not for RIN for the lifecycle analysis discussion in this the registration of renewable electricity for RIN generation as renewable fuel is detailed in Section rulemaking. generation. 1426(f)(12) and 1450(b)(1)(iv), respectively.

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fuel are sufficient to provide assurance landfill collects biogas and it is documentation that the professional and verification for the following processed into a qualifying renewable engineer performed site visits at each situations. First, do the proposed CNG/LNG/electricity for transportation production facility, including the biogas requirements provide assurance and use by a contracted third party and facility and the facility that produces verification that the same amount of distributed by this third party. The party the final fuel (if these are not the same biogas or renewable electricity is in fact that converts the biogas to renewable facility). The producer must also review delivered to the renewable fuel CNG/LNG/electricity and distributes for and verify all related supporting producer or end user who will actually use as a transportation fuel is documents such as design documents, use the biogas or renewable electricity responsible for RIN generation. Under calculations, regulatory permits, and for transportation purposes? If the the first scenario, the registration contracts between facilities that track proposed requirements are not package, including the engineering the raw biogas from the point of sufficient, what alternative requirements review, would cover the biogas source withdrawal from its source, the various should be considered? Second, are the (landfill, waste digester, etc.) as well as injection/withdraw points into the proposed requirements sufficient to the distribution that is occurring on site. distribution pipeline, the various ensure that double counting does not Under the the second scenario, the production facilities, and the final step occur, e.g., to ensure that the biogas or registration package, including for use as transportation fuel. We renewable electricity once it is loaded engineering review, would cover the believe these requirements will ensure into a shared pipeline or power grid is biogas source (landfill, waste digester, that producers will perform due not sold to multiple clients or for etc.) the pipeline (common carrier or diligence that the fuel for which they purposes other than for transportation dedicated) and each distribution generate RINs under the RFS2 program purposes? Similarly, if the proposed facility. By requiring the party that is are in compliance with all the requirements are not sufficient, what responsible for conversion and regulatory requirements for renewable alternative requirements could be distribution to register as the RIN fuel. The proposed registration, considered to ensure double counting generator, we can prevent RINs from reporting and recordkeeping does not occur? being generated for a batch or renewable requirements are in sections 80.1426(f), 80.1450, 80.1451 and 80.1454 in this 3. Changes Applicable to All Biogas CNG/LNG/electricity prior to use as a rulemaking. Additional changes Related Pathways for RIN Generation qualifying transportation fuel. For any of the fuels, the company designated as regarding the contract requirements for As discussed above, we have had the ‘‘producer’’ will be required to distribution of the biogas in shared many inquiries related to the ‘‘biogas’’ register under the RFS2 program. We commercial pipelines are discussed pathway, specifically regarding contract seek comment on our proposed below, and can be located in sections requirements for tracking the biogas definition of producer regarding 80.1426(f)(10), (11), and (13). through the distribution system and renewable CNG/LNG and renewable regarding what company along the 4. Changes Applicable To Process electricity. production chain is considered the Electricity Production Requirement for ‘‘producer’’ and eligible to generate We acknowledge that the process the Biogas-Derived Cellulosic Diesel and RINs under the RFS2 program. In this train from raw biogas to the final Naphtha Pathways rulemaking, we are proposing to revise transportation fuel is complex, and may In this proposed rulemaking, EPA and add new requirements for contracts include many companies and conducted greenhouse gas (GHG) to track the biogas as it moves into and processing steps from the point when lifecycle analysis for various renewable out of the distribution system, as well as the raw biogas is withdrawn from its fuels produced from landfill gas as new provisions on registration, reporting and source (such as landfills, waste or revised advanced and cellulosic recordkeeping. These proposed digesters, waste treatment plants), biofuel pathways that will be added to amended requirements are applicable to processed and converted into biofuel Table 1 to section 80.1426(f).43 For some all pathways related to biogas that are and distributed to consumers. of these pathways, we are proposing to eligible for RIN generation that are Alternatively, the fuel may be cleaned at add various registration, recordkeeping existing or proposed in this rulemaking. a biogas facility to pipeline quality and reporting requirements to the In response to the question of what specifications for distribution, and then regulations to ensure that the facilities company is considered the producer of withdrawn from the commercial using these pathways meet the renewable fuel and eligible to generate pipeline to be processed further at parameters stipulated in the lifecycle RINs under the RFS program, we another production facility into analysis. The additional registration, propose to clarify who is the ‘‘producer’’ renewable CNG/LNG or renewable recordkeeping and reporting for renewable CNG/LNG and renewable electricity. Due to the complexity of the requirements are discussed in detail electricity. We propose that the many entities potentially involved in below. ‘‘producer’’ of renewable CNG/LNG is this process train, we are proposing that For the proposed fuel pathways for the company that compresses or the company deemed as the ‘‘producer’’ cellulosic diesel and cellulosic naphtha liquefies the gas and distributes the under the qualifications described above produced from landfill gas, we are CNG/LNG for transportation fuel, and also be responsible for providing all the proposing to require the renewable fuel for renewable electricity, the required information and supporting production facility to produce a ‘‘producer’’ is the company that documentation in their registration, minimum of 20 percent of the process distributes the electricity for use as reporting and recordkeeping to track electricity used at the facility on a transportation fuel. There are two and verify the information from point of calendar year basis, from raw landfill registration situations that this extraction of the raw biogas from its gas, waste heat from the production clarification will address: (1) The original source, and all the processing process, unconverted syngas from the owner/operator of a landfill collects steps and distribution in between, to the biogas and processes it to a qualifying last step where the actual fuel is used 43 Refer to preamble discussion for these various renewable CNG/LNG/electricity for for transportation purposes. In the biogas pathways in section titled, ‘‘Lifecycle Greenhouse Gas Emissions Analysis for Renewable transportation use and distributes on engineering review report required for Electricity, Renewable Diesel and Naphtha site and (2) the owner/operator of a registration, the producer must include Produced from Landfill Biogas.’’

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F–T process, fuel gas from the based electricity purchased, and total ‘‘renewable biomass’’.44 Further, the hydroprocessing or combined heat and amount of renewable electricity residue should generally not have a power (CHP) units that use non-fossil produced significant market in its own right, to fuel based gas or other renewable the extent that removing it from that sources. We propose that if less than 20 For recordkeeping purposes, we are market to produce biofuels instead will percent (on an annual average basis) of proposing that producers retain the result in increased GHG emissions. EPA process energy comes from one of these additional information, calculations and is seeking comments on this revision to alternative sources, then no cellulosic supporting documents required for the crop residue definition. EPA invites RINs can be generated for that year. registration and reporting as discussed all comments regarding this revision, For the renewable fuel production above. The regulatory requirements for but specifically invites comments facility applying to use the proposed registration, reporting and regarding the potential for the revision fuel pathway with the requirement to recordkeeping as discussed in this to create a significant shift in direct or internally produce at least 20 percent of proposed rulemaking can be located in indirect GHG emissions and what ought the total amount of process electricity the following applicable regulatory to constitute a ‘‘significant’’ increase or used at its facility, we are proposing the sections 80.1450, 80.1451 and 80.1454, decrease in GHG emissions in the facility submit to EPA the information respectively. context of this definition. described below to demonstrate EPA has previously identified several D. Amendment to the Definition of compliance with this requirement. For potential feedstocks that we believe ‘‘Crop Residue’’ and Definition of a registration purposes, we are proposing meet the criteria of crop residue. Table Pathway for Corn Kernel Fiber that producers submit the following IV.D.–1 lists feedstocks which may fit additional information in the process We propose to amend the definition the definition of crop residue. Most of fuel supply plan that is currently of ‘‘crop residue’’ so that this category these feedstocks were discussed in the required as part of the registration includes only feedstock sources that are final RFS2 rulemaking. For example, process (estimated summaries are to be determined by EPA would not result in EPA analyzed the agricultural sector reported on an annual/calendar year a significant increase in direct or GHG emissions of using for basis): indirect GHG emissions. ‘‘Crop residue’’ biofuels in the final RFS2, and found —Estimated amount of total electricity is the biomass left over from the that fuel produced from this feedstock used at the facility harvesting or processing of planted met the 60% GHG reduction threshold —Estimated amount of total electricity crops from existing agricultural land for cellulosic biofuels. Since the direct purchased for the facility and any biomass removed from existing and indirect impacts of citrus residue, —Estimated amount of total renewable agricultural land that facilitates crop , and straw removal electricity produced on-site, including management (including biomass were expected to be similar to corn the source of the energy and the removed from such lands in relation to stover, EPA also applied the land use equipment and/or process used to invasive species control or fire change impacts associated with corn generate the renewable electricity management), whether or not the stover to citrus residue, rice straw, and —Calculation that verifies the facility biomass includes any portion of a crop wheat straw. Based on that analysis, meets the specified 20 percent or crop plant. Biomass is considered EPA found that fuels produced from minimum electricity production crop residue only if the use of that citrus residues, rice straw, and wheat requirement based on the reported biomass for the production of renewable straw also met the 60% reduction total amount of electricity used at the fuel has no significant impact on threshold. EPA further determined that facility, total amount of electricity demand for the feedstock crop, products fuels produced from materials left over purchased, and total amount of produced from that feedstock crop, and after the processing of a crop into a renewable electricity produced all substitutes for the crop and its useable resource had land use impacts sufficiently similar to agricultural For reporting purposes, we are products including the residue, nor any residues to also meet the 60% threshold. proposing for producers to submit the other impact that would result in a EPA specifically cited left over following additional information as part significant increase in direct or indirect from processing as an of their existing quarterly and annual GHG emissions. reporting obligations (reported amounts example of this type of residue. EPA is should be provided as monthly EPA is amending the definition of seeking comment on whether the summaries on an annual/calendar year ‘‘crop residue’’ to confirm the meaning feedstocks on this list should be basis, and must be obtained from a of the term ‘‘left over’’ in the text of this considered crop residues, if these utility meter that is continuously definition. The phrase ‘‘left over’’ in our feedstocks would have similar direct measured): original definition of ‘‘crop residue’’ is and indirect impacts as corn stover, and meant to indicate that the use of a —Actual total amount of electricity used whether additional feedstocks should residue as a biofuel feedstock should at the facility also be included in this list. —Actual total amount of electricity not increase demand for the crop it is purchased for the facility derived from, should not induce further TABLE IV.D.–1—FEEDSTOCKS THAT —Actual amount of total renewable crop production, and should not result MAY QUALIFY AS CROP RESIDUE electricity produced on-site, including in additional direct or indirect GHG source of energy and the equipment or emissions. The residue must come from Feedstock D Code process used to generate the crop production or processing for some other primary purpose (e.g., refined Sugarcane Ba- D–3 Cellulosic biofuel. renewable electricity gasse. —Calculation that verifies the facility sugar, corn starch ethanol), such that the crop residue is not the reason the crop Corn Kernel Fiber D–3 Cellulosic biofuel. meets the specified 20 percent (excluding the minimum electricity production was planted. The residue must also corn starch com- requirement based on the reported come from existing agricultural land, ponent). total amount of electricity used at the the exact definition of which is laid out facility, total amount of fossil-fuel in our current regulations that define 44 See specifically § 80.1401 Definitions.

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TABLE IV.D.–1—FEEDSTOCKS THAT has no ‘‘impact that would result in a extraction of fiber from this product. MAY QUALIFY AS CROP RESIDUE— significant increase in direct or indirect The analysis also drew substantially on Continued GHG emissions’’ for this feedstock to the available scientific literature on low qualify as a residue. fiber DDG (LF–DDG), as well as the Feedstock D Code One additional consideration in the expertise of the U.S. Department of classification of corn kernel as a crop Agriculture. Potential producers also Corn Stover ...... D–3 Cellulosic biofuel. residue is the fact that some amount of submitted important data to EPA that Citrus Residue ...... D–3 Cellulosic biofuel. corn starch might still adhere to the helped determine whether producing Rice Straw ...... D–3 Cellulosic biofuel. corn kernel after separation. The from corn kernel fiber Wheat Straw ...... D–3 Cellulosic biofuel. percentage of contamination will vary, would result in a significant increase in but as much as 20% of the final fuel GHG emissions. This included a full While EPA believes that, under could be derived from corn starch. By nutritional analysis of LF–DDG for current conditions, generation of RINs definition, corn starch ethanol can only swine, poultry, and cattle. for batches of renewable fuel produced qualify as a renewable fuel, not as an EPA found that extracting the fiber from the feedstocks listed in Table advanced fuel. However, our current from corn matter used to produce IV.D.–1 above would not result in a regulations state that ‘‘producers and standard DDG would not have a significant increase in direct or indirect importers may disregard any incidental, significant effect on feed markets. GHG emissions, we also acknowledge de minimis feedstock contaminants that Processors who extract the fiber from the potential for this assessment to are impractical to remove and are corn produce a feed product known as change in the future based on related to customary feedstock LF–DDG, as opposed to standard DDG unforeseeable factors. For example, production and transport’’.45 Therefore, which retains the fiber. The scientific some new use for one of these products EPA is seeking comment on whether the literature on LF–DDG animal nutrition could be developed which would definition of crop residue should be has found that this product has at least change our assessment that the amended to explicitly exclude the corn equal, and perhaps even slightly feedstock has no significant market in starch component. superior, nutritional value for swine and its own right. Further, it is possible that, EPA also invites comment on how poultry compared to standard DDG.47 at some point in the future, large enough RINs should be allocated for ethanol This means that, even though the quantities of renewable fuel could be derived from corn fiber. EPA has physical volume of the DDG produced produced from one of these fuels to existing regulations that define by ethanol plants using corn kernel fiber create demand pull for the feedstock, procedures for generating RINs from extraction technology will be somewhat potentially altering the behavior of batches of fuel that contain multiple smaller, its nutritional content for swine producers of the residue and leading to feedstocks, including feedstocks that and poultry will be equivalent to or significant increases in direct or indirect generate RINs of different D codes.46 We greater than their output without fiber GHG emissions. To our knowledge, this believe that these regulations provide extraction. is not currently the case for any of the sufficient guidance to producers and Conversely, LF–DDF is an inferior feedstocks listed above. However, EPA importers regarding how to assign RINs feed for cattle compared to standard will continue to monitor RIN generation to batches of renewable fuel that can be DDG, since ruminants benefit from from fuel produced using each of these described by two or more pathways ingesting corn fiber in DDG.48 Therefore, feedstocks and the general use of these (e.g., corn starch ethanol and corn EPA expects swine and poultry feedstocks in the marketplace. We kernel fiber ethanol). However, we producers to absorb the supply of LF– further reserve the right to revisit the invite comment on the sufficiency of DDG, while the cattle and dairy industry status of any feedstock that we have these regulations with regards to the will continue to consume standard determined qualifies under the crop assignment of RINs to coprocessed DDG. With this dynamic in place, fiber residue pathway. Should any feedstock batches of corn starch ethanol and corn extraction from DDG should not qualifying as a crop residue be used to kernel fiber ethanol, including whether significantly affect feed markets, since generate significant quantities of ethanol producers have the technological there will be no reduction in the overall in the future, or should a significant capability to adequately demonstrate supply of DDG in terms of nutritional market emerge for the product such that volume produced under each pathway. content nor will there be any impact on there is demand pull for it in excess of To determine whether the use of corn aggregate demand for other animal feed the demand pull for the planted crop kernel fiber to produce ethanol would sources. from which it is a derived byproduct, lead to increased direct or indirect GHG If enough corn ethanol producers we will revisit whether that feedstock emissions, EPA conducted a detailed adopt fiber extraction technology, LF– should remain under the crop residue assessment of the two major potential DDG could saturate swine and poultry pathway or be subjected to further sources of emissions from this demand and spill over into dairy and scrutiny. EPA is seeking comment on feedstock, namely effects on feed cattle feed markets. If a situation arises this approach and on the potential for markets and effects on demand for corn. where LF–DDG begin to replace significant demand pull to emerge for The proposed method of acquiring corn standard DDG in cattle markets, this the feedstocks we are proposing to kernel fiber is to extract it from matter could lead to an increase in feed consider as crop residues. that is otherwise converted to dried We also propose that this definition of distillers (DDG) during the dry 47 See, e.g., Kim, E.J., C.M. Parsons, R. Srinivasan, ‘‘crop residue’’ includes corn kernel mill corn ethanol process. and V. Singh. 2010. Nutritional composition, fiber. Corn kernel fiber is not nitrogen-corrected true metabolizable energy, and Consequently, this analysis relied amino acid digestibilities of new corn distillers specifically mentioned as a type of crop significantly on the assessment of corn dried grains with solubles produced by new residue under the Renewable Fuel starch ethanol-derived DDG that was fractionation processes. Poultry Science 89, p. 44, Standard (RFS2) regulations. Per the conducted for the RFS2 final rule, available on the docket for this rulemaking. See also RFS2 definition of ‘‘crop residue’’, EPA adjusting the analysis to account for the additional studies cited within Kim et al 2010. must evaluate whether corn kernel fiber 48 See Shurson, G.C. 2006. The Value of High- Protein Distillers Coproducts in Swine Feeds. is ‘‘left over from the harvesting or 45 See specifically § 80.1426(f)(1). Quarterly, First Quarter, p. 22, processing of planted crops’’ and that it 46 See specifically § 80.1426(f)(3). available on the docket for this rulemaking.

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demand, most likely in the form of is different from those analyzed as part estimating the lifecycle impact of increased demand for fiber supplements of the RFS2 corn ethanol pathways, and renewable fuel produced using the in dairy and cattle feed. This could does not use the approved advanced advanced butanol pathway. The Agency cause an increase in GHG emissions. If technologies shown in Table 2 to is seeking comment on whether there is swine and poultry demand for LF–DDG section 80.1426 of the RFS2 regulations. any research to suggest that converting becomes saturated, demand for standard EPA’s evaluation of the lifecycle GHG corn into an advanced butanol pathway DDG in the cattle and dairy industries emissions of the advanced butanol would materially affect the total amount should create sufficient market pathway under this petition request is of corn used. consistent with EISA’s applicable incentives for the remaining corn starch GEVO provided, as part of the ethanol producers to decide against requirements, including the definition of lifecycle GHG emissions and information claimed CBI, their process adopting corn fiber ethanol production. yield in terms of gallons of fuel EPA believes this will prevent a threshold evaluation requirements. It was based on information regarding produced per bushel of corn. Based on situation where there is insufficient the data, GEVO’s process yield is supply of standard DDG in the cattle GEVO’s production process that was submitted under a claim of Confidential slightly more efficient than the and dairy industries. However, as noted pathways modeled as part of the RFS2 above, EPA reserves the right to Business Information (CBI) by GEVO on rulemaking. Therefore, compared to the reexamine corn kernel fiber as a April 11, 2011. The information corn butanol pathways already feedstock in the future. provided included the mass and energy analyzed, the GEVO process results in EPA’s analysis indicates that balances necessary for EPA to evaluate 0.93% more Btus of fuel produced for producing cellulosic ethanol from corn the lifecycle GHG emissions of the the same amount of corn feedstock. kernel fiber is unlikely to increase advanced butanol pathway. overall demand for corn. In order to The lifecycle GHG emissions of fuel Fuel production—The fuel production meet the definition of a crop residue, produced pursuant to the advanced method included in this advanced the source of corn kernel fiber must be butanol pathway were determined as butanol pathway involves the a crop processing facility (e.g., a corn follows: production of butanol from corn starch starch ethanol plant). A corn kernel Feedstock production—The advanced in a dry mill. The amount and type of fiber ethanol producer cannot purchase butanol pathway uses corn starch as a energy used in this analysis is different whole corn specifically for the feedstock. Corn starch is one of the than production methods that were generation of corn fiber ethanol and still feedstocks already listed in Table 1 to analyzed under the final rule. While section 80.1426 of the RFS2 regulations. qualify their feedstock as crop residue. there were slight differences in the total Since corn starch has already been EPA is seeking comment on this amount of natural gas and electricity evaluated as part of the RFS2 final rule, analysis. used in this analysis, the main no new feedstock production modeling Based on our assessment, EPA difference was the use of biogas and proposes that corn kernel fiber would was required. The FASOM and FAPRI models were production of excess electricity. To meet the definition of a crop residue, used to analyze the GHG impacts of the analyze the GHG impacts of the and qualify for Cellulosic Ethanol and feedstock production portion of the advanced butanol pathway, EPA Advanced Biofuel (D-codes 3 & 5, fuel’s lifecycle. The same FASOM and utilized the same approach that was respectively) RINs under the RFS2. EPA FAPRI results representing the used to determine the impacts of is seeking comment on whether corn emissions from an increase in corn processes in the RFS2 corn butanol kernel fiber should be considered a crop production that were generated as part pathways. residue. of the RFS2 final rule analysis of the The amount and type of energy used E. Consideration of Advanced Butanol existing corn butanol pathways were was taken from GEVO’s mass balance & Pathway used in this analysis of the advanced energy balance submitted to EPA. GEVO butanol pathway. These results submitted energy data on natural gas 1. Proposed New Pathway represent agriculture/feedstock and biogas (in Btus) and electricity (in EPA is proposing to add a new production emissions for a certain kWhs) inputs, as well as gallons of fuel pathway to Table 1 to section 80.1426 quantity of corn produced. For the RFS2 produced. Biogas and natural gas are that allows butanol made from corn analysis, this was roughly 960 million used in combination, while the RFS2 starch using a combination of advanced bushels of corn used to produce 2.6 corn butanol analyses only considered technologies to meet the 50% GHG billion gallons of fuel. We have natural gas or biogas used emissions reduction needed to qualify calculated GHG emissions from independently, not in combination. feedstock production for that amount of as an advanced renewable fuel. This The emissions from the use of energy corn. EPA does not believe the pathway applies to dry mill were calculated by multiplying the advanced butanol process for converting facilities that use natural amount of energy by emission factors for corn into butanol will materially affect gas and biogas from an on-site thin fuel production and combustion, based the total amount of corn used for stillage anaerobic digester for process on the same method and factors used in biofuels and modeled as part of the energy with combined heat and power the RFS2 final rulemaking. The RFS2 final rule. Based on information (CHP) producing excess electricity of at emission factors for the different fuel provided by industry, the technologies least 40% of the purchased natural gas types are from GREET and were based to produce corn butanol are primarily energy of the facility (the proposed on assumed carbon contents of the being targeted at retrofitting existing ‘‘advanced butanol pathway’’). different process fuels. GEVO Incorporated submitted a corn ethanol facilities, where the petition requesting authorization to infrastructure to produce renewable One area where EPA is soliciting generate D-code 5 RINs for fuel fuels already exists and the capital comments is on the most appropriate produced through the GEVO butanol expenditures would be relatively small. energy content assumption to use for pathway. A petition is required because Therefore, the existing agricultural butanol (lower heating value). As part of the proposed process utilizes a high sector modeling analyses for corn as a this analysis, EPA used the GREET yield butanol fermentation process that feedstock remain valid for use in value for the energy content of butanol,

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which is 99,837 Btus per gallon.49 product production which we similarly pathway description the process Differences in the measurement of the applied to the advanced butanol produces excess electricity of at least energy content of butanol can occur for production process. Since DDGs impact 40% of the purchased natural gas energy a number of reasons including the agricultural markets, production of of the facility. The onsite emissions of variations amongst (t-butanol, DDGs was already included as part of the electricity production are accounted n-butanol, , and sec-butanol), the FASOM and FAPRI modeling for in the facility natural gas and biogas and differences in testing already described in the feedstock use. The co-product credit of the excess methodologies. EPA is seeking comment production section, above. Thus no electricity is accounted for by assuming on whether there are any reasons why additional co-product credits for the the electricity offsets average grid EPA should change its assumptions and DDGs are applied for the fuel electricity production and results in use a different energy content of production stage of the analysis. associated emission reductions. butanol. The advanced butanol production The estimated production emissions The RFS2 corn butanol pathways process analyzed here also results in from the advanced butanol process are included an estimate for DDGs co- excess electricity production. As per the shown below in Table V.F.–1.

TABLE V.F.–1—FUEL PRODUCTION EMISSIONS FOR THE ADVANCED BUTANOL PROCESS

Fuel production source GEVO isobutanol (g CO2-eq./mmBtu)

On-Site Emissions ...... 15,273 Upstream (natural gas and electricity production) ...... 2,424 Emissions Credit from Offset Electricity ...... ¥17,448

Total Fuel Production Emissions ...... 249

Fuel and feedstock distribution—We rule. Thus, the fuel combustion section 80.1426 that includes butanol used the same feedstock distribution emissions calculated as part of the RFS2 from corn starch using the butanol emissions assumption considered for final rule for butanol were applied to process described here as an advanced corn butanol under the RFS2 final rule our analysis of the advanced butanol biofuel (D–5 RINs). EPA invites for the advanced butanol pathway corn pathway. comments on the assumptions used in feedstock. The fuel type, butanol, and The advanced butanol fuel was then this analysis. hence the fuel distribution for butanol, compared to baseline petroleum was already considered as part of the gasoline, using the same value for Table V.F.–2 below breaks down by RFS2 final rule. Therefore, the existing baseline gasoline as in the RFS2 final stage the lifecycle GHG emissions for feedstock and fuel distribution lifecycle rule analysis. The results of the analysis the RFS2 corn butanol pathway, the GHG impacts for corn butanol were indicate that the advance butanol advanced butanol pathway and the 2005 applied to the advanced butanol pathway would result in a GHG gasoline baseline. This table pathway analysis. emissions reduction of 51.3% compared demonstrates the contribution of each Use of the fuel—The advanced to the gasoline fuel it would replace. stage in the fuel pathway and its relative butanol pathway produces a fuel that Based on our LCA, we are proposing significance in terms of GHG emissions. was analyzed as part of the RFS2 final to add a new pathway to Table 1 to

TABLE V.F.–2—LIFECYCLE GHG EMISSIONS FOR THE ADVANCED BUTANOL PATHWAY, 2022 [Kg CO2-eq./mmBtu]

RFS2 corn ethanol, natural RFS2 Fuel type gas fired dry mill GEVO butanol 2005 gasoline 63% dry DDGS baseline

Net Domestic Agriculture (w/o land use change) ...... 4 4 ...... Net International Agriculture (w/o land use change) ...... 12 12 ...... Domestic Land Use Change ...... ¥4 ¥4 ...... International Land Use Change, Mean (Low/High) ...... 32 (21/46) 31 ...... Fuel Production ...... 28 0 19 Fuel and Feedstock Transport ...... 4 4 * Tailpipe Emissions ...... 1 1 79

Total Emissions, Mean ...... 77 (66/91) 48 98 % Reduction ...... ¥21% ¥51% ...... * Emissions included in fuel production stage.

Table V.F.–3 lists the proposed D- and different production process Codes by fuel type (butanol), requirements. considering the feedstock (corn starch)

49 The GREET value is based on: Guibet, J.-C., Environnement, Publication de l’Institut Franc¸ais 1997, Carburants et Moteurs: Technologies, Energie, du Pe´trole, ISBN 2–7108–0704–1.

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TABLE V.F.–3—PROPOSED D CODES FOR BUTANOL

Fuel type Feedstock Production process requirements D-Code

Butanol ...... Corn starch ...... Fermentation; dry mill using natural gas, biomass, or biogas for process energy ...... 6 Butanol ...... Corn starch ...... Fermentation; dry mill using natural gas and biogas from on-site thin stillage anaerobic 5 digester for process energy w/CHP producing excess electricity of at least 40% of the purchased natural gas energy used by the facility.

2. Butanol, Biobutanol, and Volatility Under the provisions for the 1 psi E10 gasoline with gasoline that is not Considerations waiver, blends of gasoline that contain E10 typically results in a net overall Butanol is a flammable colorless from 9 volume percent to 10 volume increase in emissions—the mixture has percent ethanol are allowed to have a higher volatility and emissions than liquid that is used as a fuel and as an volatility 1 psi higher than otherwise the separate had on average industrial solvent. Butanol is composed would be allowed (40 CFR 80.27(d)(2)). before they were mixed. of the chemical elements hydrogen, The chemical characteristics of ethanol Several parties have identified this as oxygen, and carbon. It can be made from are such that blends of gasoline with an obstacle that currently inhibits the petroleum or renewable biomass, such less than 9 volume percent to 10 volume opportunity for biobutanol to enter the as corn, grasses, agricultural waste and percent ethanol would still have a commercial market. The primary issue other renewable sources. It can be used significant increase in volatility. Thus is application of the RVP regulations at in internal combustion engines as an the restriction on the 1 psi waiver to the final point of fuel dispensing, when additive to gasoline and is currently blends that have 9 volume percent to 10 the biobutanol (Bu) and the ethanol registered under the Fuel and Fuel volume percent ethanol has the effect of blends would be mixed, that is in a Additives Registration System (FFARS) prohibiting the blending of E10 with storage tank at the retail station. When for use at up to 12 volume percent. A other gasoline/renewable fuel blends at a butanol product that complies with higher blend level would require a new any point in the gasoline distribution the RVP standards prior to commingling FFARS registration that would include system (wholesale or retail) in (e.g., a complying Bu12 blend) is meeting Tier 1 and Tier 2 health effects conventional gasoline areas during the commingled with a compliant E10 in testing requirements. Biobutanol is the summer control season. Blends of E10 underground storage tanks at fuel common name for butanol made from gasoline and gasoline that is not E10 dispensing facilities, the resulting mix renewable sources. would have less than 9 volume percent generally would exceed the applicable There has been an increased interest or greater than 10 volume percent RVP standard as EPA’s RVP regulations in the use of biobutanol as a direct ethanol, would have a resulting increase currently apply the standard. Certain result of the requirements for increased in volatility compared to E0, but would fuels, including renewable biofuels such use of renewable fuel volumes, adopted not have the 1 psi waiver to allow for as butanol, however, do not have a net in EISA 2007. These provisions require such an increase. This increase would negative impact on RVP when blended an increase in the use of renewable lead to an RVP above the allowable with E10 at wholesale or retail. That is, fuels, with 36 billion gallons of limit, unless a sub-RVP gasoline the RVP and related emissions of the renewable fuel to be used in the U.S. by blendstock was used. The practical commingled blend of butanol and 2022. Parties required to meet these effect is a prohibition on commingling ethanol is no higher than the average standards are interested in cost effective of E10 and gasoline blends other than RVP if the fuels had never been and practical ways to satisfy the E10. commingled. Thus, in these kinds of standards and meet the performance Under the current regulations, EPA circumstances it may be appropriate to needs of the vehicles and engines. applies the RVP standard to the adopt a modified approach to applying Biobutanol is one attractive option commingled mixture as a whole, not to the RVP standard to permit the because of its higher , the components of the commingled commingling of complying E10 blends lower blending vapor pressure, and mixture. Once the ethanol and non- with complying butanol blends at lower heat of vaporization in ethanol blends are mixed, the wholesale and retail, as there is no comparison to ethanol, as well as the commingled mixture is treated as the overall degradation of RVP and the air fact that it can be distributed as a gasoline that is tested and compared to quality impacts compared to what gasoline blend throughout the fungible the RVP standard. A single RVP value would occur if they were not blended. gasoline distribution system. is determined by testing the volatility of Today, the agency is providing some The Clean Air Act (section 211(h)(4)) the commingled mixture, and this is additional background on this issue and requires EPA to adopt regulations compared to the standard. If the mixture requesting information for use in limiting the volatility of gasoline during has from 9 volume percent to 10 volume deciding whether EPA can and should the summer months, when ozone is of percent ethanol, then the 1 psi waiver modify its RVP regulations as discussed most concern, including a one pound applies to the mixture. If the mixture below. Specifically, we are inviting per square inch (psi) Reid Vapor has a different percentage of ethanol, comment on the ability of regulated Pressure (RVP) increase in the volatility whether lower or higher, then the 1 psi parties to comply with the existing limit for blends of gasoline containing waiver does not apply to the mixture. regulations by segregating biobutanol 9–10% ethanol (E10). This allowance This avoids a situation where there is blends from ethanol blends and whether for a 1 psi increase in allowable an overall increase in volatility because there is a need to change the volatility is commonly called the 1 psi of the commingling of E10 and gasoline regulations. We are also seeking waiver. that is not E10. As discussed below, the comment on an alternative approach to EPA’s regulations at 40 CFR 80.27 chemical characteristics of ethanol and applying the RVP standards to a adopt RVP standards that apply to the the nonlinear nature of the volatility commingled mixture of E10 with gasoline at all points in the distribution increase associated with varying biobutanol or other approved gasoline system, including the retail outlet. volumes of ethanol, mean that mixing additives, where the additives have

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characteristics such that there is no net 211(h) in the 1990 CAA amendments. What modification is EPA considering adverse emissions effect from the Section 211(h)(1) requires EPA to set the to the application of the RVP standards commingling. We are inviting comments maximum RVP standard during the high to certain fuel blends? as to whether the RVP standards can ozone season as 9.0 psi. EPA was to Gasoline and ethanol are mixed or and should be applied such that the ‘‘promulgate regulations making it blended after the refining process. The commingled mixture of E10 and unlawful for any person during the high practice of blending ethanol with specified blends of gasoline additives ozone season to sell, offer for sale, gasoline increases the RVP of the such as biobutanol is treated as dispense, supply, offer for supply, resulting blend by approximately 1.0 complying with the RVP standard as transport, or introduce into commerce psi. It is a non-linear relationship, most long as the components of that mixture gasoline with a Reid Vapor Pressure in of the volatility increase occurs after just complied with the RVP standard prior excess of 9.0 pounds per square inch a few percent of ethanol have been to the commingling. This approach (psi).’’ Lower RVP standards could be added, with the volatility increasing would provide a limited modification to set for ozone nonattainment areas. See more slowly as the gasoline ethanol how the RVP standards are applied, and Clean Air Act section 211(h)(1). Section blend increases to 10 volume percent. the modification would apply for only 211(h)(2) addresses the RVP standard Above 10 volume percent the volatility certain fuel mixtures—those where the that apply in attainment areas, and sets generally does not increase any more, overall or net volatility of the the standard at 9.0 psi for attainment and at even higher levels of ethanol the commingled mixture is no higher than areas with authority for EPA to set a volatility starts to decrease again. As the weighted average of the original more stringent RVP level under certain explained above, section 211(h)(4) blends themselves, such that there is no circumstances. In section 211(h)(2), provides a 1-psi waiver for fuel blends adverse impact on emissions from the Congress allowed a 1-psi waiver for E10 containing gasoline from 9 volume mixing compared to what would have gasoline, stating: ‘‘For fuel blends percent to 10 volume percent ethanol. occurred without such mixing. In order containing gasoline and 10 percent The absence of such a waiver would to assist parties in preparing comments, denatured anhydrous ethanol, the Reid have required the creation of a EPA is providing some additional vapor pressure limitation under this production and distribution network for background regarding the RVP program subsection shall be one pound per sub-9.0 psi RVP gasoline, to offset the in the following paragraphs. square inch (psi) greater than the increase in volatility associated with Background and History of Volatility applicable Reid vapor pressure blending ethanol into the gasoline. At Regulations limitations established under paragraph the time the costs of producing and (1).’’ Additionally, Congress enacted a Reid Vapor Pressure (RVP) is the most distributing an additional grade of this conditional defense against liability for common measure of gasoline volatility type of fuel, especially in consideration violations of the RVP level allowed under ambient conditions. In 1989, EPA of the low volumes of fuel being under the 1 psi waiver by stating that began reducing gasoline volatility by blended with ethanol at the time, would ‘‘[p]rovided; however, that a distributor, limiting its RVP (54 FR 11868, March have likely been prohibitive and blender, marketer, reseller, carrier, 22, 1989) (40 CFR 80.27). Due to the resulted in the termination of the retailer, or wholesale purchaser- presence of gasoline in certain markets availability of ethanol in the consumer shall be deemed to be in full mixed with about 10 volume percent marketplace. Thus, the 1-psi waiver compliance with the provisions of this ethanol (known as gasohol at the time), facilitated the participation of ethanol in and because blending an alcohol into subsection and the regulations the transportation fuel industry while gasoline increases the volatility of the promulgated there under if it can also limiting gasoline volatility resulting final product, EPA provided an demonstrate that—(A) the gasoline from ethanol blending. additional 1 psi allowance for such portion of the blend complies with the But the RVP levels of gasoline blends. In the absence of the 1 psi Reid vapor pressure limitations actually used by consumers are allowance, a special blend stock would promulgated pursuant to this dependent on the mixture of alcohol have been required for such blends to subsection; (B) the ethanol portion of blends and gasoline that are comply with the RVP standards and the blend does not exceed its waiver commingling in either vehicle or storage such sub-RVP blendstocks did not exist condition under subsection (f)(4) of this tanks. Depending on the mixture, the at the time. EPA imposed the RVP section; and (C) no additional alcohol or resulting RVP level could be standards at all points in the gasoline other additive has been added to significantly higher than the average distribution system, i.e., anywhere increase the Reid Vapor Pressure of the volatility of the fuels prior to the gasoline is sold, supplied, offered for ethanol portion of this blend.’’ Section commingling. This is because the sale or supply or transported, including 211(h)(4). volatility increase when ethanol is service stations, refinery shipping, In a 1991 rulemaking, EPA modified added to gasoline is non-linear, with a tanks, importer shipping tanks, pipeline the RVP regulations to conform to the large increase with the first few percent and bulk terminals and plants. (40 CFR 1990 amendments (56 FR 64704, and then slowly tapering off as the 80.28) (1989). In 1990, the agency December 12, 1991). These regulations concentration increases (see Illustration promulgated additional regulations that addressed the RVP standards in V.F.–4). In other words, mixing E10 and further lowered the RVP standards. (55 attainment areas, required the use of EO gasoline results in a net increase in FR 23658, June 11, 1990). EPA denatured anhydrous ethanol as a the volatility of the gasoline mixture, continued to provide both the 1.0 psi specific condition for the 1-psi waiver compared to the average volatility that allowance to fuel blends containing for fuel blends containing gasoline and would occur absent such mixing. For about 10 volume percent ethanol, (40 from 9 volume percent to 10 volume example, 2000 gallons of 10 psi E10 CFR 80.27) (1990), and the requirement percent ethanol, and included a new added to a service station tank with that RVP standards applied at all points defense against liability for violations of 8000 gallons of 9.0 psi E0 would result in the distribution system. the RVP standards for such fuel blends. in 10,000 gallons of fuel with a volatility Congress largely codified the We made no changes to the requirement of approximately 10 psi. However if the approach taken in EPA’s RVP that the RVP standards applied at all fuels had not been mixed, the average regulations by adding a new section points in the distribution system. volatility of the 10000 gallons would

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have been 9.2 psi. The emissions percent to 10 volume percent ethanol. Specifically, we would consider associated with the commingled The RVP level for the resulting blend imposing the following conditions on mixture (10000 gallons at 10 psi) would would also be higher than the maximum such fuel blends: be significantly higher than the RVP standard of 9.0 psi, making the (1) Each separate component must emissions associated with the two commingled blend noncomplying with individually meet the applicable RVP separate blends of 2000 gallons at 10 psi the RVP standard. However the standards (e.g., 10 psi for E10 and 9 psi and 8000 gallons at 9 psi. The available data indicates that for other blends). commingling thus results in an adverse commingling of biobutanol blends with (2) The resulting commingled mixture environmental impact compared to ethanol blends would not result in any would have to have an RVP that is no what would occur absent the net increase in gasoline volatility. This higher than the weighted average of the commingling. EPA’s current RVP is because biobutanol blends and products or components considered regulations address this adverse gasoline containing from 9 volume separately. This could occur with emissions impact by applying the RVP percent to 10 volume percent ethanol blends that blend linearly with respect standard to the commingled mixture as blend linearly from a volatility to RVP (e.g., butanol). a single fuel. In this case the perspective, resulting in no net increase (3) The burden would be on the commingled mixture has an RVP of 10 in volatility compared to what would retailer to show that these conditions psi. The 1 psi waiver does not apply as occur without the blending. This means had been satisfied. If a commingled the mixture is now 2% ethanol, not that there would be no net degradation product had volatility above the from 9 volume percent to 10 volume in environmental performance, as allowable standard, and did not have percent ethanol. The commingled indicated in Illustration V.F.–4, below. from 9 volume percent to 10 volume mixture thus would not comply with percent ethanol, then the fuel would be the 9.0 psi RVP standard, effectively We are inviting comment on an considered noncomplying unless the prohibiting such commingling. alternative approach to applying the As discussed earlier, the EPAct 2005 RVP standard to the gasoline that results regulated party demonstrated that it met and EISA2007 mandated increased from commingling of E10 and certain the limited conditions discussed here. volumes of renewable fuel for use in other products like biobutanol. We are The retailer would have to demonstrate gasoline. This has resulted in the inviting comment as to whether the RVP that the conditions were met for increased use of ethanol. E10 is now standards could be applied to the application of this modified method of present in nearly all gasoline sold in the commingled blend such that the determining compliance. This would country. Recently, EPA granted a waiver commingled blend would be considered call for at least retaining records of the from the substantially similar in compliance as long as the separate products received (with all required requirements under section 211(f)(4) for components of the commingled product regulatory statements and indications the use of E15 blends in MY2001 and were in compliance with the RVP required) and volumes of the products newer light-duty vehicles (See 75 FR standards prior to commingling. In received in order to demonstrate a 68094, November 4, 2010 and 76 FR effect the RVP standard would be calculation to verify compliance with 4662, January 26, 2011). EPA applied to the commingled mixture by the RVP standard. interpreted section 211(h) as not treating it as if it still contained two (4) In situations where the RVP of extending the 1 psi waiver to such separate products, with each product retail tank samples exceed 9.0/7.8 psi, blends with ethanol levels above 10%. required to comply with the RVP for defense purposes the retailer would Several companies are also developing standard separately. This approach need to test the sample for the and planning on introducing biobutanol would be somewhat artificial but would concentration of ethanol, butanol, and into commerce. The characteristics of allow for the commingling of specified any other applicable oxygenate in butanol are such that it could be blends of fuels, such as biobutanol, with addition to the RVP level in order to beneficial with respect to volatility and E10 where the resulting commingled allow for the calculation in (3). The vehicle evaporative emission mixture does not result in a net increase resulting blend ratio would need to performance. For example, 2000 gallons in average RVP and associated meet or demonstrate better performance of 10 psi E10 added to a service station emissions. This would provide more reductions of such ratio on a linear scale tank with 8000 gallons of 9.0 psi Bu12 flexibility in achieving the RFS as established through regulation. would result in 10000 gallons of fuel standards while avoiding adverse Under this approach, we believe there with an RVP of 9.2 psi. The RVP of the environmental impacts. This approach would be no adverse environmental commingled blend would be the same would provide a limited modification to effects because such mixtures would as the average of the separate blends if the RVP provisions for only certain fuel result in no net increase in volatility. they had never been commingled. There blends. EPA invites comment on We also believe this would enable us to is no adverse emissions impact from the whether it would have the authority give effect to the RFS provisions that commingling of the E10 and Bu12 under § 211(h) to adopt such an call for increased use of renewable fuels, blends. However the 1-psi waiver would approach, and if so whether it would be and also be consistent with our rational not be applicable because the resulting appropriate to do so and under what for the treatment of gasohol at the time blend no longer contains from 9 volume conditions. we promulgated the RVP standards.

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F. Amendments to Various RFS2 the RCO may not delegate his/her to EPA. CAA 211(o)(9)(B). In EPA’s Compliance Related Provisions responsibility to any other person. March 26, 2010 regulations We are proposing a number of However, the RCO may delegate the implementing the EISA amendments we changes to the RFS2 regulations. ability to submit information to EPA to specified in the regulatory definition of one or more employees of the company ‘‘small refinery’’ that the 75,000 bpd 1. Proposed Changes to Definitions or to one or more agents. The RCO threshold determination should be ‘‘Responsible Corporate Officer’’ remains responsible for the information calculated based on information from The existing RFS2 regulations at submitted to EPA by any employee or calendar year 2006. At the beginning of sections 80.1416, 80.1451 and 80.1454, agent. Adding a definition of RCO will the program, having a single year in and EPA guidance and instructions codify existing practices and will assist which to make this determination, regarding registration and reporting, regulated parties in understanding roles simplified the calculations, and helped frequently refer to the responsibilities of under the RFS2 regulation. to ensure that all refineries were treated the ‘‘owner or a responsible corporate ‘‘Small Refinery’’ similarly. However, we no longer officer.’’ However, the term ‘‘responsible believe that it is appropriate that corporate officer’’ is not currently Section 211(o)(9)(A) of the Clean Air refineries satisfying the 75,000 bpd defined in the RFS2 regulations. We Act provides an exemption from RFS threshold in 2006 should be eligible for propose that, for purposes of the RFS2 requirements through 2010 for ‘‘small extensions to their small refinery RFS program, a ‘‘responsible corporate refineries,’’ defined as refineries having exemption if they no longer meet the officer’’ (RCO) means a corporate officer an average aggregate daily crude oil 75,000 bpd threshold. Allowing such who has the authority and is assigned throughput for a calendar year that does facilities to qualify for an exemption responsibility to provide information to not exceed 75,000 barrels. It also extension, while not allowing similarly EPA on behalf of a company. A provides for possible extensions of this sized facilities that have not grown company may name only one RCO, and exemption, through individual petitions since 2006 to qualify for an exemption,

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does not appear fair, nor does it further 80.1451, if the party fails to meet the The proposed alternative method for the objectives of the statute to target requirements related to the EPA sell and buy transactions of assigned relief to only truly small facilities. Moderated Transaction System (EMTS) RINs would redefine the reportable Therefore, we propose modifying the under section 80.1452, or if the party event for both the seller and the buyer, definition of small refinery so that the fails to meet the requirements related to introduce a unique identifier that the crude throughput threshold of 75,000 attest engagements under section seller must provide to the buyer, and bpd must apply in 2006 and in all 80.1454. If any required report, require the buyer to report the date of subsequent years. We also propose including the attest engagement, is transfer. Buyers and sellers would need specifying in section 80.1441(e)(2)(iii) thirty (30) or more days overdue, EPA to agree on which method they would would provide written notice to the that in order to qualify for an extension be using to report transfers of assigned of its small refinery exemption, a owner or responsible corporate officer RINs; either the current method or the refinery must meet the definition of (RCO) that it intends to cancel the ‘‘small refinery’’ in section 80.1401 for company’s registration and would allow alternative method. EPA believes that all full calendar years between 2006 and the company fourteen (14) days from the this alternative would provide the the date of submission of the petition for date of the letter’s issuance to respond. regulated community with the an extension of the exemption. If there is no satisfactory response flexibility to address their reporting We proposed that that these changes received, then EPA would cancel the concerns and also provide EPA with the would not affect any existing exemption registration. Re-registration would be data necessary to effectively administer extensions under CAA 211(o)(9)(B); possible following the standard and enforce transactions of assigned rather, they would apply at such time as registration procedures. RINs. EPA welcomes comment on this any approved exemption extension proposed alternative method for 4. Proposed Changes to Section expires and the refinery at issue seeks reporting assigned RIN buy and sell 80.1452—EPA Moderated Transaction a further exemption extension. No transactions. further extension would be permitted System (EMTS) Requirements— We propose that sellers of assigned unless the revised crude oil throughput Alternative Reporting Method for Sell RINs under the alternative method be specifications were satisfied. and Buy Transactions for Assigned RINs Reporting and product transfer required to do the following: 2. Provisions for Small Blenders of document (PTD) requirements, found in • Within five (5) business days of Renewable Fuels sections 80.1452 and 80.1453, shipping renewable fuel with assigned The RFS2 regulations at section respectively, currently state that the RINs, report a sell transaction, using the 80.1440 allow renewable fuel blenders reportable event for a RIN purchase or alternative method, via EMTS; who handle and blend less than 125,000 sale occurs on the date of transfer. • Include in the EMTS sell gallons of renewable fuel per year, and Sellers must report the sale of RINs transaction report other required who are not obligated parties or within five (5) business days of the exporters, to delegate their RIN-related reportable event via the EPA Moderated information per section 80.1452; and responsibilities to the party directly Transaction System (EMTS). Buyers • Provide a PTD to the assigned RIN upstream from them who supplied the must report the purchase of RINs within buyer with a unique identifier, also renewable fuel for blending. EPA has ten (10) business days of the reportable reported via EMTS, in addition to the received feedback from several parties event via EMTS. The date of transfer is information in section 80.1453. The date to the effect that the 125,000 threshold the date on which title of RINs is of transfer is not required for the is too low, and is a lower threshold than transferred from the seller to the buyer. alternative method. what industry considers ‘‘small.’’ EPA Some buyers and sellers of assigned We propose that buyers of assigned seeks input on what a more appropriate RINs have expressed concerns with gallon threshold should be. EPA seeks these requirements stating they have RINs under the alternative method be comment on the regulated community’s difficulty determining the date of required to do the following: experience with the existing gallon transfer since title of the renewable fuel • Within five (5) business days of threshold associated with the is not transferred until the fuel receiving a shipment of renewable fuel provisions. EPA may adjust the gallon physically reaches the buyer. Some with assigned RINs, report a buy threshold in the final rule based on transactions, for example those by rail transaction, indicating use of the further consideration of this issue and or barge, may take several weeks, and alternative method, via EMTS; their current accounting systems do not evaluation of comments received. • Include in the EMTS buy include a means for capturing the transaction report other required 3. Proposed Changes to Section buyer’s receipt date. 80.1450—Registration Requirements EPA understands this concern, but information per section 80.1452; We propose to add a new paragraph also recognizes that some regulated • Include in the EMTS buy (h) to section 80.1450 that will describe parties have modified their accounting transaction report the unique identifier the circumstances under which EPA systems to address the current reporting provided by the seller; and may cancel a company registration. EPA and PTD requirements in RFS2. We also • Include in the EMTS buy proposes to initiate a process to cancel believe that for parties separating, transaction report the date the a company registration if the company retiring, and selling or buying separated renewable fuel was received, i.e. the has reported no activity in the EPA RINs, the current reporting and PTD date of transfer. Moderated Transaction System (EMTS) requirements are effective and should under section 80.1452 for one year. EPA remain unchanged. Therefore, at this If this proposed alternative method is also proposes to initiate a process to time EPA is not proposing to replace finalized, the EMTS would be modified cancel a company registration if a party existing requirements, but is instead to accept such transactions. EPA would fails to comply with any registration proposing an additional, alternative provide additional instruction and requirement of section 80.1450, if the method for reporting sell and buy guidance at the time of the new EMTS party fails to submit any required transactions involving assigned RINs version release. EPA invites comment compliance report under section only. on all aspects of this proposal.

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5. Proposed Changes to Section EPA’s interpretation of these penalty importers themselves. Accordingly, we 80.1463—Confirm That Each Day an provisions into the regulations. The propose that foreign renewable fuel Invalid RIN Remains in the Marketplace amendments would state that any producers and foreign ethanol Is a Separate Day of Violation person liable for a violation of section producers who do not themselves Preventing the generation and use of 80.1460(b) for creating or transferring an generate RINs for their product, and invalid RINs and encouraging rapid invalid RIN, or for causing another importers of renewable fuel, be required retirement and replacement of invalid person to create or transfer and invalid to comply with the safeguards of section RINs is crucial to the integrity of the RIN, is subject to a separate day of 80.1466. Given the challenges RFS2 program. The RFS regulations violation for each day that the invalid associated with EPA’s ability to include various provisions related to RIN remains available for use for determine whether a fuel qualifies as prohibited acts and liability for compliance purposes, and EPA has the RIN generating renewable fuel, and the violations. Section 80.1460(a) sets forth authority to seek the maximum statutory potential for fraud, we believe these penalty for each day of violation. EPA additional safeguards are necessary for the prohibited acts for the renewable will apply the statutory factors in all foreign produced renewable fuel, fuels program. Section 80.1460(b)(2) sections 211(c) and 205(b) of the CAA regardless of who generates the RINs. prohibits parties from creating or to evaluate the appropriate penalties for However, we seek comment on the transferring invalid RINs. Section each violation on a case by case basis. reasonability of expanding these 80.1461(a) states that the person who additional requirements onto foreign violates a prohibited act is liable for the 6. Proposed Changes to Section renewable fuel producers, and foreign violation of that prohibition. Section 80.1466—Require Foreign Ethanol ethanol producers that produce biofuel 80.1461(b) provides the liability Producers, Importers and Foreign for which importers ultimately generate provisions for failure to meet other Renewable Fuel Producers That Sell to RINs, and for importers of renewable Importers To Be Subject to U.S. provisions of the regulations. The fuel. We further propose to amend Jurisdiction and Post a Bond penalty provisions of the regulations at section 80.1426(a)(4) to prohibit section 80.1463(a) state that any person The current regulations include importers from generating RINs for who is liable for a violation under requirements that foreign renewable fuel renewable fuel imported from a foreign section 80.1461 is subject to a civil producers that generate RINs agree to be renewable fuel producer or foreign penalty as specified in sections 205 and subject to a number of additional ethanol producer, unless and until the 211(d) of the Clean Air Act (CAA), for requirements at section § 80.1466, foreign renewable fuel producer or every day of each such violation and the including, but not limited to, foreign ethanol producer has satisfied amount of economic benefit or savings designation, foreign producer all requirements of section 80.1466. resulting from each violation. Section certification, product transfer document, 80.1463(c) provides that ‘‘any person load port independent testing and 7. Proposed Changes to Section . . . is liable for a separate day of producer identification, submission to 80.1466(h)—Calculation of Bond violation for each day such a U.S. jurisdiction and posting of a bond. Amount for Foreign Renewable Fuel requirement remains unfulfilled.’’ We are proposing to require the same Producers, Foreign Ethanol Producers EPA interprets these statutory and requirements for foreign renewable fuel and Importers regulatory penalty provisions to give the producers, and foreign ethanol EPA proposes two changes to section Agency the authority to seek penalties producers that produce biofuel for 80.1466 regarding calculation of bonds. against parties generating, transferring which importers ultimately generate EPA proposes to amend the procedures or causing another person to generate or RINs, and for importers of renewable for calculating the bond amount for transfer invalid RINs for each day fuel. foreign renewable fuel producers, subsequent to the party’s action that an In order to evaluate whether a fuel foreign ethanol producers and importers invalid RIN is available for sale or use qualifies as RIN generating renewable to require that the bond amount be the by a party subject to an obligation under fuel (including determining the proper larger of: (1) One cent times the largest the RFS2 program to acquire and retire renewable fuel category and RIN type volume of renewable fuel produced by RINs. For example, for a RIN generator, for the imported fuel), EPA must be able the foreign producer and exported to the this time period typically runs from the to evaluate the feedstocks and processes United States, in gallons, during a single date of invalid RIN generation until used to produce the renewable calendar year among the five preceding either corrective action is taken by the components of the fuel. This is a calendar years, or the largest volume of RIN generator to remove the invalid RIN particular challenge for fuel produced at renewable fuel that the foreign from the marketplace or a party uses the foreign facilities; unlike our other fuels producers expects to export to the RIN to satisfy an RVO or other programs, EPA cannot determine Unites States during any calendar year requirement to retire RINs (such as whether a particular shipment of identified in the Production Outlook would apply under today’s proposal to renewable fuel is eligible to generate Report required by section 80.1449, or exporters of renewable fuel or parties RINs under the RFS program by testing (2) the sum of the following calculation using fuel produced as renewable fuel the fuel itself. Furthermore, significant for each RIN type: 0.25 times the largest for a use other than as transportation opportunity for fraud and non- volume of renewable fuel produced by fuel, heating oil or jet fuel). This is compliance with the regulations exists the foreign producer and exported to the consistent with the CAA approach of where EPA is not able to ensure that United States, in gallons, during a single assessing penalties for every day of a RINs entering the U.S. are valid, and calendar year among the five preceding violation, consistent with EPA’s historic where enforcement of the regulations calendar years, or the largest volume of approach under the fuels regulations may be hampered due to a facility’s renewable fuel that the foreign (See Section 80.615), and will encourage foreign location. We believe that the producers expects to export to the renewable fuel producers that generate same safeguards that apply to foreign Unites States during any calendar year invalid RINs to promptly take corrective RIN generating renewable fuel identified in the Production Outlook action. producers should apply to other foreign Report required by section 80.1449, We are proposing to amend section producers whose product is used by times a ‘‘RIN multiplier D code’’ 80.1463 to more explicitly incorporate importers to generate RINs, and to those established by EPA in the regulations.

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The proposed ‘‘RIN multiplier D codes’’ producer and foreign ethanol producer Renewable Biomass vary from $.02 for D code 6 to $1.30 for must establish and provide documents We propose to amend the definition D code 4. When the original renewable to support its facility’s baseline volume of ‘‘renewable biomass’’ in section fuels standard regulations (RFS1) were as defined in section 80.1401. This is 80.1401 to make clear that biomass written, an RFS1 RIN was worth either the permitted capacity or, if obtained in the vicinity of buildings pennies. With the implementation of permitted capacity cannot be means biomass obtained within 200 feet RFS2, the price of some RINs has determined, the actual peak capacity of of the buildings. The preamble for the increased significantly, in part because a specific renewable fuel production March 26, 2010 RFS2 final rule cites the of the demand for certain categories of facility on a calendar year basis. After distance of 200 feet (see 75 FR 14696), fuel such as biomass-based diesel. In the promulgation of the March 26, 2010 but EPA did not include a reference to order to keep up with these market RFS2 rule, we have received many this value in the regulations. We believe conditions, the bond amount needs to requests from companies to allow them doing so would provide additional be increased; a penny per gallon of fuel to use their nameplate or ‘‘design’’ clarity to the regulations. may no longer be a fair valuation of a capacity to establish their facility’s foreign renewable fuel producer’s baseline volume due to either the English Language Translations potential penalty for RFS violations. facility being exempt from obtaining a We propose to add a new paragraph Bonds are used to satisfy any judicial permit, and thus not able to determine (i) to section 80.1450 to state that any judgment that results from an their permitted capacity, or the facility registration materials submitted to EPA administrative or judicial enforcement not starting operations, or not being must be in English or accompanied by action for conduct in violation of this operational for a full calendar year to an English language translation. subpart. Therefore, we propose to produce actual production records to Similarly, we propose to add a new amend section 80.1466(h)(1) to include establish actual peak capacities. Because paragraph (h) to section 80.1451 that the calculation described above, that the regulations currently only allow a will state that any reports submitted to reflects current market valuation for facility’s baseline volume to be EPA must be in English or accompanied different types of RINs. We seek established by a limit stated in a permit by an English language translation and comment on whether the proposed bond or actual production records for at least add a new paragraph (q) to section calculation procedures are appropriate, one calendar year, facilities that had 80.1454 that will state that any records and in particular whether they are neither a permit or sufficient production submitted to EPA must be in English or sufficiently large to cover potential records had difficulty registering under accompanied by an English language liability. the RFS2 program. To allow facilities translation. The translation and all other EPA also proposes to amend that fall under this predication to associated documents must be paragraph (h) of section 80.1466 to be register under the RFS2 program, we are maintained by the submitting company consistent with paragraph (j)(4), which proposing in this rulemaking to allow a for a period of five (5) years, which is prohibits generating RINs in excess of facility to use its ‘‘nameplate capacity’’ already the established time period for the number for which the bond to establish its facility’s baseline volume keeping records under the existing RFS2 requirements have been satisfied. for the purposes of registration, only if program. Paragraph (h) regulates the size of the (1) the facility does not have a permit or bond a foreign renewable fuel producer there is no limit stated in the permit to Correction of Typographical Errors must post in order to generate RINs. establish their permitted capacity, and We propose to correct various This formula takes into account the (2) has not started operations or does typographical errors in section 80.1466. volume of renewable fuel a foreign not have at least one calendar year of Specifically, we propose to amend renewable fuel producer has exported or production records, and (3) does not paragraph (o) to correct a typographical intends to export to the United States. claim exemption from the 20 percent error in the last sentence of the Section 80.1466(h) states, in part: ‘‘If the GHG threshold under § 80.1403. Due to affirmation statement, by changing the volume of renewable fuel exported to the complexity of the exemption citation from § 80.1465 to § 80.1466. We the United States increases above the provision provided under § 80.1403, also propose to amend paragraph largest volume identified in the and the added flexibility that facilities (d)(3)(ii) to correct a typographical error. Production Outlook Report during any claiming this exemption are allotted The current regulation cites section calendar year, the foreign producer shall under the program, we are not 80.65(e)(2)(iii), which does not exist. increase the bond to cover the shortfall proposing to extend this option to The correct citation is to section within 90 days.’’ This conflicts with the facilities claiming an exemption under 80.65(f)(2)(iii). stricter language in paragraph (j)(4) of § 80.1403. Additionally, by this stage in the same section, which prohibits a the RFS2 program, the facilities that VI. Amendments to the E15 Misfueling foreign producer of renewable fuel from would qualify for registration under Mitigation Rule generating RINs in excess of the number § 80.1403 would be very few, if any. We propose the following minor for which the bond requirements of This proposal would revise the corrections and other changes to the E15 section 80.1466 have been satisfied. definition of baseline volume to include misfueling mitigation rule (E15 MMR) EPA interprets the stricter provision at ‘‘nameplate capacity,’’ add a new found at 40 CFR Part 80, subpart N. section 80.1466(j)(4) to be controlling, definition for ‘‘nameplate capacity’’ to A. Proposed Changes to Section and we propose to change the language § 80.1401, and include conforming 80.1501—Label in section 80.1466(h) accordingly. amendments to the registration requirements of § 80.1450. We propose to correct several minor 8. Proposed Changes to Facility’s errors in the description of the E15 label Baseline Volume To Allow ‘‘Nameplate G. Minor Corrections to RFS2 Provisions required by the E15 MMR at section Capacity’’ for Facilities Not Claiming We are proposing a number of 80.1501, including corrections in the Exemption From the 20% GHG corrections to address minor dimensions of the label and ensuring Reduction Threshold definitional issues that have been that the word ‘‘ATTENTION’’ is As a requirement of registration under identified as we have been capitalized. The Agency intended the the RFS2 program, each renewable fuel implementing the RFS2 program. label required by the regulations to look

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identical to that pictured in the Federal less than 9 volume percent ethanol) have effectively made the ethanol Register notice for the final E15 MMR would be a violation of the E15 MMR. concentration limits specified in the E10 (see 76 FR 44406, 44418, July 25, 2011). As originally written, the language does and the E15 waiver decisions and the not clearly describe the prohibited RVP regulations more stringent, which B. Proposed Changes to Section activity (see 76 FR 44435, 44436, Jult 25, in turn would impact whether a party 80.1502—E15 Survey 2011). must comply with the E15 MMR We are proposing two changes to the requirements and whether a fuel E. Proposed Changes to Section survey requirements found at section qualifies for the RVP 1.0 psi waiver. 80.1502. First, we propose to clarify that 80.1500—Definitions In its petition, AFPM noted that under E15 surveys need to sample for Reid On August 17, 2011, the National existing EPA regulations at 40 CFR 80.9, vapor pressure (RVP) only during the Petroleum Refiners Association, now the results of compliance testing for the high ozone season as defined in section called American Fuel and ethanol concentration in gasoline are 80.27(a)(2)(ii) or during any time RVP Petrochemical Manufacturers (AFPM), ‘‘rounded down’’ when the results standards apply in any state filed a petition for reconsideration with indicate that gasoline- may implementation plan approved or the Agency under CAA section contain slightly more than 10 vol% promulgated under the Clean Air Act. 307(d)(7)(B) asking EPA to reconsider ethanol. AFPM further stated that in EPA did not intend to require RVP certain portions of the E15 MMR. A view of this rounding procedure, fuel sampling and testing during the rest of copy of the petition has been placed in that compliance testing indicates has an the year, when RVP standards do not the docket. The petition fundamentally ethanol concentration of between 10.0 apply. focuses on one issue—AFPM expressed and 10.4 should be considered E10. Second, we propose to change when concern that the Agency had defined AFPM argued that the E15 MMR the results of surveys that detect E10 and E15 in the E15 MMR in a way definition of E10 as containing no more potential noncompliance must be that would change how ethanol than 10.0 vol% ethanol constituted a reported to the Agency. As originally concentrations are determined for ‘‘substantive change’’ to the proposed drafted, the regulations require the regulatory purposes. Today we grant E15 MMR that would also alter the independent survey association AFPM’s request for reconsideration of implementation of other EPA fuels conducting a survey to notify EPA of this issue as explained in their August regulations without a required potentially noncompliant samples 17, 2011 petition. As explained below, rulemaking. within 24 hours of the laboratory while EPA did not intend the As part of the E15 MMR proposed receiving this sample (see 76 FR at definitions of E10 and E15 in the E15 rule, we identified prospective 44423, July 25, 2011). EPA has since MMR to have this effect, we are responsible parties for each misfueling learned that more time may be needed proposing changes to the regulations to mitigation measure, including for reporting of noncompliant samples avoid this perceived impact. requirements related to labeling E15 fuel since it may take several days for On April 6, 1979, fuel containing 90% dispensers, compliance surveys, and analysis of the sample to be completed. unleaded gasoline and 10% ethyl product transfer documents. We We are therefore requiring that alcohol received a waiver under section received a number of comments from noncompliant samples be reported to 211(f)(4) by operation of law (see 44 FR many affected stakeholders, including EPA within 24 hours of being analyzed. 20777, April 6, 1979). Later, EPA issued AFPM, that asked us to clarify which an interpretative ruling that stated the party or parties would be responsible for C. Proposed Changes to Section April 6, 1979 waiver covered gasoline- each misfueling mitigation measure and 80.1503—Product Transfer Documents ethanol blends that contained up to 10 when each party or parties would be EPA is proposing certain minor vol% ethanol content (see 47 FR 14596, subject to those requirements. In the changes to the product transfer April 5, 1982). Finally, in the context of final E15 MMR, we added the document (PTD) requirements found at regulations limiting the Reid vapor significant digit to the definitions of E10 section 80.1503. Specifically, we are pressure (RVP) of gasoline, EPA has and E15 in order to provide a proposing to allow the use of product defined E10 as gasoline containing delineation between E10 and E15 and codes for conventional blendstock/ between 9 and 10 volume percent consequently the parties subject to one gasoline upstream of an ethanol ethanol. Under the RVP regulations and or more of the E15 misfueling mitigation blending facility, since historically, the the Clean Air Act, the RVP of E10 is measures. codes have been allowed to be used for allowed to be 1 pound per square inch AFPM argued in their petition that by conventional blendstock/gasoline (psi) higher than it is for gasoline or defining E10 as containing no more than upstream of an ethanol blending facility gasoline-ethanol blends containing less 10.0 vol% ethanol, EPA effectively in other fuels programs. This was an than 9 and more than 10 vol% ethanol made a substantive change to the way omission from the original regulation. (often referred to as the ‘‘1.0 psi test results used for determining We are also seeking comment on waiver’’). compliance with fuel requirements are potential ways of streamlining the PTD In the E15 MMR, EPA defined E10 as rounded. For example, for a gasoline- language required at section 80.1503. gasoline containing at least 9.0 and no ethanol blend to be considered E10, it more than 10.0 vol% ethanol and could no longer contain up to 10.4 vol% D. Proposed Changes to Section defined E15 as a gasoline-ethanol blend ethanol; it could only contain up to 80.1504—Prohibited Acts containing greater than 10.0 and no 10.04 vol% ethanol. AFPM asserted that EPA is slightly rewording section more than 15.0 vol% ethanol. EPA there is a tolerance for blending ethanol 80.1504(g) to state that blending E10 included those definitions in the E15 that allows blends containing up to 10.4 that has taken advantage of the statutory MMR so that fuels blended to contain vol% ethanol to be considered E10. 1.0 psi RVP waiver during the more than 10.0 vol% ethanol were While we do not agree that there is a summertime RVP control period with a subject to the misfueling mitigation blending tolerance for ethanol, we agree gasoline-ethanol fuel that cannot take requirements for E15. After publication that test results are rounded utilizing advantage of the 1.0 psi RVP waiver of the E15 MMR, stakeholders including the procedures identified in section 80.9 (i.e., a fuel that contains more than 10.0 AFPM expressed concern that by when compared to applicable standards, volume percent ethanol (e.g., E15) or defining E10 as E10.0, the Agency may in this case the ethanol concentrations

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specified in the E10 and the E15 partial waiver decisions was blended as ethanol concentrations are measured for waivers. precisely as possible to contain the compliance testing purposes for 40 CFR, The Agency specifically addressed the relevant percentage of ethanol, not that Part 80, Subpart N, the applicable issue of blending tolerances versus percentage plus ‘‘0.49.’’ Testing for ethanol concentration value will be testing tolerances for gasoline-ethanol registration of E10 and E15 fuel and fuel rounded using the rounding procedures blends in the RFS2 NPRM.50 At the additives under 40 CFR part 79 was also at section 80.9. EPA is also proposing time, some stakeholders had suggested done with fuels blended as precisely as new prohibited acts language in section that the implementation of a blending possible to contain the relevant 80.1504 that should make it clear that tolerance for the ethanol content of percentage of ethanol. Similarly, EPA only those parties that (1) produce gasoline could be allowed to help regulations provide that only fuel with gasoline, blendstocks for oxygenate obligated parties satisfy RFS an ethanol concentration of between 9 blending (BOBs), or ethanol designed to requirements without the need for a and 10 vol%, not more or less, may be used in the manufacture of E15 as CAA section 211(f)(4) waiver. In lawfully use the statutory 1.0 psi RVP currently defined (i.e., E15.0); (2) that response, we argued that although the waiver. manufacture E15 to be introduced into test methods used to measure ethanol At the same time, we did not intend commerce; or (3) that dispense E15 from concentration (ASTM D 5599 and to change the definition of E10 in a way a retail outlet. The Agency specifically ASTM D 4815) include some variability, that impacts the rounding of test results seeks comments on this proposed ethanol is different than other fuel for ethanol concentrations.53 If a language. properties and components that are manufacturer blends in a way designed controlled in other fuel programs.51 Fuel VII. Proposed Amendments to the to result in a gasoline-ethanol fuel ULSD Diesel Sulfur Survey properties such as RVP, and containing no more than 10.0 vol% components such as sulfur and benzene, ethanol, but compliance testing EPA is requesting comment are natural characteristics of gasoline as indicates a concentration of 10.4 vol%, concerning whether to amend a a result of the chemical nature of crude we will still round down the test result provision of the ultra-low sulfur diesel oil and the refining process. Their levels in accordance with procedures in (ULSD) rule. The ULSD rule includes a or concentrations in gasoline are section 80.9. The purpose of the E15 provision that deems branded refiners unknown until measured and are MMR definitions state that if a liable for violations of the ULSD sulfur dependent upon the accuracy of the test manufacturer blends ethanol into standard that are found at retail outlets method. In contrast, ethanol is gasoline in a way designed to result in displaying the refiner’s brand (40 CFR intentionally added in known amounts a gasoline-ethanol fuel containing 80.612). The regulations include defense using equipment designed to ensure a greater than 10.0 vol% and no more provisions. One element of a branded specific concentration within a very than 15.0 vol% ethanol, it will be refiner’s defense to such violations is narrow range. Parties that blend ethanol subject to applicable E15 MMR that it must have a periodic sampling and testing program at the retail level into gasoline normally have precise requirements. For example, bills of (40 CFR 80.613(b) and (d)). The control over the final concentration. lading for an E10 fuel manufacturer that regulations also set forth an alternative Therefore, a blending tolerance for indicates the manufacturer has sampling and testing defense element ethanol would not be appropriate. purchased and blended more ethanol During the comment period for the provision for branded refiners. than 10.0 vol% ethanol may indicate This alternative defense element RFS2 NPRM, EPA received a number of that a fuel does not meet the definition comments from stakeholders that argued provision (40 CFR 80.613(e)) allows a of E10 for E15 MMR purposes. branded refiner to meet the company- that the volume percentage of ethanol in AFPM also argued that the E15 MMR gasoline is readily determined using specific downstream periodic sampling definitions of E10 would alter the and testing element of its defense by very accurate volumetric ratio blending implementation of other EPA fuels facilities now in place at most blending participating in funding a survey regulations without a required consortium that samples diesel fuel at terminals; therefore, the Agency should rulemaking, specifically the application not allow a blending tolerance. In the retail outlets nationwide. This sampling of the 1.0 psi RVP waiver to E10. Since and testing of fuel to determine final RFS rule, we did not include a the Agency intended the E15 MMR 52 compliance with the ULSD sulfur blending tolerance for ethanol blends. definition of E10 to only apply for We continue to believe that blending standard is carried out by an purposes of determining the independent survey association. EPA tolerances for ethanol are not applicability of E15 MMR requirements, appropriate, and the definitions of E10 reviews and approves the annual survey the Agency does not believe these plan submitted by the survey and E15 in the E15 MMR are consistent definitions affect the implementation with this view. The E10 waiver is for association. The number of samples that and enforcement of others fuels are taken each year is determined by a gasoline containing ‘‘up to’’ 10 vol% programs, including the applicability of ethanol, not for gasoline containing ‘‘up statistical formula that is based in part the 1.0 psi RVP waiver. The on the previous year’s compliance rate. to’’ 10.4 vol% ethanol, and the E15 introductory language to the definitions partial waivers are for fuel designed to In addition, the regulations set a floor at 40 CFR part 80, subpart N clearly and a ceiling for the number of samples contain ‘‘greater than 10 vol% ethanol states that definitions in section 80.1500 and not more than 15 vol% ethanol.’’ In that must be taken in an annual survey are ‘‘[f]or purposes of this subpart only.’’ cycle regardless of the sample number the case of both waivers, the ‘‘10’’ and In order to clarify that these the ‘‘15’’ are exact numbers, not that would be calculated using the definitions only apply in the context of regulatory formula. Therefore, the approximations, and they express how the E15 MMR, EPA is proposing to add much ethanol can be lawfully added to number of samples required to be taken a new section 80.1509, which contains can potentially be less than the formula fuel. Testing by the Department of language that clearly states that when Energy utilized in making the E15 would require, or it can be more. Compliance with the ULSD sulfur 53 For an explanation of the rounding procedures 50 See 74 FR 25018 (May 26, 2009). outlined in § 80.9 and the rationale the Agency used content standard has been extremely 51 See 74 FR 25018 (May 26, 2009). to adopt those procedures, see 71 FR 16496 (April high; less than 1% of the samples have 52 See 75 FR 14762–14764 (March 26, 2010). 3, 2006). been in violation in recent years. The

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minimum number of samples currently transact RINs. We estimate that 670 C. Regulatory Flexibility Act required to be taken annually is set by parties may be subject to the proposed the regulation at 5,250 regardless of this information collection. We estimate an The Regulatory Flexibility Act (RFA) high compliance rate. Due to the high annual recordkeeping and reporting generally requires an agency to prepare compliance rate, use of the statistical burden of 3.1 hours per respondent. a regulatory flexibility analysis of any formula would result in a sampling rate This action contains recordkeeping and rule subject to notice and comment of several hundred samples for each of reporting that may affect the following rulemaking requirements under the the past several years, instead of 5,250 parties under the E15 regulation: Administrative Procedure Act or any samples. The cost difference between gasoline refiners, gasoline and ethanol other statute unless the agency certifies taking several hundred samples versus importers, gasoline and ethanol that the rule will not have a significant taking over 5,000 samples is significant. blenders (including terminals and economic impact on a substantial For these reasons we believe the carriers). We estimate that 2,000 number of small entities. Small entities continued high compliance rate, and the respondents may be subject to the include small businesses, small substantial discrepancy between the proposed information collection. We organizations, and small governmental sampling rate calculated by the formula estimate an annual recordkeeping and jurisdictions. and the minimum sampling rate, argue reporting burden of 1.3 hours per For purposes of assessing the impacts for lowering the minimum sampling respondent. Burden means the total of today’s rule on small entities, small rate. However, we believe there is a time, effort, or financial resources entity is defined as: (1) A small business point where the number of samples per expended by persons to generate, as defined by the Small Business year would be so few that the survey maintain, retain, or disclose or provide Administration’s (SBA) regulations at 13 would be meaningless relative to robust information to or for a Federal agency. CFR 121.201; (2) a small governmental sampling and testing programs This includes the time needed to review jurisdiction that is a government of a conducted by each refiner individually. the instructions; develop, acquire, city, county, town, school district or Balancing these concerns, we believe install, and utilize technology and special district with a population of less minimum sampling rate of about 1,800 systems for the purpose of collecting, than 50,000; and (3) a small samples is appropriate. We are validating, and verifying information, organization that is any not-for-profit requesting comment on reducing the processing and maintaining enterprise which is independently minimum number of samples to some information, and disclosing and owned and operated and is not rate below 2,000 samples. providing information; adjust the dominant in its field. existing ways to comply with any After considering the economic VIII. Statutory and Executive Order previously applicable instructions and impacts of this action on small entities, Reviews requirements; train personnel to be able I certify that this action will not have a A. Executive Order 12866: Regulatory to respond to a collection of significant economic impact on a Planning and Review information; search data sources; substantial number of small entities. complete and review the collection of Under Executive Order 12866 (58 FR The amendments to the RFS2 provisions information; and transit or otherwise in this direct final rule will not impose 51735, October 4, 1993), this action is a disclose the information. Burden is as ‘‘significant regulatory action’’ because any requirements on small entities that defined at 5 CFR 1320.3(b). were not already considered under the it raises novel legal or policy issues. An agency may not conduct or Accordingly, EPA submitted this action final RFS2 regulations, as it makes sponsor, and a person is not required to relatively minor corrections and to the Office of Management and Budget respond to, a collection of information (OMB) for review under Executive modifications to those regulations. We unless it displays a currently valid OMB continue to be interested in the Orders 12866 and 13563 (76 FR 3821, control number. The OMB control January 21, 2011) and any changes made potential impacts of the proposed rule numbers for EPA’s regulations in 40 on small entities and welcome in response to OMB recommendations CFR are listed in 40 CFR Part 9. comments on issues related to such have been documented in the docket for To comment on the Agency’s need for impacts. this action. this information, the accuracy of the provided burden estimates, and any B. Paperwork Reduction Act D. Unfunded Mandates Reform Act suggested methods for minimizing The information collection respondent burden, EPA has established This rule does not contain a Federal requirements in this notice of proposed a public docket for this proposed rule, mandate that may result in expenditures rulemaking have been submitted for which includes the ICR described of $100 million or more for State, local, approval to the Office of Management above, under Docket ID number EPA– and tribal governments, in the aggregate, and Budget (OMB) under the Paperwork HQ–OAR–2012–0401. Submit any or the private sector in any one year. We Reduction Act, 44 U.S.C. 3501 et seq. comments related to the ICR to EPA and have determined that this action will The Information Collection Request OMB. See the ADDRESSES section at the not result in expenditures of $100 (ICR) document prepared by EPA beginning of this notice for where to million or more for the above parties related to this proposal has been submit comments to EPA. Send and thus, this rule is not subject to the assigned EPA ICR number 2469.01. A comments to OMB at the Office of requirements of sections 202 or 205 of supporting statement for the proposed Information and Regulatory Affairs, UMRA. ICR has been placed in the docket. The Office of Management and Budget, 725 This rule is also not subject to the proposed information collection is 17th Street NW., Washington, DC 20503, requirements of section 203 of UMRA described in the following paragraphs. Attention: Desk Office for EPA. Since because it contains no regulatory This action contains recordkeeping OMB is required to make a decision requirements that might significantly or and reporting that may affect the concerning the ICR between 30 and 60 uniquely affect small governments. It following parties under the RFS2 days after June 14, 2013, a comment to only applies to gasoline, diesel, and regulation: RIN generators (producers, OMB is best assured of having its full renewable fuel producers, importers, importers), obligated parties (refiners), effect if OMB receives it by July 15, distributors and marketers and makes exporters, and parties who own or 2013. relatively minor corrections and

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modifications to the RFS2 and diesel a significant adverse effect on the human health or environmental effects regulations. supply, distribution, or use of energy. on minority or low-income populations This action amends existing regulations E. Executive Order 13132 (Federalism) because it does not affect the level of related to renewable fuel, E15, and protection provided to human health or This action does not have federalism ultra-lower sulfur diesel. We have the environment. These technical implications. It will not have substantial concluded that this rule is not likely to amendments do not relax the control direct effects on the States, on the have any adverse energy effects. In fact, measures on sources regulated by the relationship between the national we expect this proposed rule may result RFS regulations and therefore will not government and the States, or on the in positive effects, because many of the cause emissions increases from these distribution of power and changes we are proposing will facilitate sources. responsibilities among the various the introduction of new renewable fuels levels of government, as specified in under the RFS2 program and have come K. Clean Air Act Section 307(d) Executive Order 13132. This action only at the suggestion of industry applies to gasoline, diesel, and stakeholders. This rule is subject to Section 307(d) renewable fuel producers, importers, of the CAA. Section 307(d)(7)(B) I. National Technology Transfer and distributors and marketers and makes provides that ‘‘[o]nly an objection to a Advancement Act relatively minor corrections and rule or procedure which was raised with modifications to the RFS2 and diesel Section 12(d) of the National reasonable specificity during the period regulations. Thus, Executive Order Technology Transfer and Advancement for public comment (including any 13132 does not apply to this action. In Act of 1995 (‘‘NTTAA’’), Public Law public hearing) may be raised during the spirit of Executive Order 13132, and 104–113, 12(d) (15 U.S.C. 272 note) judicial review.’’ This section also consistent with EPA policy to promote directs EPA to use voluntary consensus provides a mechanism for the EPA to communications between EPA and State standards in its regulatory activities convene a proceeding for unless to do so would be inconsistent and local governments, EPA specifically reconsideration, ‘‘[i]f the person raising with applicable law or otherwise solicits comment on this proposed an objection can demonstrate to the EPA action from State and local officials. impractical. Voluntary consensus standards are technical standards (e.g., that it was impracticable to raise such F. Executive Order 13175 (Consultation materials specifications, test methods, objection within [the period for public and Coordination With Indian Tribal sampling procedures, and business comment] or if the grounds for such Governments) practices) that are developed or adopted objection arose after the period for This proposed rule does not have by voluntary consensus standards public comment (but within the time tribal implications, as specified in bodies. NTTAA directs EPA to provide specified for judicial review) and if such Executive Order 13175 (65 FR 67249, Congress, through OMB, explanations objection is of central relevance to the November 9, 2000). It applies to when the Agency decides not to use outcome of the rule.’’ Any person gasoline, diesel, and renewable fuel available and applicable voluntary seeking to make such a demonstration to producers, importers, distributors and consensus standards. the EPA should submit a Petition for marketers. This action makes relatively This action does not involve technical Reconsideration to the Office of the minor corrections and modifications to standards. Therefore, EPA did not Administrator, U.S. EPA, Room 3000, the RFS and diesel regulations, and does consider the use of any voluntary Ariel Rios Building, 1200 Pennsylvania not impose any enforceable duties on consensus standards. EPA welcomes Ave. NW., Washington, DC 20460, with communities of Indian tribal comments on this aspect of the a copy to both the person(s) listed in the governments. Thus, Executive Order proposed rulemaking and, specifically, preceding FOR FURTHER INFORMATION 13175 does not apply to this action. EPA invites the public to identify CONTACT section, and the Director of the specifically solicits additional comment potentially-applicable voluntary Air and Radiation Law Office, Office of on this proposed action from tribal consensus standards and to explain why General Counsel (Mail Code 2344A), officials. such standards should be used in this U.S. EPA, 1200 Pennsylvania Ave. NW., regulation. G. Executive Order 13045: Protection of Washington, DC 20460. J. Executive Order 12898: Federal Children From Environmental Health List of Subjects in 40 CFR Part 80 Risks and Safety Risks Actions To Address Environmental EPA interprets EO 13045 (62 FR Justice in Minority Populations and Environmental protection, 19885, April 23, 1997) as applying only Low-Income Populations Administrative practice and procedure, to those regulatory actions that concern Executive Order (EO) 12898 (59 FR Agriculture, Air pollution control, health or safety risks, such that the 7629 (Feb. 16, 1994)) establishes federal Confidential business information, analysis required under section 5–501 of executive policy on environmental Energy, Forest and Forest Products, Fuel the EO has the potential to influence the justice. Its main provision directs additives, Gasoline, Imports, Motor regulation. This action is not subject to federal agencies, to the greatest extent vehicle pollution, Penalties, Petroleum, EO 13045 because it does not establish practicable and permitted by law, to Reporting and recordkeeping an environmental standard intended to make environmental justice part of their requirements. mitigate health or safety risks. mission by identifying and addressing, as appropriate, disproportionately high Dated: May 20, 2013. H. Executive Order 13211: Actions and adverse human health or Bob Perciasepe, Concerning Regulations That environmental effects of their programs, Acting Administrator. Significantly Affect Energy Supply, policies, and activities on minority Distribution, or Use populations and low-income For the reasons stated in the This action is not a ‘‘significant populations in the United States. preamble, the Environmental Protection energy action’’ as defined in Executive EPA has determined that this Agency proposes to amend 40 CFR Order 13211 (66 FR 28355, (May 22, proposed rule will not have chapter I as set forth below: 2001)), because it is not likely to have disproportionately high and adverse

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PART 80—REGULATION OF FUELS demand for the feedstock crop, products CFR 72.2 and that is compressed to AND FUEL ADDITIVES produced from that feedstock crop, and pressures up to 3600 psi. Only all substitutes for the crop and its renewable CNG that qualifies as ■ 1. The authority citation for part 80 products, nor any other impact that renewable fuel and is used for continues to read as follows: would result in a significant increase in transportation purposes can generate Authority: 42 U.S.C. 7414, 7521, 7542, direct or indirect GHG emissions. RINs. 7545 and 7601(a). * * * * * * * * * * ■ 2. Section 80.613 is amended by Nameplate capacity means the peak Renewable fuel producer means a revising paragraph (e)(4)(v)(A) design capacity of a facility for the person who operates or directly definition ‘‘n’’ as follows: purposes of registration of a facility supervises the operation of a facility under § 80.1450(b)(1)(V)(E). where renewable fuel is produced. § 80.613 What defenses apply to persons Naphtha means a blendstock or fuel * * * * * deemed liable for a violation of a prohibited blending component falling within the Renewable liquefied natural gas act under this subpart? boiling range of gasoline which is means biogas as defined in this section, * * * * * composed of only hydrocarbons, is that is processed to the standards of (e) * * * commonly or commercially known as pipeline natural gas as defined in 40 (4) * * * naphtha and is used to produce gasoline CFR 72.2 and that goes through the (v) * * * through blending. process of liquefaction in which the (A) * * * * * * * * biogas is cooled below its boiling point Where: Renewable biomass means each of the and weighs less than half the weight of n= minimum number of samples in a year- following (including any incidental, de water so it will float if spilled on water. long survey series. However, in no case minimis contaminants that are Only renewable LNG that qualifies as shall n be larger than 9,600 nor smaller impractical to remove and are related to renewable fuel and is used for than 1,800. customary feedstock production and transportation fuel can generate RINs. * * * * * transport): Responsible Corporate Officer, or ■ 3. Section 80.1401 is amended by (1) Planted crops and crop residue RCO, for this subpart only, means a adding the definitions of ‘‘Nameplate harvested from existing agricultural corporate officer who has the authority capacity’’, ‘‘Renewable compressed land cleared or cultivated prior to and is assigned responsibility to provide natural gas’’, ‘‘Renewable fuel December 19, 2007 and that was information to EPA on behalf of a producer’’, ‘‘Renewable liquefied nonforested and either actively managed company. A company may name only natural gas’’, ‘‘Responsible corporate or fallow on December 19, 2007. one Responsible Corporate Officer. A officer’’, in alphabetical order and (2) Planted trees and tree residue from Responsible Corporate Officer may not revising the definitions of ‘‘Biogas’’, a tree plantation located on non-federal delegate his or her responsibility to any ‘‘Crop residue’’, ‘‘Naphtha’’, land (including land belonging to an other person. The Responsible ‘‘Renewable biomass’’, and ‘‘Small Indian tribe or an Indian individual that Corporate Officer may delegate the refinery’’ in to read as follows: is held in trust by the U.S. or subject to ability to submit information to EPA, a restriction against alienation imposed but the Responsible Corporate Officer § 80.1401 Definitions. by the U.S.) that was cleared at any time remains responsible for the actions of * * * * * prior to December 19, 2007 and actively such employees or agents. Biogas means a mixture of managed on December 19, 2007. * * * * * hydrocarbons that is a gas at 60 degrees (3) Animal waste material and animal Small Refinery, for this subpart only, Fahrenheit and 1 atmosphere of byproducts. means a refinery for which the average pressure that is produced through the (4) Slash and pre-commercial aggregate daily crude oil throughput for conversion of organic matter. Biogas thinnings from non-federal forestland calendar year 2006 and subsequent includes landfill gas, gas from waste (including forestland belonging to an years (as determined by dividing the digesters, and gas from waste treatment Indian tribe or an Indian individual, aggregate throughput for the calendar plants. Waste digesters include digesters that are held in trust by the United year by the number of days in the processing animal wastes, biogenic States or subject to a restriction against calendar year) does not exceed 75,000 waste oils/fats/greases, separated food alienation imposed by the United barrels. and yard wastes, and crop residues, and States) that is not ecologically sensitive ■ 4. Section 80.1415 is amended by waste treatment plants include forestland. revising paragraphs (b)(5) and (c)(1) to wastewater treatment plants and (5) Biomass (organic matter that is read as follows: publicly owned treatment works. available on a renewable or recurring * * * * * basis) obtained from the immediate § 80.1415 How are equivalence values assigned to renewable fuel? Crop residue is the biomass left over vicinity (i.e., obtained within 200 feet) from the harvesting or processing of of buildings and other areas regularly (b) * * * planted crops from existing agricultural occupied by people, or of public (5) 77,000 Btu (lower heating value) of land and any biomass removed from infrastructure, in an area at risk of compressed natural gas (CNG) or existing agricultural land that facilitates wildfire. liquefied natural gas (LNG) shall crop management (including biomass (6) . represent one gallon of renewable fuel removed from such lands in relation to (7) Separated yard waste or food with an equivalence value of 1.0. invasive species control or fire waste, including recycled cooking and (c) * * * management), whether or not the trap grease, and materials described in (1) The equivalence value for biomass includes any portion of a crop § 80.1426(f)(5)(i). renewable fuels described in paragraph or crop plant. Biomass is considered Renewable compressed natural gas (b)(7) of this section shall be calculated crop residue only if the use of that means biogas as defined in this section, using the following formula: biomass for the production of renewable that is processed to the standards of EV = (R/0.972) * (EC/77,000) fuel has no significant impact on pipeline natural gas as defined in 40 Where:

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EV = Equivalence Value for the renewable ■ 5. Section 80.1426 is amended by: The revisions and additions read as fuel, rounded to the nearest tenth. ■ a. Revising Table 1 of paragraph (f)(1) follows: R = Renewable content of the renewable fuel. by: Except as provided in § 80.1426(f)(4)(iii), ■ 1. Revising the entry for ‘‘Q’’; and § 80.1426 How are RINs generated and this is a measure of the portion of a ■ 2. Adding new entries for T through assigned to batches of renewable fuel by renewable fuel that came from renewable renewable fuel producers or importers? biomass, expressed as a fraction, on an AA to the end of the table; energy basis. ■ b. Revising paragraphs (f)(10) and (f) * * * EC = Energy content of the renewable fuel, f(11); and in Btu per gallon (lower heating value). ■ c. Adding paragraph (f)(14). (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

******* Q ...... Renewable Compressed Natural Biogas from waste treat- Any ...... 5 Gas, Renewable Liquefied Natural ment plants and Gas. waste digesters.

******* T ...... Butanol ...... Corn starch...... Fermentation; dry mill using natural gas and 5 biogas from on-site thin stillage anaerobic di- gester for process energy w/CHP producing excess electricity of at least 40% of the pur- chased natural gas energy used by the facility. U ...... Renewable Compressed Natural Biogas from Landfills ..... Any ...... 3 Gas, Renewable Liquefied Natural Gas. V ...... Renewable Electricity ...... Biogas from landfills ...... Any ...... 3 W ...... Cellulosic Naphtha ...... Biogas from landfills ...... Fischer-Tropsch process; Facilities must produce 3 at least 20% of their electricity usage at the fa- cility. X ...... Cellulosic Diesel for use as conven- Biogas from landfills ...... Fischer-Tropsch process; Facilities must produce 7 tional diesel fuel. at least 20% of their electricity usage at the fa- cility. Y ...... Naphtha ...... Biogas from landfills ...... Fischer-Tropsch process ...... 5 Z ...... Renewable Diesel for use as con- Biogas from landfills...... Fischer-Tropsch process; Excluding processes 4 ventional diesel fuel. that co-process renewable biomass and petro- leum. AA ...... Renewable Diesel for use as con- Biogas from landfills...... Fischer-Tropsch process; Includes only proc- 5 ventional diesel fuel. esses that co-process renewable biomass and petroleum.

* * * * * (A) The fuel is produced from code in Table 1 of this section or has (10)(i) For purposes of this section, renewable biomass and qualifies for a D received approval for use of a D code by renewable electricity that is not code in Table 1 to this section or has the Administrator; introduced into a distribution system received approval for use of a D code by (B) The fuel producer has entered into with electricity derived from non- the Administrator; a written contract for the sale of a renewable feedstocks is considered (B) The fuel producer has entered into specific quantity of electricity derived renewable fuel and the producer may a written contract for the sale of a from renewable biomass sources with a generate RINs if all of the following specific quantity of biogas to be used as party that uses electricity taken from a apply: a feedstock for transportation fuel; and commercial distribution system for use (A) The electricity is produced from (C) The fuel produced from the biogas as a transportation fuel, and such renewable biomass and qualifies for a D is used as a transportation fuel. electricity has been introduced into that code in Table 1 to this section or has (iii) A producer of renewable commercial distribution system received approval for use of a D code by electricity that is generated by co-firing (transmission grid); the Administrator; a combination of renewable biomass (B) The fuel producer has entered into and may generate RINs only (C) The quantity of renewable a written contract for the sale of a for the portion attributable to the electricity for which RINs were specific quantity of renewable renewable biomass, using the procedure generated was sold for use as electricity as transportation fuel; and described in paragraph (f)(4) of this transportation fuel and for no other (C) The renewable electricity is used section. purposes; and as a transportation fuel. (11)(i) For purposes of this section, (D) The renewable electricity was (ii) For purposes of this section, fuels renewable electricity that is introduced loaded onto and withdrawn from a produced from biogas that is not into a commercial distribution system physically connected transmission grid introduced into a distribution system (transmission grid) may be considered as defined by the North American with gas derived from non-renewable renewable fuel and the producer may Electrical Reliability Corporation feedstocks is considered renewable fuel generate RINs if: (NERC) regions. and the producer may generate RINs if (A) The electricity is produced from (ii) For purposes of this section, fuel all of the following apply: renewable biomass and qualifies for a D produced from biogas that is introduced

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into a commercial distribution system (ii) The electricity must be used to with the cellulosic biofuel ERVO, were may be considered renewable fuel and provide power to process units or generated in year i, and are being applied the producer may generate RINs if: process equipment at the facility. towards the ERVOCB,i, in gallons. (SRINNUM)CB,i-1= Sum of all owned gallon- (A) The fuel is produced from (iii) The electrical energy must derive from raw landfill gas, waste heat from RINs that are valid under subparagraph renewable biomass and qualifies for a D (6) of this paragraph for use in code in Table 1 of this section or has the production process, unconverted complying with the cellulosic biofuel received approval for use of a D code by syngas from the F–T process, fuel gas ERVO, were generated in year i-1, and the Administrator; from the hydroprocessing or combined are being applied towards the ERVOCB,i, (B) The fuel producer has entered into heat and power (CHP) units that use in gallons. a written contract for the sale of a non-fossil fuel based gas or other ERVOCB, k= The Exporter Renewable Volume specific quantity of fuel derived from renewable sources. Obligation for cellulosic biofuel for the ■ renewable fuel exporter for an export of renewable biomass sources with a party 6. Section 80.1427 is amended by: ■ a. Revising paragraphs (a)(1), (a)(1)(i) renewable fuel k, in gallons, pursuant to that uses fuel taken from a commercial § 80.1430. distribution system for transportation definition ‘‘RVOCB,i’’, (a)(1)(ii) definition fuel, and such fuel has been introduced ‘‘RVOBBD,i’’, (a)(1)(iii) definition (vi) Biomass-based diesel—Exporter. into that commercial distribution ‘‘RVOAB,i’’, (a)(1)(iv) definition (SRINNUM)BBD,i+ (SRINNUM)BBD,i-1= system (e.g., pipeline); ‘‘RVORF,i, (a)(5) introductory text, and ERVOBBD,i (a)(6); and (C) The quantity of fuel produced Where: ■ b. Adding paragraph (a)(1)(v), from the biogas for which RINs were (a)(1)(vi), (a)(1)(vii), (a)(1)(viii), (SRINNUM)BBD,i= Sum of all owned gallon- generated was sold for use as RINs that are valid for use in complying The additions and revisions read as transportation fuel and for no other with the biomass-based diesel ERVO, follows: purposes; were generated in year i, and are being (D) The biogas was injected into and § 80.1427 How are RINs used to applied towards the ERVOBBD,i, in demonstrate compliance? gallons. withdrawn from a physically connected (SRINNUM)BBD,i-1= Sum of all owned carrier pipeline; (a) Renewable Volume Obligations gallon-RINs that are valid under (E) The gas that is ultimately and Exporter Renewable Volume subparagraph (6) of this paragraph for withdrawn from that pipeline for use in Obligations. (1) Except as specified in use in complying with the biomass-based a transportation fuel is withdrawn in a paragraph (b) of this section or diesel ERVO, were generated in year i-1, manner and at a time consistent with § 80.1456, each party that is an obligated and are being applied towards the the transport of gas between the party under § 80 1406 and is obligated ERVOBBD,i, in gallons. injection and withdrawal points; and to meet the Renewable Volume ERVOBBD,i= The Exporter Renewable Volume Obligations under § 80.1407, or is an Obligation for biomass-based diesel for (F) The volume and heat content of the renewable fuel exporter for an export biogas injected into the pipeline and the exporter of renewable fuel that is of renewable fuel I after 2010, in gallons, volume of gas withdrawn to make a obligated to meet the Exporter pursuant to § 80.1430. transportation fuel are measured by Renewable Volume Obligations under (vii) Advanced biofuel—Exporter. continuous metering. § 80.1430, must demonstrate pursuant to (iii) The fuel sold for use in § 80.1451(a)(1) that it is retiring for (SRINNUM)AB,i+ (SRINNUM)AB,i-1= transportation fuel is considered compliance purposes a sufficient ERVOAB,i produced from renewable biomass only number of RINs to satisfy the following Where: equations. to the extent that: (SRINNUM)AB,i= Sum of all owned gallon- (A) The amount of fuel sold for use as (i) * * * RINs that are valid for use in complying transportation fuel matches the amount RVOCB,i = The renewable Volume Obligation with the advanced biofuel ERVO, were of fuel derived from renewable biomass for cellulosic biofuel for the obligated generated in year i, and are being applied that the producer contracted to have party for calendar year i, in gallons, towards the ERVOAB,i, in gallons. S placed into the commercial distribution pursuant to § 80.1407. ( RINNUM)AB,i-1= Sum of all owned gallon- RINs that are valid under subparagraph system; and (ii) * * * (6) of this paragraph for use in (B) No other party relied upon the RVOBBD,i = The renewable Volume complying with the advanced biofuel contracted volume of biogas or Obligation for biomass-based diesel for ERVO, were generated in year i-1, and renewable electricity for the creation of the obligated party for calendar year i, in are being applied towards the ERVOAB,i, RINs. gallons, pursuant to § 80.1407. in gallons. ERVO = The Exporter Renewable Volume (iv) For renewable electricity that is (iii) * * * AB,i generated by co-firing a combination of Obligation for advanced biofuel for the RVOAB,i = The renewable Volume Obligation renewable fuel exporter for an export of renewable biomass and fossil fuel, the for advanced biofuel for the obligated renewable fuel i, in gallons, pursuant to producer may generate RINs only for the party for calendar year i, in gallons, § 80.1430. portion attributable to the renewable pursuant to 80.1407. biomass, using the procedure described (viii) Renewable fuel—Exporter. (iv) * * * in paragraph (f)(4) of this section. (SRINNUM)RF,i+ (SRINNUM)RF,i-1=

* * * * * RVORF,i = The renewable Volume Obligation ERVORF,i for renewable fuel for the obligated party Where: (14) For purposes of verification, in for calendar year i, in gallons, pursuant S order for facilities to meet the renewable to 80.1407. ( RINNUM)RF,i= Sum of all owned gallon- electricity production requirement for RINs that are valid for use in complying the biogas-derived cellulosic diesel and (v) Cellulosic biofuel—Exporter. with the renewable fuel (D code 6) E ERVO , in gallons. cellulosic naphtha pathways, all (SRINNUM)CB,i+ (SRINNUM)CB,i¥1= RF,i (SRINNUM)RF,i-1= Sum of all owned gallon- ERVOCB,i conditions below apply. RINs that are valid under subparagraph (i) The quantity of process electricity Where: (6) of this paragraph for use in produced on-site must be measured by (SRINNUM)CB,i= Sum of all owned gallon- complying with the renewable fuel (D continuous metering. RINs that are valid for use in complying code 6) ERVO, were generated in year i-

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1, and are being applied towards the cellulosic diesel and cellulosic naphtha process in paragraph (h)(2) of this ERVORF,i, in gallons. pathways, provide all the following section, if any of the following ERVORF,i= The exporter Renewable Volume information: circumstances exist: Obligation for renewable fuel for the (1) The energy source, equipment (i) The company has reported no renewable fuel exporter for an export of renewable fuel i, in gallons, pursuant to and/or process used to generate the activity in EMTS for one calendar year § 80.1430. electricity. Permitted sources are raw (January 1 through December 31) or has landfill gas, waste heat from the failed to meet any EMTS requirement * * * * * production process, unconverted syngas under § 80.1452; (5) The value of (SRINNUM)i-1 may from the Fischer-Tropsch process, fuel not exceed values determined by the (ii) The company has failed to comply gas from the hydroprocessing, or following inequalities as provided in with the registration requirements of combined heat-and-power (CHP) units paragraph (a)(7)(iii) of this section and this section; that use non-fossil fuel based gas or 80.1442(d), for obligated parties only. (iii) The company has failed to submit other renewable sources. any required report within thirty (30) * * * * * (2) Estimates of the total amount of days of the required submission date (6) Except as provided in paragraph electricity to be used, the total amount under § 80.1451; or (a)(7) of this section: of grid electricity to be purchased, the (iv) The attest engagement required (i) For obligated parties, RINs may total amount of renewable electricity to under § 80.1454 has not been received only be used to demonstrate compliance be produced, and a calculation of the within thirty (30) days of the required with the RVOs for the calendar year in percent of total process electricity use to submission date. which they were generated or the be produced from allowed sources at the (2) EPA will use the following process following calendar year. facility. whenever it decides to cancel the (ii) [Reserved.] (v) * * * registration of a company: (iii) For Renewable Fuel Exporters, (C)(1) For all facilities, copies of (i) EPA will notify the company’s RINs generated in calendar year i, must documents demonstrating each facility’s owner or Responsible Corporate Officer be used to demonstrate compliance with actual peak capacity as defined in (RCO), in writing, that it intends to the ERVOs from renewable fuel § 80.1401 if the maximum rated annual cancel the company’s registration, and export(s) in calendar year i, except as volume output of renewable fuel is not identifying the reasons for that proposed provided in paragraph (a)(6)(iv) of this specified in the air permits specified in action. The company will have fourteen section. paragraphs (b)(1)(v)(A) and (b)(1)(v)(B) (iv) For Renewable Fuel Exporters, (14) calendar days from the date of the of this section, as appropriate. notification to correct the deficiencies RINs generated in calendar year i-1, may (2) For facilities claiming the only be used to demonstrate compliance identified or explain why there is no exemption described in § 80.1403 (c) or need for corrective action. with the ERVOs from renewable fuel (d) which are exempt from air permit exports in January of calendar year i. (ii) If the basis for EPA’s notice of requirements and for which insufficient intent to cancel registration is the * * * * * production records exist to establish absence of EMTS activity for one ■ 7. Section 80.1441 is amended by actual peak capacity, copies of calendar year, a stated intent to engage adding paragraph (e)(2)(iii) to read as document demonstrating the facility’s in activity reported through EMTS follows: nameplate capacity, as defined in within the next calendar year will be § 80.1441 Small refinery exemption. § 80.1401. sufficient to avoid cancellation of (D) For all facilities producing * * * * * registration. renewable electricity or fuel from biogas (e) * * * (iii) If the company does not respond, that qualifies as renewable fuel, submit (2) * * * does not correct identified deficiencies, all relevant information in (iii) In order to qualify for an or does not explain why such correction § 80.1426(f)(10) or (11), and copies of all extension of its small refinery is not necessary within the time allotted contracts that the track the biogas or exemption, a refinery must meet the for response, EPA may cancel the renewable electricity from its original definition of ‘‘small refinery’’ in company’s registration within further source, to the producer that processes it § 80.1401 for all full calendar years notice to the party. into renewable fuel, and finally to the between 2006 and the date of (3) Impact of registration cancellation. end user that will actually use the submission of the petition for an (i) A company whose registration is renewable electricity or the renewable extension. cancelled shall still be liable for fuel derived from biogas for violation of any requirements of this * * * * * transportation purposes. ■ subpart. 8. Section 80.1450 is amended by: (1) Specific quantity and the heat ■ (ii) A company whose registration is a. Adding paragraph (b)(1)(iv)(C); content, percent efficiency of transfer, if ■ b. Revising paragraphs (b)(1)(v)(C), cancelled will not be listed on any applicable, and any conversion factors public list of actively registered (b)(1)(v)(D); and adding (b)(1)(v)(E); and of the biogas or renewable biomass. ■ c. Adding paragraphs (h) and (i). companies that is maintained by EPA. (2) Specific quantity and the heat (iii) If the company whose registration The additions and revisions read as content and percent efficiency of follows: is cancelled is a renewable fuel transfer, if applicable, and any producer or foreign ethanol producer, it § 80.1450 What are the registration conversion factors for the renewable will not be listed on any public list of requirements under the RFS program? fuel derived from biogas or renewable registered producers maintained by * * * * * electricity. EPA. (b) * * * (E) Such other records as may be (iv) A company whose registration is (1) * * * requested by the Administrator. cancelled will not have access to any of (iv) * * * * * * * * the electronic reporting systems (C) To demonstrate compliance with (h) Cancellation of Company associated with the renewable fuel the renewable electricity production Registration. (1) EPA may cancel a standard program, including the EPA requirement for the biogas-derived company’s registration, using the Moderated Transaction System (EMTS).

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(v) A company whose registration is submitted to EPA via the submitting process heat from biogas to generate canceled must submit any corrections of party’s EMTS account within five (5) RINs for renewable fuel pursuant to deficiencies to EPA on forms, and business days of the reportable event, § 80.1426(f)(12) or that meets the following policies, established by EPA. except as provided in § 80.1430(f). renewable electricity production (vi) If a company whose registration Starting July 1, 2010, each time any requirement for the biogas-derived has been canceled wishes to re-register, party purchases RINs generated on or cellulosic diesel and cellulosic naphtha they may initiate that process by after July 1, 2010, all the following pathways pursuant to § 80.1426(f)(13) submitting a new registration, consistent information must be submitted to EPA shall keep all of the following additional with paragraphs (a)–(c) of this section. via the submitting party’s EMTS records: (vii) English language registrations. account within ten (10) business days of (i) Documents demonstrating the Any document submitted to EPA under the reportable event. The reportable kilowatt-hours (kWh) of allowable § 80.1450 must be submitted in English, event for a RIN separation occurs on the electricity relied upon under or shall include an English translation. date of separation as described in § 80.1426(f)(13) that was generated at ■ 9. Section 80.1451 is amended by § 80.1429. The reportable event for a the facility, if applicable. revising paragraphs (a)(1)(vi) and RIN retirement occurs on the date of (ii) The energy source, equipment (b)(1)(ii)(Q), and by adding paragraph retirement as described in this subpart. and/or process used to generate the electricity relied upon under (h) to read as follows: * * * * * § 80.1426(f)(13), if applicable. Permitted (e) [Reserved.] § 80.1451 What are the reporting sources are raw landfill gas, waste heat requirements under the RFS program? (f) [Reserved.] ■ 11. Amend Section 80.1454 by from the production process, (a) * * * ■ unconverted syngas from the Fischer- (1) * * * a. Adding paragraph (a)(7); ■ b. Revising paragraph (b)(4)(i); Tropsch process, fuel gas from the (vi) The RVOs for obligated parties, as ■ hydroprocessing, or combined heat-and- defined in § 80.1427(a) and for exporters c. Adding paragraph (b)(7); ■ d. Revising paragraph (f)(3)(i) and power (CHP) units that use non-fossil of renewable fuel, as defined in adding paragraph (f)(5); and fuel based gas or other renewable § 80.1427(a) and 80.1430(b), for the ■ e. Revising paragraph (k)(1); and sources. reporting year. ■ f. Adding paragraph (q). (iii) Contracts and documents * * * * * The additions and revisions read as memorializing the sale of renewable (b) * * * follows: CNG/LNG or renewable electricity for (1) * * * use as transportation fuel relied upon in (ii) * * * § 80.1454 What are the recordkeeping § 80.1426(f)(10), § 80.1426(f)(11), or for (Q) Producers or importers of requirements under the RFS program? use of biogas for use as process heat to renewable fuel produced at facilities * * * * * make renewable fuel as relied upon in that use biogas for process heat as (a) * * * § 80.1426(f)(12) and the transfer of title described in § 80.1426(f)(12), shall (7) Records related to any volume of of the biogas or renewable electricity report the total energy supplied to the renewable fuel that was disqualified by and all associated environmental renewable fuel facility, in MMBtu based the party pursuant to § 80.1433: attributes from the point of generation to on metering of gas volume. Producers or (b) * * * the facility which sells or uses the fuel importers of renewable fuel produced at (4) * * * for transportation purposes. facilities that meet the renewable (i) A list of the RINs owned, (iv) Documents demonstrating the electricity production requirement for purchased, sold, separated, retired, or volume and energy content of biogas, or the biogas-derived cellulosic diesel and reinstated. kilowatts of renewable electricity, relied cellulosic naphtha pathways as * * * * * upon under § 80.1426(f)(10) that was described in § 80.1426(f)(13), shall (7) Records related to any volume of delivered to the facility which sells or report the total renewable electricity renewable fuel where RINs were not uses the fuel for transportation produced by the renewable facility, in generated by the renewable fuel purposes. kilowatt-hour (kWh) or megawatt-hour producer or importer pursuant to (v) Documents demonstrating the (MWh), the total amount of electricity § 80.1426(c): volume and energy content of biogas, or kilowatts of renewable electricity, relied used, the total amount of grid electricity * * * * * upon under § 80.1426(f)(11), or biogas purchased, and a calculation verifying (f) * * * relied upon under § 80.1426(f)(12) that the percent of total process electricity (3) * * * was placed into the common carrier from allowed sources produced on-site. (i) A list of the RINs owned, pipeline (for biogas) or transmission line * * * * * purchased, sold, separated, retired, or shared power grid (for renewable (h) English language reports. Any reinstated. electricity). document submitted to EPA under * * * * * § 80.1451 must be submitted in English, (vi) Documents demonstrating the (5) Records related to any volume of volume and energy content of biogas or shall include an English translation. renewable fuel that was disqualified by ■ relied upon under § 80.1426(f)(12) at the 10. Amend Section 80.1452 to revise the party pursuant to § 80.1433. paragraph (c) introductory text and add point of distribution. paragraphs (e) and (f) to read as follows: * * * * * (vii) Affidavits from the biogas or (k)(1) Biogas and electricity in renewable electricity producer and all § 80.1452 What are the requirements pathways involving feedstocks other parties that held title to the biogas or related to the EPA Moderated Transaction than sorghum. A renewable fuel renewable electricity confirming that System (EMTS)? producer that generates RINs for title and environmental attributes of the * * * * * renewable CNG/LNG or renewable biogas or renewable electricity relied (c) Starting July 1, 2010, each time electricity produced from renewable upon under § 80.1426(f)(10) and (11) any party sells, separates, or retires RINs biomass for fuels that are used for were used for transportation purposes generated on or after July 1, 2010, all of transportation pursuant to only, and that the environmental the following information must be § 80.1426(f)(10) and (11), or that uses attributes of the biogas or process

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electricity relied upon under fuel. Hereinafter referred to as a ‘‘foreign calculating the existing bond amount, § 80.1426(f)(12) or § 80.1426(f)(13) were producer’’ under this section. the foreign producer shall increase the used for process heat or electricity at the (d) * * * (1) On each occasion that bond by using the higher anticipated renewable fuel producer’s facility, and RFS–FRRF is loaded onto a vessel for export volume for the calendar year to calculate a higher bond amount and for no other purpose. The renewable transport to the United States the purchasing the higher bond prior to the fuel producer shall create and/or obtain foreign producer shall have an generation of RINs to reflect the increase these affidavits at least once per independent third party do all the in export volume. Mi = RIN multiplier calendar quarter. following: for specified D code, i, in U.S. dollars, (viii) The biogas or renewable * * * * * as follows: electricity producer’s Compliance (vi) Review original documents that The RIN multiplier for a D3 RIN is $0.78 Certification required under Title V of reflect movement and storage of the The RIN multiplier for a D4 RIN is $1.30 the Clean Air Act. The RIN multiplier for a D5 RIN is $0.80 RFS–FRRF from the foreign producer to The RIN multiplier for a D6 RIN is $0.02 (ix) Documents demonstrating the the load port, and from this review The RIN multiplier for a D7 RIN is $0.78 total amount of grid electricity determine all the following: RINi = the greater of: (i) the largest quantity purchased and calculations showing the * * * * * of RINs for a specified D code, i, percent of total electricity usage (3) * * * produced by the foreign producer and provided by allowable electricity (ii) Be independent under the criteria exported to the United States, in gallons, production at the facility, if applicable. specified in § 80.65(f)(2)(iii); and during a single calendar year among the five preceding calendar years, or (ii) the (x) Such other records as may be * * * * * requested by the Administrator. largest quantity of RINs that the foreign (e) * * * (1)(i) Any foreign producer producer expects to export to the United * * * * * and any United States importer of RFS– States during any calendar year (q) English language records. Any FRRF shall compare the results from the identified in the Production Outlook document requested by the load port testing under paragraph (d) of Report required by § 80.1449. If the Administrator under this section must this section, with the port of entry volume of renewable fuel anticipated to be submitted in English, or shall include testing as reported under paragraph (k) be exported to the United States during an English translation. of this section, for the volume of any calendar year increases above the ■ 12. Section 80.1463 is amended by renewable fuel, standardized per value used in calculating the existing adding paragraph (d) to read as follows: bond amount, the foreign producer shall § 80.1426(f)(8), except as specified in increase the bond by using the higher paragraph (e)(1)(ii) of this section. § 80.1463 What penalties apply under the anticipated export volume for the RFS program? * * * * * calendar year to calculate a higher bond (f) Foreign producer commitments. amount and purchasing the higher bond * * * * * Any foreign producer shall commit to prior to the generation of RINs to reflect (d) Any person violating and comply with the provisions the increased export volume. § 80.1460(b)(1)–(4) or (6) engages in a contained in this paragraph (f) as a * * * * * separate violation for each day that an condition to being approved as a foreign (o) invalid RIN remains available for use in producer under this subpart. (2) Signed by the president or owner RFS compliance, and each such daily of the foreign producer company, or by violation is punishable by the maximum * * * * * (h) Bond posting. Any foreign that person’s immediate designee, and daily penalty allowed under the Clean shall contain the following declaration: Air Act. producer shall meet the requirements of this paragraph (h) as a condition to ‘‘I hereby certify: (1) That I have actual ■ 13. Section 80.1466 is amended by authority to sign on behalf of and to revising the section heading and approval as a foreign producer under this subpart and on a continuing basis bind [INSERT NAME OF FOREIGN paragraphs (a), (d)(1), (d)(1)(vi), PRODUCER] with regard to all (d)(3)(ii), (e)(1)(i), (f) introductory text, if the foreign producer exceeds projections used in calculated the bond. statements contained herein; (2) that I (h), (h)(1), and (o)(2) and adding am aware that the information paragraph (p) as follows: (1) The foreign producer shall post a bond of the amount calculated using contained herein is being Certified, or § 80.1466 What are the additional one of the two following equations submitted to the United States requirements under this subpart for RIN- whichever equation results in a higher Environmental Protection Agency, generating foreign producers, non RIN- bond value: under the requirements of 40 CFR part generating foreign producers, foreign 80, subpart M, and that the information Bond = G * $0.01 ethanol producers and importers of is material for determining compliance renewable fuels? Or under these regulations; and (3) that I (a) Foreign producer of renewable Bond = .25 * S(Mi * RINi) have read and understand the fuel. For purposes of this subpart, a Where: information being Certified or foreign producer of renewable fuel is a Bond = amount of the bond in U.S. dollars. submitted, and this information is true, person located outside the United G = the greater of: the largest volume of complete and correct to the best of my States, the Commonwealth of Puerto renewable fuel produced by the foreign knowledge and belief after I have taken Rico, the Virgin Islands, Guam, producer and exported to the United reasonable and appropriate steps to American Samoa, and the States, in gallons, during a single verify the accuracy thereof. I affirm that Commonwealth of the Northern Mariana calendar year among the five preceding I have read and understand the Islands (collectively referred to in this calendar years, or the largest volume of provisions of 40 CFR part 80, subpart M, section as ‘‘the United States’’) that has renewable fuel that the foreign producer including 40 CFR 80.1466 apply to been registered with EPA as a renewable expects to export to the Unites States [INSERT NAME OF FOREIGN during any calendar year identified in fuel producer or foreign ethanol the Production Outlook Report required PRODUCER]. Pursuant to Clean Air Act producer, regardless of whether the by § 80.1449. If the volume of renewable section 113(c) and 18 U.S.C. 1001, the foreign renewable fuel producer fuel anticipated to be exported to the penalty for furnishing false, incomplete generates RINs or an importer of United States during any calendar year or misleading information in this renewable fuel generates RINs for the increases above the value used in certification or submission is a fine of

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up to $10,000 U.S., and/or § 80.1501 What are the labeling promulgated under §§ 110 or 172 of the imprisonment for up to five years.’’ requirements that apply to retailers and Clean Air Act. Such analysis shall be wholesale purchaser-consumers of (p) Foreign Produced Renewable Fuel completed within 10 days after receipt gasoline-ethanol blends that contain of the sample in the laboratory. Nothing and Foreign Produced Ethanol for greater than 10 volume percent ethanol and Which RINs Have Been or Will Be not more than 15 volume percent ethanol? in this section shall be interpreted to require RVP testing of a sample from Generated by the Importer (a) Any retailer or wholesale any dispenser or tank serving it unless purchaser-consumer who sells, (1) For non-RIN generating foreign the dispenser is labeled E15 in any dispenses, or offers for sale or producers and foreign ethanol manner. producers already registered pursuant to dispensing E15 shall affix the following conspicuous and legible label to the fuel * * * * * section § 80.1450, all of the (iv) In the case of any test that yields requirements in paragraphs (a) through dispenser: * * * * * a result that does not match the label (o) of this section must be satisfied no affixed to the product (e.g., a sample later than January 1, 2013. (b) * * * (3) * * * greater than 15 volume percent ethanol (2) For RIN generating foreign (i) The word ‘‘ATTENTION’’ shall be dispensed from a fuel dispenser labeled producers and foreign ethanol capitalized in 20-point, orange, as ‘‘E15’’ or a sample containing greater producers already registered pursuant to Helvetica Neue LT 77 Bold Condensed than 10 volume percent ethanol and not section § 80.1450 and 80.1466, font, and shall be placed in the top 1.25 more than 15 volume percent ethanol paragraph (h) of this section must be inches of the label as further described dispensed from a fuel dispenser not satisfied no later than January 1, 2013 if in (b)(4)(iii) below. labeled as ‘‘E15’’), or the RVP standard the required amount in paragraph (h) of * * * * * of § 80.27(a)(2), the independent survey this section exceeds the original amount (iv) The words ‘‘Use only in’’ shall be association shall, within 24 hours after of the bond posted when the producer in 20-point, left-justified, black, the laboratory has completed analysis of was originally approved under 80.1466. Helvetica Bold font in the bottom 1.875 the sample, send notification of the test inches of the label. result as follows: ■ 14. Section 80.1500 is amended by (4) * * * * * * * * revising the definitions of E10, E15, and (4) * * * EX to read as follows: * * * * * (ii) The background of the bottom (iv) * * * § 80.1500 Definitions. 1.875 inches of the label shall be orange. (B) In the case of any retail outlet from * * * * * * * * * * which a sample of gasoline was ■ 16. Section 80.1502 is amended by collected during a survey and E10 means a gasoline-ethanol blend revising paragraphs (b)(3)(iii)(A), determined to have an ethanol content that contains at least 9 and no more than (b)(3)(iv), (b)(4)(iv)(B), (b)(4)(v)(A), that does not match the fuel dispenser 10 volume percent ethanol. (c)(4), and (c)(6) to read as follows: label (e.g. a sample greater than 15 E15 means a gasoline-ethanol blend volume percent ethanol dispensed from § 80.1502 What are the survey a fuel dispenser labeled as ‘‘E15’’ or a that contains greater than 10 volume requirements related to gasoline-ethanol percent ethanol and not more than 15 blends? sample with greater than 10 volume volume percent ethanol. percent ethanol and not more than 15 * * * * * volume percent ethanol dispensed from EX means a gasoline–ethanol blend (b) * * * a fuel dispenser not labeled as ‘‘E15’’) or (3) * * * that contains less than 9 volume percent determined to have a dispenser ethanol where X equals the maximum (iii) * * * (A) Samples collected at retail outlets containing fuel whose RVP does not volume percent ethanol in the gasoline- comply with § 80.27(a)(2), that retail ethanol blend. shall be shipped the same day the samples are collected via ground service outlet shall be included in the * * * * * to the laboratory and analyzed for subsequent survey. ■ 15. Section 80.1501 is amended by oxygenate content. Samples collected at * * * * * revising the section 80.1501 heading a dispenser labeled E15 in any manner, (v) * * * paragraphs (a) introductory text, (b)(3)(i) or at a tank serving such a dispenser, (A) The minimum number of samples and (iv), and (b)(4)(ii) to read as follows: shall also be analyzed for RVP during to be included in the survey plan for the high ozone season defined in each calendar year shall be calculated as § 80.27(a)(2)(ii) or any SIP approved or follows:

Where: f1 = the maximum proportion of non- subsequent survey plans, fo will be the n = minimum number of samples in a year- compliant stations for a region to be average of the proportion of stations long survey series. However, in no case deemed compliant. In this test, the found to be non-compliant over the shall n be smaller than 7,500. parameter needs to be 5% or greater, i.e., previous four surveys. Za = upper percentile point from the normal 5% or more of the stations, within a Stn = number of sampling strata. For distribution to achieve a one-tailed 95% stratum such that the region is purposes of this survey program, Stn confidence level (5% a-level). Thus, Za considered non-compliant. For this equals 3. survey, f1 will be 5%. F = adjustment factor for the number of extra equals 1.645. a fo= the underlying proportion of non- samples required to compensate for Zb = upper percentile point to achieve 95% compliant stations in a sample. For the collected samples that cannot be power. Thus, Zb equals 1.645. first survey plan, fo will be 2.3%. For included in the survey, based on the

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number of additional samples required document requirements of § 80.69 and conventional blendstock for oxygenate during the previous four surveys. § 80.77. blending, gasoline or gasoline already However, in no case shall the value of Fa (3) Except for transfers to truck containing ethanol, in a manner be smaller than 1.1. carriers, retailers, or wholesale inconsistent with the information on the Fb = adjustment factor for the number of purchaser-consumers, product codes samples required to resample each retail product transfer document under outlet with test results exceeding the may be used to convey the information § 80.1503(a)(1)(vi) or § 80.1503(b)(1)(vi); labeled amount (e.g. a sample greater required under paragraph (a)(1) of this (2) No person shall produce E10 by than 15 volume percent ethanol section if such codes are clearly blending ethanol and gasoline in a dispensed from a fuel dispenser labeled understood by each transferee. manner designed to produce a fuel that as ‘‘E15’’, a sample with greater than 10 (b) * * * contains less than 9.0 or more than 10.0 volume percent ethanol and not more (1) * * * volume percent ethanol. than 15 volume percent ethanol (vi) * * * dispensed from a fuel dispenser not (B) For gasoline containing less than (3) No person shall produce E15 by labeled as ‘‘E15’’), or a sample dispensed 9 volume percent ethanol, the following blending ethanol and gasoline in a from a fuel dispenser labeled as ‘‘E15’’ statement: ‘‘EX—Contains up to X% manner designed to produce a fuel that with greater than the applicable seasonal ethanol. The RVP does not exceed [fill contains less than 10.0 volume percent and geographic RVP pursuant to § 80.27, in appropriate value] psi.’’ The term X ethanol or more than 15.0 volume based on the rate of resampling required percent ethanol. during the previous four surveys. refers to the maximum volume percent However, in no case shall the value of Fb ethanol present in the gasoline. (4) No person shall produce EX by be smaller than 1.1. (C) For gasoline containing between 9 blending ethanol and gasoline in a Sun = number of surveys per year. For and 10 volume percent ethanol (E10), manner designed to produce a fuel that purposes of this survey program, Sun the following statement: ‘‘E10: Contains contains less than 9.0 volume percent equals 4. between 9 and 10 vol % ethanol. The ethanol. * * * * * RVP does not exceed [fill in appropriate * * * * * value] psi. The 1 psi RVP waiver applies (c) * * * (g) For gasoline during the regulatory (4) The survey program plan must be to this gasoline. Do not mix with control periods, combine any gasoline- sent to the following address: Director, gasoline containing anything other than ethanol blend that qualifies for the 1 psi Compliance Division, U.S. between 9 and 10 vol % ethanol.’’ allowance under the special regulatory Environmental Protection Agency, 1200 (D) For gasoline containing greater treatment as provided by § 80.27(d) Pennsylvania Ave. NW., Mail Code than 10 volume percent and not more applicable to 9–10 volume percent 6506J, Washington, DC 20460. than 15 volume percent ethanol (E15), gasoline-ethanol blends with any the following statement: ‘‘E15: Contains * * * * * gasoline containing less than 9 volume up to 15 vol % ethanol. The RVP does (6) The approving official for a survey percent ethanol or more than 10 volume not exceed [fill in appropriate value] plan under this section is the Director percent ethanol up to a maximum of 15 psi;’’ or of the Compliance Division, Office of volume percent ethanol. Transportation and Air Quality. * * * * * * * * * * * * * * * ■ 18. Section 80.1504 is amended by ■ ■ 17. Section 80.1503 is amended by revising paragraphs (a)(1), (a)(3), (e), and 19. Section 80.1508 is amended by revising paragraphs (a)(1)(vi)(B)(3), (g) to read as follows: revising paragraph (b) as follows: (a)(1)(vi)(C)(2), adding paragraph § 80.1504 What acts are prohibited under § 80.1508 What evidence may be used to (a)(1)(vi)(C)(3), and revising paragraphs this subpart? determine compliance with the (b)(1)(vi)(B) through (D). requirements of this subpart and liability for The revisions and additions read as * * * * * violations of this subpart? follows: (a)(1) Sell, introduce, cause or permit the sale or introduction of gasoline * * * * * § 80.1503 What are the product transfer containing greater than 10 volume (b) Determinations of compliance document requirements for gasoline- percent ethanol (i.e., greater than E10) with the requirements of this subpart ethanol blends, gasolines, and conventional into any model year 2000 or older light- and determinations of liability for any blendstocks for oxygenate blending subject duty gasoline , any heavy- violation of this subpart may be based to this subpart? duty gasoline motor vehicle or engine, on information obtained from any (a) * * * any highway or off-highway motorcycle, source or location. Such information (1) * * * or any gasoline-powered nonroad may include, but is not limited to, (vi) * * * engines, vehicles or equipment. business records and commercial (B) * * * documents. (3) ‘‘The use of this blendstock/ * * * * * ■ gasoline to manufacture a gasoline- (3) Notwithstanding paragraphs (a)(1) 20. Section 80.1509 is added to read ethanol blend containing anything other and (a)(2) of this section, no person as follows: shall be prohibited from manufacturing, than between 9 and 10 volume percent § 80.1509 Rounding a test result for ethanol may cause a summertime RVP selling, introducing, or causing or purposes of this Subpart. violation.’’ allowing the sale or introduction of (C) * * * gasoline containing greater than 10 The provisions of Section 80.9 apply (2) The requirements in paragraph volume percent ethanol into any flex- for purposes of determining the ethanol (a)(1) do not apply to reformulated fuel vehicle. content of a gasoline-ethanol blend gasoline blendstock for oxygenate * * * * * under this subpart. blending, as defined in § 80.2(kk), (e)(1) Improperly blend, or cause the [FR Doc. 2013–12714 Filed 6–13–13; 8:45 am] which is subject to the product transfer improper blending of, ethanol into BILLING CODE 6560–50–P

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