President Barack Obama joined with the E.P.A. on Tuesday to declare the issue of a Notice of Suggested Rulemaking for the federal Renewable Fuel Standard (RFS). The Energy Independence and Security Act of 2007 (EISA) requires the countrywide supply of renewable fuels to reach 36 billion gallons by 2022, causing a significant expansion of the current RFS. In keeping with the EISA, the Suggested revision to the RFS plan specifies the volume of cellulosic biofuel and biomass-based diesel that must be used in transportation fuel each year. The plan classifies these fuels as "advanced biofuels," defined as fuels other than corn-based ethanol and with greenhouse gas (GHG) emissions half that of the fuel they replace.
The plan requires a volume of advanced biofuels that is greater than the combined requirements for cellulosic biofuel and biomass-based diesel, thereby allowing some competition among these and other advanced biofuels. By 2022, the Suggested RFS plan will require the yearly use of 16 billion gallons of cellulosic biofuel, at least one billion gallons of biomass-based diesel, and a total of 21 billion gallons of advanced biofuels, leaving four billion gallons unspecified (although the E.P.A. may require greater volumes of biomass-based diesel after 2012, which would leave fewer gallons unspecified). To allow for conventional biofuels, such as corn-based ethanol, the plan sets an even greater volume requirement for all renewable fuels. To qualify as renewable fuels, biofuels produced at new facilities must achieve a 20% reduction in GHG emissions compared to the fuels they replace. By 2022, the Suggested RFS plan requires 36 billion gallons of renewable fuel altogether, which leaves room for up to 15 billion gallons of conventional biofuels, such as corn ethanol. Despite the many changes, the Suggested plan builds on the programmatic structure of the original RFS, including the use of tradable credits to track compliance with the program.
To determine which fuels qualify as advanced biofuels and new renewable fuels, the Suggested plan is the 1st federal plan to assess the lifecycle GHG emissions associated with each fuel, including indirect emissions from land use changes, to determine which fuels qualify for the fuel standards. Lifecycle emissions include the emissions from growing, harvesting, and transporting the biomass and from producing and transporting the fuel. With land use changes included, the E.P.A. suggests to allow only the 5 most sustainable process pathways for producing ethanol from corn starch to qualify as renewable fuels, while ethanol produced from sugar in a biomass-fueled facility can qualify as an advanced biofuel. Likewise, biodiesel from virgin plant oils qualifies as a renewable fuel, while biodiesel from waste grease and oils, animal fats, and non-food grade corn oil qualify as advanced biofuels. Recognizing the controversial nature of such analyses, the E.P.A. projects to conduct peer reviews of the key components of its analysis and will hold a public workshop on the lifecycle analysis. The E.P.A. will accept comments on the suggestion for 60 days after its publication in the Federal Register, and the agency suggests to have the revised RFS plan take effect on January 1, 2010. See the E.P.A. press release and the full notice of Suggested rulemaking, particularly pages 314-328 and 491-493 (PDF 3.0 MB). Download Adobe Reader.
While the E.P.A. is focusing on the regulations for the RFS, the ethanol industry is concerned about having a distribution channel for all that ethanol. In early March, industry group Growth Energy and 54 ethanol manufacturers submitted a waiver application to the EPA, asking to allow conventional blends of gasoline to include up to 15% ethanol by volume, a blend that would be referred to as E15. Since 1978, the limit has been set at 10% ethanol (E10) for conventional blends of gasoline. However, the amount of ethanol required by the RFS will soon hit market constraints imposed by the 10% limit and by the relatively small market for ethanol-rich blends known as E85 (a blend of 85% ethanol and 15% gasoline). A 15% blend limit would expand the potential ethanol market by nearly 50%. The E.P.A. published the waiver request in the Federal Register on April 21 and is accepting public comments on the request until May 21. Current statute calls for E.P.A. to make a decision within 270 days of receipt, which is December 1. See the E.P.A. and Growth Energy press delivers and the Federal Register notice.
