EPA Proposes Major Updates to RFS Regulations

by Erin Voegele (Biomass Magazine) ... Within the proposed rule, the EPA explains that the RFS registration, reporting, recordkeeping and product transfer document (PTD) requirements were designed with the general expectation that renewable biomass would be converted into renewable fuel at a single facility. As such, the RFS regulations impose requirements on producers to provide the EPA with information necessary to verify that their fuel was made with qualifying renewable biomass, through production processes corresponding with proposed pathways in and volumes corresponding to feedstocks used. Since current RFS regulations were implemented in 2010, the EPA said it has received a number of inquiries from companies regarding the possible use of renewable biomass that has been substantially preprocessed at one facility to produce a biointermediate feedstock that is used at a different facility to produce renewable fuel. The EPA offers Sweetwater Energy and Ensyn as examples of companies that have developed technologies using these biointermediates.

The EPA said it believes the use of biointermediates “is a reasonable and positive development in this developing industry and holds considerable promise for the future growth in production of the cellulosic and advanced biofuels.” The EPA also noted that while near-term production of biointermediates might be modest, there is significant potential for long-term growth, as the technologies could lower the cost of using cellulosic and other feedstocks by reducing storage and transportation costs associated with bulky feedstocks while taking advantage of existing ethanol and petroleum refinery assets to convert the biomass into fuel.

The EPA also explained that existing RFS provisions are insufficient to generally allow RINS to be generated in situations where multiple facilities are involved in the conversion feedstocks into fuel. The proposed rulemaking includes a set of requirements to enable the production and use of biointermediates to make fuel for which RINs can be generated.

According to the proposal, a biointermediate is defined as any renewable fuel feedstock material that is derived from renewable biomass; does not meet the definition of renewable fuel and RINs were not generated for it; is produced at a facility that is registered with the EPA, but is different than the facility at which it is used to produce renewable fuel; is made from the feedstock and will be used to produce renewable fuel in accordance with the processes listed in the approved pathway; and is processed in such a way that it is substantially altered from the feedstock listed in the approved pathway.

The proposed rule also includes a section dedicated to the development of a standard for ethanol flex fuel (EFF).

In the rulemaking, the EPA proposes to adopt provisions that would make minor amendments to its regulations so that gasoline ethanol blends of E50 and below that may not be used in conventional vehicles are treated in a similar way to E51-83 blends. The agency is also proposing fuel quality requirements for all EFF that would provide an equivalent level of emissions control when used in FFVs compared to the use of gasoline in conventional gasoline vehicles.

The EPA’s proposal also includes new fuel pathways for ethanol and naphtha produced from short-rotation hybrid poplar and willow that converts cellulosic biomass into fuel for the generation of D3 cellulosic biofuel RINs. The EPA is also proposing to add fuel pathways for diesel, jet fuel and heating oil produced from short-rotation hybrid poplar and willow that converts cellulosic biomass to fuel for the generation of D7 cellulosic diesel RINs.

Another section of the proposed rule discusses methods in which RINs could be generated for renewable electricity used to fuel electric vehicles.

In addition, beginning with the 2017 compliance year, obligated parties would be required to report heating oil volumes as part of their annual compliance reports.

Another proposed change involves the revision of fuel pathways for biomass-based diesel and advanced biofuel made from non-food grade corn oil. The EPA explains the lifecycle greenhouse gas (GHG) analyses for those pathways were based on its modeling for corn oil recovered from distillers grains with solubles (DGS) produced by a dry-mill corn ethanol plant through corn oil extraction. The EPA is proposing to revise the pathways to specify the feedstock is oil from corn oil extraction and to include a revised and somewhat broadened definition of corn oil extraction.

In addition, the EPA is proposing to approve a pathway for the use of non-cellulosic portions of separated food waste to produce biodiesel, along with a pathway using the same feedstock for renewable diesel.

The Renewable Fuels Association has weighed in on the proposal. “We are still reviewing the proposal and will be submitting detailed comments to EPA,” said Bob Dinneen, president and CEO of the RFA. “Our goal is to ensure the final regulations do not unreasonably impair the ability of blenders and retailers to offer ethanol flex fuels like E85 to consumers. Ethanol flex fuels are the lowest-cost, lowest-carbon, and highest octane liquid fuels on the market, and it is imperative that these EPA regulations help—not hinder—broader commercial introduction of these fuels.” READ MORE and MORE (Energy.AgWired.com) and MORE (Reuters) and MORE (Environmental and Energy Study Institute)