Environmental   Protection
Agency
                           SPECIAL REPORT
                       OFFICE OF MOBILE SOURCES
Analysis of the Economic and Environmental Effects
        of Ethanol as an Automotive Fuel
                  April, 1990

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Analysis of the Economic and Environmental Effects
         of  Ethanol  as  an Alternative Fuel
                      April 1990

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                       TABLE OF CONTENTS
                                                           Page

    Preface
    Executive Summary
1.0 introduction and General Concepts .	l
                                                             8
2.0 Properties of Ethanol	
3.0 Economic Analysis of Ethanol  	
    3.1 Domestic Production . .  .  •	
        3.1.1 Fermentation From Grain .	15
            3 l.l.i Previous Federal Studies   ......  15
            o . j., j.             _  „_,	, •"--^•iuction  ....
                                             Ethanol   ...
            sill I'.l Cor rf and "Ethanol Production Economics  .  19
3'l'l'2 Current"u"iT Ethanol  Production ....  15
•t'i'i's Hydrous Versus Anhydrous  Ethanol  .  .  .16
"3lig'A*    •*      _  __.^	:	1  Ti__,«3**,**^4«-ivt  V f+nT-it
            3.1.1.5 Tax Subsidies
        3.1.2 Ethanol Production From Natural  Gas            ^
              and Petroleum  	  '  '  '  '      24
        3/1.3 Non-Food Biomass	
                                                 	27
    3.2 Imports  ....•-. 	
    3.3 Transportation and Marketing Costs  ........  30
        3 3 l Delivery to Terminal  or  Bulk Plant  .  .  .  -  -  30
        3.3.2 Distribution to Consumers	•.•  •  •  •
    3.4 Vehicle  Hardware  Costs  	  ....  34
    3.5 Vehicle  Operating Costs	•	• •
                                                             40
    3.6 Budget  Costs of  Ethanol .  	
 4.0 Environmental Analysis of Ethanol   .	 44
     4.1 Urban Ozone and PAN Levels	•  •  • 44
   '--            .                -                   ......  49
     4.2 Air Toxics	' '  '
                     -,                                ....  49
         4.2.1 Ethanol ...-••  	            50
         4.2.2 Benzene	      50
         4.2.3 Aldehydes	51
         4.2.4 1,3-Butadiene	•  •
         4.2.5 Other Air  Toxics  .  . •  •	
      (continued  on  next page)

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    4.3 Global Warming
                 Table o£ Contents, Continued



                                                   .   . .   . 52
                                                          '-
    4.4 Agricultural Side Effects on the Environment   ... 57

    4.5 Other Environmental  and Health/Safety  Issues   ... 58

                                                    .... 58
       4.5.1 Spill  Issues   ....  ........         60
       4.5.2 Leak  Issues  .  . ..............     61
       4.5.3 Fire  Issues  .......  •  •  .......  ' 62
       4.5.4 Ingestion ...•••  .........
Appendix A  Summaries of Previous U.S.  Government Ethanol

            Studies

Appendix B  Review Article on Ethanol from Non-Food Biomass


Appendix C  Memo:  "Cost Estimate for Ethanol Gasoline-
            Equivalent Price"

Appendix D  Memo:  "Ethanol Fueled Vehicles - Experience to

            Date"

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                            PREFACE

     in  July  1989  the  President  submitted  to   Congress ,  his
Administration's  proposals for revising the  Clean  Air  Act.   One
ma jo?  component  of  his  plan  is  the  Clean  Alternative Fuels
Program.   This  program  would replace  a  portion  of  the motor
vehicle  fleet  in certain  cities with  new  vehicles  that meet
stringent air emission  limits operating on  clean  burning fuels
such as  methanol,  ethanol,  compressed natural  gas,   liquefied
petroleum gas,  electricity,  and reformulated gasoline,

     This report,  released  by  EPA,  is  one  in   a  series  of
reports that will discuss the economic  and  environmental issues
associated  with  each   of  these   fuels.    The   Environmental
Protection Agency will  prepare reports on  the candidate  fuels
according to the  following schedule.

          Fuel                     Final Report

     Methanol                   released September  1989

     Compressed Natural Gas     released April 1990

     Ethanol                    released April 1990

     Liguefied Petroleum Gas    to be released later in  1990

     Electricity                to be'released later in  1990

     Reformulated Gasoline      after receipt of formulation

     The  ordering  for  these  reports  does  not   represent  any
preference  by the  Administration,  but  is  the  result'  of  the
status  and  availability of  the  information and research needed
to prepare the reports.

     The  economic and  environmental analyses  contained in  this
and  the  other   reports  assume  the  full  implementation of the
President's Alternative Fuels Program.

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                        EXECUTIVE  SUMMARY


     This  report  discusses aspects  of  ethanol use  as -a  motor
vehicle  fuel at  high  concentrations (e.g., 85%-100%)  in  place
of gasoline.  Lower level  ethanol mixtures  (10% ethanol  and 90%
gasoline)' are  already widely  used.   In  fact,   about 7.5%  of
gasoline  sold in the  United  States currently contains  ethanol
at this  level.   This  represents an  annual ethanol production of
840 million galIons:

     Ethanol  has  a  number of properties  which would  make  it a
good  motor vehicle fuel.   Its octane  is  higher  than gasoline
which,  together  with  other  fuel   properties,  means  vehicles
could  be designed for  improved efficiency (about 30% greater).
Its vapor pressure is  much  lower which  would result  in  lower
evaporative   emissions  but   would   result  in  increased  cold
starting  difficulty with either  100%  hydrous   (i.e.,  ethanol
containing  5% water)  or anhydrous ethanol.  Its flammability is
also  Tower which  should   help  result  in  decreased  number  and
severity  of  vehicle   fires.   Anhydrous  ethanol,  as currently
used  in  low  level  blends, would be required to  help prevent
phase- separation-  if   the ethanol  is .  to be  used  in flexible
fueled  vehicles where  the ethanol  fuel  could  occasionally be
mixed  with straight  gasoline.   However,  in vehicles dedicated
to the use of high  level  ethanol  fuels  (e.g.,  85%-100% ethanol)
it  may  be  possible   to   use hydrous  .ethanol,   which requires
slightly  less cost and  energy to produce.

•     About 95%  of the  fuel ethanol  currently used in  the United
States  comes  from corn.  Corn is converted  to ethanol by either
the  dry-milling  or  wet-milling  processes.   The   dry-milling
process   involves  milling the  grain  but  not   separating  its
components  before the  "mashing" process  forming  ethanol.    This
process  yields  distillers dried  grains with solubles as a  side
product which is  a  common animal  feed."  The wet-milling process
(accounting   for  about 67%  of the' ethanol produced) -involves
separating  the  corn  into  its major  components.. •_; The starch  is
then  converted  into,: ethanol.   The  by-products from wet-milling^
are more  valuable than those  from dry-milling.

     Under  an  expanded fuel ethanol program as considered  in
this  report  the  wholesale cost range for ethanol  produced from
corn  is  projected to  range from $1.00 to  $1.50 per gallon.

      The effects of  increased  corn  ethanol production on  farm
product  prices, farm  income, and Federal farm programs such as
the   Department  of  Agriculture   price   support   program   are
relevant considerations" in formulating national policy on fuel
ethanol,  but are not  addressed  in  depth in  this  report.   The
effect of  increased   ethanol use  on  tax  revenues  is also  an
important consideration.   When ethanol from renewable resources
is used in ethanol/gasoline  blends  of  at least  10% ethanol, the
blend is exempt: from  $0.06. per gallon of  the $0.09  per  gallon

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gasoline excise  tax,  which  in  effect  provides a  subsidy  of
$0.60 per gallon of  ethanol.   At  85%  ethanol blend levels  this
would  not  provide   the  depth  of  subsidy  needed  for  ethanol
production'to be  profitable.   There  is  a  blenders  income  tax
credit that provides a subsidy of  $0.60 per gallon of  ethano.l
regardless   of  the  ethanol  content  of  the   fuel.    Without,
subsidies  such  as  .these,   ethanol   could   not.  compete   with
gaspline.at  current or most projected  prices.

     Ethanol  can also be made chemically  from  either  ethylene
or with  more  processing,  ethane.   Furthermore,  ethanol can  be
made  from  non-food  bi-omass  such  as  lignocellulosic   material
from  trees, grass,'  waste  paper,  and  cardboard.   Ethanol  made
from these sources  is presently much  more expensive  than  that
made  from  corn;   estimates  range from  $1.35-$2.40  per  gallon
according to  information  reported by  the  Department   of  Energy
(DOE).  DOE has ongoing  research that  may eventually  provide
improved technology  for  the conversion  of  bibmass to ethanol.
This  research is  working  toward  a  long-term   future goal  of
producing  ethanol   for  $0.60  per   gallon  (plant  gate  cost,
including capital recovery) without government  subsidies.   This
goal  is  based on reducing  feedstock  costs  from $3.00-3.25 per
dry ton to $2.00 per ton.   This depends on  research success to
improve average wood  yields on selected  test sites to 9-12 dry
tons  per  acre per  year from the approximate  7 tons per  acre
currently achievable.   In  addition,  it  depends  on. research to
improve crop  genetics and large-scale cultivation.   While the
long-term future cost of  ethanol using  these new  technologies
is highly uncertain,  DOE  is confident that research will result
in significant cost  reductions  compared  to the  current _ cost of
using  cellulosic  resources to  produce  ethnol,  which  is   about
$1.35  per   gallon.   DOE  is  continuing   to   work   on  future
technologies   that  will  improve the  yield  rate,  the  rate and
concentration  of the ethanol process,  and  lower  the  enzyme cost
through biotechnology,  as  well  as  on system  optimization and
scale-up   testing.[3-19,20]    EPA    has    not   independently
considered  whether  the $0.60 cost is  a  realistic  estimate, and
EPA  is  aware  that  a  number  of  organizations   and  experienced
observers are  unconvinced that it is realistic.           ;

     The only other  :country  with  a  significant ethanol   fuel
industry is Brazil J which  makes  ethanol  from sugar 'cane  at an
annual production rate about  six times that in the U;S.  Brazil
is  currently  experiencing a  substantial   shortage  of  ethanol
because  sugar  cane  production from  which  ethanol  is produced
has  hot  matched the market  demand for  the fuel.    Government
planners have, not  been able to match  ethanol supply with demand
resulting  in   shortages  of  ethanol  at  the  pump   and   irate
consumers.   Brazil  is now  attempting  to import ethanol to  meet
demand.  In addition,  the high :subsidy  cost of the.  program to
Brazil has  contributed to budget problems.

     Ethanol  is presently shipped  by  tanker   truck, rail, or
barge and not by  pipeline.  In the long term,  ethanol could be
shipped  by  pipeline,  but  some  initial  added  costs  would be
                               11

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 incurred to clean  out  and modify certain pipeline hardware for
 compatibility   with  ethanol.    Ethanol  shipping   costs  are
 estimated,  to  be  about  $0.06  per  gallon for  a  neat ethanol
 supplied to major  ozonevnon-attainment areas, which compares to
 about $0.03^-per  gallon  for  gasoline  supplied  to, these  areas.
 However, -ethanol   has : an  energy  content  of   67%   that  of
 gasoline. — -Counting  -both  transportation  and   service station
 mark-up, the actual pump  price  of ethanol not including a  $0.60
 per  gallon -Federal  tax.  subsidy  is  projected;, to   be   about
 $1.28-1.30  per gallon  when ethanol has a plant-gate  price of
 $1.00 per-  gallon.   This  price would;  be $1.78-1.80  per  gallon
•with an  ethanol -plant-gate price  of  $1.,50  per  gallon.   These
 values   do' not  include   the-  30%  efficiency   improvement for
 vehicles optimally designed for  100%  ethanol.  -Incorporating  a
 factor  for  this improvement'and  for-the lower energy content of
 ethanol  compared  to  gasoline  (67%),  the  "gasoline-equivalent"
 ethanol  price becomes  $1.47-2.07 per gallon for  the $1.00-1.50
.per gallon  ethanol  plant-gate price without subsidy.
. _ • *     "  -    -,  •         •  - , _,   -",-'-•' '   .• - -  " *      /  >
  •    Due to the  30%  increased--efficiency" possible  with  neat
'ethanol  compared to  gasoline,  use  of  optimized vehicles  fueled
 with neat  (or  less so  with near  -"neat)- ethanol  should  allow use
 of   smaller,  lighter  .engines,   and   lighter   suspension/body
 components  all of  which  will  tend to  decrease vehicle  costs.
 However,  fuel  system .modifications   for   neat   or   near-neat
 ethanol  might  would tend  to increase costs.  Cold starting with
 neat  ethanol   at   low   temperatures   would  require   solutions
 similar  to  those needed  for neat-methane1 (e.g., separate fuel
 tank using5 gasoline or propane jlist for cold start or a  direct
 fuel, injection "system).  EPA assumes  the savings and  increases
 will- balance-but to  zero  with  no  overall  cost  difference
 between   future  optimized  neat  ethanol vehicles  and  gasoline
 vehicles.    Flexible-fueled    vehicles   though   reguire    a
 fuel-sensor and do not have all  the cost savings possible with
 a  neat  ethanol vehicle.;; EPA assumes an extra  cost of $150-300
 for a flexible-fueled vehicle.

      Ethanol-fueled vehicles are expected to- emit more ethanol
 and  acetaldehyde^than-,-a:" gasoliner-fueled -vehicle   with  some
. smarliec   "increase^ "alsol^o^sTble-  -for_-formaldehyde.    The
 increased"  ^cetaldehyde^-emisslons  should lead  to  higher  PAN
 (peroxyacet^l  nitrate) "f  but .possible-  counterbalancing effects
 have- not  been- - explored;; The-limited  non-methane  hydrocarbon
 specration., data- for ethano-1-fueled vehicles  suggest   that  the
 mix of  nojvrmethane hydrocarbons  are  not dramatically different
 for ethanoi>~methanol,  and-gasoline-fueled vehicles.
      The impact of the  use of ethanol-fueled vehicles  on urban
 ozone  has  not  yet. been"  adequately  studied*   No quantitative
 modeling  studies^ of_ any  U.S.  city  exist- involving  85-100%
 ethanol in vehicles.  However, it  is  possible  to calculate the
 relative.   reactivity   of   the    projected   composition   of
 ethanol-fueled  vehicle  emissions   versus  that  with  gasoline.
 Some  preliminary calculations  have  been  done  by  Ford  Motor
 Company  and  suggest   about "equivalent  ozone  benefits  from
 vehicles fueled with ethanol-and methanol.

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      Use  of neat  ethanol-fueled  vehicles is expected to result
  in  substantial  air toxics  benefits.   For  example,  benzene is
  projected  to   account  for.  about  20%  of   the  carcinogenic
  emissions "from gasoline vehicles  in 2005 assuming .that gasoiine
--'-is  not;'' tef drmulated. "to -reduce - toxic benzene  emissions:,,  while
  combust i 011^41  ethanol  fuel  is  expected to produce ins igni fie ant
 -(if - any)v  Benzene,., f  Similarly,  ethanol   is   not-: expected , to
 -produce-  any   significant  1 ,3-butadiene,   polycyclic  , organic
  matter:/ (POMfw or gasoline refueling; vapors, all  of- which -have a
^substantial;;-  carcinogenic   impact .    However-,   as   mentioned
  previously,,  ethanol  fueled  'vehicles  are  expected : to,  emit
-formaldehyde at a rate perhaps  slightly greater  than a gasoline
Vehicle,  although .less   than  "that of  a  similarly  'engineered
 methanol  vehicle .    /-,--•'  ~   .   ~''-~"\;'' .'-.-- '"''•--.''•:• "..-- ---^. .:•..--'

      Carbon dioxide is a major  "greenhouse gas" which results
-from; gasoline  combustion.   With  ethanol ,  to the degree that it
  if; Herived .-.- f rom   vegetation   (i.e.,   trees  of  agricultural
v products X the  reabsorption of  the carbon  can  be as  fast as. it
;iis  :eniitted>-  resulting'  in 'no  net   increase   in:  ;COi  in  the
  atiinisphere .   However,  about 7, ^million BTU of fossil fuels -are
 currently used "to grow one acre of  corn,  Including:, fertilizer,
-pesticidesv and grain/ drying.  "Fossil  fuel is- also used in the
1 production   of:  ethanol    f roits ; that   corn.    There * -is  some
- cpntroyersy on the  quantities , of these fossil  fuel reqiLiirements
  andy:thus  the  resulting CO2  impacts.  Newer  ethanol  plants arev
 significantly  "more  efficient- -than older  plants. -•  Considering
 the: amount; of energy used;, tor, /a  newer  plant (40 , 000  B'JU per
 gallon of : ethanol >, it would "lie quite feasible to achieve  a net
 CG2  benefit of about: 21-22% \with  incremental  use; :df _ethanbl
 compared;  to   gasoline^"   If;: ceil lulosic  biomass  i^; "used;  as   a
 feedstock instead1 of : opra, even  lower energy  input /per ." gal Ion
 is  possible,  and  the  energy could:; be derived froin portions of
 the biomassT- rather than. from a fossil  fuel.        >r  - ' ;
   ; ; -Subs;taSitially  increased ;^corn  production  for  /additional
         -;:v-  -    Ji;';ide  effectsefects  on
                        v^6e@31^onr^;; changes
                          " ~Mti&'
                                                      	; fjinherent
                                    biodegradabil ity 1  'aneksfei.at ive
                                        allow: it /tO:l:0[uickl5r;^3:ilute
                   ;f^rat^hs:^ disperse downstreamyv ahd^dedompose
                   .-.., -_.......,. ""r^|l^^S;,,;>/O£-.;.:.watei-/,://oj^y:^aporate:; and
               ;sp^iied;;/o|^-:lan^;;';areas .--•-' Thus,•.-:".- in ;man^/scietiarios,
               pill.' /shbti.l:d;"'.-'not/'Jlbs-^s.s-~ hazardous  asysajj;rp;etroleum
      ri-^&HiLafflJ^^                  iito  the; ocean -shoul-severe
       etha;n^i:,;^an' witl^

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  such as a river spill located very, near  a  drinking  water  supply
  intake,  ethanol  may  indeed contaminate  a  water  supply  that
•  would have escaped contamination  by a petroleum  fuel.

   "   "Leaks "Into  underground  water are  a  potentially greater
  concern with all. fuels because of  the  more restricted , dilution
  conditions that can exist.  Also, while  bacteria  are present  in
  soil and  underground  water  supplies,  they  are  sparser than  in
  the ocean-"and surface waters.  Ethanol and petroleum fuels, have
  different   hydrological   effects   in   soils  and  may  migrate
 'downward  at  different rates, providing  more or  less  time, for
  evaporation instead.  Once  in  contact  with  the  water  table,
  ethanol  will   tend to   mix and dilute  more  guickly  than  a
  petroleum  fuel and  to biodegrade more guickly,  although  there
  may be  a  zone in  which  the ethanol concentration  is  too  high
-for biodegradation  to occur.   If. ethanol reaches  a  drinking
  water well,  there is little  health risk  since consumption  of
  drinking water with low levels  of ethanol should not be acutely
  toxic,   with  the  possible  exception  of  fetuses  and  pregnant
 .women.                   ,

       Ethanol,   like  all  combustible  fuels  such  as   gasoline,
  poses  a  potential  human  safety  risk  from   vehicle  fires.
  Ethanol's   low volatility,  relatively  high lower  flammability
  limit,  and  low vapor  density relative to  gasoline cause it to
  be much  less likely to ignite  in  an open area following a spill
  of fuel  or  release of- vapor.   In addition, once it  does ignite,
  ethanol's  low heat of combustion and high  heat of  vaporization
  cause it  to burn  much  more slowly, releasing  heat at roughly
  one-fifth  the rate of gasoline.  However,  these same  combustion
  properties. cause  ethanol to  be  in  the  flammable  range • inside
  fuel storage  tanks  under  normal  ambient  temperatures,  while
  gasoline is virtually always  too rich to  ignite.   Fortunately,
  precautions can be taken to prevent  either flammable  vapor/air
  mixtures  from   forming   in   storage   tanks   (e.g.,   nitrogen
  blanketing,  bladder tanks,  floating  roof  tanks), or to  prevent
  ignition   sources'  from   entering  the   tanks  -.(,e..g,f   flame
"  arresters',  removing  or;  modifying in-tank electrical  devices)
  thereby mitigating any? additional  risk.  , ,These  actions  will
  increase  costs.   Also,-  ethanol  tends  to  burn  with -a  visible
  flame- (much more ^visible than  methanol but not q^ite as visible
  as~gasoline).   _       ;               ,-._•..  .^V:V:;.:-'>1;^/;/;—;  .:-.-.". ';;,-;

     .'Most   gasoline  ingestions  episodes  "are"  due,  to  adults
  attempting"to  siphon "gasoline- from  a  vehicle,  or_ children
  drinking^f^dm^small^ containers of  gasoline intended for  use  in
  small  household  engines  or  for  degreasing.    Ethanol-fueled
  vehicles can be egiiipped with devices  to prevent siphoning  (and
  the same ^dievice could serve as a flame arrester).  Ethanol  fuel
  storage in  homes  should be rare,  since household  engines will
  not run on. ethanol and  ethanol  would not be a good degreaser.
  Also7 ingestions of several ounces of pure ethanol  would not  be
  harmful to/most adults  although it would be of concern for  a
  child.    However,  the  denaturant  may  be  toxic,: and  . it   is
  important  for the  denaturant  to  have an  unpleasant  taste  and
  smell to discourage ingestion.                    -

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     Despite the  presence of  the  denaturant,  fuel  ethanol  may
be deliberately or  mistakenly added  to beverages.   Incidences
with  methanol   were  common  in  the  past  in  the  U.S.,   and
bootlegbeverages  made  with  ethanol  fuel  could  be  of  health
concern due  to  the denaturants.  Unsophisticated  users  may  not
understand the  risk posed by  the  denaturant or may mistakenly
believe   they   have  removed   or  neutralized  it.    Consumer
education is needed-, and  as stated  above,  it  is  important  for
the  denaturant  to  have  an  unpleasant  taste  and  smell   to
discourage ingestion.
                               VI

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1.0  INTRODUCTION AND GENERAL CONCEPTS

     In 1988   U.S.  production  of  ethanol for  use  as  a motor
fuel blend was about 840 million gallons.  As  such,  ethanol  is
the  highest-volume  alternative,   i.e.,   non-petroleum  motor
fuel   It is  also  the  only non-fossil, and  therefore at least^
in  part  renewable,  liquid fuel  in commercial  use.   If  thrs
volume of ethanol  had  been used only  in  its pure  form  rather
than as  a blending  agent,  it  would  have been  enough to  fuel
almost a million vehicles,  which is  far more  than the number  of
vehicles  operating   on   other  alternative  fuels  such   as
electricity,  methanol,  CNG,  LNG, propane,  or  LPG.

     Currently, however, there  are  no  U.S.  vehicles  regularly
operating on  neat  or  near-neat ethanol.* Rather,  the  ethanol
produced  domestically,  and  a small  quantity  of   imported
ethanol,   is   splash   blended   into  gasoline  at   10   percent
concentration.  This allows the ethanol to be  used  by  vehicles
originally   designed   to   operate   on   gasoline.    Sales   of
ethanol-gasoline    blends,   or   gasohol,,  are   geographically
non-uniflrm due  largely to availability  of  state specific tax
subsidies.  Gasohol's  market  share  is  low  in  the  large urban
areas  of  the  East  and West Coasts.   In  many Midwest  markets,
gasohol comprises about 30  to  40 percent  of  sales where states
provide  significant   subsidies  in  addition   to  the  Federal
subsidy.   Overall,  the U.S. market  share  is  about 7.5  percent.
Ten  years  ago it  was  essentially  zero.   The market  share has
been relatively stable over the past  two  or, three years.  This
level  of use is  a  result of the  $0.60  per   gallon  Federal
subsidy  costing  about  $500   million  per   year   plus   state
subsidies ranging  up to $0.40  per  gallon and  totalling  roughly
$160 million  per year.   These  subsidies are needed  because the
current cost  of  ethanol is over two  times  that  of  gasoline on
an  energy equivalent  basis,  and thus it  is  not   economically
competitive with gasoline.

     Ethanol  production  and its use  in  motor vehicles in the
form  of  gasohol  have  bee.n the subject  of numerous  ^studies,
political  debates,  and  legal   proceedings  over • the 'last, ten
years,  because of  the many  areas  of public  policy  that  are
involved:    agricultural,   energy   security,  highway   funding,.
environment,  tax, budget and economic  costs, foreign trade,  and
interstate  commerce.  The more  important  Federal  studies  are
listed  later  in  this  report.    Due to  all  this   existing
documentation on  gasohol,  this report will  not address  the  use
of  these blends.


*	Pure  ethanol  will  be  referred  to   as "neat"  ethanol  or
      "E100",  and  if blended with  small  quantities  of  gasoline
     will be  referred  to as "near-neat" or for  example "E85".

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      It should be noted, however, that a potential expanded use
 of ethanol is in reformulated gasoline, where  ethanol  could be
 used at  low concentrations "directly  or  as ETBE  (e.g.,  10% by
 volume  for ethanol  or possibly up to  22%  for  ETBE).   A Federal
 subsidy of  $0.60  per gallon  of  ethanol  would be needed since
 ETBE is not  economically  competitive  with  MTBE,  which  is  the
 other oxygenated high octane  component most likely to  be used
 in reformulated  gasoline.   Ethanol would  provide  needed octane
 and oxygenation,  and in the case  of ETBE  it would also provide
 pipeline   fungibility   and  aid   in   RVP   reduction.    This
 application  of  ethanol  is  more  appropriately addressed  in  a
 study of  reformulated  gasoline,  which is planned  to  be  done
 after specific reformulaition(s) have been determined.

      This  report focuses  not  on gasohol,  but  rather  on  the
 potential  use of  neat  (i.e.,   100%)  ethanol  (referred  to  as
 E100) or  near-neat  ethanol (e.g., E85) in vehicles specifically
 designed for operation on  ethanol  or alcohols  in general.  Such
 potential  use is briefly mentioned in some  of  the past studies
 that  emphasized gasohol, but no  comprehensive analysis relevant
 to  the  1990's  and  later  timeframe has  been  published.  This
 report  is  reasonably comprehensive  in that  all  considerations
 currently  known to  be important  are addressed to some degree or
 at  least mentioned.   However,  it is not meant  to  be a thorough
 review  of  all the relevant literature, nor  is  it  a complete de
 novo  analysis of issues  on  which  the  literature is inconclusive
 or out of date.                                              '
                                  '  '
     The following  paragraphs  provide  a  conceptual context for
 the remaining sections of this report.      .         .

      It  is  necessary  to  recognize  that  there  are  several
 possible scenarios  as to  how  ethanol  could be used as a motor
 vehicle fuel.  The  cost and  other  impacts  of these  scenarios
 may  differ,  from  one  another.    On  the  fuel  side,  fuel-grade
 ethanol can  take  several forms.   The most  "natural"  form would
 be  hydrous ethanol,  the mixture  of   95 percent  ethanol  and  5
percent water that  results from distillation  of  a  fermented
 liquid.   This,  usually  with  3%  gasoline  as a denaturant,  has
been the form  of  ethanol most widely  used in  Brazil,  at least
up until a recent ethanol  supply vs. demand shortfall, to which
the Brazilian government has responded by  adding  5% gasoline t6
the ethanol/water mixture  as well as  importing ethanol.  In the
U.S., hydrous ethanol  would  always   have  to  be  denatured by
 adding  poisonous  or  unpalatable  ingredients to  distinguish it
 for tax purposes  from beverage ethanol.

     A  vehicle  designed to operate   on  hydrous   ethanol could
differ  from   a  gasoline vehicle  in several respects  (in some
 respects it would have to-differ).  Because  of  the lower energy
 content  of  ethanol,  the  fuel  delivery  system  would  have to
deliver more  fuel per engine  cycle.   Attention would  also have
                               -2-

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to be paid to material compatibility, although ethanol does  not
pose   any   particular  difficulties   in  this  regard,   since-
materials changes would be  no greater than  (and  in some  eases
would  be  less  than)  those  needed  for   methanol  vehicles.
Because of ethanol's higher octane, the  compression ratio  wouM
be  higher  than  with  gasoline,   resulting  in   greater  fuel
efficilncy and  power  density.   Ethanol's combustion properties
(e a    flame  sceed) would  also  increase efficiency and power.
Combustion temperature and  therefore oxides  of  nitrogen  (NOx)
formation  are  expected  to  be  lower  with  ethanol  than with
gasoline.  The  water  content of hydrous  ethanol  also works  to
control  NOx  formation.   This creates  the  possibility  that  a
fuel efficient  lean-burn ethanol engine  could meet the  current
1.0 gram per mile  NOx emission  standard,   and perhaps  even  a
more stringent  standard,  without  catalytic  aftertreatment  for
NOx.   (For NOx  limits of  1.0  gram per mile or lower,  gasoline
engines reguire catalytic  aftertreatment for NOx,  which  in turn
dictates  less  fuel  efficient  operation  at  stoichiometry. )
There  could  or would  also have  to  be  other less  significant
differences in  emission,  control  system  design, for example  the
distance between engine and catalytic converter.

     As  will  be discussed  in the  next  section,  pure  hydrous
ethanol has  a very low volatility,  too low to allow a  vehicle
to be reliably started if  the starting system  on the vehicle is
of the  sort  now used on gasoline vehicles.   In Brazil,  ethanol
vehicles have  a separate  smaller  gasoline  tank   for  starting
and operating until warm enough to  tolerate the  low  volatility
ethanol.    Other   approaches   for   cold   starting   hydrous
ethanol-fueled vehicles are  also possible.   One would be to use
a gaseous fuel such as propane, LPG,  or  CNG  instead of  gasoline
as  the starting fuel. '  With  sufficient development,   it  would
also be possible to rely on  engine hardware  entirely,  such  as
direct injection with glow plugs rather  than a second starting
fuel.[1,2]               .                                       .

     Another  approach  to  cold starting would  be  to blend  the
ethanol with  a  second, more volatile fuel such as gasoline or a
low  molecular  weight hydrocarbon.    If enough  volatility   is
added,   a vehicle  with a  conventional  starting  system  can  be
reliably started  on  the  ethanol  mixture.   This  would be  the
ethanol  equivalent  of "M85,"  a  mixture of  85 percent  methanol
and  15 percent gasoline.   It  would  also  make  it simpler  to
design  a  flexible  fuel  vehicle  (FFV)  that can operate  on
gasoline or ethanol.   In  fact, the many  FFV prototypes already
produced  with  M85  as  the   intended   alternative  fuel  _could
operate  on a mixture of  gasoline  and  ethanol if  the mixture
were volatile enough.  The next section  examines what mixture
would have enough volatility.   •           ,

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     One  complication of  a  gasoline/ethanol mixture  is  thac
under certain conditions of  temperature  and gasoline  cogent
the  ethanol  portion   must   be  water-free,  or   anhydrous.
Otherwise  the ethanol and gasoline will not  stay mixed .   This
^^.^?^ ^™&                      K

  th                      -1     n  ng
famine
     Transition  and  application  issues  are  important  in  any
consideration  of an alternative fuel such as neat or near -neat
ethanol.   There are some applications in W^ch_et^°n1olfu^nage
dedicated vehicles  designed to operate only on  ethanol  car L  be
introduced together,  such  as  in  dedicated  delivery  fleets.
Such  fleets  are  or  could  reasonably  be  refueled at  a small
53SS.
andr the   ilityof  ethanol  vehicles  to  operate on g"

availa^U^ne^l^

                    -                              K
  sist                        .o
gasoline.   It would be more of an issue with  ethanol than, say,
melnanol,  in that the supply of .ethanol from  p"!Seni on  Iev2"
constrained and variable since it would be dependent on  levels
of  agricultural  production  that  can  vary   widely  with  the
weather.

     As  stated  earlier,  an  FFV  designed   for - MBS  can also
operatl on  an  ethanol-gasoline blend  if the  v^por pressure of
the blend  is within  the  seasonal  range  contemplated by the FFV
desianer     Other  FFV concepts  are  also possible.   A neat
eXanol vehicle  with special  cold starting  hardware  (either  a
lecond fuel or  a  special  cold  start  approach)  could  rather
laSny be produced irl FFV form so that it could also operate on
gHoline o?  mixtures  of  gasoline and ethanol   Because  of the
possibility  of  encountering  in-tank mixing  of  fuels,  any FFV
must use anhydrous  ethanol.

     Any  vehicle  designed to   be   able  to  operate  on   any
combination  of ^gasoline,  ethanol,  or  ethanol-gasoline  mixtures

                                       c
                         sss    .                        -
                               -4-

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set  to  accommodate  the  lowest  octane  fuel  expected,  or
                   timing  retard  musf.be  used  on the   lower
      lk   -^ssr^uSiP fr^
ttSTfor both neat alcohols,  and alcohols blended with a higher
volatility component.

     The  more  important  advantages , of  a  dedicated  ethanol
vehicle over an FFV include lower  first cost due to  elimination
of gasoline-capable components (e.g. .   fuer type  s^*'!^
efficiency,  generally  less   ozone  potential   from  exhaust
emissions, and  less  evaporative and ^refuel ing  emissions.   On
the  other  hand,   FFV' s  have  the  advantage  of  greater   fuel
availability.  Also,  if all  the usable fuels are available in
high RVP  form such as  E85,  vehicles  designed  for  such fuels
would have the  advantage  of  a less  expensive  means  of   low
temperature  starting  than  dedicated   E100  vehicles . or  FFV  s
designed to be able to start  on E100.

     While  alcohol-dedicated vehicles  would  be  superior to
flexible  fuel  vehicles  for performance and  emissions, they do
not necessarily have to  be dedicated  to  a  particular  alcohol.
Because  of  the  different stoichiometnc  ratios  of  different
alcohols, some special features are needed  for  a  multi-alcohol
vehicle  that  would not be needed  on  a vehicle designed for  a
particular  alcohol.  For  example,  the same  fuel   type  sensor
Ssed  in  M85  FFV's  to   distinguish   gasoline  from  M85   (and
mixtures between the two)  could distinguish methanol,  ethanol,
and  other  alcohols  well  enough  to  allow  for  multi-alcohol
capability.   Other approaches  might  also  be  possible.   The
major cost difference from dedicated M100 vehicles would be the
fuel  sensor  just  mentioned  plus  possibly  a more  costly low
temperature cold starting system for E100  capability.

     The  production  of vehicles  with  multi-alcohol capability
miqht   make  several   scenarios  theoretically  possible   that
Otherwise  would  be more difficult  to  achieve because  of  scale
or transition problems.  A detailed assessment of  the  costs  is
not  available.  Methanol might  be  more economic than ethanol  on
the  east and west coasts, but ethanol with  federal  and  state
subsidies  might be moire  competitive   in  Chicago,   The Chicago
vehicle market might be  too  small to  support the production  of
special  ethanol-dedicated   vehicles.    But  if  all  or   most
methanol  vehicles  were ethanol compatible,  Chicago may prefer
ethanol  instead   of  methanol.   Also,  multi-alcohol  vehicles
might  be purchased by government  fleets and fueled with  neat
                               -5-

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                                                                     f
e-nanox in corn belt  states,  or such  states  might offer local      m
subsidies large enough  to make ethanol fuel attractive even to
Private  users.   Another  scenario  would  be  that  some  or  all      •
areas  begin  with  only  a methanol  fuel  supply  system,  but      §
ethanol would face no "chicken-or-egg"  market entry barrier if
production  economics  shift  in its  favor or  if  public .policy      .
changes "'to.  more  strenuously  promote   ethanol   due ^ to  its,     |
renewability  or  other   aspects not  presently. valued  by the
market.   Pipelines,  barges,  tank  cars,  tank  trucks,  storage
tanks, and  vehicles  could be switched from methanol  to  ethanol      •
virtually overnight.                                        :          '"

     If  multi-alcohol  capability by  vehicles were  accompanied.     •
bv a  retirement  for availability of both methanol • and  ethanol  .    §
fuel  in  the  same  area,  there  would be  costly duplication  of
supply infrastructure.                                             _  m

     As  a final note,  there may be some  engine types^for which     ».
flexibility between  ethanol and methanol would not  be  readily ,
fusible   For example, ..the carbon-carbon bond in ethanol might     |
present  a smoke/soot problem  in  certain  engine  designs  that     J|
would not have such a problem with methanol.

     It  must  be .noted  that while  a vehicle_ can 'be designed to     |
operate  on  a  range of alcohols with good driveabila:ty -and. fuel
economy  on  all,  its  emission  characteristics will  tend to be
dependent on  the  particular alcohol  being used.   Even more so,     |
anPFFv that  can  Operate on  gasoline  or alcohol  may have very     «
different emission characteristics on the two  fuels.

     Although  a good  bit  of  ethanol  vehicle development has      |
been  done in Brazil, those vehicles are not representative of
what  would  exist  in  the U.S.,. since  the  emission   control-
technology  in  use there is  equivalent to  early  1970 s U.S.      •
technology.   In the United States  much more vehicle  development     •»
has  been undertaken for  methanol  than  for  ethanol.   Section 2      .
discusses the properties  of ethanol  and the degree to which the      |
me?hanSl  development  results are applicable to ethanol  in  light      •
of the similarities in  their  engineering properties.   7

     Sections  3  and 4 of this  report  then  discuss the .economic.:  •„ . j
and   environmental   considerations    raised   by   the   various
scenarios outlined above.                                             M
                                                                      I
                               -6-

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                               References Cited  in Section 1
            x.
            2.
               - Work, : EPA  Contract  68-C9-0002, _  "Glow   Plug

                   inj-ectian ^MlOO  vehicle, ."•     lcer

                     ,, start date January - 1 ,
-entorv       Contract: 68-CO-0007,  "fpark Ignited

         InjSction- M^thanol Vehicle,"  Project  Officer Robert

 Xv\ Bruetsch^r start rdate March: i,,     ^
$.'•.:
                                                       .-Ti~:.*-.a--.Sfri"
                                                        i-gsM-H^gs^ -"'"•
                                                        -.:'- .>--7V^-^::"T^7:.^t;'i\'

                                                        "^^^"t'f-'^ffx?:"?'":' :'
                                                        ... ..,:;??«s-^.ji«;-H-=.-i----: ';•

                                              ..-7-

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 2.0   PROPERTIES OF ETHANOL
 :  '-  Tablet-! lists the  properties of ethanol relevant to  its
 use as a £uel  along with those of methanol and typical  gasoline
 for comparison,' Whereas  gasoline  is  a mixture  of hundreds  of
 difflrTnt hydrocarbon compounds with a wide range  of  individual
 proptr?iesr ethanol and  methanol  are  single components  with
 well-defined properties.

      As :~ shown  in Figure  1,  the  vapor  pressure of  ethanol  is
 much    lower   than   gasoline,   and   about   half   ^lat - °=
 methanol. [1,23    The  lav vapor  pressure  of  ethanol,  «^J*ed
 with  the high heat of vaporization  (about  2/3 that of methanol)
 relative tt? gasoline,  means fthat  low temperature. .taxability
 and driveability would  retire vehicle and/or fuel modification
 to   a   -similar -or   -greater    extent   than   a    methanol
 vehicle. [2,3\4l*  This  could include  approaches  such as intake
 system heaters,  auxiliary startup  fuel systems with,  Pfopane or
 gLoline, higher volatility fuel- additives  (e.g., gasalineX or
 use  of  a  different  engine- concept  such as, direct  injection.
 [35-81    It  also  " raises  the   potential   for   even-  lower
 evaporative and running loss emissions than with methanal.

      In  the  case  of  using  only   fuel  modifications- "with no
-hardware changes  to improve the cold startability of  ethanol,
 some insight into possible solutions .can. be  g»^,**c«SKSJ
 it to  the  methanol  case.  As  one  specific point of .comparison,
 M85  made  with 15V 9.0  psi  RVF gasoline  provide^ *?  ™P of
 roughly  8.0  psi.   Using   9.0  psi  gasaline  would  have  the
 advantage  that  it could be  the same gasoline in general -use  for
 gasoline fueled vehicles;   however,   to  achieve an  RVF  of  8.0
 Isi in ethanol  would retire  40% of a 9.0 psi RVP gasoline,  but
 this is  not   envisioned as  a  realistic solution since  it  would
 negate  much  of  the  potential  benefits of~ ethanol.  - Another
 approach could be to ule 15* of, a higher  RVP gasoline, although
 this  would-  present greater^ distribution problems   due rto  not
                    ts~RktB»T ^J**^**^^-1*"^*^^^**";^-^^"^^;^" ;~'i^^
                    pSl^;piaeifeahoi;/ i^^^^jOi^j^j^^^^
                        l^to;s^^i^metricv: ft^^al^oms^iST^r^^ '
                           to EtpK molecmiar:^e^g|^s^
                           tt-fher vapor ^ressur^^^*it%£^tpHi: only
                           'or^:metfeanoii - to ;'-"^n^'r*-"v' «^*"» * ««^^^
          factors  —''«'»*» >»«'-*iuK'a:-^*:*:ar , ._'-'-- -J

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being  able  to use the  generally available lower RVP gasoline.
In  fact,  due to the  very low RVP  of ethanol,  a  gasoline RVP
greater  than 15 psi  may be  needed  for  an E85 fuel.  Another
approach could be  to  use a high RVP blending component such  as
butane  or . isopentane,  which  might be  more plentiful with the
reduced' gasoline  RVP  limits.   In  the  case of  isopentane,   a
final  RVP of- 8.0  psi  could be  achieved by  adding  roughly  7.5%
isopentane to ethanol or 4.5% isopentane to methanol.[1]

     It  has  been  technically  demonstrated  by  the Nebraska
Ethanol Board that under summer  conditions a lower. RVP E85  fuel
made  from  commercial  gasoline  of  roughly  9.0-9.5 psi  can
provide  adequate  startability  in  at  least  certain  vehicle
designs.  The final  RVP of  this  fuel was not  measured but
should  have been  below  8.0  psi.   The vehicle used had  been
retrofitted from gasoline rather than being a  vehicle designed
and optimized for  ethanol operation.   This,  of course,  is not a
complete market  based test over  a  range of  consumers, driving
conditions and vehicles.

     The heating value  (energy content)  of ethanol is about 2/3
that of  gasoline  and  1/3  greater  than  methanol.   Since  other
combustion related properties (e.g., high octane,  high heat  of
vaporization,  and lean combustion   capability)   would   allow
efficiency  improvements similar  to  those  of methanol, a given
vehicle  operating  range (miles  per  tankful) could be  obtained
with a smaller fuel  tank than with methanol.  Alternatively,  in
the  case of  an  FFV,   a given  fuel  tank  size would  allow a
greater operating  range on ethanol than methanol.

     The  flammability  limits and  vapor  pressures  of  ethanol
indicate that a  combustible  mixture  of  ethanol  in air  would
exist  over  the same temperature range as  methanol.  Therefore,
it is expected that a flame arrester would be called  for  on the
fuel tank fill neck  of a neat ethanol vehicle  as  with methanol
vehicles to prevent ignition from a spark  or flame entering the      ^,
fill neck.   However,  in Brazil  flame arresters have not  been      M
used r and no problems have been  reported.   (It  is  not known how      "
systematically   reports  of   any  problems  would  have  been
collected and- reported. >   Another  aspect  of  the  flammability      «
issue  is the possibility of  ignition from  a  source inside the      Ji
tank such; as a  sparfc from  ait  in-tank  electric fuel pump and
built-up-- -static-  electrical  charge.   Again,  Brazil  has  not      n
reportedrany problems of this type,  but  in general Brazilian      •
vehicles;sare carbureted rather  than  fuel  injected, and in-tarik      ~,
fuel pumps^are only used with fuel  injected vehicles.   Another      . ,-
possible factor  in this flammability question is  that  alcohol      •
fuels  ha-ve  a much higher electrical  conductivity  than gasoline      m.:
and  are thus less .prone to build up  static charge.  This could
result in a  lower  tendency to  ignite  than is suggested by their      •
flammability  limits.   In the case  of E85, the volatility would      J|
be  high  enough  to  avoid  a  combustible  mixture  over   a  wide
temperature  range.                                                    if
                               -9-
I

I

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     Methanol (MIOO) and  ethanol  
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     The  lower volatility  of  neat  ethanol  relative  to  neat
methanol   would  tend   to   produce   even   lower   evaporative
emissions.   M85  and  E85  of   similar   volatility  would  not
necessarily  produce  similar  evaporative  emissions.  Since  the
E85 would require a higher  vapor pressure gasoline  to operate
in  the same  type of vehicle,  the evaporative  emissions  would
have  a higher proportion  of  gasoline   vapor   than  with  M85.
Furthermore,  if  a cold-start system  is used  that  uses  a second
fuel  such  as gasoline,  there  would be added potential  for
evaporative  emissions  from  it.   The  expected effects  of  these
factors on ozone  formation are discussed in section 4.1..
                               -11-

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                              Table 2-1
                           Fuel  Properties
  Vapor Pressure,  psi §100°F
  Vapor Pressure,  psi @115F
  Vapor Pressure,  psi @40F
  Lower Heating Value, BTU/gal
  Research Octane
 Motor Octane
 Heat of Vaporization, BTU/gal
 Specific Gravity
 Boiling Point (°F)
 Molecular Weight
  v .              .       •.
 Grams  Carbon/gal
 Stoichiometric A/F Ratio
 Flammability Limits  (vol%)
 Flash  Point (°F)
Auto Ignition Temp (°F)
Ethanol
F 2.5
3.2
0.4
gal 76,000
111
92
'gal 2380
0.789
173
46.07
1558
9.0
3.3-19
55
423
Methanol
4.6
6.4
0.8
57,000
112
91
3390
0.796
148
32.04
1124
6.5
6.7-36
52
464
Gasoline
8-15 (RVP)
12.5*
3.1*
114,000
91-98
83-90
930
0.70-0.76
80-400
100-105
2421
14.5
1.4-7.6
-45
257
     For typical 9.0 psi RVP gasoline, per ASTM Handbook.
                             -12-

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                                             -13-

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            References Cited in Section 2


"A  Motor  Vehicle  Powerplant   for  Ethanol   and  Methanol
Opera?ion/'HMenrad,   III   international   Symposium  on
Alcohol Fuels,  May 28-31,  1979.

"Volatility   Characteristics    of   Gasoline-Alcohol   and
Gasoline-Ether  Fuel Blends,"  Robert  L.   Furey,  GM,   SAE
Paper 852116,  October 1985.

"Ethanol Fuel Modification for Highway Vehicle Use -Final
Report,"  U.S.  Department  of  Energy,  Report  ALO-3638-n,
July, 1979.

"Vapor  Pressure  and Weatherability  of  Blends  of  Methanol
and Ethanol with  Gasoline," A.  L. Titchener,  D. Hyde,  and
A.  Hoskin,  VII  International  Symposium on Alcohol  Fuels,
October 20-23, 1986..

Statement  of  Work,  EPA  Contract 68-C9-0002,   "Glow  Plug
Ignited  Direct  Injection  M100  Vehicle,"  Project  Officer
Robert I. Bruetsch, start date January 1,  1989.

Statement of Work,  EPA Contract  68-CO-0007,  "Spark Ignited
Direct  Injection  Methanol Vehicle,"  Project  Officer Robert
I. Bruetsch, start date March 1,  1990.

"The Use of Ethanol from Biomass  as  an  Alternative Fuel  in
Brazil,"  H. Hertland,  H. W.  Czaschke,  and  N. Pinto,   II
International Symposium on Alcohol Fuels, 1977.

"Aspects  of 'the  Design,  Development  and  Production   of
Ethanol  Powered  Passenger  Car  Engines," F. B. P. Pinto,  vi
International  Symposium   on   Alcohol  Fuels,  May  21-25,
1984.
                          -14-

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3.0  ECONOMIC ANALYSIS OF ETHANOL

3.l  Domestic Production

3.1.1   Fermentation From Grain                         .., „ .

3.1.1.1 Previous Federal Studies

     There are three  major  comprehensive studies that have been
done bv  the  Federal  government  on use  of ethanol  as a motor
fuel examining  its economic  and environmental  aspects.   These
studies  were  used   to  provide  input,  for  this   report  as
appropriate.

1.    "Fuel Ethanol  and  Agriculture:   An  Economic  Assessment,"
     U.S. Department of Agriculture, August 1986.[1]

2    "Fuel Ethanol  Cost-Effectiveness Study,"  Final  Report  of
     the National  Advisory Panel on  Cost-Effectiveness of Fuel
     Ethanol Production, November 1987.[2]

3,   "Ethanol - Economic  and  Policy Tradeoffs,".U.S. Department
     of Agriculture, January 1988.[33

Copies of  the  executive summaries of the  latter two more recent
reports are  included  in Appendix A.

     A fourth  reference  is  the August  23,. 1989  Department  of
Agriculture  press  release  titled   "Ethanol's  Role   in  Clean
Air."[4]

V. i.i.2.current U.S.  Ethanol Production

     Table 3-1 shows the  amount  of domestic  ethanol produced
and used as  a fuel blending agent from 1980 through  1988.


             •-.-.            Table 3-1                   .

                :  Domestic Ethanol Used as Fuel

   -:-.'•                              Fuel Ethanol       C
         Calendar Year         (million gallons per  year)

             1979                            20
             1980                            40
             1981                            75
             1982                           210
             1983                           375
             1984                           430
             1985                           625
             1986                           750
             1987                           825
             1988                     about 840
                               -15-

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       introduction  of  neat  or near-neat ethanol for new vehicles
  in  certain areas of  the country would require an  expansion of
  Jhis  Droduc?ion by roughly  a  factor  of  two for approximately a      |
  million  vehicles Llesl  some  of the  current production  were      f
  diverted ? Expansion beyond  this   number, of  vehicles  would
  reo^irJ   corrSpondingly   larger  expansion in; the  amount  of      ft
' •'eSnSSl-'^SSSd.   While  there  is  already a ^significant amount      |
  of  ^har^l^ being  produced  for  blending with, gasoline ^n  "%
  ^hS>l  mixture^ ^thanol -aff ^ ^primary ^l^a. large       -
        °
  resources »I  place upilrd  pressure On  grain prices,  thereby
  increasing the cost of ethanol X and food).,    ,

       While it would be fair to say that the  limit  of  production
                                                            f          .
                   declined  by  over  30  percent -  because of  the     |

         --               -vr*                      .
  1983  corn production dropped by about 50%  from 1982 ievei.s cue      •
              ^reater  ovSnment land  diver s ion incentives that      §
    if

                                                                        I
      ^
flexibility, for alternative uses of the corn.

? T T i uyrfmns Versus Anhydrous Ethanol
                                                                        M
        The'   ethanol   used   in   making   current    1°".   lev?;     *

                                                                        I
                                                                  i

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     The  reason anhydrous  ethanol  is  necessary
blends  is the  poor  water tolerance  of  gasoiine-jthanol_blends

at low ethanol concentrations.  ^  very  small am^t^ofwater^ in

such  blends  can cause  phase  separation, _ in  ^ ich. ™   «

pulls  most of  the ethanol  out; of  solution .- •£™
     In  the case of  neat or ^near -.a.at. e^f^.^^ w^i|j   V    I
either   no  gasoline,  or  only   enough   gasoline  to. .provide        £



                                                             I
ranoe    of    ethanol /gasoline/water  .; blends. [7] . . • ..At... .  tnjs.
tS^erature,  hydrous  ethanol  (190  proof,  5% water)  couldV be
mixld Vi?h  unto  about  80% gasoline before phase  separation       .
woSld be^.^ioweve^ lower teVnperatures .are known to decrease        fc

water tolerance. :    '.'--.,  -. •''•;:;'  "..  '."•-'..  "_-'"  ../ ^/.'.'  '',-"..,".- -.. ;'    '  "

-  :   some  limited water  toleraiice test data  for  mixtures; of up
.    _-o "r.^t...- -^Lh.^Mi  ^i-h  oasoline at  temperatures  down to
extrapolation  greater   ethanol  concentrations  would  provide
           at even  lower temperatures.   Another reference that

                     3 conclusion ^*<^-*$™i*ffi



                        and  the tolerance was  increasing greatly

                         concent rat ion.  Therefore,
 *«irt«'& 95V water;  an  te   oer
 w?ih"n?r£s^g ^k^o l^concent rat ion.   Therefore, :«» *»*  •*«
 E85-probably  have  sufficient water  tolerance to^all^ use  of

 hydrous (5.0% water) ethanol even at temperatures  below 0  F.
                                                              e

 n? iSaSr^tgr^Belor© "nydroas - ethanc-1 "could  be used -a^tsxe.
 S «   in  €ni winVer  vSh--W  added  gasoline, researcfe: would be
-n4ide^ ^ t^on!i?^lhl ^IxactV^line- content versus  temperature
 limits" for acceptable water tolerance.

       in "the case "of  FFV's, which could be fueled with gasoline
 55.1 'tS* af  an     to dilute the ethanol to  a concentration of
  separation of hydrous ethanoi;wnen \ise& in ^f's^


  "•:•-•• •- '"-.  - vvj:^/: ;-.• ••-.•-••••x-'.-V•-;•"•--17- :   ;   '•.•;-'.: •••-'

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    Another   issue  to  be  considered  regarding _ the  use   of
        ethanol would be  maintaining separation of hydrous and
hydrous ethanol and gasoline. [9 J
     Some very  preliminary analyses  have been  done < =°en













 of  ethanol  fuel use.        ,
                         This is




             Ueotropio technology is assumed.
                                -18-

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3.1.1.4 Corn and Ethanol Production Economics

           bushel  of  corn  yields  about  2.5-2.6  gallons  of
           JiSSr -of  two  processes  is  used to  convert  corn to
ethanol.
ethanol.
                     4-Ka  Ar-v  mil lino  process  which  involves




process  also  yieias  aisn .tiers  UJ-£^  '  mi-rent  technology
universal practice. [12]
     The  second  process   is   the  wet  milling  process   which
         £                                           4-
                              t
                    "                 ^endir   On the  relative
o   hgh-ructose  c    syrup  (HFCS)  ^pendir^ rOn the  reative








mo?e complex and capital intensive than dry milling.




















  drought. [4]                                            .
                                -19-

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    different   segments  o.    _   s .   Livestock producers who
                                            ss ..
the  same  amount  of  high prot :ein ^ "JJ  *    for .corn couid be

Soybean P**™"*^;;*^^™^^*;-  As long as some
hurt  by competition fro™™ aj^ °Jg  tne soybean meal supply
soybean producers can switch to  wrn, tne   Y     meal prices


'Sat  4eul7\SccVrn?mSre^ornn^^        without . any drop in

soybean production.




per  gallon of ethanol for ^ a  six year  ^verag^^.^        re

wet-milling  plant. [33   The  cos" E0t   hij  report  also  cites

 somewhat  higher  at $0.60 per  g«"<»-   e?h|nol  plants .in  1987
 net  operating costs  excluding  corn  for L ^ftan£  |dients  (other
 especially low  (e.g., *J-« ' P?r ™°J= ciy Of of  greatly expanded

 sSi-^A^^-^^^^'E^i.a;
 ethanol  arer about  "-""*1'"  ^oline-euivalent  gallon
  to  existing  wet  or _ : *J3T  "jjj    «e much  reater than those
                               -20-

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     New technologies having potential for commercial viability
include alterations  in the yeast  strain used £onr  **™nt
anl  use of  membrane  technology
                                              T>*p-





is   reasonable   to  expect   that  technological  advan c®s   *n.
separating these high value products from the ;"VnJ?h*uf° new
net  corn  costs  and therefore ethanol costs.  However,  such new
technology  might  also  be  applicable  to  and  have • a _  cost
advantage* with  other  complex  mixture  feedstocks,  *o_ it  is
uncertain that  cost reductions  will  occur .   Furthermore   with
continued research  in  the  utilization  of cellulosic -fiber,  this
part  of  the  corn byproducts  could also  be converted  into  a
commercial  product.   Despite   these  cost   reducing  factors,
Sarklt prices are  not necessarily established  by the  lowest
cost  suppliers,   so a  large portion  of , the ethanol • produce*
would need to take advantage of  advances  such  as these for it
to have a large impact on market price.

     Estimates of the production cost from  new plants .built to
satisfy  a  large  expansion  of   fuel  ethanol  use/ are  rather
uncertain!  in part because  of  the  interaction with  corn and
??om  new medium-large plants of Average efficiency^to be ^
$1.50  per gallon  for  a corn cost  of $2.50 per bushel.  Higher
oil  costs,  greater  demand  for  corn  or  increased  supply  of
byproducts  would tend  to  raise this cost, while improved plant
efficiency  or expanded  extraction  and marketing  of  byproducts
Juch  as  num\n  glade  DDG  would tend to  counteract these  cost
increases.   Based on this information, this  report will assume
a  wholesale cost  range  of  $1.00  to $1.50 per gallon  of  ethanol
derived from corn.
been  shut
      In the past years,  a number of  small ethanol plants  have,
      'shut? do^ because  even with the  Federal Q^idy, «d  in
 •some cases a state  subsidy,  they were not economically  viable.
 JShoSS capitil  costs of  re-opening such  plants are  usually
 much less  than building new  plants,  the  small  size and  prior
 lack  c? viability  of  these  plants  make  them  irrelevant  in
 considering future ethanol costs and supply.
                               -21-

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 3.1.1.5 Tax Subsidies

     Starting in 1979, motor  fuels with at least 10% denatured
 ethanol derived  from renewable resources were exempted from the
 to 04 per  gallon, motor  fuel excise  tax.  At a  10%  ethanol
 ortArent?ation this  is  equivalent  to $0.40  per  gallon  of
••SSSSSrJd ^ano¥ itself)   As an aside,  since the anhydrous
 ethanSl  is  denatured with gasoline, this is equivalent^ to ^ 9.5%
 ethtn'ol.   A year later,  an  alternative  credit of  $0.40 per
 aallon of  denatured  ethanol  used  as a  motor  fuel  in any
 Sncentrttion was established in the form of  a credit against
 thl  Seller™ income  tax.  In  1983,   the  motor fuel tax was
 increased to $0.09 per gallon with the. ethanol  blend excise tax

 extension of these subsidies.

     Even assuming that the  high ^anollev^l fuels Considered
 ir, i-his  recort would  be  treated  as  gasoline ;by  the  U.S.









 of the fuel.
     Other Federal subsidies for ethanol production  have been





                                              roughly «160
 miUion.per^
     Ijhe^^s^fidies"for ethanoi~ dan;ihaveia-substantial effect

 •V!%E?wsEaViSSJ'3 -H
 from c™ would neot  be competitive with gasoline at its .current
 and projected prices.
                            -22-
I

I

I
f

I

I
 I

 I

 I

 I

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 i o   m-
        m-hanol  Production  From Natural Gas and Petroleum
     Although virtually  all       th     for
U.S. -«urr«it:ly Cornel I      opsed  ethanol),  ethanol can
ethanol) or .other ^gar crops  Ump      Qle^  an^  ,naturai gas

also be,  and,  is *%H>  intermediate  step.   This conversion
via;Va?-;e^^e.(-^                                       in
of- : ethylene  to ethanoJ.  is  _aone r   y   x             presence  of

which ^^Oa|°| 1S^d^th  t^^eStation  approach,   this
an  aeid catalysr.   AS  ^j.*-i           water  which,  then can  be


         3^^^^^ ^
         this final dehydration :is unnecessary.; .   ; -    :  :
    " There  are  many' noiv-beverage  and - rion-fuel      ^actf








exemption.   Also, ethanol           ^^these  tax  subsidies.
^«»>—»r-------       j_«_  ««+•  rmalirv  for   mese  .tax   a\iuoj.^+^-* .

















$1^20-1.50 per gallon. [11]              .-.-•:.      ;~     •  :
 -to ethanoi'%
      Bthvlene" is  most cheaply  produced by  reduction or  stea.T









 havrbeen^un?ing to heavier petroleum fractions, such as  gas

  • i _  __ £ ~~.At-^ i~.f*}rcf
  Ai^fc-TT ^r- *^*^ »»»™ •—• — —••	 ^


  oils,  as  feedstocks.
                                -23-

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        ,_  •«,*•' ien  be- practical  'to  make ethanol  from direct
    It should also  b* practical  J     1  ±   similar to those

    tion of e^*/19 Vs l^_5" thane in natural gas..  The ethane

           ff^-*    •««
ethanol. ,     .                                    .•'"..'.'"•..  Jl
    Also   it may-be  possible to oxidize, natural gas ^liquids   "": •


^rn^1r»«S£«'                         i.


                                                            i
                               CS
         .

levels. [18]          ...'.-'.   .- "-'                     . -•-. .    §


3.1.3   Non-Food Biomass
 crop. [12]                                                    M








 !nexp4ns^  and plentiful  as raw materials.                      -




                                                            •


                                                            •
 re=Lo!oT=Vltl^vanWce"en«Cnifbcorn Ibices vere  to  increase  to
 $3.50-$4.00 per bushel. [3]                                     £
                            -24-

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              4      ~ - •„
 into  P'0065*^'*1  is  chemical   modification  of  cellulosic
 streams.    **°£*L™ which can  be easily used  for  fuel type
 materials  to  Products  *n  the  biotechnology for production and
 applications.   In  genera ^           ^ f  t Yy immature with much
 conversion  of cellulose tc >  **       whereas  the  technology  of
 fS^SS  co« into*^!  is quite mature with much smaller
 additional  improvements  likely.

      Trc-imates of  the future  cost of  ethanol from cellulosic
 feedstocks   are optimistic  based  on expected  Advancements  in







•'"
                                                              -
                           -

 reductions  compared  to  the  currenr  co« _       35  per gallon.-
  testing. [19,20]
       Bother  issue  with . ethanol from  c.n»lo.io materials  ^

  the  theoretical  potential   ^""^.n has  been very  roughly

  P°:enttei aStUPFo%y o°f  th%  "s  gasolinf recrements  tfi... u«  of
  estimated at  10% or  ™  " °  Zential to replace  much  or  all  of
  cellulosic biomass has  the P°tent^al ^9,21,22]   An average  of





  various, production  reduction,  %nhseer^rnment; land for which
  prevention programs  sponsorea oy ™"*-*  ranqe,  and  forest lands

                                    S
  wlathe? variations  unless buffered by
                                 -25-

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     In addition to increasing the  ethanol  supply potential  (at
 >,»«- nSv be  a  hiah cost),  cellulosic materials could be used to
what may °®  *  niA"d    in  the late 1970 's  there were  several
        aTes ivaUable  to  convert  cellulose  and hemicellulose
     noaes  vaa
into^an ruminant  animal  feeding ration  that had a  much higher
carbohydrate  to  protein  ratio  than DDG  or  gluten feed  from     1
arain     In   certain   limited  circumstances   economic   and      J
InvSonmental factors  may favor using corn  or other grains for
?S production  of ethanol and  then using partially hydrolyzed     *
ligno^ellulose  to  replace the needed  carbohydrate energy  to      ]
balance the feeding ration. [23]

     Ethanol  from cellulosic  biomass  also has  advantages  over     1
corn in terms of  the agricultural energy  inputs required.  This      J
is discussed  in section  4.3  in connection  with the greenhouse      ^
effect and carbon dioxide production.                                 I
                                                                      I

                                                                      t

                                                                      1
                                                                      I

                                                                      1
                                -26-

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3.2  Imports

     One aspect of  ethanol  as a  motor  vehicle fuel  that is  a
key  attraction  to some  proponents  is that  it can be  produced
domestically.   Current domestic ethanol  production for fuel  of
MO million gallons per  year  displaces  about 40,000  barrels  per
day oil equivalent or  0.2% of total U.S. crude consumption,  not
rakina into account the  energy consumed  in growing the corn  and
converting  it  into   ethanol.    This   small   amount  has   no
no?iceabll  effect  on   U.S.   energy  security.   P^spite   the
expandable domestic production capability,  it may be desirable
at  some  point to  admit  overseas  ethanol  depending  on demand,
domestic capacity,  arid  cost  factors.    This  would most  likely
involve  reducing  the  tariff to  allow  imported  ethanol  to  be
competitive with domestic ethanol, thereby  authorizing  U.S.  tax
subsidies to other countries.

     As  discussed  earlier in the section on  fermentation  from
grain,  there  may  be  some  relatively  high  limit of  domestic
ethanol  production  from  grain  beyond which food prices could
increase  significantly.   Such  a high   production  level  would
probably  also be  more  than  enough to  satisfy  any  reasonable
goal for agricultural sector and  rural  economy stimulation.   If
it  is  desirable  to have even greater volumes  of ethanol used,
for  example  because  of  global   warming effects  or  other  air
pollution  benefits,  overseas   sources   could  be  considered.
Temporary  reliance  on  some  overseas ethanol could  also allow
U S   consumption  of  ethanol  to  -exceed  domestic  production
during  the period needed  to  bring  more  grain  fermentation
plants  on  line,  during droughts,  or  during  the longer  period
until production  from  non-food biomass  becomes economical  as  a
result of  a research  and development effort.  Foreign producers
may  be unwilling  to  make  the  substantial  capital   investments
recruired  to  export  ethanol  to  the U.S.  only during droughts
that  occur every  five  years  or. so.    Imports  for   any  reason
could  also have adverse  impacts  on  the  balance of payments and
the  Federal  budget  as  the  cost  of   ethanol subsidies would
increase.

     The  only country  other than  the  U.S.  with a  significant
ethanol  fuel  industry  is Brazil,  where ethanol  is  made   frcr.
sugar  cane.   Brazil's  annual   production  is  about  5 .billion
-gallons    per   year,    or   about   six   times    current   US
production.[12]   Much  of  this  ethanol  is  hydrous  which wou.-
have  to   be  dehydrated if  the U.S.  market   were  based  zr.
anhydrous  ethanol, but  there is  also  a  substantial amount  c:
anhydrous  ethanol produced for  gasoline blending.   Due_ to  t.-e
 large  amount  of  tillable  land  that is not under cultivation
Brazil  could  expand the acreage  devoted  to  sugar  cane   an:
ethanol  considerably  while  causing  little  or  no  food pr:;-?
 increases.  In  recent years Brazil has  placed more   priority  :-.
 developing its  oil resources and production because  it is  lc--e:
                               -27-

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     than  ethanol.  Brazil  also  has  some  flexibility  to
     tute 'pVtroleum- for  ethanol  for  domestic.  ^^^°^
                                                -s
II n'o't in rPos\t\on » e^ort ethanol to the U.S.

                                                        !
                                                        •
expanding.                                                •
-•'":^di:S"Sn^£ss"iSi     .
 producers to phase aown .suu»*»*j.«».                            .

                                                        .
 -the U.8? at a competitive price without a subsidy.               -

                                                        I
                                                        I
                                                        I
                         -28-

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                 If  the  technology for  ethanol  production from cellulosic
            Sbiomass   develops   sufficiently  to   allow  domestic  production
            through  this route instead of or alongside production from corn
            (whose  price  may  have been  pushed  up by   increased  ethanol
 ^          demandK. the potential  for  imports may also  expand.   While the
 •g.          U.S.  might  be  able to produce sufficient  biomass  to meet  a
            given requirement  for  ethanol.  other  nations may have a natural
            competitive  advantage  for sustained  production due  to  factors
 f          such  as  longer  growing season and more optimum rainfall.  It is
            difficult  to predict which  regions  will be  most  efficient  at
            growing  new. types  of non-food crops.   Some other  nations  might
 |          compete  temporarily  as  they  deplete  their  present  biomass
 1          cover,  for  example tropical  rainforests,  although  there  has
            been  no   indication of  plans for  production  of   ethanol  from
            cellulosic materials in such areas.
- T          '          .   .          -                    -

 <*               If ethanol from fossil-fuel ethylene becomes  a significant
           source, it is  likely that overseas producers  will have a  cost
 I         advantage  over  domestic, producers.    An  exception  might  be
 |         domestic   production from  specific hydrocarbon fractions  that
           otherwise would  have  low  market value.  For  example,  surplus
-f. •        butane might  be converted to ethylene  and then ethanol.

                U.S.   trade   policy  obviously   will   influence   whether
           overseas  ethanol  actually enters the U.S.   The existing  $0.60
1          per gallon tariff,  whose purpose is  to prevent importers  from
m          benefiting   from  the $0.60  per  gallon  Federal subsidy,  makes
           import uncompetitive  except  for  those  that  gualify  for  an
|          exemption,  as in the Caribbean Basin case.
                                        -29-

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 3.3   Transportation, and Marketing Costs  •   • •••           .

 3,.3,ri   Delivery to Terminal or Bulk Plant

      Most of the ethanol in the U.S. is produced  in  the  central
 part of the'country  close to farm states as shown  in  available
 1987  production  figures..   About  50   commercial-scale   plants
 currently-produce'ethanol from^grain;- the  plants range  in size
 from  500,000 to  255,000,000  gallons   per  year.   Even  a  255
 mi11ion  galIon. ethanol  plant  is smal1 compared . to  a  modern
 refinery, which can  have  an  annual   output  well  over  2,000
 million gallon*, of refined product per,year.  The plants  are
 located in  about  20 states,, many of which are  in  the  farming
 sections  of  the   central  part  of  the 'United  States .[2]   if.
 ethanol production  increases in  the future,  it will  likely be
 through addition of more  plants of.the largest size.  They will
 likely be geographically  situated to minimize  grain or  biomass
 shipment  costs  to ..the  extent compatible  with  other  economic
 factors.                         .             •

      It is  estimated that  it  presently,costs  $0.06 per gallon
 for gasoline  shipment  as  a national average or $0.03 per gallon
 for   shipment  to the the  nine worst ozone  non-attainment areas
 (these   'figures :  include   both,   long   .range  _ and    local
"distribution).  The lower  cost is  due to  the proximity of  the
 non-attainment  areas   to  major -  ports   and   pipelines.   The
 projected figure  for methanol  given in the September  1989  EPA
 methanol report is about $0.03 per gallon.[243

      Ethanol  is now  shipped^ by  rail  car  or/ truck  for  further
 blending.   The  current  production  (about  840 million  gallons
 annually) represents  about  0.8%  of gasoline  production in the
 country  as  a whole (or  0.5%  on an  energy equivalent  basis);
 however,  some portions of. the country such as  Illinois have  a
 much  higher  market   share  (e.g,,   about  3%   ethanol  which
 represents  about  30%  gasohol)  compared to-the  average.  These
 states  provide' an: ethanol  subsidy  in addition  to  the. Federal
 subsidy.-'- If-neat orv near-neat, ethanol;/.'is. primarily  used  as  a
 fuel  in areas with severe o^one-problems the nearest high-ozone
- market^ for-ethanol fuel'would-be the Chicago-Milwaukee region.
 This  "region" -would _J*ISG-_ feel --the- most  expensive  for   shipping
 imported  methanol-.  An ethanot vehicle"'sales fraction  of about
 15%  in the  Chicago-Milwaukee jregion  would eventually   consume
 the   current "TJ.S.  production of   ethanol,   after  full  fleet
 turnover. "Significant E85  or  E100 sales  in other high ozone
 areas would- regttire much more  of it to be transported  from the
 Midwest  to  the  East,  west,  and  Texas   coasts  than   is   now
 occurring with  ethanol.

       Currently,  in.  the U.S.  ethanol  is not  shipped" at  all  by
 pipeline,  .which   is  the  least  expensive mode, of  transport^
'Thus, in the short term.the cost -of.  shippinglarger volumes  of
                                -30-

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 ethanol  (presumably  by  rail  car  or  barge)  will  be- greater
 losSSly by severa/cents per  gallon than that :  for "J^^^tF
 probably -no more than the current  cost of  shipping  thanol .25
               it' is not the  current . practice,  alcohols should
 also: beae; to  be shipped  in  pipelines ^  ^ld*^^& • ££





                     :
 the East, but  not to the  West,   in the long-term, a system  of.
 new^nnector type pipelines .would  be- needed "Jo «mw«t .^a. the
-longdistance pipelines serving new eljanol ^markets |^side the
 .farm states.;  - However,  due   to .costs_  su°h  .as ^.for ^system
 preparation  and  maintenance/   shipment   in .   a  .mu^~J!od£*
 pipeline  may  not have the  significant   cost   advantages for
 .alcohols that it has for petroleum products,         :  ;;

      One cost  savings  advantage  in the distribution of- :ethanol
 is that ethanol  fuel would be a  fungible product. .... Fungibilxty
 is the ability  to mix  or interchange products  from two  sources,
 as in the case of shipments through a pipeline, wxthout  having.
 a  purchaser-discernible  effect   on the  products.   Currently,
 qasoline may or may not  be. fungible, depending  on whether , it
  ^ets certain  specifications set by  pipelines.   Crude; -oi^l- is
^usually  not fungible  unless  it comes  from   the  ; same;- field >:
 because  of  the  large  chemical  differences which:  exist Between
 the various types of  crude oil.   Ethanol  production yields  a
 virtually pure single  compound   (or  ethanol with water  in ^ the
 case of  hydrous ethanol).  Once  exact specif icatjons^  for-^fuel
 grade  ethanol  (E85  or  E100>  have  been  determined^ it,  is
 unlikely    that   pipelines \would   place    any ; .additional
 specifications  on the  fuel- since  it is  so uniform  a  product •
 Thus,  for  pipelines  and  other   distribution,   systems,   ethanol
 should be a -very .fungible product.
   -~es                       points in the mstributfiorf system
 thafc would- regu4reT--some  -attention  are, the  storage^  tanks  at
 -te-rminali  aHti ^ervi^e  stations.- If; tanks are used Jffiat _ have
 beeiTuse^for^gafioline,  they -would in many- cases- need to  be
 dleaned^' out -of water  and any  buildup of  scale, -or  else the
 solvent properties  of  the  ethanol  could   result  in  fuel
 contamination.   This  has  been  a  standard  practice  for man>
 mSketlrs  of  gasohol,  so  it  is  not expected' to  present any
 problems.ta-do^it  for E85  or Eioo.
                                -31-

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O • w • «   ••*• *" ""•	
             ,.    *v«  n*»d  for segregation from  gasoline,  the
     Other thanr;he^na  distribution  of   ethanol  to  consumers
major  factor.  affectinf  ^™t  of  ethanol  needed  due to  its
would  be the  increasea     aallon  compared to  gasoline.   The
lower  energy  Content ^er^y        determined by the^relative
actual quantity of «^*n°J- Ballon)  of  an ethanol  fueled vehicle
fuel economy (inJiles per gai         ^  Q     On the  energy
«««-«aT-ori  to  aasoline, WII-U-M «^jr-	      ,,«*,4«ia  officiencv in
compared   o gasoline,  whac* ^ ^on  the vehicie efficiency  in
                       into useful wor*.
     Ethanol  has  about                     .
                                iicrow   or   near—
 onv*  TW-,	       in  an   efficiency  benefit  compared   to
           ^IW  one .ight eSe=,: th,^^^.rgSSdS!.       ; i
 ^Iruc^^e^ ^^^^^^0:^^-t^anol, ^n
 ElOO vehicle has  advantages  that  tena ^        	
 _.   .   ,	    tfr\f   i nstrance.
                                              ar_u

 disadvantages.    For   ^jfj^rf' to  obtain   optimum  efficiency,
 decreased  from  stoichiometric  to  °otain   op      t^conbu8tipn
 ethanol  theoretically   loses   less   of  since  ethanol  has  a
 pressure benefit ^ than  ^hanol .   Also, ^ methanol,  the fuel
 greater energy density  Knm3to%S)aIThe 30% figure represents vehicle as  well  as
        than 30%.)_Tne su*   y            Qf  no reasons  why  it
        (or   M100   7.eY.c'regt  ata  from moderately
                       estimate  does not

                                    1 UcShn5^eV^l™a7so "be" used
  *0 ^ AA>^ ** .»•—-—• — —  . ' ^ ^ — -—     M.
  with gasoline
                                 -32-

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     Thus •  for  the  purposes  of  this  report,'  the  efficiency
i,provemIntsf0JithhethPanoPl  are estimated I  at  about ^ ,ov  for :  neat
ethanol  in  a dedicated vehicle. and 2.5%  f for near neat  
-------

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3 . 4  vehicle Hardware Costs                                          It

     Use  of  an optimized  vehicle  fueled with neat  (or  less so
with near-neat)  ethanol should allow use of  a  smaller,  lighter     |
•enaine  which  delivers  the  same  power  as  the  gasoline-fueled     »
enlinl  it replaces.   The weight  saved in  the  lighter  engine
means  that portions  of the  body structure  and  the suspension     |
c!r be made lighter,  especially  if the engine/vehicle design is     1
      as  an  entire  system.   The  resulting  vehicle will  have
  one  as                   .
 eaSivalent  poer and weigh  less than the  vehicle  it replaces;      .
 hfncV  the  resulting vehicle will have better performance.  _The      |
 inSroved  performance^ means that even  further weight reductions
 IS   possible   if   the   engine  is  resized   for  equivalent
 performance.   The smaller engine  will allow powertrain weight      •
 and cost  savings because  the power transmitted will be reduced.       m

      The  smaller engine size should lead to  a smaller catalytic      f
 converter since  most emission  control  systems  use  a   certain      1
 ratio of  catalyst  volume to  engine displacement.   Also,  the
 lower vapor  pressure of  ethanol compared  to  gasoline  should      -
 result  in savings in the  evaporative control  system.                  |

      Ethanol 's combustion properties should  be similar  to  those
 of methanol which result  in less heat being rejected  into  the      |
 engine's  cooling system.   The  lower heat  rejection  and  the      9
 cooler  exhaust  leads to more  savings.  The neat ethanol  fueled
 engine  will  have to increase  the sensible heat in the  exhaust^      |
 This  will  require  exhaust  port insulation  which  provides  the      §
 appropriate  exhaust  conditions  for  effective, emission  control^
 Thi fact that not as much heat  is  rejected into the vehicle s
 cooling system means that a smaller  radiator can be used.            |

      However, fuel  system modifications  for neat or near-neat
 ethanol might lead  to  cost  and weight increases.  Hydrous neat      |
 ethanol  (95%  ethanol  and  5%  water)  vehicles may need  more      ft
•attSSion  to material selection  since this fuel  has  somewhat
 greater  rust   forming  tendencies  than   the   anhydrous  neat      -
 ethanol    It  is expected that any  material  changes  implemented     |
 lor  methanol  vehicles  would  also be  sufficient  for ethanol
 vehicles.                                       •       .              m

      Cold  starting  with  neat  ethanol at low temperatures would"    •
 recruire  similar solutions as  used with neat methanol due to the
 SiSla!lv  low   volatility  of   ethanol.    For   instance,   some      |
 SisiihgethSiol and  methanol  vehicles  have  used  a   separate     1
 fuel  system  with  a  more  volatile  fuel   (e.g.,  9jsoline.  or
 propanK for starting  and then switching  to ****lcdhol.Kso.
 with enough lead   time,   engine  hardware  will  probably   be      |
 Developed  such  as  a sophisticated  direct  fuel inpection  syster.
 to  assure  cold  starting  [29,30].   The more sophisticated  fue.      _

                          •                                             1


                                                                       I


                                                                       I


                                                                       1
                                -34-

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greater energy density.

     On  an overall  basis,  there  are  several areas  where  cost
saving? and increases  are expected.  While  there is uncertainty
on"  the costs of vehicles designed  for neat ethanol  and higher
costs  have been estimated by others such  as Ford  and  GM,_ this
report  assumes  that in the  long  term  the  savings and increases
will balance out with  no  overall  cost  difference between future
optimized  neat  ethanol  vehicles  and gasoline vehicles.   It
.should  be noted that  since some  of the  changes needed  for  a
fully  optimized vehicle  (e.g., the structural  weight  savings)
could  only  be  realized with the design of   a  totally  new
vehicle,  achieving the -full efficiency potential of ethanol (or
methanol)  fuel  would  require a   lead  time  of  at  least  5-6
years   As long as ethanol vehicles"are simply  modifications of
their  gasoline  fueled  counterparts  as   in Brazil,  the  full
benefit of potential weight  reductions will not  be  possible.

     For  a flexible fuel vehicle operating on various  fractions
of  gasoline  and ethanol,  one does  not  have all  the cost  savings
Doslible   with  a  neat ethanol  fueled vehicle.  Also,  a fuel
lenlor is required.  EPA is relying on the Ford cost  estimates
olan extra  $150  to  $300  for a flexible  fuel  methanol  vehicle
produced   at  high volumes;   the  Ford  numbers  were   recently
updated to come up with  this  new range which is slightly  lower
than  the  old  numbers. [31,32] .  An average  cost  of  $300 per
vehicle (the high end of  the range) will be assumed.
                                -35-

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3 5  vehicle Operating Costs

 '
 asoline.   For  gasoline  ••rpi.. of  roughly  $20  per
corresponding to currant «""•     D;ice of $1.07 per gallon is
barrel.  Foc com^"so°   9"     oil  price  of about  $35  per
                     If   crude   oil
 section   3.1.1,4.     I    cru                    t     increase
 substantially in the  future, i^ high etnawi      pJoduGts in
 beyond $1.50 per gallon due to  the  use ot  P e       ^    show a
 corn  farming/transport.   A columi  "  |^o          cellulosic
 possible   future  cost   of   ethanol   ae « vea     dealer markup
                            sect ion  31. 3    in e
poss                                              eaer  ma
biomass,   as  described  ^sect ion  3^1. 3^   in e       nt  total
SSJ?^°iri.1SS?J..fir tharSo6uVput mofnteathanogi  (due  to  lo.er
energy content  than gasoline).                                        ]



                        r
 a: ^^;«rr                     rr^ffis, t:
 derived from  the  "tio of
 !?!oe9salar°e  o^lTtho^itua subicy since  no subsidy  is  .-•_
 anticipated in that scenario.                                        1

      using  the above  ethanol  g ^^I^^oUni
 compares the annual fuel costs  for ethanol re   yeai;  and  27 . 5      1
 assuming  accumulation, of  10,000  miles  P^  y     are shouT,      j

 ?oSb1eineerteh%1VhlSermoreSloP«eerr '^"i-olin. costs depending  on
 the specific scenario.                                              ]
                                -36-
                                                                      1

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                                 Table 3-2
                             romarison for  F100  without Subsid
Terminal or
  Plant-Gate Price

Long Range and ...'
  Local Distribution

Service Station
  Markup"

All Taxes-
Subtotal
  Distribution

Total  Pump Price
 Per Gallon Gasoline
   Equivalent:

   _ 30% Ethanol
   -  Improvement  .
                   " Low Crude
                     (S20/bbl)
                   ... Gasoline

                   •. ,  0.69
                                 Current
                                 Low Cost    High Cost
                                 Ethanol       Ethanol
                                  1.00
                   0.:06(0.03).* ,-   0.06C
                                               1.50
                                                  0.06°
                      0.09
                      0.24
                      0.39(0.36)
                       1.08
                       (1.05)
                       1.08
                       (1.05)
0.06-0.08    0.06-0.08 .


0.16        "0.16
0.28-0.30    0.28-0.30


1.28-1.30    1.78-1.80
                                      1.48-1.50"   2.05-2.08
                          High  Crude
                          ($30/bbl)
                          Gasoline

                             1.07.,.-


                           0.06(0.03)


                             0.09
                                                              0.24
                                                              0.39(0.36)
                                                              1.46
                                                              (1.43)
                                                              1.46
                                                              (1.43)
  (For the case of E85 with 2.5% improvement  see next  table.
  since the cost of the 15% gasoline must be included.)
a)
b)
                    case is base* on  increased corn price  due^ to  gr..tly
  j.ii«."Ti« -------         _..v.,-«i     T€  crude  oil  prices  also  increase
~..ii&&^:--'**^.^c^&S^:-fo^ ^habol cos| may  increase beyond


                     *S^K^*ftl^oiihefshipped'%&: S- non-attainment
                              water;.or pipeline routes,
                                                                 be   sufficient
 d)
 e)
   system wide basis.
   l!s (BTU ratio) /I. Inefficiency ratxo)
   1.154 x $1.Z8 =$1.48
                                              =  1
                                -37-

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          ••  '          •    Table 3-3
^Ethahol Plant    ;;
  'Gate Price

 Gasp1ine  B1ending
      E85
 E100/ No
 Credit For
•efficiency:

  1.00-1.50



     0


  0.28-0.30




   ;. 28-1.80
                                    E85
                                  2.5% Better
                                  Efficiency

                                  1.00-1.50
                                -0". 05 to -0.12*



                                  o.30-a.3ic


                                  	.	-r-	•

                                  1.25-1.69



                                  0.74-1.18*
Distribution,
  Markup and Taxes

 —.——	:—	"

Total Ethanol
  Retail Price    ;

-$0.60/gal taxjcredit  0.68-1.20
   on.EtOH portion

Gasbline-EgAiivalent  vl. 50

:   Ratio'     '•  . '. '---•;	

                        ,  92-2  70     1. 74-2-. 35-
Totar Gasoline-        1.922,/u
   Equivalent .Ethanol   ,r  .-_.-...        ,
   Retail Price    --.-•••:••

 -$0.&0/gal tax credit  1.02-1.80     1.03-1.64

   on EtOH portion
   E10Q ,
 '30% Better
 Efficiency

 1,00-1.50



 ..:•'•   o.



  0. 28-0;, 30




  :l. 28-1. 80



  0.68-1^20



•   1.154h;


   ^•i'.l  •"

   1.48-2.08




   0.78-1.38
    on Ji^wn jj^^<-^— _, -_                      -     ^   - -,-     .  ._-


  •TfsfSa?*^                                  a
  b) -  without any- tax subsidy-  These esjx     . refalters  would
    -  station-  marXup   as®umeT,^ aallln  of  ethanot sold than  a
       retire-a i^61;Pff^O  toy the lower  energy content  of
       gallon of  gasoline^jJue^toj^ ^^ Q£ ethanool  saies
   c)
   d)
                                                          adjusted
                  0.15(10.39) =$0.30      6o/gallon  cost  must
                           price on^JT'  *      d  be  borne  by
                          qovernment  ouageu  aitu.  ««= -  **
     SZlli wwiuw  - — -  --  3
     taxpayers  in general.                 -  ^

f)   !BWg0ai8loi$0ga^Uni?;(BTO/gallon  ethanol

     for efficiency imP^Yf^fn? k  - i  39
g)   0 85(1.5)/l.025 -H 0.15/1-025  - 1-39

h)   1.5/1.30 -.;1v1:54-   , :


      • - :  •;-.-.' .",-'•-  .'• .',.•' ^^v-.:-38-
                                                                       ,
                                                                     .V

                                                                      1
                                                                      -*
                                                 I
                                                 \
                                                 I
                                                 1
                                                 I
                                                 I
                                                  I
                                                  i
                                                  1

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a)
        . Gasoline
        Low   High

        $382  $520

        $382  $520
       Change
      Relative TO
                         :  Table 3-4

                      AnnualFuer_Costsa
                $0.60/gal
                 Subsidy

                  No  '

                  Yes
Gasoline Low

Gasoline High

No
Yes
No
Yes
                                   E85
Low   High,

$633  $855

$327  $553
                                 +66%  +124%

                                 -14%  + 45%

                                 -1-22%  +64%

                                 -37%  + 6%
                                                   El 00
Low   High

$535  $753

$284  $502
                                           +40%  +97%

                                           -26%  +31%

                                           +3%   +45%

                                           -45%  - 4%
Gasoline-equivalent .assuming 10,000 miles/year, and 27. 5 MPG
                               -39-

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3 6
would  be  very  I»r9« b^?°* A " ethLnSl' production  levels  the
certain  states.   At  JSi Sahwav  Sd Mass Transit Trust Fund





SH-i< SSrSsJ: s-'a  s
blenders   income iilt«njr^ther *rSuc«  the Highway and Mass
exemption,  it  w°ul<* J01-Ji5  reduce General  Fund  tax  revenues
SSSiLc7eUaSS\nr?hened^af  SSSlt unless  compensating tax

increases are enacted. •

     The issue of" state budget effects is less
range of  tax subsidies,  which fuels tne^app
a given state  contains a ma: or ozone  non     ^  ^  ^^^

the  ethanol  vehicles  would  J>e  us e^           ^  ^  ethanol
provide  subsidies  aver aging ^ 0.20 o.ju  py  Currently,  only
Ind  totalling roughly ^  "tainSenf ar Jas  in the  President's
 two  of  the  nine Jzon® ^^""^bsidies .   .These  are Illinois,
 proposal have  state • ^^L^" ^ ?,S and Connecticut, where -the
 SiS^'i/fO.^^r  g^UorTm ethanol blend (equivalent  to

 $0.10 per gallon of ethanol).             ,
                                                                 J
                              -40-

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                 References Cited in Section 3


1.    "Fuel  Ethanol  and  Agriculture:., An  Economic Assessment,"
     U.S.   Department  of  Agriculture,  Agricultural  Economic
     Report Number 562,  August  1986.

2.    "Fuel   Ethanol  Cost-Effectiveness  Study  -  Final Report,'1
     National  Advisory   Panel   on  Cost-Effectiveness  of   Fuel
     Ethanol Production  (page 1-2),  November 1987.

3.    "Ethanol  Economic   and  Policy  Tradeoffs,"  United  States
     Department  of  Agriculture,  Agricultural  Economic  Report  .
     #585,  April 1988.

4.    "Ethanol's Role in Clean Air,"  Department of.  Agriculture
     Press, 1989.

*    "Feasibility  of   a  Strategic  Ethanol   Reserve,"   USDA,
     Department of Energy,  report to Congress, March 1988.

s    Telephone  discussion  with  Steve  Gill,  USDA  Agricultural
     S?aMliz1tionand Conservation Service,  March 30. 1990.

7    "Ethanol  Fuel  Modification  for Highway Vehicle  Use. Final
     Report,"  U.S.  Department  of  Energy,  Report  ALO-3638-T1,
     July,  1979.

8    "Phase  Separation  and Cold  Start  Devices  for  Neat  Ethanol
     Vehicles   The Brazilian  Experience," .letter   from^Plinio
     NMtSri?' Ethanol   Trade,   S.A./SOPRAL,   tc,  Eric  Vaughn,
     Renewable Fuels Association, December 21,  1989.

9    "Energy  Produced  by Liquid  Fuels  of Regenerative  .Sources
     Taking  as  Model  the  Brazilian  Ethanol   Program,"   Paul
     Baumgartl,  General  Motors  do  Brasil,  presented  at  the
     Hannover    Fair -  "Technologies   for   Objective   Energy
     Utilization," April 1984.

10.  Telephone  discussion  with Dr.  William Scheller,  University
     of Nebraska, October  19,  1989.

11.  Telephone  discussion  with William  Piel,  ARCO  Chemical
     Company,  October 10,  1989.

12   "U S.   Gasoline  Outlook   1989-1994:    Changing   Demands;
   'values  and  Regulations,"  Information   Resources,   Inc. ,
      1989.

 13.   "Energy and  Precious Fuels Requirements   of^Fuel Alcohol
      Production, Volume  II,"  H. Weinblatt,  T. Ready,. and . A. =
      Turhollow,   Jr.,   prepared  for'  National   Aeronautics  and
      Space  Administration,   Contract   DEN   3-292,  for   U.S.
      Department of Energy, December 1982.
                               -41-

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14  Telephone  discussion  with  Carl  Reede.r.   Archer  Daniels
    Midland, October 19, 1989.                           ^  .         ^

15  MOW  Fuels Report,  Information  Resources,   Inc.,  December      .>
    11,  1989.                                   ,

is  Letter  from  Clayton Yeutter,  Secretary,  U.S. Department of      j
    Agriculture, ; tqT Senator  Bennett  Johnston,  November  3,
     1989.
17   van Nostrand's  Scientific Encyclopedia,  Fifth^Edition, Van
     Nostrand Relnhold  Company,  Edited by Douglas M. Considme,         j
     1976.                                                             1  '
              "   "    - •                     r   - " •        "               **•
ia   "Alternative  Fuels:  Progress  and  Prospects,  Part 2," G.
     Alex Mills  and  E.  Eugene  Ecklund,  U.S.  Department  of       -•
"     Energy, Chemtech,  Vol 19:10,  pages  626-631.                       J

19   "Biofuels-   A Strategy  for Alternative Fuels," Stanley R.
     Bull  Solar  Energy Research  Institute, handouts and  slides       1
     ?rom'presentation  to U.S.  EPA,  November  30,  1989.                 *

20   "Five Year  Research Plan,  1988-1992,"  U.S. Department  of       |
     Energy,  ?iofuels  and  Municipal  waste Technology  Program,       f
     DOE/CHI 0093-2 5,,  DE88001181, July 1988.

21   "Review  of  the-   Alternative   Fuels  Research  Strategy,"       j
     le?te?  from  Lee  R.   Lynd,  Dartmouth  College,   tOQ Phil  . • .  •*
   ..... lorang,  E!A Off ice of  Mobile Sources,  December 12, 1989.
                  Fuel  Ethanol From  Lignocellulose:  Potential,
                                                  -         SK:
     and Chemicals, May 1989.
                                                              ,
                                                                  -
     Mobile; Soiiicesf ^ovember IB, 1*&±             ' _      .-     -   "• |,
                                       Environ
                                                                    •••
    ....             ..       .         .          ..
 25.   "Petroleum Storage and Transportation;- Volume 2,  National      |
      Petroleum Councils  April  1989.
                               -42-
                                                                      . 1

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21.  "Aspects  of  the Design   Development  and  Production  o£
     Ethlnoi Powered  Passenger  Car  Engines,   F.  B.  P. J1-1^?: J1
     International  Symposium   on   Alcohol   Fuels,   May  21 25,
     1984.



"
     Sources, April 11, 1*90.                       .,.;•.•  ,
if.  statement  of  Work.  «»

      I. Bruetsch,  start date March
      25,  1984.
 32    Letter  from David  L.  Kulp,  Ford- Motor  Company to  Eugene

      Durman,  EPA,  September 26,  1989.
                                -43-

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4.0  ENVIRONMENTAL ANALYSIS  OF ETHANOL

     The major effects of neat or near-neat ethanol vehicle  use
are  expected  to  be  in  the  area of  ozone  formation and  air
toxics.   Using current vehicle emission control technology,•• NOx
and CO  emissions  can be equivalent to gasoline vehicle  levels,
There is  no  reason  to expect  or require  them  to  be Better,,
since vehicles  meeting  the applicable NOx emission  standards
are- adequate  for  general attainment  of the N02  standards,  and
unlike CNG  ethanol  has no particular advantage with respect  to
CO emissions.

4.1  Urban Ozone and Pan Level

     Ethanol-fueled  vehicles   tend  to  emit  more  ethanol  and
acetaldehyde  than   a   similarly  configured   gasoline-fueled
vehicle.  Formaldehyde emissions  are  also expected to increase
relative to  a  gasoline-fueled vehicle but not  to as great  an
extent [1]   Compared to a  methanol-fueled vehicle,   a  vehicle
run  on  ethanol  is  expected  to emit   less  formaldehyde  and
essentially no methanol, but more ethanol  and acetaldehyde.

     Non-methane  hydrocarbon   (NMHC)    speciation    data   for
ethanol-fueled vehicles  are limited  to one study. [1]   The test
vehicles were not  specifically  designed  to  run  on ethanol.
Data were  obtained  with the vehicles operating on  E85 and E95.
Data were  also obtained with  the  same  vehicles  operating  on
Indolene, M100,  and M85.  It  does not  appear  that the methanol
and ethanol-blended fuels  were matched  for  volatility.   With
these limitations  in mind,  the  mix of NMHC  emissions from the
gasoline,   methanol  blends,   and   ethanol   blends   are  not
dramatically  different.  .The  ethanol-fueled  vehicles  tend  to
emit more two carbon compounds  such  as  ethane and  ethene,  but
less of other paraffins.                       ,

     The impact of the use of ethanol-fueled vehicles on urban
ozone   has   not   yet   been   adequately  studied.    Although
methanol-fueled vehicles have been  studied in some  detail, no
quantitative  modeling  studies  of any U.S.  city  exist involving
the use  of  85-100% ethanol  in vehicles.  Without a broad  set of
such   studies,   the    reactivity    of   emissions   from   an
ethanol-fueled  vehicle  relative to  a gasoline-fueled  vehicle
can  only  be  estimated  in  a crude  fashion  by   comparing   the
reactivities  of major emission components.

     The reaction   of  compounds  in  the  atmosphere with   the
hydroxyl radical  is often  used  as  one  measure  of reactivity.
Table  4-1  gives  hydroxyl rate constants for  some of the major
components  in  methanol  and   ethanol  exhaust,  normalized  to
gasoline NMHC.[2,3]   (Hydroxyl rate constants strictly  speaking
apply  only to  pure compounds.  The  rate constant for  gasoline
NMHC  used  in Table 4-1  is actually a weighted  average  of  the
large  number  of  pure  compounds that  occur in gasoline vehicle
emissions. Hi]    This   simple  approach   assumes   that  ozone
production  is  based  solely  on the  rate   constant  for   the
                               -44-

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                           Table 4-1

                         ivities  Per  Carbon*
                    Based on              Based on                    I
Compound       QH^ate_Constant--    Relative Reactivity"'

_. ,    ,                0 21                0.76-0.87                   1
Ethanol                u./i                   0 69
Methanol            .0.13                    •
                         0                7 70-331                   1
                                          X
Acet aldehyde          1.15
Gasoline NMHC         1.0
     Normalized to gasoline NMHC carbon for easier comparison.

**   The  OH rate  constant  for  gasoline NMHC  is.  10.16 x  101
     The  OH rare  const sue       *     hydroxyl   rate  constants
         not  exist   Due  to the  numerous   imitati-ons  cited
     potential of ethanol-fueled vehicles.

     The    relative    reactivities    of    ethanol,   methanol,
     formaldehyde,  and acetaldehyde were  taken from  Tables  4a
     aSd   4b   in  reference  [7].   Relative  reactivities  at   a
     N^C/NO,  ratio  of  8  were  used  since  the  ozone  maximum




     ,?  ethane    formaldehyde  and  acetaldehyde,   3)   propane.
     iormaldenyde and  acetaldehyde,   4)  ^^'^^l^




     ^  ac!?aid!hyde  with NMHC,  methanol,  and ethanol  as the
      w-sistituted NMHC species were selected for this table.
                                -45-

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reaction Of           ou,   -ith  the
than the hydroxyl "ajL"1'"^     theompounds are  emitted.
                                         wil! not be  considered
further in this report
 incremental  reactivity  or  P""; "  =,   reactivities  have   been

                                            me'thanol,   ethanol,
vc/No
  1          £ormany   p«   copoun              ,
calculated   for  many   put       v         ERMA  mo(Jel        a


 °ldy d         •r.Vio.4* a^d  initial  conditions,  «mxning
       o
both one-day and two-day episodes. [2]
     A  third approach is  to calculate the  re^a^  reactivity










 reactivity method,  therefore, may oe  ™a    reactivity  method

 changes in  organic  «J««fnJ'  the Affects of substitution of a
 is also capable of  lookig at  the effects    ^  approach  to

 mixture  of  or games j    EP A_0^ntiai Of  organic  emissions from
 evaluate the ozone-forming Pote^"y °T   typical    NMHC   from
 methanol-fueled  vehicles  f^lative   to  ^pica      methanol
 gasoline-fueled vehicles.   ^flative  "•ctw1^ les

 !nd formaldehyde were based on modeling  ^«« h" to  calcuiat.e







 number  of  °r9«ic        '     a  function  of  NMHC/NO,,   ratios
                                             ,
                                -46-

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be used  to  assess  large  changes  in  organic emissions,
the  incremental  reactivity approach,  and  3)  it " £0*
to the many  limitations of the hydroxyl rate constant
                          hould  be  noted,  however,
                                                       that  the
cited  creviouslv    It  should  be  noted,   however,   that  the
reac?iv?t!es of Ypure compounds  calculated Busing  th«  relative
reactivity  and  incremental- reactivity  approaches  agree  fairly
well. [7]

     in  a  recent  paper ,  Ford  has  gone  a  step  further  and
               "                               h   t™
      n  a  recen         ,
calculated  tZe "o-forming   Potential  (both          .  .
incremental   reactivities)   per   carbon   of .9" x»line   and
alternative-fueled vehicles. [8]  -Re-lative *ea°tlvl"e|8 per mile
can  be  derived by multiplying  the  total carbon  emissions  per
mile  by  the  relative  reactivities  per  carbon    When  this ;  is
                                                            same
                                                              on

                      same ozone v^ne-pit- as  an  optimized M85 or

 MlOO vehicle.
      It  should be noted that  the  magnitude of the ozone ^pact
 of  an ethanol-fueled vehicle  is difficult to  gu ant if y at this
 time.   Emissions data for  a vehicle designed to run  on Jthanol
 are  needed,   as   well   as    modeling   using   city-specific
 conditions    Exhaust emission  characteristics in particular  are
 as  strong. a function of vehicle  design as  of  fuel type.

      The ozone  impact of  an  ethanol-fueled  vehicle  will   be       j
 dependent  upon  the atmosphere  into  which  it  is   introduced.
 i!c?Srs  suchP as  the NMHC/NO,  ratio will  be important  perhaps
 even more so  than for methanol-fueled vehicles.  Ethanol-fueled       1
 vehicles emit ethanol and  acetaldehyde .   The ethanol  reacts  in       J
 1-he   atmosphere  to   form   more   acetaldehyde.     Similarly,
 m^hanll-fuelld vehicles  emit  methanol  and formaldehyde,  and       -|
 the   methanol   reacts   in   the   atmosphere   to    form   more       J
 formaldehyde    At  low  and  moderate NMHC/NO,  ratios,   borh
JormalShydS  and acetaldehyde  exhibit high reactivity due  to
 their high  reaction rates with OH  radicals and photolysis  to       J
 form  radicals.   Formaldehyde  photolyzes  more  rapidly  than      J
 acetaldehyde.   These factors  become  less  important,  and  the
 SI!  removal  characteristics  become  more      "^'"  "
               t-Bls
                   £-  r
  meanol   in  .reference -[7] ,   ethanol   is  more   reactive   th.
                                -47-

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methanol  at the  low  and  moderate NMHC/NO.  **%°*£™£*™l
the ratio at which maximum ozone is formed) which reflects the
importance  of  ethanol 's  higher  reaction  rate ^ with the hydroxyl
radical  under  these  conditions.   At  h^her  KMHC^O.  "tios^
ethanol  appears   less  reactive .  than   met Hanoi   due   tc |   jhe
increased  importance, of.  the  minor  NO,   sinks   in  ethanol s
photooxidation mechanism.


atmos^rr?^^^

Sir HS-M^^^
vehiclesnClead to an  apparent increase in the f o™tionj:at^f or
PAN   even  in  the vicinity of  large  sources  of NO  and otner
nitroaen oxides   A more  recent  study  measured  ambient levels
of acl?aldehyll  formaldehyde,  and acetone  in  three ma: or urban
aLas  of  Brazil. [10]   Acetaldehyde  concentrations   in urban
trSK  of  Brazil are substantially  higher  than  those  measured
Sse^here   The authors- conclude that the most likely  cause  for
hi|h Sent  levels of  acetaldehyde is the large scale use of
ethanol as a vehicle fuel  in Brazil.

     It is  difficult to extrapolate these  results  to  the U.S.
because the  Brazilian  experience  is not  representative of U.S.
co^i?ions    For  example^  the   vehicles,  in  Brazil  are   not
emaipped with catalysts, whereas most vehicles in the. U.S. have
SoW form of  catalyst.. When properly  operating, catalysts  are
very  effective  at  decreasing  unregulated emissions  such   as
Icet aldehyde. [11, 12]     Other    differences    that    could
SiSlfiSStly  alter the  findings include climate, ^elevation,
population,  vehicle age  and  age  Distribution  of  the  fleet
maintenance  practices,  driving  .habits,  and  local  industrial
activity    in  addition, a  limitation of the studies  appears  to
be  the  lack of  a  good  pre-ethanol. acetaldehyde  baseline  in
Brazil    The  studies   can  be  used in  a  qualitative  sense,
•howler,  as  suggestive  of  potential  PAN  and  acetaldehyde
 increases with the use of ethanol  fuel.
                              -48-

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4.2  Air Toxics

     The emissions  of  air toxics from  ethanol  fueled vehicles
should be'similar  in composition to  those of  methanol  fueled      1
vehic?es    As   indicated  in Table  4  of  Attachment  5 -.of  the      I
Methanol  Special  Report  [5],   neat  methanol   (and  thus  neat
e?hanS?) vehicles can  probably  be engineered to have only 10%      m
of  the  carcinogen  emissions  as gasoline  vehicles,  assuming      §
successful  commercialization  of  technology  currently  being    •-.
?estld in prototype vehicles. For FFV's the benefits would not     . -
bf as  g?e!t?bu? would be  roughly similar to  those given in     |
Table 4 of the Methanol Special  Report.
sr^'thrfue^^                                           I
I  Inline  comlolition  the  'same  as  current.    Significantly      •
different  gasoline  compositions  would  be  considereo.  to   oe
reformulated gasoline,  which  is  another  alternative fuel to  be      |
covered in a separate report.                                         •

4.2.1   Ethanol                                                      1

     Ethanol  is  not  considered a  toxic ' P°"utant^at  ^cutl
likelv  to be inhaled  due to  its use as  a motor  tuei.   Acute
effects  of  exposure to  ingested ethanol  are  less  severe  at      I
     • lxposu??llvels  than methanol,  and it  is  reasonable  that      •
      4 exposureT would  behave  similarly.   Some  studies  have
           that  ethanol has carcinogenic  .**~i-«-«han maested.
         nvr     o
 nS-thresh^o?d carcfnogenility  model,  even very low exposures of      «
, any 'carcinogen are a potential concern.
            sources of possible exposure to ethanol include fuel      1

                                                                    ••
 or gasoline.        -                                                 •
                               -49-
                                                                      I.
                                                                      1

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4.2.2   Benzene
     Benzene  is projected  to  account  for  .about:  20%  of  the
carcinogenic emissions of gasoline  vehicles  inf 2°05-[14]

'
 in  the engine.   This would  not occur  with  a d^10**8^* *J°
 vehicle.   It  is  also  possible that  small  amounts  of  benzene
 could be generated when lubricating oil burns.

     EPA  cancer  estimates include  a  minimal amount  of ^exhaust
 benzene   to   account   for  its  possible  formation.   The _»/«
 reduction in benzene  for  methanol  vehicles relative to gasoline
 which  was used in the methanol  report will  also be assumed for
 E100 vehicles.  FFV swill emit benzene  in quantities which are
 related to  the amount  of aromatic  hydrocarbons in the gasoline
 and  the  amount   of  gasoline  used.   In  the • case  of  E85,   a
 reduction  of  85%  can  be used as  an  approximation,  although
 arguments can be  made for somewhat  smaller reductions.

 4.2.3-   Aldehydes

     Directly  emitted  and  indirectly  formed  formaldehyde  is
 Droiected to account  for about  8%  of  the  carcinogenic emissions
 from  gasoline vehicles  in  2005. [14]   Ethanol  fueled vehicles
 are expected to  emit formaldehyde  at  a  rate roughly^egual to  or
 sliqhtly  greater than  a  gasoline  vehicle,  although much  less
 thin  that of  a   similarly engineered methanol  vehicle  (whether
 FF^ or neat alcohol  fueled).  Cl/15 - '79 SwRI blends  report 3
 However,  in  the absence of  a  catalyst  system  optimized  for
 aldehyde   control,    acetaldehyde   emissions  are   expected   to
 inc?easl  substantially  relative to  a gasoline vehicle,   as  is
 tne"  case  SiS  formaldehyde  from  a  methanol . fueled  vehicle,-
 Acetaldehyde  has  a  much   lower  carcinogenic   potency  than
 fSSSShydS,  so  it  is  expected  that, the  ^^^"^J  ™
 aldehyde   potency  from "-- ethanol  vehicles  would .-be   due .-to
 f oSldlhydS^ andf tfats is not  likely to be much- greater than
 that, from a gasoline^yehiele.       ,.  ;^ ; ^~<^:,.:";--'_":^-^~l-':'-- ; '••-:"

      Acute  non-cancer  effects  possible^  troml aldehyde e^osure
 include  eye,  nose,  throat,  and  skin  irritation,  :as well   as
 headaches and nausea.  Again, acetaldehyde effects: are expected
 to be" !esl  then  formallehyde,  and  emiss ion ^ control  measures
 used  for control  of hydrocarbon  compounds in  ethanol  vehicle
 exhaust would also control aldehyde emissions.
                                -50-

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4.2.4   i.3-Butadiene                     '--.-..-

     1 3-butadiene is projected to  account  for  about 30% of the
carcinogenic  emissions  of  gasoline  vehicles   in  2005.[14]       |
Ethanol combustion, is not  expected to. produce  any significant     1
1,3-butadiene.   FFV s  though  will  emit  1,3-butadiene  in  the
exhaust hydrocarbon portion.                                         •

4.2.5   Other Air Toxics

     Polycyclic Organic Matter  (POM)  emissions  are projected^o     I
account for about 22% of the carcinogenic.emissions of gasoline     »
vehicles in  2005. [14]   Although no  POM emission data from ElOO
vehicles exist,  the  combustion of  very  low molecular  weight      |
ethanol 
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4.3  Global Warming                                     .  ..

     Carbon Dioxide  (CO,)  is one  of  the  ''greenhouse  gases^
which means that _ it  increases^ the^tendency °4^e ^^g6/6

average temperature  of  the
the end product
•in hydrocarbon
                          ,     ^,LJli^111,     .       =      carbon
c
in?    CO,   thus  minimizing   the   formation   of   ^f^6
combustion   products   (such   as   carbon   monoxide,   benzene,
l?3^tad?eneP POM, and  other pollutants).   Therefore  use  of
any   carbon   containing  fuel   causes   CO,  addition   to   the
Smosphere, and the issue  is  how much  of  that carbon  can  then
be   removed   from  the  atmosphere   and   be   reconverted  into
feedstock for future fuel.   With fossil fuels  such as petroleum
p?od5c?r  the rite of  CO2 addition  to the atmosphere  is  much
areatlr than  the  rate  the  earth can  reabsorb it  and convert it
in?o  petroleum,  limestone, etc.  since  that takes _thousands of
vS«s   However, with ethanol, to the degree that it is derived
f?o"'vegetation  (i.e.,  trees  or  agricultural  
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     Use o£  this  figure  results  in rhe  following  amounts cf
fuel being  consumed for  each mile of  vehicle  travel.
     Type of  Fuel

      Gasoline

      100% ethanol

      85% ethanol
Fuel Consumption
(gallons per mile)

    0.0364

    0.0418

    0.0505
     There is controversy  on the  inputs  used to  calculate  the
amount  of  energy  needed  and  C02  released  in  production  and
combustion  of   gasoline  and   ethanol.[18,19]    A   point   of
particular debate  is  the energy  needed in ethanol  production,
which  can  vary  by almost  a  factor  of  two  depending  on  the
process used and especially  on  whether waste heat  is  recovered
for  Purposes  such  as  cogeneration of  electricity.   A recent
draft   EPA  report  examined  the   effects  of   fuel _ ethanol
production   and   use   on  carbon   dioxide   production   and
emissions.[20]   This  report  used as  input. a number  of non-EPA
reports.[21-233

     Table 4-2  lists  the draft  EPA estimates of  the amount of
C02  from  production   and  use  of  a  gallon  of  gasoline  and
ethanol.   The  biggest  variable  in these  numbers  is  the  C02
emitted (from energy  consumed)  during  ethanol  production.   The
typical range  of energy needed  for ethanol production is given
in various studies  as 40,000-60,000 BTU per  gallon  of ethanol,
not  including  the  energy  needed  for  byproduct  drying.   There
ale  competing estimates,  but since  expanded  ethanol  production
woSld  be  expected to  use  the best  available plant technology,
?he  lover  munber  (40,000  BTU  per  gallon)   should  serve  as   a
reasonable   average.     Combining  this   number  with  energy
efficiencies  and  other  factors  discussed  in  reference   [20]
gives  the 7.97 Ib CO2 per gallon  shown in Table 4-2.

     These  figures and the  gallons  per  mile  numbers_  can be
combined  to give the  CO2  emission  estimates  shown  in Table
4-3  for the current  gasoline vehicle  scenario  and an  expanded
ethanol vehicle scenario.    These numbers show lower  total C02
emissions  in  the ethanol  vehicle  case than  in  the  gasoline
case   The  impacts   of   land   use changes  on   C02   were  not
explored  but  are potentially important  in  a  large program.  For
example,  growing   corn or   other   crops  in  areas  that   were
forested  could  affect the  overall C02  balance.
I

I

1

I

1

I

I

 I

 1

 I

 I

 I

 I

 I

 I
                               -53-

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                                      Table  4-2

m                              Carbon Dioxide Emissions
                             from Fuel Production and Use
-}                                 .  -                                  •

*                          •             Pounds of CQ2 Per Gallon of Fuel
                Source       '             Ethanol'           Gasoline

                 Gasoline production                           3.23

                 Gasoline combustion                        ,  19.27

                 Ethanol combustion       [12.6]b

                 Corn farming               4.58C

                 Ethanol production         7.97d

                 By-product drying          4.19

 <                Credit for displaced
 ,                soybean production*    (1.37-1.47)	;	
           TOTAL                        15.27-15.37           22.50


           aTheseare   per  actual   gallon  rather   than  gasoline-
                equivalent  gallon.    On  a  gasoline-equivalent basis  the
                ethanol  numbers  would  be  15%-50%  greater   than  shown,
                depending  on  efficiency  of  the  vehicle  in which  the
                ethanol is used.

           b    COz  released  from  fermentation  and  ethanol  combustion
                comes   from   C02   captured   through  photosynthesis    in
                growing the  corn crop and therefore  is not  counted in the
                total;   also  the  C02  released  during  fermentation   is
                assumed  to  be  recovered  and  to displace  COz  that would
                have  been  generated   from incremental fossil  fuel.  This
                COz  is  not  counted in the total.   This  number comes from
                Reference [18].

           c"~  Includes  tractor  and  equipment  fuel,   fertilizer,  grain
                drying, and  other energy uses  such as pesticides.

           d    Low  end of  current  typical  range is  shown,  corresponding
                to large new energy efficient  plants  fueled  with coal.

           e    Increased   ethanol   production  from  corn  and  increased
                byproducts  would decrease the  soybean  market.  The  credit
                comes  from  the  decrease  in  fossil  fuel use for  soybean
                farming.  See  Reference 20 for details.    .
                                          -54-

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1

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Table 4-3
wet <~
per V
Tvpe of Fuel
Gasoline
100% ethanol
85% ethanol
a This is total CO
production and coi
ethanol feedstock
fermentation C02)
economy of 27 . 5
efficient ethanol
is for a greatly e
OLi UUll i/ J. WAXVU7 iJill J. O a JL WAAO
;ile of Vehicle Travel*
CO 2 Emissions Reduction Relative
(grams per mile) . to Gasoline
371 0
290-291 -21 to -22%
350-352 ~5% to -6%
2 emissions per gallon from both fuel
ribustion (minus the C02 reabsorbed into
but no credit for commercial use of ,
, divided by a gasoline-equivalent fuel
miles per gallon. New large energy
plants are assumed, since this analysis
xpanded ethanol program.
II
II
1 1
1
I
1
1
I
•
1
1
                                             I
    -55-

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A i *>   impart nf Ethanol from Cellulosic Biomass

     The   energy  balance  for   production  of,  ethanol^  from
cellulSIic  materials is  much better  than for  production  from




•htnm*^   oroduction  and   conversion   could   come   from   the
ce?Tu!LicPrmdaUtCeri°al  itself,  although  in  theg  ear^y stages  of
commercialization  this might  not  be  the  case    Even  so,  the
ratio  of  fossil carbon  burned to  carbon  available  flor  end use
has been  estimated  to be very low (e.g., 0.0-0.21).[24j

                greenhouse effects, this means_that^the  growing
        emitted  in Ythe prodSio^~of ethanol  produced from
 these sources.                   .
                                -56-

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          •••••••l"^™™'
           increases  in  ethanol  production,  the  agricultural
 •A   ff«^s on the environment  must also be  considered.   Some
side .effects on the ejyj.ro™         n  effect  of the increased
of the  issues-to consider  in.ciuae  rne               changes in
and pesticide run-off),                 forests   (including  rain
JSS. ff  iS^e^ c^s°a^=r i^ the  Tropics)  h,s to be
evaluated.
                                -57-

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4.5  Other Environmental and Health/Safety issues

4.5.1.   Spill Issues  .                             ,   '            '

     Use  of'ethanol as a  motor vehicle fuel  would  necessarily
involve  more  transport  of  neat  or  near-neat:  ethanol,  and
consequently  more  opportunities  for  accidental  spills  of  a
significant  quantity   The  modes  of  shipment  would certainly
include  barged  rail  tank  car,  and tank  truck.  Transport  by
multi-product  pipeline,  dedicated  pipeline,  and ; ^^-f?^
tanker  are 'also possible, depending  on the  scale and location
of use  and the  source of supply.  As with transport of gasoline
via these modes, accidental releases are  inevitable  over a long
enough  period of  use.   Barge and tanker shipment pose a risk of
a spill  into the open  ocean,  coastal waters,Drivers,  or  -the
Great  Lakes.   The  other , modes  would more typically result in
spills  onto  land first,  with  possible   run-off  into  surface
waters.

     If  ethanol were involved in a spill  into the ocean,  into  a
lake or river,  onto, land,  or into  drinking water  supplies,  the
Question   arises  as  to  whether  a  greater   environmental  and
public  health hazard  would be  posed  relative  to  a petroleum
fuel   spill.    The   risk  relative   to  other  clean   fuels,
particularly  methanol, is  also  of  interest. ^An  ethanol  fuel
Spill   into   aquatic   systems   or    on   land^  indeed  poses
environmental and health  concerns  because of the . fu«l «,*£*"
effects  in high  concentrations,  and it, could be expected^ that
there  would be a slightly larger  number  of  spills  (about  20*
"per  vehicle")  for  a  given  mode of transport, because  of  the
larger   quantities   of ethanol   fuel   that   would   have  to  be
transported.   The modal  pattern of  ethanol  transport  could  be
quite different than that  of  either petroleum or methanol fuel,
with less reliance  on ocean shipment.

     As  a result  of  ethanol's  inherent properties  of  water
solubility,  biodegradability,   and  relative  ease  of  complete
evaporation,    it '  :.could. .  quickly    dilute  .to   .non-toxic
^concentrations,  disperse Downstream,  decqrr^ose if  spilled  into
-large  bodies of; waters and evaporate or  decompose if spilled on
 land  areas.: lhus>  in many scenarios;,  an ethanol  spiii  ..should-
Vnot be "as hazardous as: a petroleum spill.   :-           r    ;

      Irv  comparison  to  petroleum  fuels, ' a  tanker  spill  of
 ethanol into the ocean should pose  less  risk  to aquatic life,
 Ithanoi's  water   solubility  allows  for  rapid dispersion _and
 dilution  and,   therefore,  short  exposure   durations.   Also,
 ethanol's quicker biodegradation than  that  of crude oil, diesel
 fuel,   or gasoline  results  in  shorter residence times  of  the
 fuel  and faster  recolonization  of  life at spill  sites,  with
 less severe long-term effects  of  spills  on  animal  life  and  on
                               -58-

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the  environment.    in   general,   cleanup  of   ethanol  spills
requires   less   extensive  efforts  and •  costs   than  cleanups
associated  with  spills  of  water-insoluble  petroleum  fuels.
Small ethanol spills  usually  do not require any cleanup efforts
because  of  the  effectiveness  of  natural  biodegradation,  while
large  ethanol  spill's may  require aeration  of  the water  (to
supply depleted oxygen to marine  life  and  speed biodegradation)
and/or use of ethanol-destroying bacteria.

     Ethanol  spills  into  rivers  and  other,  moving bodies  of
water  also  benefit  from  the  fuel's  water  solubility  and
biodegradation.   Again,,  in  contrast to petroleum fuels, ethanol
spilled  into a  river from,  for  example,   a  barge,  is quickly
diluted  and  carried downstream.   Cleanup of  an  ethanol  fuel
spill into a moving body of water would be handled similarly to
that of  a spill into the ocean.

     Although,   like   petroleum   fuels,    ethanol    in   high
concentrations  is  toxic  to plant  and animal  life, its  toxic
effects  after a spill onto land are of shorter duration and are
less  acute  than  those  exhibited  by  a petroleum  fuel  spill.
Again,   ethanol's   inherent  properties  of  relative  ease  of
complete evaporation and  biodegradability   play  a  positive
role.   Its  more  rapid  evaporation from  the  earth  allows  for
less  to  be  absorbed into  the soil and  water  table.    (It  is
important  to note  that while  some  of  the  lighter  ends  of
gasoline evaporate  very quickly,  its  heavy components require
"long  periods of time before evaporation  occurs.)   However,  if
absorbed,    ethanol's   larger    degree    of    biodegradability
facilitates  decomposition  by  micro-organisms  present  in  the
soil.  Because  of  its  shorter retention  periods near  a spill
site,  cleanup  of  an ethanol  spill on the earth requires less
effort than  that of a petroleum  fuel  spill.   In the event of  a
massive    spill,    however,    enhancement   of    the   natural
biodegradation  process of ethanol may be beneficial.

     Since 'ethanol's  solubility  in   water and,  hence,  rapid
dilution and  dispersion  are  considered  advantages  in  spills
into  large and/or  quickly  moving water masses,  most  scenarios
where  drinking  water  is  at  risk would   be  less  severe with
ethanol  than with petroleum.   In some  situations, however, such
as  a  river   spill  located very near  a  drinking  water supply
intake ethanol  may indeed  contaminate  a  water  supply that would
have  escaped contamination by petroleum fuel.   However,  ethanoi
has  a  taste and odor that  most adults  can recognize and avoid.
With  the  possible  exception  of  fetuses and  pregnant  women,
consumption  of  drinking  water  with low levels  of ethanol  should
not be acutely  toxic.

     Fuel  ethanol  will  contain denaturant, and may be  shipped
or stored mixed with gasoline.   Consideration  needs to be giver.
during   the  choice  of  a  denaturant   as  to whether it  remains
                               -59-

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detectable at  any  concentration that could  be  toxic.   Gasolir.e
mixed with ethanol will  tend to  separate out when  the mixture
reaches water.  It is  known that there is some greater tendency
for  aromatic  hydrocarbons  to mix  into  the water  when ^tnanol
is  also  present.   This may  also occur but  perhaps  to .a lesser-
degree with  ethanol.   Studies   on  the disposition  of  etnanol
spills very near drinking  water supplies  are ™t available, and
further study by EPA and other organizations would be useful.

     Most  of  the  above  discussion  applies  equally to ethanol
and  methanol.   Methanol would  evaporate  from an  on-land spill
faster than  ethanol.   The  relative  toxicity
                     .                          ..
ethanol  to  fish  and  other  organisms  at  a ^iven- dilution is
largely  untested.   One alcohol may  produce, a  somewhat  larger
'•kill  zone"   before  non-toxic   dilution   occurs.   The  most
significant difference between the  two  alcohols  is likely to be
that humans  can relatively  safely consume  ethanol  if  it finds
its way into a water supply.

4.5.2   Leak Issues

     The previous  section  addressed  the potential  consequences
of  sudden  releases  of significant quantities  of ethanol fuel.
Slowed rlSaks ISd  continuous  releases  of  small  quantities   are
also of interest.

     Because   of   the  biodegradability  of  ethanol,   smaller
rout ill  releases  in circumstances  that  allow for  good dilution
should  not  tiresent   an  environmental  problem.   For example,
transfer  losfes between  shio  and shore  or flushing  of  cargo
tankl  woulS at "most encourage a  higher local  concentration of
ethanol-digesting  bacteria.

             into  underground  water  are a  potentially  greater
 over a period of time.

      The  first  point   to  note  with  regard  to  leaks  from
       teg  JB?    me
 These  "cliques  can be  extended by regulation  to other  fuels
 as judged necessary.
                                -60-

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     If  a leak does  occur,  there will  be  several differences
hPtween  the  consequences  with  ethanol  compared  to  that  with
Petroleum fuels.   Ethanol  and  petroleum fuels  have  different
KdroloSTcal   effects  in  soils  and  may  migrate  downward  at
   drooca
 different  rates,  providing more  or  less time  for  evaporation
 instead    once  in  contact  with the water  table,  ethanol  will
 tend  to  mix  and  dilute  more quickly than a  petroleum  fuel  and
 to biodegrade more  quickly.   (There may  be  a zone in which the
 Shftin i  concentration  is  too   high   for   biodegradation  to
 occur* )   If  l?hanol  reaches  a  drinking water, well,  there  is
 Uttle health risk.   Ethanol  is  not toxic and is  detectable  by
 both  odor  and taste.

      Methane 1  and ethanol would  behave  very similarly to  each
• other *nw  underground  spill,  particularly  in  comparison  to
 ethanol.

 4.5.3   Fire Issues                         .

      Ethanol   like  all  combustible  fuels  such  as  gasoline,
 ?S identify those areas where precautions are needed.
      With regard to fire safety of ethanol, there are two  main
        H .SliSSr1^                -5a^£2 ^usS1?  !
       concentrations  as  low as 1 . 4 percent
                                -61-

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from  forming  in  storage  tanks  (e.g.,   nitrogen  blanketing,
b!aSder° ?e?Is,   floating  roof  tanks)  or  to tf
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                 References Cited  in Section 4                      I


1.   "Definition of a  Low-Emission Motor Vehicle  in  Compliance     •
     with  the  Mandates  of  .Health  and  Safety  Code  Section     I
     39037.05  (Assembly  Bill 234,  Leonard,  1987),"  California
     Air Resources Board, May 19, 1989.                              •

2.   "Computer  Modeling  Study   of  Incremental   Hydrocarbon
     Reactivity,".  William  P.L.   Carter   and   Roger   Atkinson,      • ••
     Environmental Science and Technology,  1989, 23,  864-880.        •

3.   "Kinetics and Mechanisms of the  Gas-Phase Reactions of the
     Hydroxyl Radical  with Organic Compounds  under  Atmospheric     •
     Conditions,"  Roger Atkinson, Chem.  Rev.  1985,  85, 69-201.       •

4.   "Effects of Emission  Standards  on Methanol Vehicle-Related     .
     Ozone,  Formaldehyde,  and  -Methanol  Exposure,"  Michael  D.     •
     Gold  and  Charles  E. Moulis,  APCA  Paper No.  88-41.4,  June     "
     1988.                                                           _

5.   "Analysis  of  the  Economic and  Environmental  Effects  of     •
     Methanol as an Automotive  Fuel,  Special Report," U.S.  EPA,        I
     Office of Mobile Sources, September  1989.                        • I

6.   "Impact of Methanol Vehicles on Ozone  Air Quality,"  T.Y.
     Chang, et al, Atmospheric Environment, 1989, 23, 1629-1644.      _

7.   "Reactivity/Ozone-Forming  Potential  of   Organic  Gases,"      ™
     S.J.  Rudy  and   T.Y.   Chang,  submitted   to  Atmospheric
     Environment,  November 1989.                                     •

8.   "Ozone-Forming   Potential  of   Organic    Emissions   from
     Alternative-Fueled  Vehicles," T.Y.  Chang  and   S.J.  Rudy,      •
     submitted to Atmospheric Environment,  November 1989.            |

9.   "-Atmospheric    Chemistry     of    Aldehydes:     Enhanced
     Peroxyacetyl   Nitrate   Formation    from   Ethanol-Fueled     •
     Vehicular   Emissions,"    Roger   L.    Tanner,    et   al,      •
     Environmental Science and Technology,  1988, 22,  1026-1034.

10.  "Urban  Air Pollution  in Brazil:   Acetaldehyde  and  Other     | I
     Carbonyls,"   Daniel    Grosjean,   et    al.    Atmospheric
     Environment, 1990, 24B, 101-106.                                •

11.  "Volatile  Organic   Compound  Emissions   from   46  In-Use
     Passenger  Cars,"  John Sigsby, et al.  Environmental Science
     and Technology, Vol. 21, page 466, May 1987.                    |

12*.  "Characterization    of   Emissions    from   a    Variable
     Gasoline/Methanol Fueled Car,"  Peter  Gabele,  EPA Office  of     |
     Research and Development, 1989.
                              -63-
I

1

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13.
14.
15.
16.
17;
18.
19.
20.
21.
 "Diet   Nutrition,   and   Cancer, V  Committee  on   Diet,
 Nutrition,  and Cancer,  Assembly  of  Life Sciences,  National
 Research.  Council,  National   Academy  Press,   Washington,
 D.C.^ 1982.    '-.. V  ;....";  .   -        '"  •   - ' •."    *

 -Air  toxics  -Emissions   and   Health  Risks   from  Mobile
 Source^* Jonathan  M. . Adler  and P«fty M.-. C^
 Waste Management Association Paper 89-34A.6, June

 "Gasohol   TBAr  MTBE  Effects  on  Light-Duty  Emissions, "
 Brucf^ykowski, Southwest Research  Institute'  final report
 of .Task 6,  EPA Contract 68-03-2377,  October 1979.

 "Air  Quality  Criteria:'' for  Ozone, and Other  |£otoc£emical
 nvirianf«5     Volumes    IV     and     V,      EPA    Keports
 Epi%00/8-84/020dE and EPA/600/8-84/020eF/ August  1986.

: "Gasohol:    Technical,  Economic, ^or  -Political. Panacea?,"
 Thomas  C,  Austin . and  Gary  Rubenstein,  California  Air
 Resources Board, SAE Paper 800891, August 1980.

 -"Global Warming Impact of  Etnanol  Versus  Gasoline,"  S.P.
 HoT paper presented at  "National Conference on Motor Fuels
 and Air Quality," October 1989.

 "Moving Beyond the  Myths,"  Ben Henneke,  paper ^presented  at
  National  Conference  on  Motor  Fuels  and Air   Quality,
 October 1989.         •..-.',..>

 "Effects  of  Fuel  Ethanol   Production  and  Use  on  C02
 Production  and  Emissions,"  David   Bartus,   draft  report
 EPA-AA^SDSB-89-xx,  June 1989.

 "Ethanol   Fuel   and   Global-   Warming,"  Migdon  Segal,
 Congres^ionat-Research Service^ February 13,' 1989.

                                                 Motor Fuel, "
                                      Amejican?  Institute  of
23r.
 24.
 25.
                        Production  -andt" Combust ion  of  Fuel
                   *-* ?'s'  Department ;of : Energy,  September
                        "
                    Alternative  Fuels   Research  Strategy , "
  lettec;rfrom  ,ee-  R,   Lynd,   Dartmouth  College,  to  Phil
  roranf/EPA .Office of  Mobile  Sources,  December 12, 1989.

  "1988 Annual iReport of the American  Association of Poison
  Control Centers National Data  Collection, System,"  Toby L.
  Litovitz,  et  al,  American Journal of  Emergency Medicine,
  volume. 7,  number ; 5:, page 495.

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                                                                  i
                 Other Related References


 • '•'Automotive  Use of  Alcohol  in Brazil  and  Air  Pollution      ™
  Related Aspects,"  A.  Szwarc  and 6..M.  Branco,  CETESB, .SAE'    —
  'Paper-'" 85.0390-, 1985.                              ^    *   : '-.      I

 ^"Transportation Fuels  Policy  Issues and Options :  The. Case,  ,,
  of IthSol Fuels  in Brazil," Sergio C.Trindade, presented      .
  at the conference: on  "Alternative  Transportation^ Fue^ ,in.v  ;  §
  -the 199Q1 s and Beyond, " Asilomar , California. July  1988.        ;

  "Braziiiah Vehicle Calibration for , EthanoL Fuels, ";  G. •  E.    .•; |
 :Chui/  et  al,  Ford,   .Third "International. Symposium  on     »
  Alcohol : Fuels, Asilomar, California, May 1979.    ;                .
 .  -'  '      .   •      -'•''    "«••  •   '--••-       , _ ™   ..   " "T"    .- ' -        B
-EconoItvics^of  Ethanol Production in  the
                                                      States
    co
 ^Agricultural  Economic  Report  Number  607
;y Department- of Agriculture, March 1989 .            <.      :   ;     : •

  "Alcohol   and  Ethers:   A  Technical  Assessment- of :^thei,r .   .
  Application^  as  Fuels :; and  Fuel  Components^   American      ..

  Petroleum Institute,  July 1988.                   >             •
•- v •  •""-,. i •   .    * • - -  - .    •" -  i         .      .          - "   .•_-•'•.-.•=-" • Wr -
  "The0 Economics  of -Gasoline  Ethanol  Blends,, "  Robert  C^
  Anderson  ^alV, American  Petroleum  Institute,  Research     .

  Study #045, November  1988.                        .               ™

 - "The  U.S .  Biofuels- Industry, "  Donald L-Klass,- Institute
•••'of' ^  Gas  V  Technology,   International   Renewable  .Energy     |
  Conference, September 18-24, 1988.
  /"Herbaceous Energy  Crops  Program:^ ^^J
   for  FY ^1987,"   J.H^  Cushman,  A.F.  Turhollow, ^
               oik:;  Ridge   National   Laboratory,; 7ORNL-6514,
,._ ..            .. .   •/,-     • .-- -•,.-  ..• ••  -  -   .
yiiji^^

                                              '              '
    a^                             '^lz :^6® W ^'^ ^.:' • ' m
   "l^^                                                           : "'-•-: : :-'- t
                     - .  ...  .,  .           ~   ..•.._    ....     .    .
                     .Comparisons .  of  Energy   ^conomies,  and     J
                    Alcohol -and   Gasoline  Fueled  Vehicles,
                      and  Barrett  Pullman   HI .Ihternatxonal

                Alcohol Fuels, May 28-31, 1979. v  >            ; /._ |
                            ;-65-

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"Energy Consumption  in the Distillation  o£  Fuel Alcohol,"
0.  Leppanen,.  John  Penslow,  and   Pentti   Ronkainen,   vi
International Symposium on Alcohol Fuels,  May 21-25,  1984.

"Emission  and  Wear  Characteristics of  an Alcohol  Fueled
Fleet Using  Feedback Carburetion  and Three-Way Catalysts,"
W.  H.  Baisley, C. F.  Edwards,  VI,International  Symposium
on Alcohol Fuels,  May 21-25, 1984.

"The Production of Ethanol  by the Fermentation  of  Grain,"
Wm.  A.   Scheller,  II  International Symposium on  Alcohol
Fuels, 1977.

"Physical  Properties  for  Gasoline/Alcohol  Blends,"  Frank
W.  Cox,  U.S.  Department  of  Energy, Report  BETC/RI-79/4,
September, 1979.

"Commercial  Recovery  Processes   for  Ethyl  Alcohol,"  A.
Dzenis and J.  McNab, VI  International  Symposium en Alcohol
Fuels, May 21-25,  1984.

"Technical and Economic  Assessment  of  Motor  Fuel  Alcohol
from Grain  and Other  Biomass," George  D. Moon,  Jr.,  John
R. Messick, Charles E.  Easley, and  Dr.  Raphael Katzeri,  III
International Symposium on Alcohol Fuels,  May 28-31,  1979.

"A   Comparative   Economic   Analysis   of  Alcohol   Fuels
Production Options," J.  L.  Jones, P. M.  Barkhordar,  D.  C.
Bomberger, C. F. Clark,  R.  L. Dickenson,  W.  S. Fong, C.  B.
Johnk, S. M. Kohan,  R. C.  Phillips, K.  T, Semrau,  and  N.
R.  Teater,  III International Symposium  on  Alcohol  Fuels,
May 28-31, 1979.

"Technical  and.  Economical   Aspects  of  Ethanol   as   an
Automotive   Fuel   in   Turkey,"    Omer   L.   Gulder,   vi
International Symposium on Alcohol Fuels,  May 21-25,  1984.

"Corrosion on  Fuel  Supply Systems  of  Alcohol  Driven  Car
Engines,"  L.  Uller  and  O. F.  Ferreira,  VI -International
Symposium on Alcohol Fuels, May 21-25,  1984.

"California's  Alcohol  Fleet  Test  Program-Final  Results,"
F.  J. Wiens, M,  C.  McCormack,  R.  J. Ernst,  R.  L.  Morris,
and R.  J.  Nichols, VI International Symposium  on -Alcohol
Fuels, May 21-25,  1984.

"A. Motor  Vehicle  Powerplant  for  Ethanol  and  Methane 1
Operation,"  H.  Menrad,  III  International  Symposium  en
Alcohol Fuels,  May 28-31, 1979.

"Ethanol   Fuel  —-  A  Single-Cylinder   Engine  Study  cf
Efficiency   and  Exhaust  Emissions,"   SAE  Paper  810345.
February, 1981.              ,
                         -66-

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                                                                  1
"Perspectives  on  Potential  Agricultural  . and  Budgetary      /
Impacts  From  an  Increased  Use  of  Ethanol Fuels,"  U, S.
General Accounting Office Testimony for  the Record  of  Judy  •   -^
England-Joseph,  before the  Committee  on  Ways  and  Means,       j
U.S. House of Representatives, February 1,  1990.

"DOE  Launches   Energy Efficiency  and  Renewable  Energy
Initiatives,"  U.S.  Department   of Energy   press  release,
Contact:  Reid Detchon, January 26, 1990.
                                                                 1

                                                                 I
                          -67-
                                                                 1

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                     APPENDIX A





Summaries of Previous U.S.  Government Ethanol Studies

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                  Appendix B
Review Article on Ethanol from Non-Food Biomass

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TABLE 1. END USES FOR ETHANOL
   USE
    VALUE
                                             REFERENCE
CHEMICAL
FEEDSTOCK
> FUEL VALUE
BLENDING FUEL

    .  1. DIRECT


      2. INDIRECT
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NEAT FUEL
1.7-2.5 x CRUDE PRICE,
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  10


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 1 With crude oil at 14.71 S/barrel; (1988) the wholesale value of ethanol as an octane
 enhancer is 59.5 to 87.5 cents/gal according to the OTA10 formula. This may be compared
 to the 1988 average wholesale price of 57.7 cents/gal for gasoline (oil and gas pnces
 from1*).

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TABLE 4 KEY ISSUES FOR FUEL ETHAXOL PRODUCTION FROM
UGNOCELLULOSE

     ENERGETICS OF THE UGNOCELLULOSE/ETHANOL FUEL CYCLE

     FUEL CHARACTERISTICS

     AJR POLUinON AND OTHER ENVIRONMENTAL IMPACTS

     IS THERE ENOUGH RAW MATERIAL TO MAKE A DffFE^NCE?

     WHAT WILL IT COST?

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TABLES. ESTIMATED ffTHANOL PRODUCTION POTENTIAL

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          Material and Energy Flows for
           Production and Utilization of
            Fuel Alcohol from Biomass
                      ATMOSPHERIC
                          C02
     SUNLIGHT
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                              Energy
                           Figure 3.

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i  Annual acreogt reduction and conservation reserve
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                Appendix C
Memo on Potential  Ethanol Engine Efficiency

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             Appendix D
Memo Listing Ethanol Vehicle Programs

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      UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                ANN ARBOR. MICHIGAN  48105
                                             OFFICE OF
                                          AIR AND RADIATION
                        APR 9 1990
MEMORANDUM

SUBJECT:   Ethanol Fueled Vehicles - Experience to Date


FROM:
Craig A. Harvey,  Mechanical Engineer
Technical Support Staff
TO:
THRU:
Charles L. Gray,  Jr.,  Director .
Emission Control  Technology Division
Phil Lorang, Chief
Technical support Sta
                                          ixteen neat
                                             sort
                                              and
                                         of
                                        the
    Following  is a list  I recently compiled of
and near  neat  ethanol vehicle  programs that have
or are now being conducted. These  programs range
a sinale vehicle up to the  large  in-use «th;n°l-fu«1*dla;1ion
?hat  now makes  up most of Brazil's  motor  vehicle popu ation
Each  entry  consists of a  narrative  summary of  the vehicle*,)
involved' in  the program, the fuel(s)  used,  what
measurements were done  if any,  a  summary of results,
appropriate reterence(s).

1.    Brazil:  In-Use Fleet
     since  1983' 90-95% of  all  passenger vehicle  sales have been

satSn.-r^^iris1.:-^? I9£n"%si.tf&?»~

nu  bh ihv^r*^  ^ri^^n*1^-

iDH;;h&  rnv ^sr&gx^ ^«-
     if the  ambient  temperature  is  below
                                      about  4U F

 vehicle)
     the  1990's and Beyond," Asilomar, California, Ju.y .95d.

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                           -2-
    "Brazilian Vehicle Calibration for Ethanol  Fuels, ",G.  E.
    rS,,t   at  al   Ford,   Third  International  Symposium  on
.    Scohol Fuels/ Asilomar, California, May  1979.                -|

    "Phase Separation and  Cold Start Devices for Neat Ethanol
    vehicles   The Brazilian  Experience,"  letter from Plinio
    Nlstlri?' E'thanol  Trade,  S.A./SOP^L   to  Eric  Vaughn,     |
    Renewable Fuels Association,  December 21, 1989.

    (Additional Brazil program references are listed below)        |

2   Ford Brazil, 4th International Symposium










        as                        -                  1
                                                 —  "
              of  the  Design,  Develo^ent, and Wod«±ic»  -of    |
               S^KSST -  ssssi- -.1.  p«a^  ,«,-.    •
     1984.                                                      I
 3.   Brazil,  SAE 850390,  Szwarc/Branco
     Eight Brazilian neat ethanol -hicles  and  s^x  gasoline    |


                                                               .
 Sort of catalytic converter

      ^ssffMs.-
      Paper 850390, 1985.                                         •

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                       -3-
4.   GM Brazil, Baumgartl,  1984


    Seven Brazilian ethanol vehicles were  compared to^ their
                          ..
gasoline vehicles.  E"1.ss.lon8.Jit»aad a 9 q/mile HC (FID),
               vehicles    "
gaaoj-iiiB  vw*v.*«»-.  •""-.--.--  averaoed 3.9 g/miie HC ^siu), «*.•.•«
cycle. The ethanol vehicles  »^*ra2l7_.r1<* formaldehyde,  and 519





SsWSl^i&Sfe-'11*






     Utilization," April 1984.

 5    vw Brazil,  "A Study of Hydrocarbon Composition...", 8th

 International Symposium.
                                 .   * « a r  lOQ^ XTDJ
           f      •^nrria Brazilian  ethanol 1.8 L  iso/ vw
     Exhaust from  a  sl°f*® Jv*tr4th  a GC to  determine the
 Santana  Quantum was ^ea!Hfeaeo*""  ts.   The  vehicle was
 fractions  of   various  HC  «*5K^5fi2.3si,  and was  fueled
   _   .  •  »_ _ ji  —  ««jM«Mjae<& T nn  ra.t J.Q UJE*  A A «** » * r  *»*•*»
     November 19S8.

 6.   vw Brazil, 2nd  International Symposium.


  ''~'~.X I-6I. ^""uretedjasolin. vehicle «3a modified^. «=


 steps to run on neat «*«l-  "SSidT but  no  emission
 ih?cn 55B                    30*over the base

 configuration.
     ;The ?se or                      .

     ?"«n«ion.l    otivi. on Alcohol Fuels. M77

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7.   California Energy Commission - Fleet  l    .             '         •

     Four 1980 Ford Pintos were  retrofitted  to  operate on neat
«r,hwirou« ethanol  denatured with  2-5% unleaded gasoline.  For     _
jSSJriSSn  555?  uSSdifitd gasoline  fueled Pintos  (and four     I
§?ntSs  modified fS? methanol use)  were  operated  in the. same     •
flee?   All these  vehicles had  carburetors  and 3-way  catalyst
syltems.  Two of  the  ethanol  vehicles  had their  compression     |
ratio increased from 9:1 to 12:1.   .                                •

     The only emission results reported for  these vehicles were     •
total aldehyde  emissions (MBTH method) of 10-40 mg/mile,  which     |
were described as being comparable to the  gasoline vehicles.

     "California's Alcohol  Fleet Program, 1982 Progress  Report     I
     fo?  Senate   Bill   620,   California   Energy   Commission,     •
     December  1982.    (also  see   next   reference   with  final
     results from fleets 1 and 2)                                   |

8.   California Energy Commission - Fleet 2                         •

     Twenty   fuel   injected   VW  Rabbits   with  3-way  catalyst    |
svsteS  w/re  optimized  by a  contractor  (AES)  in  coordination
wilh ™ ^foperate on neat ethanol denatured with 2-5% unleaded
aasoline.   These  compression   ratio   of  these   vehicles  was     |
!n«eas1d  to  12.5:1.   Only one  baseline gasoline  vehicle  was     •
used in this  fleet, along with nineteen methanol vehicles.

     Eight  of  the  twenty  ethanol vehicles  were  tested  for     I
emissions   Various  configurations (e.g., EGR rates) were^tried
in   order  to  minimize  NOx  emissions.   In  the  best  NOX     •
ronfiouration,  emissions  averaged 0.38  g/mile HC  (totai. SLID,     g
I0?6 ^/mUe CO, and  0.26 g/mile  NOx.   In other ^figurations
a-vehicle  average  emissions ranged from 0.27-0.45  9/»ile  «c'     •
? I?-l  a! g/mile CO,  and 0.36-0.53 g/mile NOx.   Total  aldehydes     |
ranged  from 18-146. mg/mile by the  MBTH method.      -

      "California's Alcohol  Fleet  Test  Program-Final  Results/1     |
     F.  J.  Wiens,  M. C.  McCormack, R. J. Ernst,  R. L.  Morris,     •
      and R.  J.  Nichols, VI  International  Symposium on  Alcohol
     Fuels, May 21-25,  1984.                                         I

 9,   Alcohol  Energy Systems — VW Ethanol Concept  Vehicles
      Two vehicles  are  mentioned  in  this  study
 on the  Rabit  aiged from  20oAlOO during this  program,  whUe
 the Jetta had about 1500 miles on the odometer.                     •

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I
1
               Exhaust emissions  from  the Rabbit were



          from the  Rabbit and  found to  be less  than- ^ 2.0  g/test  .uriuj.
          despite the separate cold-start gasoline system,

               "Retjort  on the  Rabbit  Concept  Vehicle  for Neat  Ethanol
               option"   Submitted    to   Alcohol    Energy    Systems
               ?Ico?|o?a4ed b? ^Volkswagen  of  America,   Inc.,  pursuant  to
          •.--;   the Contract of April, 1981.

          10,  Santa Clara, Bais ley/Edwards, 4th International Symposium

               Five 1978  Ford Pintos were retrofitted to  operate  on neat


                                             vehicle was  calibrated fairly
           rich to help driveability.           ;

               "Emission- and  Wear  Characteristics of  an JVlcohol  Dueled
               FlSet Using Feedback Carburet ion  and Three-Way Catalysts,
               w.  H.  Bailley, C* F,  Edwards, IV  international  Symposium
                           ^                        ^^.••:"\~  -
                                                                  .      350


           miles.O:N  tother data was provided.

                                                               '
                University of Nebraska,  1981.

           12.  Nebraska -Dedicated E85. vehicle,  summer 1989
                                 e=           .           ea
            vehicle!  it -was  later te-oonf igured  to  operate  on  g«ol...
            instead of  ethanol.

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  ^f^g^—^^Kfii^-^xJiK-jt.ff^^^rf-yi.^i^yf!^:'* ;•;•?£•*••••' ":»
13.   Ford Canada                              •    ;  ;

     r   SS« i*87  Ford  delivered  two Crown Victoria  FFV1 s • to     -
     In June JJJ^/.°;°  be used with  E85  in  a  long  duration     |
St.  Lawrence» Stwch ^ °«Q miles.  Testing proved cold  start     *
program of  at  ie^f^  ^"'i  at _20°F in under 5 seconds.   These     —
vehiSles^aXy^i^l  compression ratio for  compatibility with     J
glsoline fueling if necessary.
                                    0.58-6.72  g/mile  CO,   and
U_. x /~v . <3u *$/ »»«••"'  --—,  -.  - --. .                  ,                     _
o.53-0.6ft g/mile N0x«                                               •

             '"""•'        •    Brnoram  for Flexible Fuel Vehicle,
     •Research/Demonstration- irrogtoro  ~jjfc_    ._  .• Pord Research,
 -    -Fourth- Quarterly Review^  roro o        ,..                      •
"•:' •"""  June 24,  1987-      •"..•••.-.-.    : •'    ••;, -.-- -^  .'  "•-.  /    •.   ' • I

14   "The Development of  Carburettor  Systems..v"  Gavin, -Kemp,      -
Dryer, 4th International Symposium.                                 |
                                                   but  it \ was
                                                    on  ethanol

 g??Bn Se'abo^e ^^^edure'      ~""~~




^^^pryStyi:^>^^Ia^



'!l5lPSiS®iS3^^p§5^P^f^
                                                                    i
                                    .ar'«v.s     i
                                         •I^StfJs     I
  attempting optimization for any of  the. fuels.

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                              -7-    .    .            .  •  •     ;

     Emissions  measured' included  total/aldehydes  (by  MBTH?),
unburned .fuel reported  as  FID  measured  carbon  (adjusted .for
differing'mass  per carbon, and FID  response for the  alcohols),
CO,  and NOx.   With the  catalyst  the results  were  203  mg/mile
aldehydes,  l.l  g/mile FID  carbon,  9 g/mile CO, and 0.35 g/mile
NOx.    Without   any  catalyst  there   were  600-1800   mg/mile
aldehydes,  2.0-5.5 g/mile  FID  carbon,  11-20 g/mile  CO,  and
0.5-0.8 g/mile NOx.

     "Driving   Cycle   Comparisons  .of   Energy  Economies   and
     Emissions  from  Alcohol  and  Gasoline  Fueled  Vehicles,"
     Richard  Bechtold and  Barrett  Pullman,  III  International
     Symposium on Alcohol Fuels,  May 28-31, 1979.

16.  South Dakota Corn Growers Association ESS Corsica

     A  1988 2.0  liter TBI Chevrolet Corsica was modified to run
on ethanol-gasoline mixtures  ranging from straight gasoline to
85%  ethanol.    Prior   to  modification  the vehicle  had  43,000
miles on  the  odometer, and  approximately 3000 miles have  been
added  since  the  modification.   The modification consisted of
(a)  installation  of  the Webster-Heise  valve  to  improve  fuel
vaporization,  (b)  reprogramming  the on-board  computer,  and (c)
addition  of  an  auxilliary   12  gallon  fuel  tank  solely  for
comparison  tests.   No fuel  sensor  (as  used in current FFV's)
was  added.   The  conversion  package   cost  $2,000,   but  a
commercially  produced package (without need  for  the  auxilliary
tank) was estimated to cost  about $300.

     FTP  and  HFET   (highway  fuel  economy   test)   data  were
collected  at  the Environmental  Testing  Corporation (ETC)  in
Denver, and further data are being collected by the  California
RFA  at  the ACS Laboratories in  Ontario, California.   The E85
fuel being  used  consists of  85% pure  ethanol  and  15%  unleaded
gasoline  (RVP not  reported^.  The Denver FTP data show  base
gasoline  emissions of 0.19  g/mile HC  (presumed  to be  total
FID),  2.40 g/mile CO,  and  8.11   g/raile  NOx  (NOTE:    NOx was
measured  prior  to  the catalyst as raw  engine-out  emissionsT.
The  corresponding  E85  emissions   were  0.142  g/mile HC,   1.83
g/mile  CO,  and  7.87  g/mile  NOx.    CO*  was  also  measured and
decreased by  about 4.6%.  HFET  emissions of HC and CO were much
lower  than the  FTP,  and NOx emissions  were greater,   but all
three pollutants  had  greater percentage  reductions relative to
gasoline than.on the FTP.

     Letter and attachments  from Dan  Iseminger,  Administrator,
     South  Dakota Corn Utilization  Council,  to William Reilly,
     Administrator, EPA,  March 23,  1990.


(End of list)            , .  •  ••                            v
                                                                       I

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