Acurex Project 7385
 STANDARDS SUPPORT PLAN FOR
ENVIRONMENTAL ASSESSMENT OF
   CONVERSION OF BIOMASS TO
          ENERGY GASOHOL
       W. C. Kuby, N. L. Concion, G. R. Often, R. D. Shelton

                 Acurex Corporation
              Energy & Environmental Division
                  485 Clyde Avenue
              Mountain View, California 94042
                   February 1980
     ACUREX DRAFT FINAL REPORT 80-44/EE
                    Prepared for
          R. E. Mournighan — Technical Project Monitor

              Environmental Protection Agency
           Industrial Environmental Research Laboratory
                 5555 Ridge Avenue
                Cincinnati, Ohio 45268

                 Contract 68-03-2567

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                 Acurex Project 7385
 STANDARDS SUPPORT PLAN FOR ENVIRONMENTAL ASSESSMENT
      OF CONVERSION OF BIOMASS TO ENERGY GASOHOL
W. C. Kuby, N. L. Concion, G. R. Offen, R. D. Shelton
                  Acurex Corporation
           Energy & Environmental Division
                   485 Clyde Avenue
           Mountain View, California  94042
                    February 1980
          Acurex Draft Final Report 80-44/EE
                     Prepared for

    R. E. Mournighan — Technical Project Monitor

           Environmental Protection Agency
     Industrial Environmental Research Laboratory
                  5555 Ridge Avenue
               Cincinnati, Ohio  45268

                 Contract 68-03-2567

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                             TABLE OF CONTENTS


Section                                                                Page

    1      INTRODUCTION  	     1-1

    2      ALCOHOL FUELS PRODUCTION  	     2-1

           2.1  Commercial-Scale Ethanol Production  	     2-2

           2.1.1  Ethanol from Starches	     2-2
           2.1.2  Ethanol from Celluloses	     2-7
           2.1.3  Ethanol from Sugars	     2-11

           2.2  On-Farm Ethanol Production 	     2-15

           2.2.1  Process Description  	     2-15
           2.2.2  Emissions and Effluents	     2-16
           2.2.3  Pollution Control Systems  	     2-16
           2.2.4  Liquid and Solid Waste Disposal  	     2-16
           2.2.5  New and Emerging Technologies	     2-16

           2.3  Other Alcohol Fuels Production 	     2-17

           2.3.1  Methanol Via Catalysis of Synthesis Gas  ....     2-17
           2.3.2  Butanol Production Via Biological Conversion . .     2-18

    3      THE STANDARDS SUPPORT SCHEDULE  . 	     3-1

           3.1  Description of the Schedule	     3-1
           3.2  Program Schedule 	     3-2
           3.3  Responsibilities and Working Interaction 	     3-12

    4      DISCUSSION OF THE STANDARDS SUPPORT PLAN ELEMENTS ...     4-1

           4.1  Alcohol Fuels Development  	     4-1

           4.1.1  Potential Oil Savings from Alcohol Fuels ....     4-1
           4.1.2  Supply and Demand	     4-2
           4.1.3  Biomass Availability 	     4-5

           4.2  Regulatory Requirements and Plans  	     4-7

           4.2.1  Bureau of Alcohol, Tobacco, and Firearms ....     4-7
           4.2.2  Office of Air Quality Planning and Standards . .     4-11
           4.2.3  Office of Water Planning and Standards 	     4-17
           4.2.4  Office of Solid Waste	     4-23
           4.2.5  Office of Toxic Substances 	     4-25
           4.2.6  Office of Enforcement	     4-27
                                    m

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                                  SECTION  1
                                 INTRODUCTION

       Fuels containing non-petroleum-based alcohols  can  provide  one
effective  approach for  limiting  the  increasing  dependence by  the  United
States on  foreign oil.  Gasohol,  a blend  of 10  percent  ethanol  produced
from  agricultural and waste feedstocks  and 90 percent unleaded  gasoline,
is the most promising,  near-term application of alcohol fuels.  Currently,
ethanol  is the  only  commercially available alternate  fuel  and will  remain
the only one available  in  significant quantities  prior  to 1985.
Production of ethanol fuel through 1985 will be limited by the  capacity to
convert  agricultural and waste materials  to ethanol,  rather than  by the
availability of feedstock.  Although alcohol fuels  are  not expected to
totally  eliminate our nation's dependency on foreign  oil  sources,  they
could become an important  part of the national  plan to  stabilize  our
energy balance.
       The Environmental Protection  Agency (EPA)  is the Federal
organization with primary  responsibility  for controlling  adverse
environmental effects of pollutant emissions.   This Standards Support Plan
(SSP) shows how EPA's Office of  Research  and Development  (ORD)  plans to
support  the media Program  Offices in setting standards  for the  emission
effluents  from  fuel-grade  alcohol production facilities.   Since it  is

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anticipated that ethanol will be the only alcohol produced  in significant
quantities until 1985, this SSP is  limited to ethanol production.
       There are several aspects to the environment  impact  of gasohol
production and use, namely production of the feedstock;  transportation;
transfer, storage, and blending of  the alcohol with  gasoline; and end-use
combustion in mobile sources.  Although there could  be  significant
environmental problems in each of these areas, this  study by ORD's
Industrial Environmental Research Laboratory at Cincinnati, Ohio (lERL-Ci)
is limited to fuel-grade alcohol production, from feedstock preparation to
the generation of 200-proof alcohol.  Other emissions,  including end-use
emissions, need to be reviewed by the ORD laboratories with direct
responsibilities in these areas of concern.
       In this SSP, a detailed plan pertaining to the fuel-grade alcohol
industry is developed for activities over the next 2 years.  This report
also projects a continuing activity resulting from the monitoring of
growth and development of other alcohol  production technologies.  The
purpose and content of this  SSP are as follows:
       •   To explain the Agency's  standards development and supporting
           R&D program,  with special emphasis on  sampling and analysis for
           emission/effluent and treatability/control data at fuel-grade
           ethanol  plants
       •   To show  how  the ORD/IERL-Ci  component  of this program is
           integrated with the efforts  being conducted by the media
           Program  Offices,  namely,  the  Office  of Air Quality Planning and
           Standards  (OAQPS),  the Office  of  Solid Wastes (OSW),  and  the
           Office of  Water Planning  and  Standards (OWPS)
                                    1-2

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        •    To  relate the overall  data collection program to the media
            offices'  timelines for setting standards and the Regional
            Offices'  requirements  for permitting new sources
        •    To  establish the various agency activities and the
            responsibilities for each of those activities in terms of  the
            overall  plan and timeline for occurance of various elements of
            the studies
        •    To  present other information to allow the reader to gain a
            knowledgeable perspective on the industry being studied and the
            methodology of setting standards
        Thus, this  SSP is a practical working document.   It presents the
Agency's  program for determination of the emissions from gasohol
facilities  and the  approach necessary to define these emissions.   In  terms
of  a  sampling  and  analysis program, it details the test plan, including
the sites,  number  of samples to be collected, pollutants to be sampled,
and analyses to be  performed.  The results of this sampling and analysis
program,  as well as  other studies that will be done concurrently, are
coordinated with a  schedule put forth by the Program Offices for
determining the appropriateness of standards and for setting those
standards required.
        In order to  facilitate the generation of a consensus plan  leading
to  a  coordinated effort between the ORD study and each  of the Program
Offices as  they move toward the development of standards, a series of
meetings  were  held  between lERL-Ci personnel  and the staff members from
"the Effluent Guidelines Division  (EGD)  of OWPS,  the Emission Standards and
Engineering Division (ESED)  of  OAQPS,  and the Hazardous and Industrial
Waste Division (HIWD)  of OSW.   Since the major  impetus  for the interest in

                                     1-3

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fuel-grade alcohol production came from an increase in permit requests in



Region VII for on-farm facilities, Region VII personnel also participated



in these meetings.
                                    1-4

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                                 SECTION 2
                          ALCOHOL FUELS PRODUCTION

       The following section is a technical description of the commercial
and on-farm processes used for alcohol fuels production.  The major
emphasis is on ethanol production facilities by biological conversion of
various feedstocks.  However, two other alcohol fuel production
technologies, namely the production of methanol from synthesis gases and
butanol via biological conversion, are included.  The discussion for each
technology provides specific examples of the emissions and effluents,
pollution control systems, liquid and solid wastes, and new technologies
for alcohol production facilities.
       The first portion of the discussion describes both commercial-scale
and on-farm ethanol production technologies via biological conversion of
feedstocks.  Three specific feedstocks were chosen because they are
typical of currently used or anticipated feedstocks for ethanol
production.  These are:
       0   Corn, a starch
       •   Corn stover, a cellulose
       t   Cheese whey, a sugar
       The methanol and butanol production processes are included as
technologies of the future.
                                    2-1

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2.1    COMMERCIAL-SCALE  ETHANOL  PRODUCTION
       Fuel-grade ethanol can be produced from  a  variety  of  carbohydrate
feedstocks via biological conversion.  These feedstock materials  can  be
broadly classified  as starches,  celluloses  and  sugars.  The  following
items are discussed for  each feedstock:
       •   Process  description
       •   Emissions and effluents
       t   Pollution control systems
       •   Liquid and solid waste disposal
       •   New and  emerging technologies
2.1.1  Ethanol from Starches
       Starches  (polysaccharides) are present in a wide variety of food
crops, such as rice, wheat, potatoes, and corn.  This discussion  uses corn
as a representative starch feedstock.
2.1.1.1  Process Description
       Figure 2-1 is a flow diagram of a typical ethanol from corn
process.  The process begins by grinding the grain in a milling process
(e.g., a hanmermi 11) and slurrying the grain with water to form a mash.
The mash is cooked by injecting steam (at approximately 150ฐC) to
solubilize the starches.  The mash is then cooled and enzymes are added to
transform the complex starches into fermentable sugars.
       These sugars  are then introduced into the fermentation vessels with
yeast to be converted to alcohol and carbon  dioxide by the metabolic
processes of the yeasts.  The fermented mash (approximately  10 percent
alcohol)  is then pumped to the alcohol stripping column.   This
distillation column  removes the solids and most of the water to produce a
                                    2-2

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                                          Preparation
                                                                                            fermentation
                                                                                                                          Distillation
                                                                                                                                                       flrhydraI inn
  Corn
                                            Flash
                                           cooling
                  Steam Generation
ro
CO
ฉ-
Power
plant
      Inputs and  Discharges

       T)  Fugitive dust
       ><
        ZJ  Hater

        3}  Fuel

            Combustion products  including PM,  NOX, SOX

            Process steam

            Captured particulates

        7^  Hydrocarbon emissions

            Enzymes
                                                  Enzymatic
                                              saccharification
                                                                                             Fermontat. ion
                    Alcohol
                   stripping
                                                                                            Centrifugal
                                                                                            separation
Rotary
drying
                                                                                       Hyprodiict preparation
                                                                  9J  Yeast

                                                                      C0;>,  uncondensed hydrocarbon emissions

                                                                 15)  Uncondensed hydrocarbon  emissions

                                                                      Fuel

                                                                 13}  Combustion products,  uncondensed
                                                                      hydrocarbon emissions
                                                                      Dried dist.H'er's grain

                                                                      Fusel oils, aldehydes

                                                                      Uncnndrnsed hydrocarbon  omissions
vv Vny
• Rer




Mastewater
treatment ^_



ydration
(??)
T
Chilled
separation



*—


Benzene
recovery
JL 1 U-ZW53
                                                                                                            Civ  C^9

                                                                                                         Treated wastewater

                                                                                                    19)  Sludge

                                                                                                         Uncondensed  hydrocarbon omissions

                                                                                                         Ethanol

                                                                                                     3)  Benzene make-up

                                                                                                    i<\\  Uncondensed hydrocarbon emissions
24)
                                           Figure  2-1.   Typical  ethanol  production  from  corn feedstock.

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stream containing 80 percent ethanol, 19 percent water,  and about
1 percent impurities (fusel oils and aldehydes).
       The product stream is purified in a rectification column, producing
a 95 percent ethanol, 5 percent water azeotrope.  The fusel oil and
aldehyde impurities are separated and removed in a side  stream.  These  can
be combined with the final ethanol fuel product.
       Dehydration of the ethanol-water azeotrope is necessary to produce
an anhydrous product.  A dehydrating agent (benzene) is  added to the
azeotrope in the dehydration column.  The column produces a stream of
anhydrous ethanol and a stream containing benzene, ethanol, and water.
This latter stream is treated in a chilled separator.  The separator
produces an ethanol/benzene-rich stream that is recycled to the
dehydration column.  An ethanol/water-rich stream is also produced in the
separator.  Ethanol and trace benzene are recovered from this stream in
the benzene recovery column and are returned to the dehydration column.
The separated water is sent to the wastewater treatment facility.
       Typically, the byproduct still age from the alcohol stripping column
is treated to recover the solids, rather than used directly or processed
in wastewater treatment.  Water is removed from the stream using
centrifugation and evaporation.  The water from centrifugation is recycled
to the cooker or evaporated.  The solid product contains proteins and dead
yeast and is used as a cattle feed supplement, dried distillers grain
(DD6).  The DDG drying operation may be fueled by oil or gas.  Process
steam is produced on-site by a boiler,  typically oil- or coal-fired.
2.1.1.2  Emissions and Effluents
       The majority of the air pollutants from this process are produced
by fuel combustion in the boiler and rotary dryer (see streams 5 and 13 in

                                    2-4

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 Figure  2-1)  and  consist  mainly of particulates,  SO ,  and NO .
                                                   f\        A
 Fugitive  hydrocarbon  (gaseous  and condensed)  emissions are produced by
 flash cooling, fermentation,  alcohol  stripping,  rectification,  -
 dehydration,  chilled  separation,  benzene recovery, wastewater  treatment,
 and  rotary drying  process  (streams 7, 10, 11, 13,  15,  17, 20,  22,  and 24).
 Fugitive  particulates are  produced by corn  shelling and grinding
 (stream 1).
        All  liquid  effluent leaving the  plant  exits after wastewater
 treatment (stream  18).   The cooling tower blowdown contributes  to  the
 wastewater.   The rectification and benzene  recovery columns also produce
 wastewater.   Equipment  washes  periodically  produce wastewater.   Solid
 wastes  include collected coal  dust flyash from the coal-fired  boiler,
 sludge  from  wastewater  treatment (stream 19), and  collected grain  dust
 from the  grinding  process  (stream 1).
 2.1.1.3  Pollution Control Systems
        Mechanical  particulate  collectors or wet scrubbers for  flue gas
 cleaning  are used  at  the boiler and rotary dryer.   Mechanical  collectors
 are  also  used to capture and recycle dust emissions from milling.
 Condenser vents  are used to reduce hydrocarbon emissions from  the
 fermentation tank, columns, and separator.   Condensates from the vents are
 returned  to  the  associated processes.  Based  on measurements at
 distilleries, these emissions  are minimal and of little concern.
        The  wastewater treatment system employed is an  extended  aeration
 activated sludge unit.   This technology was selected primarily  because it
"reflects  current operating practices in the beverage-grade alcohol
 industry. Mean  cell  residence times of 20  to 30 days  (hydraulic retention
                                     2-5

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time of 18 to 36 hours) are typical for this type of unit with a
biochemical oxidation demand (BOD) removal efficiency of 75 to 79 percent.
2.1.1.4  Liquid and Solid Haste Disposal
       The liquid effluent from wastewater treatment is discharged to  a
waterway.  As stated earlier, the DDG can be used as a cattle feed
supplement.  In addition, the collected grain dust from milling can be
added to th DDG.  The remaining process solid wastes, coal dust, flyash,
and wastewater sludge, must be disposed of via landfilling or land
spreading.
2.1.1.5  New and Emerging Technologies
       It  is not possible to fully assess the impacts of new and emerging
technologies on emissions and effluents.  However, there are several new
process technologies that could affect the efficiencies and yields of  the
ethanol fermentation process and should be noted.  For instance, gasoline
has been substituted for benzene as the dehydrating agent and other
dehydrating chemicals are also under investigation.  Use of these
alternatives could remove the potential  for emissions of benzene, a
hazardous pollutant.  Alternate alcohol/solids/water separation
technologies, such as selective adsorption, membrane separation, and
supercritical fluid extraction,  are being investigated to replace the
distillation step.
       Continuous fermentation with yeast recycle is possible.   In
addition,  vacuum distillation can be coupled to the process, permitting
continuous alcohol  removal  from the fermenter.   New strains of yeasts  and
better saccharification enzymes are being developed to increase yields.
       Finally,  anaerobic digestion of the still age can be implemented.
This eliminates  drier energy consumption and produces methane that can be
                                    2-6

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burned for process steam generation.  The still age can also be used
without drying as a feed supplement, further reducing energy consumption
and related emissions.  However, the wet still age must be used .immediately
since even short-term storage causes the material to become rancid.
2.1.2  Ethanol from Celluloses
       Cellulose is the structural fiber in trees, herbaceous plants, and
paper products.  This discussion focuses on corn stover as a
representative cellulosic feedstock.
2.1.2.1  Process Description
       Figure 2-2 is a conceptual flow diagram for a typical ethanol from
corn stover process.  The process begins by reducing the stover size and
breaking down the cellulose into fermentable simple sugars by acid
hydrolysis.  Dilute sulfuric acid (_< 5 percent)  is contacted with the
stover to transform the cellulose.  This produces furfural and simple
sugars.  The solubilized products are separated  in a flash distillation
step.  The sugars are neutralized to remove the  contaminants (lignin,
etc.) and to alter the pH to provide a proper environment for the
fermentation yeast.
       The simple sugars are then converted to alcohol and carbon dioxide
by the metabolic processes of the yeasts.  The fermented mash
(approximately 10 percent alcohol)  is then pumped to the alcohol stripping
column.  This distillation column removes the solids and most of the water
to produce a stream containing 80 percent ethanol, 19 percent water, and
about 1 percent impurities (fusel oils and aldehydes).
       The product stream is purified in a rectification column, producing
a 95 percent ethanol, 5 percent water azeotrope.  The fusel oil and
                                    2-7

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Preparation
s-
Fermentation
-v S~\ /-"\
Distillation
X-N X — >.
Dehydration
x~N
    Corn   I  fc
    stover
ro
oo
             Acid
           diiestion
   Flash
dfstfllation
                   Power
                   plant
        3team generation
       Inputs  and
1 )  Fugitive particulates
2}  Dilute sulfuric acid
    Coal
    Combustion products Including
    PH, NOX, SOX
    Steam
    Captured particulars
    Furfural
    Yeast
                                                                    00ฎ
                                                                                           10]
                                                                                                    [17
                                                        Furfural
                                                       distillation
                                                         Sludge
                                                       clarification
                                                          .13)
* • Fermentation


Centrifugal
separation

ฉ
Rotary
•ป dryer
__^ Alcohol
stripping


                                                                       Byproduct preparation
                            9]  CO?, uncondensed  hydrocarbon  emissions
                                Uncondensed hydrncarbon emissions
                           II1)  Lime
                           12^  Lime sludge, lignln, iinrescted cellulose,
                                decomposed suqars
                           131  Fuel oil
                           S^
                           fa )  Uncondensed hydrocarbon emissions
                           (15J  Dried  still age
                       r\T\KO)  Uncondensed hydrocarbon emissions
Rectification .


Wastewater
treatment


4

Dehydration

i
(20) *~
Chilled
separation


Benzene
strtnpinq
                                                                                                                                                     [21]
                                                                                                                   MB)  Ethanol
                                                                                                                   M9   Fusel oil. aldehydes
                                                                                                                         Benzene
                                                                                                                         Uncondpnsed h^drocar-bon emissions
                                                                                                                         Treated wastewater
                                                                                                                        Sludge
•ar
V)
 3T
 H
                       Figure  2-2.   Typical  ethanol  production  from  corn  stover  cellulosic feedstock.

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 aldehyde  impurities  are  separated and removed in a side stream.   These can
 be  combined  with  the final  ethanol  fuel  product.
        Dehydration of the ethanol-water  azeotrope is necessary to produce
 an  anhydrous product. A dehydrating agent (benzene) is added to the
 azeotrope in the  dehydration column.   The column produces a stream of
.anhydrous ethanol  and a  stream containing benzene, ethanol, and  water.
 This  latter  stream is treated in a chilled separator.   The separator
 produces  an  ethanol/benzene-rich stream  that is recycled to the
 dehydration  column.   An  ethanol/water-rich stream is also produced in the
 separator.   Ethanol  and  trace benzene are recovered from this stream in
 the benzene  recovery column and are returned to the dehydration  column.
 The separated water  is sent to the wastewater treatment facility.
        Typically, the byproduct still age from the alcohol stripping column
 is  treated  to recover the solids, rather than used directly or processed
 in  wastewater treatment.  Water is removed from the stream using
 centrifugation and evaporation.  The water from centrifugation is recycled
 to  the  fermentation  tank or evaporated.   The solid product contains
 unconverted  materials and dead yeast.  The solids are relatively low in
 nutrient  value and are not typically used as a food supplement.   The
 drying  operation may be  fueled by oil or gas.  Process steam is  produced
 on-site by  a boiler, typically oil- or coal-fired.
 2.1.2.2  Emissions and Effluents
        The majority  of the air pollutants from this process are  produced
 by  fuel combustion in the boiler and rotary dryer (streams 4, 19) and
.consist mainly of particulates, SO ,  and NO .  Fugitive hydrocarbon
                                   ^        /\
 (gaseous  and condensed)  emissions are produced by flash cooling,
 fermentation,  alcohol stripping,  rectification,  dehydration,  chilled

                                     2-9

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separation, benzene recovery, wastewater treatment,  and rotary  drying
(process streams 9, 10, 16, 17, 19, 20, 22, and 25).  Fugitive
participates are produced by stover preparation (stream 1).
       All liquid effluent leaving the plant exits after wastewater
treatment.  The cooling tower blowdown contributes to the major volume of
wastewater.  The rectification and benzene recovery  columns and equipment
washes and blowdown from a scrubber also contribute  to wastewater.  The
distilled furfural can be sold (stream 7).  Solid wastes include collected
coal dust flyash from the coal-fired boiler, sludge from wastewater
treatment, and collected stover dust from the preparation process.  Sludge
is produced from the neutralization of the hydrolyzed cellulose
(stream 12).
2.1.2.3  Pollution Control Systems
       Mechanical particulate collectors and wet scrubbers for flue gas
cleaning are used at the boiler and rotary dryer.   Mechanical collectors
are also used to capture and recycle dust emissions from stover
preparation.  Condenser vents are used to reduce hydrocarbon emissions
from the columns, fermentation tank, and separator.  Condensates from the
vents are returned to the associated processes.  Lime addition and sludge
clarification are used to capture the unusable fraction of the hydrolyzed
wood.
       The wastewater treatment system employed is an extended aeration
activated sludge unit.  This technology was selected primarily because it
reflects current operating practices in the beverage-grade alcohol
industry.   Mean cell  residence times of 20 to 30 days (hydraulic retention
time of 18 to 36 hours)  are typical for this type of unit with a BOD
removal  efficiency of 75 to 79 percent.

                                    2-10

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 2.1.2.4   Liquid and Solid Waste Disposal
       The liquid effluent from wastewater treatment is discharged to a
 waterway.   The remaining process solid wastes, coal and stover-dust,
 flyash,  lime sludge, still age,  and wastewater sludge (streams 1, 12, 15,
 and  24),  must be disposed of via landfilling or land spreading.
 2.1.2.5   New and Emerging Technologies
       There are several new and developing technologies for increasing
 the  yields and efficiencies of  conversion of cellulose to ethanol.  For
 example,  there are many different types of hydrolysis, including weak acid
 pretreatment, strong acid hydrolysis,  and enzymatic hydrolysis.  An
 explosive defioration technique to thermo-mechanically break down the
 cellulose from its contaminants (lignin)  is under development.  In
 addition,  solvent removal of lignin prior to acid digestion is being
 investigated.  Improved fermentation and alcohol separation technologies
 that are  applicable to starch feedstocks are also applicable to cellulosic
 alcohol production.
 2.1.3 Ethanol from Sugars
       Sugars (mono- and disaccharides) are present in many foods,
 including fruits, sugar beets,  sugar cane, and milk.  Most sugars can be
 converted directly to ethanol by yeast.  This discussion focuses on
 lactose from the industrial waste cheese whey as a representative sugar
 feedstock.
 2.1.3.1   Process Description
       Figure 2-3 is a flow diagram for an ethanol from cheese whey
"process.   The process begins with raw  cheese whey, which is a waste
 product of the cheese industry.  Typical  cheese whey consists of water,
 lactose,  and small  amounts of proteins and fats.  The fats and proteins

                                     2-11

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ro
 i
ro
                           I
                     Cheese whey
                     Powerplant
             Inputs and Discharges
      Proteins,  fats

(T\  Coal
                                                Preparation
                                          Precipitation
            3 } Combustion products Including
           ^    PH, NOX, SOX
            1-) Collected partfculates
           ฉ
      Steam
                                                                                    Frrmrntation
                                                                  Coolinq
                                                                                                            Distillation
                                                                          Fermentation
                                    Alcohol
                                   Stripping
  tj Yeast


  j CO?, unconriensed hydrocarbon emissions

  9 ) llncondensed hydrocarbon emissions

     Gasohol  product

     Fusel  oils, aldehydes


0?1 Uncondensed hydrocarbon emissions
                                                                                                                                           Dehydrnt.ion
                                                                                                                    Rectification
                                                                                                                               Wastewater
                                                                                                                                                     Dehydration
                                                                                                                                                           U?
                                                                                                                                                           T
                                                                                                                                                    Chilled
                                                                                                                                                    separation
                                                                                                                                                     Benzene
                                                                                                                                                     strippinn
                                                                                                                                      Benzene

                                                                                                                                 HI ) llncondensed  hydrocarbon  emissions

                                                                                                                                   s  Treated wastewster

                                                                                                                                      Sludqe

                                                                                                                                  l ? J Uncondensed  hydrocarbon  emissions

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 are precipitated from  the  lactose  solution  by controlled  heating and pH
 adjustment.  This eliminates  the need  for solids  removal  in  the
 distillation operations.   The lactose  soultion is cooled  and sent to the
 fermentation tank where  it  is converted  to  alcohol  and  carbon dioxide by
 added yeast.
       The fermented product  (approximately 10 percent  alcohol) is then
 pumped to the  alcohol  stripping column.  This distillation column removes
 the solids and most of the  water,  producing 80 percent  ethanol, 19 percent
 water, and about  1 percent  impurities  (fusel  oils and  aldehydes).
       The product stream  is  purified  in a  rectification  column, producing
 a 95 percent ethanol,  5  percent water  azeotrope.   The  fusel  oil and
 aldehyde impurities are  separated  and  removed in  a side stream.  These can
 be combined with  the final  ethanol  fuel  product.
       Dehydration of  the  ethanol-water  azeotrope is  necessary to produce
 an anhydrous product.  A dehydrating agent  (benzene)  is added to the
 azeotrope in the  dehydration  column.   The column  produces a  stream of
 anhydrous ethanol  and  a  stream containing benzene,  ethanol,  and water.
 This latter stream is  treated in  a chilled  separator.   The separator
 produces an ethanol/benzene-rich  stream  that is recycled  to  the
 dehydration column.  An  ethanol/water-rich  stream is  also produced in the
 separator.  Ethanol and  trace benzene  are recovered from  this stream in
 the benzene recovery column and are returned to the dehydration column.
 The separated  water is sent for wastewater  treatment.   Process steam is
 produced on-site  by a  boiler, typically  oil- or coal-fired.
-2.1.3.2  Emissions and Effluents
       The majority of the  air pollutants from this process  are produced
 by fuel combustion in  the  boiler  (stream 3)  and consist mainly of
                                     2-13

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particulates, SO  ,  and NO  .   Fugitive  hydrocarbon  emissions  are
                A        ^
produced by flash cooling, fermentation,  alcohol  stripping,  rectification,
dehydration, chilled separation,  benzene  recovery  and  wastewater treatment
(streams 7, 8, 9, 12,  14,  and 17).
       All liquid effluent leaving  the plant  exits  after wastewater
treatment.  The cooling  tower blowdown contributes  to  the major volume of
wastewater.  The  rectification  and  benzene  recovery columns  also produce
wastewater.  Equipment washes periodically  produce  wastewater.
       Solid wastes include  collected  coal  dust, flyash from the
coal-fired boiler,  sludge from  wastewater treatment, and precipitated
proteins and fats from the whey (streams  1, 3,  and  16).
2.1.3.3  Pollution  Control Systems
       This process includes  the  use of mechanical  particulate  collectors
or wet scrubbers for flue gas cleaning at the boiler.  Condenser vents are
used to reduce hydrocarbon emissions from the fermentation tank,  columns,
and separator.  Condensates from  the vents  are  returned to the  associated
processes.
       The wastewater treatment system employed is  an extended  aeration
activated sludge unit.   This  technology was selected primarily  because it
reflects current operating practices in the beverage-grade alcohol
industry.  Mean cell residence  times of 20  to 30 days (hydraulic  retention
time of 18 to 36 hours)  are typical for this type of unit with  a BOD
removal efficiency of 75 to 79  percent.
2.1.3.4  Liquid and Solid Waste Disposal
       The liquid effluent from wastewater  treatment is discharged  to  a
waterway.  The remaining solid wastes, coal dust, flyash, and wastewater
                                    2-14

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sludge, must be disposed of via landfilling or land spreading.  The
precipitated fats and proteins are also  landfilled.
2.1.3.5  New and Emerging Technologies
       It is not possible to fully assess the impacts of new  and emerging
technologies on emissions and effluents.  However, there are  several new
process technologies that could affect the efficiencies and yields of the
ethanol fermentation process and should  be noted.  For instance, gasoline
has been substituted for benzene as the  dehydrating agent.  Other
dehydrating chemicals are also under  investigation.  Alternate  chemicals
could remove the potential for benzene emissions.  Alternate
alcohol/solids/water separation technologies, such as selective
adsorption, membrane separation, and  supercritical fluid extraction, are
being investigated  to replace the distillation steps.
       Continuous fermentation with yeast recycle  is possible.  In
addition, vacuum distillation can be  coupled  to  the process,  permitting
continuous alcohol  removal from the fermenter.   New strains of  yeasts and
better saccharification  enzymes are being developed to increase yields.
2.2    ON-FARM ETHANOL  PRODUCTION
       In general,  on-farm ethanol production will use technologies
identical to those  used  in commercial-scale production.  However, the
smaller size of the on-farm process causes some  notable differences,
especially in  regard to  pollution control equipment.
2.2.1  Process Description
       In the  near-term, on-farm ethanol production will use  corn as a
.-feedstock.  The process  will be identical to the commercial process,
except for the following:
                                    2-15

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       1.  A  low-pressure  boiler  (firetube)  will  be used to allow easy
           operation  by  a  farmer.   It  will  be oil-, gas-,  or waste-fired in
           most cases.
       2.  If corn  is used as  the  feedstock, the  still age  from the alcohol
           stripping  column will  not be  dried.   It will  be used directly as
           a  cattle feed supplement.   This  neccesitates  immediate usage
           since  even short-term  storage will  cause the  still age to become
           rancid.
       3.  Wastewater and  still age will  not  be  treated on-site.
2.2.2  Emissions  and  Effluents
       The emissions  and effluents from  the  on-farm process  will  be the same
as in commercial  production, except that there  will  be no  drier  emissions.
2.2.3  Pollution  Control Systems
       The on-farm  system  will  be  very small  and  will have few pollution
control  systems.  The boiler will  be uncontrolled because of its  small
size.  There  will not be any condenser vents  on the  fermentation  tank  and
distillation/dehydration columns.   Also,  no  dust  collection  devices will
be used.  The wastewater will  be discharged  to  an existing wastewater
system.  On-site  wastewater treatment  will not  be available.
2.2.4  Liquid and Solid  Waste  Disposal
       The stillage, although  undried, will  be  disposed of as  on-site
cattle feed if feasible.   Wastewater will be discharged and  not treated
on-site.
2.2.5  New and Emerging Technologies
       The new technologies potentially  affecting on-farm ethanol
production are the  same as  those in commercial  application,  with  the
exception of supercritical   fluid extraction of  ethanol.  This process  is

                                    2-16

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not applicable to on-farm processes because of its complexity and cost.
Increased automatic control (especially with a continuous fermentation
system) would be a major improvement, but this would not alter the process
or effluents.
2.3    OTHER ALCOHOL FUELS PRODUCTION
       The production of methanol and butanol fuels is technically
feasible, although the technologies are not as ready for commercialization
as ethanol production technologies.  This section describes the production
of methanol via catalysis of synthesis gas and the production of butanol
via biological conversion.
2.3.1  Methanol Via Catalysis of Synthesis Gas
       Methanol is produced by the catalytic reaction of hydrogen and
carbon monoxide at a temperature of approximately 315ฐC and a pressure
of 105 to 350 kg/cm  (2H2 + CO"^~^.CH3OH).  The hydrogen and carbon
monoxide precursors can be generated in several fashions.  The gases are
available from industrial off-gases or from the gasification of
carbonaceous feedstocks.  These carbonaceous feedstocks include coal,
lignite, peat, and the celluloses, wood, refuse-derived fuel, and biomass.
       The gasification of these feedstocks can occur at different
temperatures and pressures.  This discussion concerns itself with
atmospheric pressure, air-fed  gasifiers, which have been demonstrated with
all of the carbonaceous feedstocks.  The gasifiers reform the carbonaceous
feedstock into a crude gas, consisting mainly of hydrogen, carbon
monoxide, and carbon dioxide.  The crude gas is scrubbed to remove
                                                      2
.organics and then compressed to approximately 10 kg/cm  .  The gas is
subsequently passed through a  hot potassium carbonate scrubber and a
monoethanolamine scrubber to remove the carbon monoxide.
                                    2-17

-------
       The CCL-free gas is treated cryogenically  to  remove methane,
hydrocarbons, and nitrogen.  The  gas  is compressed to  approximately
        2
30 kg/cm  and reacted over an  iron shift catalyst.   Water vapor  and
carbon monoxide are reacted to form hydrogen.   Enough  gas is  reacted  until
the requisite hydrogen-carbon monoxide ratio  is reached  (2:1).
       The COp produced during this shift catalysis  is removed in
another potassium carbonate scrubber.  The synthesis gas is compressed  to
                       2
approximately 175 kg/cm  and fed  to the nickel chrome  catalytic
reactor.  These reactor products  are distilled in two  columns to remove
the light ends and higher alcohols from the methanol product.
       The major effluent from this process is the solid residue from the
feedstock gasification, which contains feedstock  inerts  and some carbon.
This  is disposed of by landfill.  The major source of wastewater is from
the hydrocarbon scrubber just downstream of the gasifier.  This water
contains particulates as well as  hydrocarbons and requires appropriate
wastewater treatment.
       There will be fugitive hydrocarbon emissions from the distillation
columns and scrubbers.  Condenser vents will be used to control these.
2.3.2  Butanol Production Via Biological  Conversion
       Butanol can be produced biologically from pentoses in a process
similar to ethanol fermentation.   This process is still under evaluation
and development, and only a short discussion of it is possible at this
time.
       Pentoses are produced via hydrolysis of pentosans found in
cellulosic wastes or grain.   These simple sugars are fermented with a
select strain of yeast that  enzymatically converts the five-carbon sugar
into butanol  and carbon dioxide.   Subsequent process steps  refine the

                                    2-18

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alcohol and remove the water, solids, and other hydrocarbons.  Fuel-grade
butanol is the final product.
       The exact process characteristics of this alcohol production
technology are not certain.  The process is very similar to ethanol
fermentation from cellulosic feedstocks.  Based on this, it is expected
that the emissions and effluents, control technologies, and disposal
characteristics will be similar.
                                     2-19

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                                  SECTION 3
                        THE STANDARDS SUPPORT SCHEDULE

 3.1    DESCRIPTION OF THE SCHEDULE
        The heart of an SSP is the schedule showing the temporal
 relationships among the various activities required to develop standards
 for a source category.  Specifically, the schedule shows how lERL-Ci will
 support the development of standards by indicating the laboratory's
 commitment to carry on various research activities prior to and concurrent
 with Program Office dates for the development of standards.  As a result
 of these efforts, several reports will  be prepared and a sampling and
 analysis (S&A) program on fuel-grade alcohol production facilities will be
 carried out.  The timeline for the various studies and the content of each
 of the activities are discussed in Section 3.2.  Section 3.3 explains the
 responsibilities and working interactions between lERL-Ci, Region VII, and
 the various Program Offices.
        As indicated previously, this SSP was developed with the consensus
 of the cognizant Program Offices:  OWPS/EGD, OAQPS/ESED, and OSW/HIWD.
 Since the original impetus for such a study came from an increase in
 requests for permits for fuel-grade alcohol production facilities on the
^farms in Region VII, representatives of Region VII also participated in
 the development of the plan.  Through a series of meetings the salient
 elements and requirements of the research study in terms of Program Office
                                     3-1

-------
needs were discussed.  Based on these discussions, the time framework  for
the various studies and an S&A program were developed for both commercial
and on-farm fuel-grade alcohol producing facilities.  Additionally,
responsibilities for certain elements of the plan were delegated.  The
specific details of the time framework of and responsibilities within  the
lERL-Ci research program are discussed in Section 3.2.
3.2    PROGRAM SCHEDULE
       As a result of a series of meetings among lERL-Ci, the Program
Offices, and Region VII, a program schedule evolved for the research
effort required to establish the need and/or basis for environmental
standards applied to fuel-grade alcohol production.  Initially, the
production of ethanol, methanol, and butanol was considered; however,  the
current plan has been limited to ethanol production, which will dominate
in the near term.  As will be discussed, future consideration will be
given to the other two alcohol fuels.
       There are four important phases to this research:  (1) information
surveys of the processes, (2) engineering analysis, (3) environmental  data
acquisition, and (4) documentation including a Pollution Control Guidance
Document (PCGD), a Health and Ecology Effects Report, and an Environmental
Assessment Report (EAR).  Based on the above, the Program Offices will
determine the appropriate standards as required.  Figure 3-1 shows the
schedule for the various activities and the relationship agreed upon by
the agency offices.
       The activities discussed in this SSP are limited to the production
of ethanol; they focus on processes using grain as a feedstock, but also
include those which use industrial waste stocks, such as cheese whey and
cellulosic materials as inputs.  The program distinguishes between
                                    3-2

-------
                        1979
                                                                         1980
                                                                                                                           1981
                                                                                                                                                                            1982
       FMAMJJASONo'jFMAHJJASONB.JFM
00

OJ
                      I     Kansas City Htg. 1 Transcripts
                                          Overview
                    Starting In 10/78 Distillery Survey
                                                 SSP II
                                              3-cL
                                                           RegionVII Activities
                                                               BATF
                                                             Coordinate
                                                           Oept. Agr./Ed.
                                                            Ext. Program
                                                           On-Farn Manual
                                                       lERL/Program Office/Region VII Mtgs.
                         S1A at Midwest Solvents
                          a • Nov 14 Htg.
                          b • Dec 5 Mtg.
                          e • Dec 20 Mtg.
                                                            SiA IERL On-Farm
                                                          S1A IERL Comnercial
Program Office
Comnercial SAA
EGO Std. Dev./OSW/OAQPS
           Std. Eval.
                                                                                                                               JปSOND.JFMAMJJASON
                                                             (see Fig. 3-2)

SSP 12

ICRL/Prog. Oft.
Htus.

ion Control
ce Document


IERL SSA Program | Qฐ]J"JJฐn

Health t Ecology
Effects Report

Environmental

Assessment Report 1

Control
?Qi;i/ment

Health ft Ecology!
Effects Report I
}
Environmental Assessment Report 1

                                                                Figure  3-1.     IERL  program  schedule  for  gasohol.

-------
commercial production and on-farm production for private use by an
individual farmer.  The latter appears to be increasingly important as
more farmers are turning to alcohol fuel to ensure an adequate energy
supply for their needs.
       The following briefly describes each of the elements of the Gasohol
program shown in Figure 3-1.
       •   Information Surveys
           —  The Gasohol Overview Report is an update of similar
               overview reports by the Office of Technology Assessments
               (OTA) and the Department of Energy (DOE), but from an EPA
               perspective.   This report focuses on an examination of the
               state-of-the-art technology, the economics, environmental
               issues, impediments to wide-spread use, and Federal
               initiatives to promote gasohol's use.
           ~  A review of major existing ethanol production facilities,
               listing the major U.S. producers of ethanol,  whether the
               product is used for fuel or not (i.e., includes some
               distilleries),  and the salient information about each
               operation.
           —  The transcript of a meeting at Region VII, Kansas City,
               presents an overall discussion and information transfer on
               the subject of gasohol, including environmental, economic,
               and energy issues.
       •   Engineering Analyses
           —  IERL has previously supported a study at Midwest Solvents
               (MWS) plant.   Information developed in that study was the
               basis for the analysis to determine the extent of the
                                    3-4

-------
    potential environmental problems associated with fuel-grade
    alcohol production and the media specific priorities and
    analytical detail required in continued research directed
    toward these facilities.
--  Based on the review of major existing ethanol production
    facilities, the important characteristics of near-term
    technologies and feedstocks were determined and typical
    facilities identified for continued study.
Environmental Data Acquisition
—  An S&A program has been planned for each of the three
    media:  water, solid, and air discharges.  The IERL S&A
    program was developed in consensus with the three Program
    Offices and Region VII.  The data provided by this program
    will be used in the preparation of a PCGD — see below —
    and will be of assistance in permit writing and standards
    development.  The choice of commercial facilities resulted
    from a review of the existing facilities listed in the
    ethanol production survey.  The facilities selected by IERL
    and the Program Offices are shown in Table 3-1.  It should
    be noted that the MWS plant had previously been studied by
    IERL, except for trace metals.  Additional samples will be
    obtained by Region VII and analyzed for trace metals by
    EGD.  Two on-farm facilities will be investigated in
    addition to the commercial plants.  Table 3-2 lists agency
    office responsibilities by activity and agency office.  The
    test matrix is shown in Table 3-3.  The bases for this
    matrix are the results obtained at MWS.

                         3-5

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    TABLE 3-1.  SUMMARY OF S&A INTEREST IN ALCOHOL PRODUCTION  PLANTS  BY
                PROGRAM OFFICES/ORD
Plant
Midwest Solvents
Georgia-Pacific
American Distilling
Milbrew
Muscati ne
Natick
On-Farm (2)
Program Office/ORD Involvement3
OWPS/EGD
C*
I
I
I
I
I

OSW/HIWD
C
NI
I
I
I
I

OAQPS/ESED
C
NI
C
I
I
NI

ORD/IERL
C*
I
I
I
I
I
I
aLegend
    I — Interested
   NI — No interest
    C — Sufficient testing completed
    * — Need trace metal analysis for completion; to be
         sampled by Region VII and analyzed by EGD
                                    3-6

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               TABLE 3-2.  AGENCY OFFICE RESPONSIBILITIES
              Activity
Responsible Agency Office
Overview Report
Alcohol Production Survey
Information Transfer Meeting at Kansas City
S&A Study at MWS
SSP for Ethanol Production
  (Meeting of Agency Offices)
S&A On-Farm Facilities
S&A Commercial Facilities (Air)
S&A Commercial Facilities (Water & Solids)
Standards Development
Regional Enforcement Model
Environmental Operation Manual
PCGD
EAR (with Health and Ecology Effects Report)
Continued Research
ORD/IERL-Ci
ORD/IERL-Ci
ORD/IERL-Ci & Region VII
ORD/IERL-Ci
ORD/IERL-Ci

ORD/IERL-Ci & Region VII
ORD/IERL-Ci
OWPS/EGD
Program Offices
Region VII
ORD/IERL-Ci & Region VII
ORD/IERL-Ci
ORD/IERL-Ci
ORD/IERL-Ci
                                  3-7

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              TABLE 3-3.  SAMPLING AND ANALYSIS PROGRAM MATRIX
I.     On-Site Sampling/Analysis*
       Solids:   Two locations -- dryer waste, coal
                 Sample dryer waste five times/day for 3 days, therefore,
                 15 samples or three daily composites
                 Sample one coal /test
       Liquids:  Four locations -- influent, effluent, sludge, makeup
                 Each location sampled five times/day for 3 days,
                 therefore,
                 five samples/day x 3 days/plant x four locations =
                 60 samples or three daily composites at each location
       Air:      Two locations (i.e., dryer vent and grain handling)
                 Test each location once/day for 3 days
                  Test Type             Method
                 Parti cu late         EPA Method-5
                 NOX                 EPA Method-7
                                     EPA Method-6
                 CO, C02, 02         EPA Method-3
                 Hydrocarbons        GC w/FID
II.    Laboratory Analysis
       Solid Streams:  Phenols, Cyanides, Ammonia Sulfate, Sulfites,
                       Nitrates, 22 Metals, Including Solid Extraction
                       Organ ics by GC/MS, Acid Fraction, Base Neutral
                       Fraction, Pesticides
       Liquid Stream:  Biological Oxygen Demand (BOD), Chemical Oxygen
                       Demand (COD), Total Organic Carbon (TOC), Total
                       Suspended Solids (TSS), Phenols, Cyanides, Ammonia
                       Nitrates, Sulfates, Sulfites, 22 Metals
                       Organics by GC/MS, Volatile Organic Analysis (VOA),
                       Acid Fraction, Base Neutral Fraction, Pesticides
       Air Stream:      Particulate — Sulfates, Nitrates
*The sample frequency is site specific; the above is only typical of the
 level of effort.
                                    3-8

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--  The sampling and analysis will be coordinated with the
    Program Office efforts.  Figure 3-2 shows a schedule for
    effluent guidelines development leading to the  -
    establishment of water effluent standards, if warranted.
    OSW will establish priorities based on this S&A program
    regarding future standards that may be enforced through
    their permitting system.  OAQPS will use the results to
    establish the need for developing a New Source Performance
    Standard (NSPS) for ethanol production.  At present,
    however, they do not anticipate a need for an NSPS for air
    emissions.
Documentation
—  The PCGD report will define the processes currently in use
    (both commercial and on-farm), characterize the process
    flow and emission streams, identify options for management
    and control of waste streams, and provide information on
    expected environmental control costs.  The PCGD will be
    based on the results of the S&A program and the engineering
    analyses.  As shown in Figure 3-2, EGD plans to publish a
    draft Development Document (DD) based on their standards
    development activities prior to the planned start of the
    PCGD.  Before actually starting the PCGD, the DD will be
    reviewed to determine  its adequacy in replacing
    (eliminating the need for) the PCGD.
--  The Environmental Operations Manual will provide guidance
    to the BATF on what environmental questions should be
    examined when issuing their permit for a still and

                         3-9

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           Task order
            awarded
  Plan
approval
Profile
            (1/2/80)    -(1/18/80)   (2/7/80)
                                                  Sampling               Completion  of
                                                    plant     Sampling     sampling S
                                                  selection   initiated     analyses

                                                  (3/1/80) \  (3/21/80)(6/15/RO)  \
                                                 Technology
                                                 selection

                                                 (2/21/BO)
u>
                                                                         Subcategory
                                                                         selection/
                                                                         paragraph/
                                                                         BCT test  8J
\ Field
\ Assessment
/ of technology
/ (hinlnflical )
(3/21/80)
In-plant
. treatment
\ assessment
A\ U/ JU/ '"J > \
Review'
i.uii^nn.c i Draft bv
innvrnd DD D0
(6/15/BOJJ(7/21/BOj (8/21/fl0)
, (.1/21/80) II
\ 308 data / /
, \ collection / I
\ (4/15/80)
\ Initiation
\ of cost
I manual
1 Final
/ Site cost
J verification report
I
Final
[)[) RMP
(11/30/80)
                                                               (3/21/ftO)
                                                                 (6/2/r,n)
            Approximately 10 plants will be sampled.
            One  project officer full  time is required.
                                   Figure  3-2.   Gasohol  effluent guidelines  development.

-------
               practical advice to the farmers on how to manage wastes
               from their on-farm processes.  As part of this activity,
               Region VII will establish a liaison with the Department of
               Agriculture/Educational Extension to develop a program
               assuring farmer awareness of the environmental impacts and
               proper operational practices to acceptably minimize these
               impacts.  It is also planned to monitor the initial on-farm
               installation through a cooperative effort by the BATF, who
               inspects facilities before start-up as part of their permit
               process.  The manual and protocol established by Region VII
               will be used as a model for other Regions.
           ~  The results of the IERL program will form the basis for the
               preparation of a Health and Ecology Effects Report which is
               one of the essential elements of an EAR.  Environmental
               Assessment Reports are designed to provide a comprehensive
               overview for a given technology.  An EAR dealing with
               alternative modules that comprise a given system within a
               given technology  is prepared by drawing together technical,
               economic, and environmental impact data for that system.
               The major topics  addressed are process description,
               characterization  of input materials, products and waste
               streams, performance and cost of control alternatives,
               analysis of regulatory requirements, and environmental
               impacts.
       As a result of the meetings between lERL-Ci, the Program Offices,
and Region VII, responsibilities for the various activities identified in
this SSP were assigned.  E6D will carry out the solid and liquid waste S&A

                                    3-11

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program for the commercial units.  Two of the commercial units will be
sampled for air emissions, and a complete sampling program for solid,
liquid, and air effluents will be carried out at two on-farm facilities.
Responsibility for these tests lies with lERL-Ci.  A manual will be
produced to serve as a guideline to the farmers who construct or install
fuel-grade alcohol production facilities and to the Bureau of Alcohol,
Tobacco and Firearms (BATF) who issues permits with respect to BATF
regulations.  The preparation of this manual will be the responsibility of
IERL in conjunction with Region VII.  Region VII is also responsible for
developing cooperation between the Department of Agriculture/Educational
Extension and the BATF.  Through the establishment of these contacts and
the development of a regulatory procedure, Region VII will serve as a
model region with respect to the control of on-farm facilities.
       As stated previously, the IERL program has focused on current
technology for the production of ethanol.  As the alcohol fuels industry
progresses, additional technologies and feedstocks will be developed for
ethanol production, and other alcohols, e.g. methanol and butanol, may
become more important.  For these reasons, the IERL program will continue
beyond that currently planned in the SSP.  Since several of the
developments indicated are expected to be, at least, in pilot-plant stage
by 1981-1982, it is recommended that a second SSP on fuel-grade alcohol
production be prepared in April 1981, followed by a second PCGD presenting
an engineering analysis of emerging production capabilities.
3.3    RESPONSIBILITIES AND WORKING INTERACTIONS
       The responsibilities and working interactions that have been
developed under this SSP stem from the overall mission of each group
involved.  These are shown in Table 3-3.  ORD's role is to respond to the
                                    3-12

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needs of the Program Offices to obtain the data necessary for  those
offices to establish appropriate standards.  In addition, they are to
provide guidance to the users of alcohol facilities, the Regions, and the
Program Offices to quantify effects beyond those required by the Program
Offices in order to fully understand the environmental impact  of the
facilities under study.  The responsibilities developed during the
organization meetings clearly respond to these missions.
       lERL-Ci is responsible for the generation of the background data
and the appropriate S&A program, both of which will lead to the generation
of a PC6D and an EAR.  Additionally, at the termination of the current
SSP, IERL will be involved in looking at the emerging technologies for
fuel-grade alcohol production.  Should these appear important,  more SSP's
and/or PCGD's will be generated.
       The Program Offices are required to establish the appropriateness
of emissions standards to assure that no significant environmental damage
will result from the facilities under study.  They also must develop data
of a type and quality needed for legally defensible standards  and to
ultimately promulgate the standards required.  Since OAQPS does not
anticipate needing standards in this area, their responsibilities to the
program are minimal.  However, for solid and liquid wastes, EGD will
assume the responsibility for carrying out a portion of the ORD/IERL-Ci
S&A program.  These activities, occurring at the commercial facilities
identified, result from general interest in promoting the new  development
of these sources and the immediacy of obtaining data to assess  their
impact.
                                    3-13

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       The Regions have the responsibility of enforcing the  standards,
normally through permits (such as under the National Pollution Discharge
Elimination Systems, or NPDES, for sources discharging a  liquid),  and
putting into place mechanisms to alert the EPA to potential  problems due
to the proliferation of fuel-alcohol facilities.  As part of this  role,
they are developing liaisons with both the Agricultural Department/
Educational Extension and the BATF, assisting with the development of the
Environmental Operations Manual, and identifying the on-farm facilities to
be studied.  These liaisons and the resulting mechanisms developed in
Region VII will serve as a model for other regions dealing with the
buildup of fuel-grade alcohol facilities on the farm.
       The organizational units involved in this study have  designated
individuals as principal contacts for the program.  Table 3-4 lists the
organizational unit, the responsible person, and the address and phone
number for that person.
                                    3-14

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         TABLE 3-4.  ALCOHOL FUEL/ENERGY COORDINATORS/CONTACTS
ORD/IERL-Ci
OAQPS/ESED
OWPS/EGD
OSW/HIWD
ORD/EPD
Region 1
Region 2
Region 3
Region 4
Region 5
Region 6
Region 7
Region 8
Region 9
Region 10
Robert Mournigham
Dave Markwordt
John Lum
Yvonne Carbe
David Berg
Dick Keppler
Paul Pruchan
Bernard Purinski
Frank Redmond
Jim Phillips/Cliff Risley
John Accardi
Charles Hajinian
Terry Thoem
Carl Kohnert
George Hofer
(513) 684-4334
(919) 629-5371
(202) 426-2707
(202) 755-9190
(202) 755-0205
(617) 223-3477
(212) 264-7665
(215) 597-9944
(404) 257-3004
(213) 886-6054
(214) 729-2650
(816) 758-2921
(303) 327-5914
(415) 556-7858
(206) 399-1125
                                  3-15

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                                  SECTION 4
              DISCUSSION OF THE STANDARDS SUPPORT PLAN ELEMENTS

        To provide a perspective on the future importance and potential
 environmental  impact of this source category, the status and projected
 development of the alcohol-for-fuels industry is described in
 Section 4.1.   Regulatory requirements for EPA and the Bureau of Alcohol,
 Tobacco and Firearms (BATF) that could apply to these sources under
 existing statutes are discussed in Section 4.2, as are the responses of
 these agencies to these legislative mandates.
 4.1    ALCOHOL FUELS DEVELOPMENT
        Alcohol fuels represent an important source of domestic renewable
 energy.  The use of alcohol in motor vehicles is not a new technology.
 The Model T Ford was designed to run on alcohol, gasoline, or any mixture
 of the two fuels.  However, as gasoline became relatively inexpensive and
 plentiful, the market for alcohol fuels diminished.  The recent increases
 in the price of petroleum products and the planned reduction of United
 States dependency on foreign sources of energy has led to an increase in
 the demand for alcohol  fuels.  (For Section 4.1, see References 4-1, 4-2,
 and 4-3.)
-4.1.1  Potential Oil Savings from Alcohol Fuels
        The amount of oil  that alcohol fuels can displace is equal  to the
 amount of oil  they save or replace in combustion processes minus any

                                     4-1

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difference in the amount of oil used to produce each fuel.  Two  alcohol
fuels, ethanol and methanol, are commercially available today.   In the
near term (1980 to 1985), ethanol will be the alcohol fuel  available  in
significant quantity for use in the commercial fuel market.  A mixture of
10 percent ethanol and 90 percent gasoline, called gasohol, can  be used  in
motor vehicles without engine modifications.
       Ethanol used in gasohol not only extends gasoline supplies by
replacing 1 gallon of gasoline for every 10 gallons of fuel consumed, but
also acts as an octane enhancer.  Since the presence of alcohol  in gasohol
increases the octane rating, the reforming requirements for the  production
of the unleaded fuel are reduced.  This reduction increases the  production
yield and decreases the amount of heating oil required in the reforming
process.  The combined effect of these two savings further  increases
alcohol's value relative to gasoline.  Industry estimates that these
effects merit a premium of roughly $0.10 per gallon of alcohol.*
4.1.2  Supply and Demand
       Current demand for gasohol is increasing.  The National Gasohol
Commission estimates that the number of retail outlets selling gasohol
have increased from 500 in March 1979 to about 2,000 in October  1979.
Three factors contribute to the increase in demand for gasohol.  These are:
       t   Driver perceived improved vehicle performance from higher
           octane ratings than those of unleaded gasolines
       •   Consumer preference (particularly by residents of farm states)
           for vehicle fuels derived from renewable agricultural products
*At 1979 prices.
                                    4-2

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       •   Lower selling price at the pumps than higher octane unleaded
           gasolines because the $0.04 Federal tax is not applied to
           gasohol
       •   Government incentives including eligibility of alcohol fuels
           for DOE entitlements worth approximately 2 to 3 cents per
           gallon.  U.S. Department of Agriculture has made loan
           guarantees available for alcohol pilot plants.
       The U.S. is currently producing 80 million gallons of ethanol for
fuel use per year (4,000 barrels per day).  By 1982 ethanol production is
expected to reach 300 million gallons per year (20,000 barrels per day).
Increased ethanol production will come primarily from excess distillery
capacity and expansions in currently operating facilities.  By 1985, if the
proposed Federal incentives materialize, ethanol production could reach 500
to 600 million gallons per year.  This level of production is beyond the
capacity of existing facilities and would occur only with the construction
of new facilities.  The design, construction, and startup of a new ethanol
facility can take 1 to 3 years, depending on the size of the plant.
       Wine producers throughout the United States are currently
investigating the feasibility of producing fuel-grade alcohol.  At this
time, it is not possible to accurately project what impact these facilities
would have on the alcohol fuels industry.  However, a number of refineries
have the capacity to produce 100 million gallons of alcohol per year.
       Beyond 1985 ethanol production will depend on:
       •   The availability of inexpensive feedstocks
       •   New technological developments that decrease capital and energy
           requirements and, therefore, the cost of conversion
       ง   The relative cost of competing fuels

                                    4-3

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       Methanol derived from coal  is  also  an  attractive  alternative  for
extending U.S. supplies of high quality  liquid  fuels.  However,  it  is
unlikely that methanol will be used extensively before 1990, when new
conversion facilities should be operating.  At  present economies of  scale,
profitable plants must be large, producing  20,000  to 50,000 barrels  per
day.  A plant of this size requires an investment  of $500 million to
$1 billion and can take up to 4 years to build.  Once such facilities  are
in operation, methanol could be produced more economically and  in larger
quantities than ethanol.
       Originally methanol was made from wood,  hence the common name wood
alcohol.  Today methanol is made almost entirely from natural gas and
oil.  In 1976 the U.S. produced 1.2 billion gallons of methanol, primarily
from these fossil fuels.  In the future production of methanol will  most
likely come from coal, wood, and agricultural residues.*
       Methanol has essentially the same octane  enhancing characteristics
as ethanol.  However, the use of methanol in quantities greater than
several percent requires modifications to existing engines.
       In the long term (late 1980's  and beyond) methanol is being
considered for use in gas turbines and may also  be used as a petrochemical
feedstock.  Diesel engines,  boilers,  and utility fuel cells may be
potential future uses for methanol, but additional research and
development are required.
*Methanol produced by the liquefaction of coal and gasoline produced from
 such coal-derived methanol are under investigation by EPA as part of the
 Indirect Liquefaction Program.  These processes will be the subject of
 separate PCGD's and EAR'S.
                                    4-4

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       If adapting motor vehicles and/or distribution systems to
accommodate methanol proves to be difficult, it may be converted directly
to high quality gasoline or MTBE, which is chemically closer to
petroleum.  Methanol/ethanol/gasoline blends are also under consideration;
however, at this point it is impossible to project what the proportions of
each fuel might be and what the market penetration will be in 1985 and
beyond.
4.1.3  Biomass Availability
       Approximately 800 million dry tons of biomass are available
annually for alcohol production.  By the year 2000 it is projected that
over 1.1 billion tons will be available.  Available feedstocks are
generally those feedstocks that are noncompetitive.  For example,
"available wood" does not include wood that would be used for lumber or
paper.  Available grain crops are residues and grains not needed for
projected demands of food, feed, or for export.  A breakdown of the
projected biomass resource availability is shown in Table 4-1.
       In order to estimate the amount of alcohol fuels that could be
produced from available feedstocks, it  is necessary to consider the
conversion processes currently demonstrated, those expected to be
demonstrated in the future, and the resulting conversion efficiencies of
each process.
       Conversion of all grains, sugar crops, and food processing wastes
could yield a maximum of 4.4 billion gallons of ethanol per year by 1980,
rising to 12.2 billion gallons in the year 2000.  Ethanol production
potential could be greatly increased by conversion of wood, agricultural
residues, and municipal solid waste (MSW) to ethanol.  In 1980 ethanol
                                    4-5

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                      TABLE 4-1.   PROJECTED  MAXIMUM U.S.  BIOMASS AVAILABLE FOR ALCOHOL PRODUCTION
                                                  (million dry tons  per year)
en
Blomass Source
Wood a
Agricultural
residues
Grains^
Sugars'*
Municipal solid
waste (MSW)
Food processing
wastes
Total
1980
Quantity
499
193
38
—
86
6
822
Percent
61
23
5
--
10
1
100
1985
Quantity
464
220
38
8
92
7
829
Percent
56
26
5
1
11
1
100
1990
Quantity
429
240
28
69
99
8
873
Percent
49
28
3
8
11
1
100
2000
Quantity
549
278
23
172
116
10
1,148
Percent
48
24
2
15
10
1
100
                 aAssumes wood from s1v1cultura1 energy  farms starting in 1995
                 ''Estimates for grains  and sugars assume development program to establish sweet sorghum as a cash crop

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production could reach 39.2 billion gallons per year, rising to
54.0 billion gallons per year by 2000.
       Table 4-2 shows the projected maximum alcohol production from U.S.
biomass resources.  It is important to note that the ethanol and methanol
quantities cannot be added because the same feedstock resources are
assumed to be used for one or the other.  Conversion of wood, agricultural
residues, and MSW could produce 128.3 billion gallons of methanol by
1980.  However, due to the lack of existing facilities, it is highly
unlikely that there will be significant methanol production before 1990.
In the year 2000 sufficient biomass could be available to produce either
54.0 billion gallons of ethanol or 154.7 billion gallons of methanol.
These figures represent a physical ~ though not necessarily economic —
possibility of alcohol fuels production.  Actual alcohol fuels production
will be considerably less than physical capacity.
4.2    REGULATORY REQUIREMENTS AND PLANS
4.2.1  Bureau of Alcohol, Tobacco, and Firearms
       The BATF is responsible for administering the laws in the Internal
Revenue Code relating to distilled spirits (alcohol).  The code
(26 U.S.C., Section 5002) defines distilled spirits as those substances
known as ethyl alcohol, ethanol, or spirits of wine, including all
dilutions and mixtures thereof, from whatever source, by whatever process
produced.  Although these laws relate primarily to the beverage alcohol
industry, all producers of alcohol must comply with them.  The primary
responsiblity of BATF is to protect revenue.  (For Section 4.2.1, see
References 4-4 and 4-5.)
       There are two types of distilled spirits plants (DSP's) currently
authorized by law:  commercial DSP's and experimental DSP's.  Under the

                                    4-7

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                   TABLE 4-2.  PROJECTED MAXIMUM ALCOHOL PRODUCTION FROM U.S. BIOMASS RESOURCES
                                            (billion gallons per year)
oo
Blomass Source
Wood a
Agricultural
residues
MSW
Subtotal
Sugars
Grains
Food processing
wastes
Subtotal
Total
1980
Ethanol
23.5
9.1
2.2
34.8
—
3.9
0.5
4.4
39.2
Methanol
86.3
33.4
8.6
128.3
--
—
—
—
128.3
1985
Ethanol
21.8
10.3
2.3
34.4
0.4
3.8
0.6
4.8
39.2
Methanol
80.2
38.1
9.2
127.5
—
--
—
—
127.5
1990
Ethanol
20.2
11.3
2.5
34.0
3.7
2.8
0.7
7.2
41.2
Methanol
74.2
41.5
9.9
125.6
„
—
—
—
125.6
2000
Ethanol
25.8
13.1
2.9
41.8
9.0
2.3
0.7
12.2
54.0
Methanol
95.0
48.1
11.6
154.7
—
—
—
—
154.7

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 law, a commercial facility  can  produce beverage  or  industrial  alcohol.
 Qualification  as  a  commercial facility requires  registering  the  plant,
 obtaining  an operating  permit,  filing a  bond,  having  a  continuous  and
 closed distilling system, and providing  adequate facilities  for  all
 operations including production,  warehousing,  denaturation,  and  bottling.
 Extensive  requirements  also  govern  the location,  construction,
 arrangement, and  protection  of  the  facility.   These commercial facilities
 are areas  under direct  onsite supervision by BATF inspectors.  The law
 also requires  that  in order  for alcohol  to  be  removed from the facility
 free of tax, it must be denatured;  this  denaturation  renders the alcohol
 unfit for  beverage  use.
       The second type  of DSP,  the  experimental  facility, is authorized by
 law to produce alcohol  for experimental  or  developmental purposes  only; no
 alcohol may be sold or  given away.  Generally  the duration of the
 operating  permit  is 2 years.  Because of these limitations, the
 experimental DSP  is not subject to  the extensive controls and requirements
mandated for a commercial facility.
       In  the first 7 months of 1979, BATF  received over 2,000
 applications for experimental DSP's.  All of these applications  were for
 production of fuel-grade alcohol, and most  were  by individuals who wanted
 to produce fuel-grade alcohol for their personal  use.  Although  it  is not
clear if the use of the experimental provision was intended for  the
production of fuel-grade alcohol, BATF has  moved  to approve these
 applications since  there is no  other provision under current law,  and they
 do not wish to hinder the production of fuel-grade ethanol.
       In an effort to provide  a  long-term  solution to regulation  of the
production of fuel-grade alcohol, BATF has  presented to Congress changes
                                    4-9

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 to  the  Internal Revenue Code.  The  submitted proposal  will  provide  BATF
 with the flexibility required to meet  the needs of  the alcohol  fuels
 industry.  The proposed changes establish a third type of DSP,  the  fuel
 producer.
       Under the proposed plan, the fuel producer will  be regulated in
 direct proportion to the danger of  loss of revenue, based on production.
 There will be three categories, or  sizes, of producers.  They are:
       •   Small producers ~ producing less than 5,000 (100 proof)
           gallons of alcohol per year
       •   Medium producers ™ producing less than  100,000  (100 proof)
           gallons of alcohol per year
       t   Large producers ~ producing over 100,000 (100 proof) gallons
           of alcohol per year
       While specific regulatory controls will vary at  each level of
production, all fuel alcohol plants will be required to:  file  a
 simplified application; denature their alcohol; maintain security
 necessary to prevent diversion of alcohol to uses other than fuel;  and
maintain limited records with respect to production and disposition of the
alcohol.  The small producer would not be required to  file a surety bond,
but the medium and large producers will.
       Commercial distillers are currently required to  denature alcohol
using specified formulae requiring substances such as  gasoline,  kerosene,
and other chemicals.  Denaturation must be conducted under the direct
supervision of BATF inspectors or through metered systems.  Under the
proposal, BATF will work with the fuel producer to develop an acceptable
formula that will meet the needs of the individual producer.
                                    4-10

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       As previously mentioned, the primary responsibility  of  BATF  is  to
protect revenues.  However, BATF  has certain  responsibilities  under  the
National Environmental Policy Act  (NEPA) of 1969, the Federal  Water
Pollution Control Act of  1972 (FWPCA) as amended in  1977, and  the National
Historic Preservation Act  (NHPA)  of 1966 as amended.  BATF  has published  a
handbook on environmental  protection that  serves as  a guideline for  BATF
personnel to ensure compliance with the above mentioned  laws.   The  IERL
program for gasohol calls  for publication  of  an Environmental  Operations
Manual to guide BATF as to what environmental questions  to  examine when
issuing permits for a DSP.  In practice it will also serve  as  a guide  to
farmers on how to manage wastes from their on-farm processes.   This  manual
will be a cooperative effort between BATF  and EPA.
4.2.2  Office of Air Quality Planning and  Standards
       The Clean Air Act  (CAA) as  amended  in  1977 is the legal  authority
for the air pollution control program.  The OAQPS is responsible for
administering the provisions of the CAA for control of air  pollutants  from
stationary sources.  The objective of the  CAA is to  achieve and maintain
air quality sufficient to  protect  public health and welfare, including the
maintenance of low pollutant concentrations in currently "clean" areas.
The enactment of the act provided  the basis for a series of national,
state, and local actions designed  to protect  air quality and limit the
emissions of certain air pollutants.  In addition to any regulations
developed independently by state and local authorities, the following
federally mandated regulations could apply to the alcohol fuels industry:
       •   National Ambient Air Quality Standards (NAAQS)
       t   State Implementation Plans (SIP's)
       •   New Source Performance  Standards (NSPS)

                                    4-11

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       •   Nonattainment New Source Review  (NSR)
       •   Prevention of Significant Deterioration  (PSD)
(For Section 4.2.2, see Reference 4-6.)
4.2.2.1  National Ambient Air Quality Standards and State Implementation
         Plans
       National Ambient Air Quality Standards are intended to protect
health and welfare by specifying maximum allowable ambient pollutant
concentrations.  To date NAAQS have been promulgated for sulfur oxides,
particulate matter, carbon monoxide, photochemical oxidant, lead,
hydrocarbons, and nitrogen oxides.  Each state must then develop an
implementation plan outlining the state's strategy for attaining and
maintaining the NAAQS.  The SIP for a particular pollutant includes
regulations as needed on new and/or existing sources to achieve sufficient
emission reductions to attain and maintain the NAAQS.  It is, therefore, a
plan for implementation, maintenance, and enforcement of emission
limitations and other measures for particular sources.
4.2.2.2  New Source Performance Standards
       Under Section 111 of the CAA, EPA is directed to establish NSPS for
new and modified stationary sources deemed to have a significant impact on
health and welfare.  These standards are nationally applicable direct
emission limitations for specific source categories (e.g.,
fossil-fuel-fired steam generators).  NSPS regulations require emission
reductions achievable through application of the best demonstrated
continuous control technologies taking into account non-air quality
factors such as energy requirements and the cost of achieving such
reductions.
                                    4-12

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       By 1982 NSPS are to be established for all categories of major
sources — sources with the potential to emit more than 91 Mg (100 tons)
per year.  EPA may, however, develop standards for sources emitting less
than that amount, especially for certain minor sources that together
represent a large quantity of emissions.
4.2.2.3  National Emission Standards for Hazardous Air Pollutants
       Section 112 of the CAA requires EPA to establish National Emission
Standards for Hazardous Air Pollutants (NESHAP's}.  NESHAP's are specific
emission limitations applicable to any new source or modified existing
source.  A hazardous air pollutant is defined as a pollutant for which no
ambient air quality standard has been set, but which may cause or
contribute to an increase in mortality or serious illness.  NESHAP's have
been established for asbestos, beryllium, mercury, and vinyl chloride.  By
February 1980 the proposed NESHAP for benzene will be complete.
4.2.2.4  Nonattainment and New Source Review
       A major new source planning to build a facility or modify an
existing one in a region where an ambient standard is being exceeded
(called a nonattainment area) must obtain a New Source Review (NSR)
permit.  To issue the NSR permit, the state must show that the total
emissions from all sources in the area, including the proposed new one,
will be sufficiently less than the total emissions due to all existing
sources.  In addition the new source must use controls that reduce
emissions as much as required by the most stringent limitation in any SIP
or as obtained in practice — called Lowest Achievable Emission Rate
(LAER).  LAER determinations do not take cost into account as in NSPS and
BACT (see Section 4.2.2.5).
                                    4-13

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4.2.2.5  Prevention of Significant Deterioration  and  Best  Available  Control
         Technology
       While the purposes of nonattainment provisions and  the  SIP  are  to
attain and maintain standards, the objective of PSD  is  to  prevent
significant deterioration of air that  is  already  cleaner than  NAAQS.
Under PSD, all areas in the U.S. meeting  air quality  standards  are
classified Class I, Class II, or Class  III, with  varying limits  on
increased pollutant levels.
       Increases in pollution are restricted by numerical  limitations
called increments.  Each increment is  a numerical  definition of  the  amount
of additional pollution allowed through the combined  effects of  all  new
growth in a particular area.
       At the present time EPA is considering alternatives to the
increments approach used to control emissions of  SO^  and particulate
matter.  It is expected that PSD regulations for  other  criteria  pollutants
will be promulgated in 1981.
       A new source entering a PSD area must use  the  Best Available
Control Technology (BACT) in order to minimize air quality impact.  BACT
determinations, which include cost and energy trade-offs, are made by  the
states on a case-by-case basis.  If an NSPS exists for  a source  category,
the BACT emission level must not exceed the NSPS  limit.
4.2.2.6  Regulatory Decision Making Process
       Figure 4-1 shows the analysis and decision making process used  by
EPA in selecting the preferred regulatory approach for  air emissions from
stationary sources.  The initial decision is based on health and
ecological effects, requiring that atmospheric emissions data be known.
                                    4-14

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 Prob1 em
Assessment
Preferred
Regulatory
Approach
                                                          Are in.) )or sutlorury
                                                           v>ut i t"i controlI
                                                          life -HIM' u* (.ontrot of
                                                            Oilier uu||ut.int*?
                                                            Can |>ruU'iti(in
                                                           of ht>dlth be justified
                                                           under Section II??
             Figure 4-1.    Preferred  standards  path analysis flow chart for
                               air  quality  programs.

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If these emissions are found to cause  adverse  affects,  a  branching  chain
of possible actions based on specific  questions follows.   Information  is
also needed on available control technologies  (if known)  and  their
performance.
4.2.2.7  Current Regulations
       The major potential sources of  air pollution from  alcohol fuel
production are discussed in Section 2.  There  are no federal  or state  air
regulations that specifically address  these emissions.  Although federal
regulations do exist for particulate,  SCL, and NO  emissions  from
                                        Lm        Ab
boilers greater than 73 MW (250 x 10   Btu/hr)  heat input, the boiler in
a typical alcohol plant producing 20 million gallons is less  than half
that size.  In the future, emissions from industrial boilers, whether  they
are fossil-fuel-fired and smaller than 73 MW (250 x 106 Btu/hr) heat
input or non-fossil-fuel-fired and of  any size, will be covered by NSPS
requirements currently being generated by EPA.  There are also federal
opacity standards for dryers, grain elevators, truck or railcar loading,
and other grain handling operations that might apply to alcohol fuels
production.  A number of states have emission  standards for particulates
from industrial incinerators, dryers,  and steam generating equipment.
       If the fugitive emissions of benzene from the benzene  dehydration
process are found to be significant, other processes such as  using ethyl
ether and hexane can be implemented.  The EPA  is currently working on a
NESHAP standard for benzene; it is unclear at this time what  effect this
standard will have on the use of benzene to produce alcohol.
       Although none of these regulations apply specifically  to the
alcohol fuels industry, regulations governing specific emissions from a
                                    4-16

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particular piece of equipment would probably be  applied to  such equipment
as it is used in alcohol fuels production.
4.2.2.8  Regulatory Plans
       At this time OAQPS does not foresee  any new regulatory actions
directed specifically toward controlling air emissions from facilities
producing fuel grade alcohol.  OAQPS will participate in  a  sampling
program coordinated by IERL.  OAQPS will use the results  of this program
in the analysis scheme depicted  in Figure 4-1 to establish  if there is a
need to institute the NSPS process of alcohol fuels production.
4.2.3  Office of Water Planning  and Standards
       The FWPCA of 1972, as amended* provides the statutory authority for
the regulatory programs of OWPS.  The major objective of  the CWA is to
restore and maintain the chemical, physical, and biological integrity of
the Nation's waters.
       The regulatory mechanisms authorized by the CWA that could be
applied to control effluents from alcohol fuels production  are as
follows.  (For Section 4.2.3, see References 4-7 and 4-8.)
4.2.3.1  Effluent Limitations
       Section 301 provides for  the establishment of nationally applicable
effluent limitations on an industry-by-industry basis.  These effluent
limitations, with minor exceptions, establish a nationwide base level of
treatment for existing direct discharge sources in every  significant
industrial category.  These limitations are to be accomplished in phases.
*The Federal Water Pollution Control Act Amendments of 1972, (PL 92-500)
 further extended the scope of the FWCPA of 1965, as previously amended
 in 1966 and 1970.  New anmendements to this legislation, the Clean Water
 Act (CWA) of 1977 (PL-92-217) were signed into law in December 1977.
                                    4-17

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The first phase of treatment requires  application  of  the  Best  Practicable
Technology (BPT).  BPT has been defined  as  "the  average of the best
existing performance by well operated  plants within each  industrial
category or subcategory."  In developing BPT,  impacts  on  industry and
economy as a whole are taken into  account.
       Section 301 provides for three  categories of pollutants for the
next phase of cleanup:  toxic, conventional and  non-conventional.  By
July 1, 1980 EPA must issue effluent limitations for  65 toxic  substances.
These effluent limitations will require  applications  of BAT  by July  1,
1984.  For any chemical added to the toxic  list, EPA must  promulgate BAT
regulations as soon as practicable.  Industry must comply  with BAT not
later than 3 years after the standard  is set.  EPA must identify
conventional pollutants; these include suspended solids, certain  bacteria,
pollutants affecting BOD and alkalinity-acidity.   Discharges of
conventional pollutants are required to  install Best  Control Technology
(BCT) by July 1, 1984.  BCT is defined as a technology that  is  considered
to be economically reasonable for  an industry, that is, at  least  as
stringent as the base level or BPT and less than or as stringent  as the
Best Available Technology (BAT).  BAT  is defined as the "very  best control
treatment measures that have been or are capable of being  achieved"
considering the cost impact of the industry.
       For all conventional pollutants (pollutants other than  toxic or
conventional) industry must comply with BAT by July 1, 1987.   EPA may
modify the BAT requirements however if a facility  has  compiled  with BPT
and is meeting water quality standards,  if no additional burden on other
dischargers will result, and if no public health or environmental risk is
anticipated.
                                    4-18

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       Thus, BAT  is applicable to both toxic  and  nonconventional
pollutants, though the deadlines differ depending on the type of discharge
being regulated.  Industries may propose  to meet  BAT by replacing existing
production processes with  an innovative process or control technique
resulting in significant effluent reduction or lower costs and that may
have industry-wide application.  These industries will have the longest
timetable available.
       In addition to setting effluent limitations, EPA must now publish
regulations to contol plant site runoff,  leaks, waste disposal, spillage,
and drainage from raw material storage of toxic and hazardous pollutants
associated with an industrial manufacturing or treatment process.  Called
Best Management Practices  (BMP's), these  controls must be included in any
permit issued under Section 402.
       Under Section 306 of the CWA, EPA  is directed to establish national
standards of performance for new sources.  The general approach to the
establishment of  NSPS is similar to that  established for existing sources,
with some distinct differences.  A standard of performance is defined as a
standard for the  control of discharge of  pollutants reflecting the
greatest degree of reduction.  This reduction can be achieved through
application of the best available demonstrated control technology,
processes, operating methods, or other alternatives including, where
practicable, standards permitting no discharge of pollutants.  The primary
differences between this criteria and BPT or BAT  is that under Section 306
EPA is specifically required to consider  not only pollution control and
abatement processes and techniques, but also various alternative
production processes, operating methods,  in-plant control procedures,
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 etc.   In  addition, NSPS do not require  detailed  consideration  of  economic
 and  technological factors, but Section  304  does.
 4.2.3.2   Pretreatment Regulations
       The primary intent of the pretreatment regulation  is to  protect  the
 operation of publicly owned treatment works  (POTW)  and  to prevent
 inadequate treatment of discharged pollutants.  The  discharge  limits  are
 based  on  best available technology economically  achievable for  industrial
 uses of both new and existing sources.
 4.2.3.3  Water Quality Criteria
       As mentioned previously, the technology based effluent  limitations
 function primarily as a nationwide base level of treatment.  Section  302
 of the CWA makes specific provisions for the establishment of effluent
 criteria.  These criteria can be more stringent than the  BAT guidelines,
when necessary, to attain or maintain water quality  that  assures
protection of public water supplies, agricultural and industrial  uses,  and
fish and wildlife.  These criteria may require that  an  industrial facility,
 located either in areas of heavy discharge concentration  or near  waters
where very stringent water quality standards have been established,
provide a level of treatment considerably higher than the base level
established by the technology related effluent limitations.
4.2.3.4  National Pollutant Discharge Elimination System
       The primary enforcement mechanism for the federal effluent
 limitations,  NSPS, and pretreatment requirements is a nationwide permit
program,  called NPDES, established under Section 402 of the Act.  Under
this program, every point source is issued a permit by EPA or the state.
These permits specify maximum permissible levels of each pollutant that
 can be discharged, a compliance schedule for reaching these limits, and

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requirements for monitoring and reporting discharges to the states and
EPA.  These guidelines and standards are technology based  (as opposed to
being based on meeting specific water quality or health goals).  These
guidelines and standards do not require that specific control technology
be used; the level of control, however, is based on physical/chemical
treatment of the effluent, process modifications, best management
practices, or even transferring the discharge to an industrial waste
disposal company.
4.2.3.5  Regulatory Decision Making Process
       Figure 4-2 shows the analysis used by OWPS in determining the
regulatory approach to be used.  First, the amount of effluents from the
particular source must be known, followed by a determination of the
potential adverse effects of the effluent on water quality.  If these
effects are determined to pose a problem of national or statewide concern,
a standard for control is established.
4.2.3.6  Current Regulations
       No specific regulations govern the waste stream effluents from
alcohol fuels production.  Standards on other processes, such as sugar
mills and grain mills, which will require secondary treatment may also
apply to alcohol fuels production.  In addition, general water quality
standards for BOD and suspended solids must be maintained.  More stringent
standards can be found at the  state and local levels for pH, organic
materials, and other effluents that cannot be discharged into POTW.
       Notwithstanding any of  the above regulations, the EPA Administrator
can establish effluent limitations for a source or sources interfering
with the attainment or maintenance of any promulgated water quality
standard.
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4.2.3.7  Regulatory Plans
       The OWPS/EGD prepares  and publishes  a  development  document for each
industrial category for which the Agency  intends  to promulgate  an effluent
guideline.  These documents present the data  base supporting the Agency's
findings on uncontrolled discharges, the  availability of  control
technologies for these discharges, the reductions achievable through the
use of control techniques, and the cost,  energy consumption and other
nonwater quality aspects resulting from the use of these  controls.  OWPS
plans to publish a development document on  gasohol by November  1980.
4.2.4  Office of Solid Waste
       The program for environmentally safe disposal of solid waste is
administered by OSW under the statutory authority of the  Resource
Conservation and Recovery Act (RCRA).  The objectives of  RCRA are to
protect health and the environment and to conserve valuable material and
energy resources.  To date no specific regulations have been developed by
OSW.  The following paragraphs describe the provisions contained in RCRA
that could apply to the alcohol fuels industry (see Reference 4-9).
       Subtitle C contains the primary enforcement and program
authorizations.  The content of Subtitle C is to enable a program
providing for identification of those waste substances (primarily
industrial) that may be hazardous and tracking of them from their
generation through transportation and storage to ultimate disposal in an
environmentally acceptable manner.
       Under RCRA, a distinction is made between hazardous and
nonhazardous solid wastes.  OSW is currently planning to promulgate
standards in 1980 for the criteria and test procedures to be used in
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determining whether or not a solid waste  is hazardous.  Among  the  criteria
under consideration are flammability, corrosivity, reactivity,
radioactivity, toxicity, and potential for bioaccumulation, persistence,
and causing disease.  By April 1980 it is expected that OSW will have
published a list of hazardous waste substances.  In  addition to the  EPA
listing, RCRA allows the governor of any  state to petition EPA to  identify
or list additional substances.
       Regulations for a federal permit system applicable to owners  and
operators of hazardous waste treatment, storage, or  disposal systems have
also been developed by OSW and should be  promulgated by Febuary 1980.
Further, by 1980 OSW plans to have promulgated guidelines to assist  the
states in developing hazardous waste programs.  State or regional  plans
for the management of nonhazardous wastes are administered under
Subtitle D of RCRA.  OSW guidelines for state plans  and criteria for
sanitary landfills are also expected to be published in 1980.
4.2.4.1  Current Regulations
       There are no federal or state regulations dealing specifically with
the solid wastes generated from alcohol fuels production.  In general,
state regulations require that wastes be  handled by  a licensed waste
hauler and disposed of in a licensed disposal facility.
       It is believed that most alcohol fuel producers will dispose of
less than 100 kilograms (220 pounds) per month of hazardous wastes
(including benzene and pesticides), if any at all.   In the event they do
dispose of hazardous wastes up to 100 kilograms per month, they must
comply with Section 250.29 (persons who dispose of less than 100 kilograms
per month of hazardous waste; retailers;  and farmers) of the proposed RCRA
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regulations.  In general, this provision requires that  any hazardous waste
generated, no matter how small the quantity, be disposed of either  in:
       0   A solid waste facility that has been permitted or otherwise
           certified by the state as meeting the criteria pursuant  to
           Section 4004 (Criteria for Sanitary Landfills) of RCRA
       •   A treatment, storage, or disposal facility permitted by  the
           Administrator pursuant to the requirements of Section 3005
           (Permits for Treatment, Storage and Disposal of Hazardous
           Wates), or permitted by an authorized state  program pursuant to
           Section 3006 (Guidelines for Authorized State Hazardous  Waste
           Programs) of RCRA
4.2.4.2  Regulatory Plans
       At present OSW does not plan to develop regulations for the
disposal of solid wastes from the production of alcohol fuels because
preliminary tests indicated that these wastes were not  hazardous.   The
OSW, however, will participate in the sampling and analysis program to be
conducted by OWPS and lERL-Ci to ensure that these are, in fact, not
hazardous.
4.2.5  Office of Toxic Substances
       The Toxic Substances Control Act (TSCA) of 1976  is administered by
the Office of Toxic Substances (OTS).  TSCA has two main goals:  the
acquisition of  sufficient  information to identify and evaluate potential
hazards from chemical substances and the regulation of  production,  use,
distribution, and disposal of these substances (see Reference 4-10).
       Under TSCA, manufacturers or processors of potentially harmful
chemicals may be required  to conduct tests on the chemicals at their own
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expense.  Testing may be necessary to evaluate  a  chemical's health  or
ecological effects.
       Manufacturers of new chemical substances must notify the  EPA
90 days before the chemical is manufactured for commercial purposes.   On
June 1, 1979 EPA published an inventory of existing chemicals.   Any
chemical not on this list  is considered new for the purposes of  the
premarket notice requirement.  In addition, the EPA Administrator may
designate a use of an existing chemical as a signficant new use.  Anyone
who intends to manufacture a chemical for such  a  significant new use also
must report this information 90 days before marketing.
       TSCA authorizes EPA to issue an order or seek an injunction,  if
necessary, to keep a new chemical off the market.  In  addition,  the EPA
Administrator may prohibit or limit the manufacture, use, or disposal  of a
chemical substance or mixture if these activities present an unreasonable
risk to health or the environment.
4.2.5.1  Current Regulations
       The EPA is now in the process of developing programs to fully
implement the authorities of TSCA.  Intially, more emphasis is being
placed on obtaining and analyzing information than on  writing specific
control regulations.  In 1980 the agency will concentrate on devising  a
premarket notification system.  By the end of 1980, all aspects  of  the
TSCA program are planned to be operational.
4.2.5.2  Regulatory Plans
       Under the provisions of TSCA, ethanol is not considered toxic.
Hence, OTS does not have any plans at this time to require premarket
notification or special handling of ethanol.  If  any of the byproducts of
alcohol fuels production are found to be toxic  as a result of the sampling
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and analysis program described in this plan, it is expected that
regulation of these substances will be handled by the  appropriate media
office.
4.2.6  Office of Enforcement
4.2.6.1  Current Regulations
       The Office of Enforcement, in cooperation with  Regional Offices,
has the authority to enforce compliance with federal regulations.  In
general, day-to-day enforcement activities are the primary responsibility
of the states; however, when a state fails to adequately  administer  its
SIP, NPDES, hazardous waste, or other federally mandated  environmental
program, EPA has the authority to assume this function.
       The Office of General Enforcement, Stationary Source Enforcement
Division, provides support  to the EPA Regional Offices  and state
environmental control authorities as needed to maintain and enforce  the
regulations and provisions  under the CAA.
       The Office of Water  Enforcement, Enforcement Division, enforces
compliance with water quality standards and effluent limitations in
cooperation with state  authorities  and the EPA regional offices.  The Permits
Division works with the states to issue discharge permits in an advisory
capacity and, for those states not  authorized to issue  permits (20 out of
50), has the responsibility of application review and  permit issuance.
4.2.6.2  Regulatory Plans
       The Office of Enforcement needs reliable information on pollutant
emission rates and control  methods  to aid in their guidance for permitting
of stationary sources.  The information derived from the  sampling and
analysis program to be  conducted by IERL will assist the  Office in their
permitting, should permitting be necessary in the future.
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                          REFERENCES FOR SECTION 4
4-1.   U.S. Department of Energy, "The Report of the Alcohol Fuels Policy
       Review," June 1979.
4-2.   Congress of the United States, Office of Technology Assessment,
       "Gasohol, a Technical Memorandum," 1979.
4-3.   Brochure, National Gasohol Commission, Inc., Lincoln, Nebraska.
4-4.   Department of the Treasury, Bureau of Alcohol, Tobacco, and
       Firearms, "Informational Brochure Ethyl Alcohol for Fuel Use,"
       ATF P 5000.1, July 1978.
4-5.   G. R. Dickerson, Statement presented to the Senate Agricultural
       Research and General Legislation Subcommittee of the Committee on
       Agriculture, Nutrition, and Forestry of the United States Senate,
       July 23, 1979.
4-6.   The Clean Air Act Amendments of 1977, P.L. 95-95, 91 Stat. 685; and
       P.L. 95-190, 91 Stat. 1393.
4-7.   Research Triangle Institute, "Standard Support Plan for
       Technologies for Producing Synthetic Fuels from Coal," Draft,
       January 1979.
4-8.   Federal Water Pollution Control Act of 1972, 33 U.S.C. Section 1251
       and P.L. 95-217, 91 Stat. 1566, December 27, 1977.
4-9.   Resource Conservation and Recovery Act of 1976, P.L. 94-580,
       90 Stat. 2795.
4-10.  Toxic Substances Control Act of 1976, P.L. 94-469, 71 Stat. 850.
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