EPA Proposes  2012  Renewable Fuel
                     Standards  and 2013  Biomass-Based
                     Diesel Volume
                     Introduction
                     Under the Clean Air Act Section 211 (o), as amended by the Energy Independence
                     and Security Act of 2007, the Environmental Protection Agency (EPA) is required
                     to set the annual standards under the Renewable Fuel Standard program (RES) each
                     November for the following year based on gasoline and diesel projections from the
                     Energy Information Administration (ElA). EPA is also required to set the cellulosic
                     biofuel standard each year based on the volume projected to be available during
                     the following year, using EIA projections and assessments of production capability
                     from industry. This regulatory action proposes these annual standards for cellulosic,
                     biomass-based diesel, advanced biofuel, and total renewable fuels that apply to all
                     gasoline and diesel produced or imported in year 2012,

                     EPA is also required to determine and promulgate the applicable volume of biomass-
                     based diesel that will be required in 2013 and beyond, as the statute does not specify
                     the applicable volumes for years after 2012. In today's action we are proposing an
                     applicable volume of 1.28 billion gallons for biomass-based diesel (BED) for 2013,
                     We are proposing this volume for 2013 based on consideration of the factors specified
                     in the statute, including a consideration of biodiesel production, consumption, and
                     infrastructure issues. As required under the statute, we also assessed the likely impact
                     of BED production and use in a variety of areas, including climate change, energy
                     security, the agricultural sector, air quality, and others.

                     In today's action we are also proposing a number of changes to the RES regulations.
                     These proposed changes are intended to:

                         Clarify certain provisions because we have learned that there is some confusion
                          among some regulated parties

                         Clarify the application of certain provisions to unique circumstances
SEPA
United States
Environmental Protection
Agency
Office of Transportation and Air Quality
                   EPA-420-F-11-018
                        June 2011

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       Provide greater specificity in the definition of certain terms

       Correct regulatory language that inadvertently misrepresented our intent


Finally, today's rule also proposes to make a minor amendment to the gasoline benzene regulations
regarding inclusion of transferred blendstocks in a refinery's early benzene credit generation
calculations.
General Background
EPA is required to determine and publish the applicable annual renewable fuel percentage standards
for each compliance year by November 30 of the previous year. Determining the applicable standards
under RFS requires EPA to conduct an in-depth evaluation of the volume of qualifying cellulosic
biofuel that can be made available the following year. If the projected available volume of
cellulosic biofuel is less than the required volume specified in the statute, EPA must lower the
required volume used to set the  annual cellulosic biofuel percentage standard to the projected
available volume. EPA must also determine whether the advanced biofuel and/or total renew-
able fuel volumes should be reduced by the same or a lesser amount. The proposed rule provides
EPA's evaluation of the projected production of cellulosic biofuel for 2012, and the proposed
percentage standards for compliance year 2012,

Also,  for years after 2012, EPA must determine the applicable volume of biomass-based diesel
at least 14 months prior to the year in which the volume will be required. Thus, for the 2013
compliance year, we must specify the applicable volume of biomass-based diesel by November 1,
2011.
Proposed Percentage Standards for 2012
To calculate the proposed percentage standard for cellulosic biofuel for 2011, EPA used a volume
of 3.55 - 15.7 million ethanol-equivalent gallons. EPA is also proposing that the applicable
volumes for biomass-based diesel, advanced biofuel, and total renewable fuel for 2012 will be
those specified in the statute. These volumes are shown in Table 1,
Table 1
Proposed Volumes for 2012

Cellulosic biofuel
Biomass-based diesel
Advanced biofuel
Renewable fuel
Actual Volume
3.45- 12.9 mill gal
1.0 bill gal
2.0 bill gal
15. 2 bill gal
Ethanol Equivalent Volume"
3.55- 15. 7 mill gal
1.5 bill gal
2.0 bill gal
15. 2 bill gal
a Biodiesel and cellulosic diesel have equivalence values of 1.5 and 1.7 ethanol equivalent gallons respectively. As a result, ethanol-equivalent
volumes are larger than actual volumes for cellulosic biofuel and biomass-based diesel.

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The volumes in Table 1 are the minimum that would need to be consumed in the U.S. Insofar
as excess volumes of cellulosic biofuel or biomass-based diesel were to be consumed, they would
count towards the advanced biofuel and total renewable fuel volume requirements.

Four separate standards are required under the RFS program, corresponding to the four separate
volume requirements shown in Table 2. The percentage standards represent the ratio of renewable
fuel volume to non-renewable gasoline and diesel volume. Thus, in 2012 about 9% of all fuel used
will be from renewable sources. The proposed standards for 2012 are shown in Table 2.
Table 2
Proposed Percentage Standards for 2012
Cellulosic biofuel
Biomass-based diesel
Advanced biofuel
Renewable fuel
0.002 to 0.010%
0.91%
1.21%
9.21%
Finally, in today's action we are proposing an applicable volume of 1.28 billion gallons for
biomass-based diesel (BED) for 2013. This is the volume that was projected for 2013 in the RFS
final rulemaking.
For More Information
For more information on this proposal, please visit the RFS website at:
       http://www.epa.gov/otaa/fuels/renewablefuels
To submit a question on the RFS program, and to view Frequently Asked Questions, please visit:
       http://www. eDa.gov/otaa/fuels/renewablefuels/comDliancehelD/index.htm

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