EPA  Issues Direct Final Rule for
                  Additional Qualifying Renewable Fuel
                  Pathways Under the RFS2 Program
                     The U.S. Environmental Protection Agency (EPA) is taking direct
                     final action to identify additional fuel pathways that the Agency
                  has determined meet the lifecycle greenhouse gas (GHG) reduction
                  requirements for biomass-based diesel, advanced biofuel, and cellulosic
                  biofuel under the National Renewable Fuel Standard (RFS2) program.
                  This direct final rule describes EPA's evaluation of biofuels produced
                  from camelina oil, which qualify as biomass-based diesel or advanced
                  biofuel, as well as biofuels from energy cane, giant reed, and napier-
                  grass, all which qualify as cellulosic biofuel.

                  It also qualifies renewable gasoline and renewable gasoline blendstock
                  made from certain qualifying feedstocks as cellulosic biofuel, and
                  biodiesel produced through esterification as biomass-based diesel or
                  advanced biofuel.

                  By qualifying these new fuel pathways, this rule provides opportuni-
                  ties to increase the volume of advanced, low-GHG renewable fuels—
                  such as cellulosic biofuels— under the RES program. EPA's compre-
                  hensive analyses show significant lifecycle GHG emission reductions
                  from these fuel types, as compared to the baseline gasoline or diesel
                  fuel that they replace.

                  Lastly, the rule clarifies  the definition of renewable diesel to explicitly
                  include jet fuel.  This clarification offers additional market certainty
                  and opportunity for renewable diesel producers.
SEPA
United States
Environmental Protection
Agency
Office of Transportation and Air Quality
                EPA-420-F-11-043
                 November 2011

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Background
In the final Renewable Fuel Standard (RFS2) rule, published in March 2010, EPA assessed the
lifecycle GHG emissions of multiple renewable fuel pathways (defined as feedstock, fuel type,
and fuel production process). Assessment of lifecycle GHG emissions is necessary to determine
which fuel pathways meet the GHG reduction thresholds for the four required renewable fuel
categories specified in the Energy Independence and Security Act of 2007 (EISA), which made
revisions to the RES program. EISA requires a 20% reduction in lifecycle GHG emissions for
renewable fuel produced at new facilities (those constructed after enactment), a 50% reduction
for biomass-based diesel or advanced biofuel, and a 60% reduction for cellulosic biofuel,

Assessing whether a fuel pathway meets these thresholds requires a comprehensive evaluation of
the lifecycle GHG emissions of the renewable fuel as compared to the lifecycle GHG emissions
of the gasoline or diesel fuel that it replaces.  EISA defines lifecycle GHG emissions as follows:

          The term 'lifecycle greenhouse gas emissions' means the aggregate quantity of green-
          house gas emissions (including direct emissions and significant indirect emissions
          such as significant emissions from land use changes), as determined by the Admin-
          istrator, related to the full fuel lifecycle, including all stages of fuel and feedstock
          production and distribution, from feedstock generation or extraction through the
          distribution and delivery and use of the finished fuel to the ultimate consumer, where
          the mass values for all greenhouse gases are adjusted to account for their relative
          global warming potential1.

Although EPA included lifecycle GHG assessments for a number of fuel pathways in the final
RFS2 rule, EPA recognized during the rulemaking that there would new pathways requiring
assessment in the future. Therefore, we provided §80.1416 in the RFS2 regulations, "Petition
process for evaluation of new renewable fuels pathways." This mechanism allows parties to
request that EPA conduct a lifecycle GHG assessment for a new fuel pathway and provide a de-
termination of the RFS2 fuel category for which the new pathway may be eligible. In response
to requests we received through the petition process, this direct final rule adds determinations
for new feedstock and process technology pathways to the regulations.
Our Analysis
In order to calculate lifecycle GHG emissions for this direct final rule, EPA utilized models
developed for the 2010 RFS2 final rule.  These models take into account energy and emissions
inputs for fuel and feedstock production, distribution, and use, as well as economic models that
predict changes in agricultural markets.  In developing these models, the Agency employed
a collaborative, transparent, and science-based approach. Through technical outreach, the
peer review process, and the public comment period, EPA received and reviewed a significant
amount of data, studies, and information on our proposed  approach, and in the 2010 RFS2
final rule, we incorporated a number of new, updated, and peer-reviewed data sources into our
methodology.
  Clean Air Act Section 211 (o)(1)

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EPA plans to periodically review and revise the methodology and assumptions associated with
calculating GHG emissions from all renewable fuel pathways.
Rulemaking Process
EPA is publishing this rule without a prior proposed rule because we view this as a noncontro-
versial action. The pathway determinations in this rule rely on comparisons to the lifecycle
GHG analysis work that was done as part of the RFS2 final rule, and did not require new agri-
cultural sector modeling.  If EPA receives relevant adverse comment on certain provisions in
this rule, we will withdraw those provisions and take action on them as part of the proposed rule
that is being published concurrently with the direct final rule.
Pathway Determinations
This direct final rule describes EPA's analysis and determinations for the following new fuel
pathways:

Camelina oil (new feedstock)
    •  Biodiesel and renewable diesel (including jet fuel and heating oil)— qualifying as bio-
       mass-based diesel and advanced biofuel
    •  Naphtha and liquefied petroleum gas (LPG)— qualifying as advanced biofuel

Energy cane, giant reed, and napiergrass cellulosic biomass (new feedstocks)
    •  Ethanol, renewable diesel (including renewable jet fuel and heating oil), and naphtha—
       qualifying as cellulosic biofuel

Renewable gasoline and renewable gasoline blendstock (new fuel types)
    •  Produced from crop residue, slash, pre-commercial thinnings, tree residue, annual cover
       crops, and cellulosic components of separated yard waste, separated food waste, and
       separated municipal solid waste (MSW)
    •  Using the following  processes— all utilizing natural gas, biogas, and/or biomass as the
       only process energy sources— qualifying as cellulosic biofuel:
    •  Thermochemical pyrolysis
              o  Thermochemical gasification
              o  Biochemical direct fermentation
              o  Biochemical fermentation with catalytic upgrading

              o  Any other process that uses biogas and/or biomass as the only process energy
                 sources

Esterification (new production process)
    •  Process used to produce biodiesel from soy bean oil, oil from annual covercrops, algal oil,
       biogenic waste oils/fats/greases, non-food grade corn oil, Canola/rapeseed oil, and camelina
       oil - qualifying as biomass-based diesel and advanced biofuel

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            For More Information

            For more information, please visit the RFS website at:


                      http://www.epa.gov/otaq/fuels/renewablefuels/index.htm


            To submit a question on the RFS program, and to view Frequently Asked Questions, please visit:


                      http://www.epa.gov/otaq/fuels/renewablefuels/compliancehelp/index.htm

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