EPA/600/R-12/709
                                                      October 2013
         A Review of Life-Cycle Based Tools

Used to Assess the Environmental Sustainability of

             Biofuels in the United States



                   Mary Ann Curran, Ph.D.

               Life Cycle Assessment Research Center
               U.S. Environmental Protection Agency
                     Cincinnati, Ohio, 45268



                         Final Report

                       October 22, 2013
                     Systems Analysis Branch
                  Sustainable Technology Division
            National Risk Management Research Laboratory
                Office of Research and Development
               U.S. Environmental Protection Agency
                     Cincinnati, Ohio, 45268

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                                   Disclaimer
The material in this document has been subject to Agency technical and policy review, and
approved for publication as a U.S. Environmental Protection Agency product. The views
expressed by the author, however, are her own, and do not necessarily reflect those of the U.S.
Environmental Protection Agency. Mention of trade names, products, or services does not
convey, and should not be interpreted as conveying, official EPA approval, endorsement, or
recommendation.

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                                     Foreword
The U.S. Environmental Protection Agency (EPA) is charged by Congress with protecting the
Nation's land, air, and water resources. Under a mandate of national environmental laws, the
Agency strives to formulate and implement actions leading to a compatible balance between
human activities and the ability of natural systems to support and nurture life. To meet this
mandate, EPA's research program is providing data and technical support for solving
environmental problems today and building a science knowledge base necessary to manage our
ecological resources wisely, understand how pollutants affect our health, and prevent or reduce
environmental risks in the future.

The National Risk Management Research Laboratory (NRMRL) within the Office of Research
and Development (ORD) is the Agency's center for investigation of technological and
management approaches for preventing and reducing risks from pollution that threaten human
health and the environment. The focus of the Laboratory's research program is on methods and
their cost-effectiveness for prevention and control of pollution to air, land, water, and subsurface
resources; protection of water quality in public water systems; remediation of contaminated
sites,  sediments and ground water; prevention and control of indoor air pollution; and
restoration of ecosystems. NRMRL collaborates with both public and private sector partners to
foster technologies that reduce the cost of compliance and to anticipate emerging problems.
NRMRL's research provides solutions to environmental problems by: developing and promoting
technologies that protect and improve the environment; advancing scientific and engineering
information  to support regulatory and policy decisions; and providing the technical support and
information  transfer to ensure implementation of environmental regulations and strategies at the
national, state, and community levels.

This publication has been produced as part of ORD's strategic research plan. It is published and
made available to assist the user community and to link researchers with their clients. The
production, distribution, and use of biofuels have been analyzed in the literature using several
different life cycle assessment methodologies, leading to variant assessments. These literature
reports attempted to capture benefits and environmental impacts, sometimes even considering
sustainability considerations. The differences in the methodologies raised the question of gaps
that need to be filled for conducting useful life cycle analysis (LCA)-based assessment of
biofuels. This publication is such a gap analysis that points to development needs for satisfying
sustainability and regulatory concerns with respect to various different biofuels development
and their production, distribution and use. A peer-reviewed journal article derived  from the data
and information in this  report  was published in the open literature (Curran MA (2012)
"Assessing Environmental Impacts of Biofuels Using Lifecycle-Based Approaches,"
Management of Environmental Quality: An InternationalJournal, Vol 24(1); 34 - 52). This
report is being made available to the user community by EPA's Office of Research and
Development as  supplemental material.

Cynthia Sonich-Mullin, Director
Sally Gutierrez, Director 2004-2011
National Risk Management Research Laboratory

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                                     Abstract
There is no simple answer to the question "are materials from bio-based feedstocks
environmentally preferable?" Bioenergy, as an alternative energy source, might be effective in
reducing fossil fuel use and dependence, slowing or reducing global warming effects, and
providing increased revenue for the farming community. But its production may also contribute
to environmental harm such as degraded soil and water quality. This brings into question how
we define and measure its sustainability.

The issue of environmental sustainability related to bio-based materials is a complicated one.
Achieving sustainability requires a re-thinking of our systems of production,  consumption and
waste management and an increased awareness of the need to avoid the shifting of problems,
which often occurs with isolated measures. The environmental advantages should outnumber or
outweigh the disadvantages to the environment and human health. The benefits of bioenergy
have come under increasing scrutiny as researchers look closer at the global environmental
impact of their production. For example, increased demand for corn could result in diverting
corn supplies from making food and feed to making bioethanol, which could in turn affect the
production of competing crops such as soybean, or the conversion of lands to use for corn
production. The overall impacts of these types of shifts are not well understood. If used
properly, bioenergy can help the United States meet its needs while maintaining ample supplies
of food, animal feed, and clean water. To make this happen, well thought out national bioenergy
policies that support the  best options are needed for both the short and long-term future.

Life Cycle Assessment (LCA) is a developing tool that can assist decision-makers in evaluating
the comparative potential cradle-to-grave, multi-media environmental impacts of their actions
in order to prevent unintended consequences.  Some studies are called "life cycle analysis," but
focus on a particular issue or pollutant of concern such as greenhouse gas emissions or the net
energy gain or loss question. These focused studies fall short of a complete life cycle approach
that helps us recognize how our choices influence each point of the life cycle so that we can
balance potential trade-offs and avoid shifting problems from one medium to another and/or
from one life cycle stage to another.

This report explores how a systems thinking approach, such as LCA, can help decision-makers
view the potential "cradle-to-grave" environmental  impacts of various types of biofuels and,
thereby, choose the most favorable options that will keep us on the path toward sustainability.
Ten tools that incorporate a life cycle perspective to evaluate biofuels were studied and
compared: Carbon Management, Ecological Footprint, Exergy Analysis, Fuel Cycle Analysis,
Greenhouse Gas Life Cycle Analysis, Life Cycle Assessment, Life Cycle Risk Assessment,
Material Flow Analysis, Net Energy Balance, and Sustainability Indicators. Discussion on data
and information needs is also provided.
                                           IV

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                                   Contents

Disclaimer 	ii
Foreword 	iii
Abstract	iv
Acronyms and Abbreviations	vii

1.0 Introduction	1

2.0 The Environmental Impacts of Biofuels	3

    2.1  Fossil Fuel Use and Depletion	3
    2.2 Net Energy Balance	3
    2.3  Global Warming	4
    2.4 Air Quality Concerns from Combustion in Vehicles	4
    2.5  Land Use Impacts from Biofeedstock Supply	5
    2.6 Food-for-Fuel	5
    2.7 Soil Quality	5
    2.8  Water Quality Impacts	6
    2.9 Water Availability	6
    2.10 Loss of Biodiversity	6
    2.11 Introduction of Invasive Species	7
    2.12 Socio-Economic Aspects	7

3.0 Life-Cycle Based Analytical Approaches and Tools Selected for Study	8
    3.1  Carbon Management	13
    3.2 Ecological Footprint	16
    3.3  Exergy Analysis	18
    3.4 Fuel Cycle Analysis	19
    3.5  Greenhouse Gas Life Cycle Analysis	22
    3.6 Life Cycle Assessment	25
    3.7 Life Cycle Risk Assessment	29
    3.8  Material Flow Analysis	32
         3.8.1 Material Intensity per  Service-Unit	34
    3.9 Net Energy Balance	36
    3.10 Sustainability Indicators	39
         3.10.1 Roundtable on Sustainable Biofuels	39
         3.10.2 Sustainability Interagency Working Group	40

4.0 Results	42

5.0 Discussion	45
    5.1 Data and Information Needs	46
    5.2 Environmental Data	46
        5.2.1 Production Data	46
        5.2.2 Water Use and Availability	47
        5.2.3 Water Quality	47
        5.2.4 Land Use Changes	47
        5.2.5 Soil Erosion and Sedimentation	48
        5.2.6 Human Health Effects	48
        5.2.7 Biodiversity	49

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        5.2.8 Invasive Species	49
        5.2.9 Socio-Economic Impacts	49

6.0 Conclusions	50

7.0 References	51
                                   Figures



Figure 1. Generic Stages of a Product Life Cycle (arrows represent transportation)	8

Figure 2. The Locations of Ethanol Biorefmeries in the United States as of June 2008	12

Figure 3. Flows of Exergy Associated with the Annual Production of Bioethanol from One
            Hectare of Corn (GJ ha"1 • yr"1)	18

Figure 4. ED-DuPont Nano Risk Framework	29

Figure 5. Framework for Conducting a Comprehensive Environmental Assessment	30

Figure 6. Aggregate Material Flow Accounting (MFA) Indicators	33

Figure 7. Materials Consumption in the United States by Sector of Origin, 1975-2000	34
                                    Tables
Table 1. Commonly Perceived Environmental and Socioeconomic Pros and Cons of Biofuel
            Production and Use Compared to Conventional Gasoline as Observed by the
            Author	2

Table 2. Life-Cycle Based Approaches and Tools Used to Evaluate Biofuels	9

Table 3. Draft Sustainability Criteria Developed by the National Biomass R&D Board for
            U.S. Biofuels	40

Table 4. The Information or Data Typically Generated by Life-cycle Based Assessment
           Approaches Mapped Against Commonly Reported Environmental Concerns
           Related to Bio-based Products	44
                                        VI

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                    Acronyms and Abbreviations
AFOLU     Agriculture, Forestry and Other Land Uses
Btu         British Thermal Unit
CEA        Comprehensive Environmental Assessment
CED        Cumulated non-renewable Energy Demand
CH4        Methane
CFIP        Combined Heat and Power
CO         Carbon Monoxide
CO2        Carbon Dioxide
DDGS      Distillers' Dried Grains with Solubles
DOE        U.S. Department of Energy
E85         Automotive fuel that is 85% ethanol and 15% gasoline
EBAMM    ERG Biofuel Analysis Meta-Model
EC         European Commission
EIA         Energy Information Administration
EISA       Energy Independence and Security Act of 2007
EPA        U.S. Environmental Protection Agency
ETOX      Ecotoxicity
EU         European Union
GHG       Greenhouse Gas
GREET     Greenhouse gases, Regulated Emissions, and Energy use in Transportation
GWP       Global Warming Potential
IPCC       Intergovernmental Panel on Climate Change
J           Joule
LCA        Life Cycle Assessment
LCI         Life Cycle Inventory
LCRA      Life Cycle Risk Assessment
LLNL       Lawrence Livermore National Laboratory
LUC        Land Use Change
MAIA      Material Intensity Assessment
MIPS       Material Intensity Per Service unit
MFA       Material Flow Analysis, or Material Flow Accounting
MOVES     Motor Vehicle Emission Simulator
MTBE      Methyl Tertiary-Butyl Ether
N2O        Nitrous Oxide
NAS        National Academy of Sciences
NEB        Net Energy Balance
NEV        Net Energy Value
NRMRL     National Risk Management Research Laboratory
NOx        Nitrogen oxides
RFS         Renewable Fuel Standard
SO2         Sulfur Dioxide
TMR       Total Material Requirement
UNESCO    United Nations Educational, Scientific and Cultural Organization
USDA      U.S. Department of Agriculture
WBCSD     World Business Council for Sustainable Development
WRI        World Resources Institute
WWF       World Wide Fund for Nature (formerly the World Wildlife Fund)

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1.0 Introduction

Energy  supplies in the world are dominated by fossil fuels (80%) with biomass resources
providing 10-15% of global  energy demand (approximately  500 quadrillion Btu) over the
next several years (U.S.  Department of Energy 2009). In order to  increase the use of bio-
based energy,  policy drivers  are being promoted by governments in the United States, the
European Union (EU), and around the globe. The 2003 EU directive on "biofuel and other
renewable fuels" states that 2% of the fuels for transportation should be biofuels by the end of
2005, and 5.75% by the end of 2010. In the United States, President Bush signed into law the
Energy Independence and Security Act of 2007 (EISA), which requires biofuel production to
increase  ninefold  by 2022  in order to meet  the renewable fuel  standard  for  gasoline.
However, these types of policies were originally formed on the notion  that fuels are either
renewable or  non-renewable;  that is, they are viewed  as  either good  or  bad (EISA later
included greenhouse gas emission threshold requirements and the EU  added  sustainability
and greenhouse gas criteria.)

The word "biofuel" covers a  variety of products with many different characteristics  and a
wide range of potential GHG savings as  well as other environmental impacts. Accordingly,
each biofuel must be assessed on its own merits. Of course, the  specific advantages and
disadvantages  vary depending on whether one is considering biofuels from a  cultivated
feedstock (e.g., corn), from a  waste material (e.g.,  corn stover), from a lower maintenance
source (e.g., perennial grasses), or from other next generation feedstocks (e.g., algae).

Careful  analysis shows that different biofuels rely on different non-renewables to varying
extents.  Furthermore, issues of sustainability and environmental concerns have been raised in
response to the wide-scale production and  use of conventional biofuels. For example, corn
grain  and soybean production practices are associated with  high rates  of  fertilizer and
pesticide  use,  extensive water  consumption  in  some  regions,  and many deleterious
environmental  effects  such  as  soil erosion,  surface water  pollution,  air pollution, and
biodiversity losses (Williams, Inman et al. 2009). The issue of environmental impacts related
to bio-based materials, including biofuels,  is a complicated one.  There is a need to have
appropriate metrics for renewable-based  technologies in order to better assess their overall
sustainability.

The environmental and socioeconomic pros and cons  of biofuels are readily available in the
open literature (i.e., published reports  and on the Internet).   At the national,  regional and
global levels,  three main drivers for the development  of  bioenergy and biofuels seem to
emerge: climate change, energy security and rural development. The full picture, however, is
much more complex as biofuels differ widely in environmental, social, and economic impacts.
These impacts can occur throughout the life cycle, from the  acquisition and  processing of
feedstocks, to transport constraints, and air,  water, and land  quality issues. The  overall merits
of biofuels are being openly debated, especially regarding the issue of whether biofuels have
a positive energy balance. The pros and  cons held by the  general public  regarding the
advantages and disadvantages of biofuels are identified in Table 1.

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Table 1.  Commonly Perceived Environmental and Socioeconomic Pros and Cons of Biofuel
Production and Use Compared to Conventional Gasoline as Observed by the Author
                 PROS

       Use of renewable feedstocks
       Net energy gain
       Reduced greenhouse gas emissions
       Reduction of imported crude oil
       Increased National security
       Rural development
       Use of waste materials
       Corn is a known commodity
           CONS

Energy intensive production
Land conversion effects
Food for fuel tradeoff
Increased soil erosion
Runoff of agrochemicals to water
Use of limited water supplies
Threatened and endangered species
Lower energy content
Introduction of invasive species

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2.0 The Environmental Impacts of Biofuels

Public awareness has increased as consumers have become more knowledgeable of the fact
that it is not only  the end  product, but also the manufacture of biofuels that needs to be
investigated. The following subsections contain brief descriptions of the various global and
regional considerations (from Table 1) that have been drawing attention to discussions about
increasing the production and use of biofuels.
2.1 Fossil Fuel Use and Depletion

The world consumes over 85 million barrels of liquid fuels per day, with the United States
alone consuming over 18 million barrels per day (EIA 2010). Over half of the world's proved
oil reserves are located in the Middle East. How much recoverable crude oil is available is
never precisely known;  current estimates  range  from  1,184  to  1,342  billion barrels  (EIA
2010).  The debate continues over whether proven world oil reserves  can  meet increasing
demand.

A reduction in the  level  of end-use consumption of petroleum  is the overarching goal of
biofuel promotion. At the national level, countries are striving to reduce their dependence on
oil from  foreign sources. Substituting fossil-based feedstocks with domestic (home-grown)
bio-based feedstocks to produce fuels is one way to accomplish this goal (alternate energy
sources, such as solar cells, and reduced energy demand are other ways).
2.2 Net Energy Balance

Much attention has been given to determining if the manufacture and use of biofuels is a net
gain or a net loss when compared to gasoline.  The Net Energy Balance (NEB) of a fuel is
calculated by taking the amount of energy contained in the fuel (a gallon of ethanol contains
roughly 76,000 Btu) and subtracting the amount of energy  that goes into  its production.
Critics have argued that the net energy gain of the resulting ethanol fuel is modest because
large amounts of energy are required to grow corn and convert it to ethanol (Pimentel 2003).
Some have even calculated that it has a negative net energy value, meaning that ethanol
requires more energy to make than it  actually produces. However, other researchers have
concluded that ethanol  has a positive net gain (Patzek 2004).  While the calculation of NEB
depends on many factors, such as how co-product energy credits are taken into account, the
majority  of reports in  the open literature indicate that corn-based ethanol  provides  more
energy than is required to make it, albeit to varying degrees (von Blottnitz and Curran 2007).

Corn farmers using state-of-the-art, energy efficient farming  techniques and ethanol  plants
integrating  state-of-the-art production processes can double the amount of energy  contained
in a gallon of ethanol and the by-products compared to the energy needed to grow and
convert the corn into ethanol. Further, as the ethanol industry expands, it  may increasingly
rely on more abundant and potentially lower-cost cellulosic crops (i.e.,  fast growing trees,
grasses, etc.). When that occurs, the net energy  of producing ethanol will become even more
attractive (Lorenz  and Morris  1995).  NEB, however, continues to be one  of  the  most
controversial issues related to bioethanol.

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2.3 Global Warming

Focusing on the greenhouse gas (GHG) carbon dioxide^ using fossil fuels releases carbon that
has been stored underground for millions of years and results in a net addition of CO2 to the
atmosphere. Meanwhile, the argument has been made that biofeedstocks do not add CO2 to
the atmosphere;  their use simply recycles what was already there. The Intergovernmental
Panel on Climate Change (IPCC) guidelines instruct that CO2 emissions from biomass (called
biogenic CO2) that are used for energy and fuels be excluded from the  total CO2 emissions
figure, that is,  they are,  in effect,  reported as zero,  as  long  as the biomass  is grown
sustainably. However, net CO2 emissions are covered in the AFOLU  (Agriculture, Forestry
and  Other Land Uses)  Sector, which considers land use changes (IPCC  2006). Furthermore,
because it takes fossil fuels, such as natural gas and coal, to make biofuels, they are not quite
"carbon neutral."

Production  is only part of the story.  Engines  running  on  either biofuels or gasoline emit
CO2 in the  use phase. A number of recent studies have attempted to assess the total carbon
footprint of biofuels.  While research by the USDA has shown that biofuels have the potential
to remove  CO2 and  other GHGs (such as nitrous oxide, N2O, methane, CH/t,  and sulphur
hexafluoride, SF6)  from the atmosphere (USDA 2007), others have concluded that  the global
warming potential (GWP) of biofuels varies widely  from being worse than gasoline to being
about the same (Fargione J, Hill J et al. 2008). This can be attributed to the formation of non-
CO2 global  warming compounds. For example, researchers calculated that if new reactive
nitrogen enters the terrestrial biosphere, as when nitrogenous fertilizer is applied to a biofuel
(or any other) crop, then on average 3-5% of that nitrogen will appear in the atmosphere as
N2O. They  theorize that this contribution  explains the  observed increase  in the global
atmospheric concentration of N2O that has accompanied large-scale fertilizer nitrogen  use
since the beginning of the 20th century (Crutzen, Mosier et al. 2007).
2.4 Air Quality Concerns from Combustion in Vehicles

The distinct  dissimilarities in chemical and  physical characteristics between the  various
biofuels and conventional fossil fuels result in vehicle exhaust emissions that are significantly
different. Because biofuels are relatively new, many of the emission factors that are typically
used to estimate emissions from the combustion of fossil fuels should be re-analyzed for
biofuels. For example, formaldehyde and acetaldehyde emissions are suspected to be higher
from  vehicles running  on bioethanol  (Poulopoulos,  Samaras et al.  2001;  Biello 2007).
Although  formaldehyde  and  acetaldehyde are naturally occurring  and  found frequently
throughout the environment, additional emissions may be important due to their role in smog
formation  and direct effects on human health.  One researcher went so far as  to say that if
every vehicle in the United States ran on fuel made primarily from ethanol instead of pure
gasoline, the number of respiratory-related deaths and hospitalizations would likely increase
(Jacobson 2007).  Numerous studies  on  ethanol-oxygenated  fuel  emissions have been
conducted, including EPA's testing of oxygenated fuels for section 211(b) of the Clean Air
Act (EPA October 15, 2007),  the 1999 report to the California Environmental Policy Council
on the health and environmental  assessment  of the use of ethanol as a fuel oxygenate
(LLNL 1999), and the Auto/Oil Air Quality Improvement Research Program  in the 1990s
(Burns, Benson et al. 1991).  However, not all possible mixtures of ethanol and  gasoline have
been evaluated.
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It remains unclear whether the atmospheric concentrations that might result from a major
shift in urban fuel toward ethanol would be enough to cause significant health impacts. More
research is required on this topic (The Royal Society 2008).
2.5 Land Use Impacts from Biofeedstock Supply

There  are  many competing demands  on  land: to  grow  food,  for conservation, urban
development, and recreation. Increasing demand for agricultural products as feedstocks for
bioenergy and biofuels constitutes a significant change for the  commodity markets. This is
illustrated  in  the  unprecedented  demand  for  corn arising from  expanding  bioethanol
production. The use  of corn for ethanol has accelerated over recent  years. In the four-year
period beginning in the fall of 2005, ethanol increased  its share of total U.S. corn  use
including exports from 14.2% to 30.5% (Wisner 2009). One impact is  likely to be an increase
in land area for feedstocks, either from the reallocation of land from other crops1, the use of
set-aside land taken (within Europe), or from the cultivation of new land in many developing
countries,  particularly South and Latin America. Harmful  deforestation is already occurring
worldwide to fill the  need to expand agricultural lands. Certain land types, such as peat lands,
tropical rain forests,  savannas, and grasslands, represent large carbon sinks. Their conversion
to cropland for biofuels will result in greater  emissions of soil carbon (Eide 2008). Therefore,
not only should direct impacts to land where biofuel feedstocks are grown be considered, but
also these types of indirect impacts should be considered.  Such direct and indirect impacts are
equally important. It is apparent how  biofuel development can have major consequences on
land use.
2.6 Food-for-Fuel

Biofuels are produced from the products of conventional food crops such as the starch, sugar,
and oil feedstocks from crops, including wheat, corn, sugar cane, palm oil and rapeseed oil.
Any major switch to biofuels from such crops would  create competition with their use as
food and  animal feed.  In  some  parts of the world, the economic consequences  of  such
competition can already be seen  as large amounts of  productive land are  being converted
from food production to biofuel crops, leading to large  implications for food availability and
prices. In order to help avoid such competition, future biofuels are likely to be produced from
a much broader range of feedstocks including the lignocellulose in dedicated energy crops
such as perennial grasses, forestry products and  by-products, the co-products from  food
production, and domestic vegetable waste (The Royal Society 2008).


2.7 Soil Quality

Forms of soil  degradation include soil erosion, soil compaction, low organic matter, loss of
soil structure,  poor internal drainage, salinization, and  soil  acidity problems. Typical tillage
and cropping practices lower soil organic matter levels, cause poor soil structure, and  result in
compaction, which increases soil erodibility.  Carbon compounds in waste biomass left on the
ground, such  as  corn stover,  are consumed by microorganisms  and degraded to produce
 The increase in corn supplies in the U. S. was obtained by a large increase in the amount of land dedicated to
corn; this shift in land to corn came out of land that previously was used for other crops, most notably soybeans.

                                          5

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valuable nutrients for future crops. When cellulosic ethanol is produced from feedstocks like
stover, switchgrass, and sawgrass, the nutrients that are required to grow the lignocellulose
are removed and cannot be processed by microorganisms to replenish the soil nutrients. The
soil is then of poorer quality. The widespread human use of biomass, which would normally
compost the field, could threaten these organisms and natural habitats (ETC 2008).

There are  also issues related to changes in farming practices that may occur in order to meet
changing market demands. Double cropping, such as harvesting wheat crop by early  summer
then planting corn  or  soybeans on that acreage for  harvest in the fall,  and switching to
planting continuous corn instead  of rotating with soybean could result in needing to apply
more pesticides and fertilizers, which may have longer term impacts.
2.8 Water Quality Impacts

A study from the World Resources Institute (WRI) indicates that the development of a corn-
based ethanol market would only exacerbate problems already associated with large-scale
corn production.  Such problems include soil erosion, which can  reduce downstream water
quality, algae blooms, and the formation of "dead zones"  in waterways inundated with
pesticide and fertilizer runoff (World  Resources Institute 2006). For  example, it is well-
known that  agricultural nutrient releases contribute to hypoxia in the  Gulf of Mexico and
eutrophication in the Great Lakes of North  America. The  input of artificial fertilizers  to
increase yield must be carefully monitored in order to prevent or reduce their migration to
surface waters. Improved agronomic practices will undoubtedly play a key role in mitigating
negative environmental impacts through the timing and proper application of fertilizers.
2.9 Water Availability

Globally, pressures on water supply and quality are increasing from a growing population,
per capita  usage and the impacts  of climate change (UNESCO-WWAP  2006).  In  some
locations, the availability of water can be an important consideration in biofuel production.
While most often thought of in feedstock production (i.e., crop irrigation), water is required
throughout the  entire biofuel supply chain with  the  distribution of water resources varying
greatly according to location and time. Developments in the agricultural sector for food and
non-food crops will have important implications for water usage and availability. Increased
usage of biofuels will raise  demand for water  and result in a negative impact on  water
supplies (The Royal Society 2008).
2.10 Loss of Biodiversity

Biodiversity,  also  called  biological  diversity,  plays  an  important role  in  ecosystem
functioning, particularly its ability to contribute to essential services such as providing food,
livelihood, and recreation. Over the past few centuries,  human activity has resulted  in
fundamental and irreversible   losses   of  biodiversity.  Globally, habitat conversion  for
agriculture and forestry has been a major  driver of this loss; for example, more land was
converted to  cropland  between 1950 and 1980 than between 1700 and  1850 (The Royal

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Society 2008).  Converting land to grow a single crop in a large area,  or  monoculture,
increases yield  but reduces biodiversity. Most  experts recognize two aspects  that must be
considered as indicators of biodiversity: the number of different species  in  a  given area
(species richness) and how common or rare a species is relative to other species in a defined
location or community  (relative species abundance). However, there are many outstanding
issues that are yet to be  resolved, such as the definitions of species and the identification of a
suitable area in which  to measure  biodiversity.  Researchers continue  to  seek out more
effective measures  of biodiversity to move toward more  sustainable  practices  (Suneetha
2010).
2.11 Introduction of Invasive Species

Invasive plants are introduced species that can thrive in areas beyond their natural range of
dispersal.  Ideal  energy crops are also commonly found to be an invasive species. For
example, several grasses and woody species are being considered for biofuel production, with
perennial  grasses showing the most economic promise. However, these grasses can be
invasive if introduced into  some U.S.  ecosystems. Not  only  can they crowd out native
species, threatening riparian areas, they can also alter fire cycles.  Internationally, there has
been little success in eradicating or even controlling invading grasses. (Raghu, Anderson et al.
2006).
2.12 Socio-Economic Aspects

Of course, the rate of production and use of agricultural feedstocks, like corn, soybean and
sugar,  is affected by global  economic markets. At the  regional level, Midwest-U.S. corn
growers will likely  benefit financially from  the  increased demand  for  their product.  In
developing countries, areas of high biomass productivity are often areas of low wealth and
earnings. In these areas, the  socio-economic benefits  of production could be significant. It
will be important to facilitate technology transfer to developing countries, particularly for key
technologies such as those that increase feedstock yield or processing  qualities of biomass.
Also, some feedstocks are also used for food and their use for fuel production may result in
price increases. Other feedstocks,  such as waste biomass, will not have that impact.  Since
different  feedstocks  result   in  different  impacts,  attention  is   being  focused  on
diversifying the  energy  matrix in  many countries. As such, many countries are looking to
increase the number and variety  of crops that can be cultivated and collected for bioenergy.
Programs are needed to ensure that rural and regional economies benefit from the domestic
production, use, and export of feedstocks (The Royal Society 2008).

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3.0 Life-Cycle Based Analytical Approaches and Tools
Selected for Study

As  pointed  out previously,  the  use of  renewable resources  is  not synonymous  with
sustainability. A myriad of factors relating to fuel and feedstock production and use must also
be considered. Therefore, we need to use tools to measure the complete process and value
chain before we can evaluate the sustainability of a process or the transformation in industry
(Dewulf and Langenhove 2006).

Several  tools have been developed in an attempt to capture the view of the complete value
chain, or life cycle system (see Figure 1). It is common to find studies that are called "life
cycle,"  but focus on  a particular issue  or pollutant of  concern. For  example,  one study
may perform a life cycle accounting  of GHG emissions  and  another may focus  on  the net
energy gain or loss question.

Figure 1. Generic Stages of a Product Life Cycle (arrows represent transportation)

Resource
Acquisition



i
r
Material
Processing

fe


Production
A
I
r\t;L

yut;
Use and
Maintenance




Disposal

These types of narrowly defined studies fall short  of a complete, multi-media life cycle
approach,  which would  enable the United States and others to recognize how our choices
influence each point of the life cycle. Such a perspective would afford the ability to balance
potential trade-offs and avoid shifting problems from one medium to another (e.g., controlling
air emissions,  which creates wastewater effluents or soil  contamination) or from  one life
cycle stage  to another  (e.g., the  raw material  acquisition stage,  which  may affect the
reusability of materials for subsequent product life cycles).

The  role of LCA is crucial in determining the values of the various metrics and emissions
along the  entire chain of biofuel  production and, as such,  must be  applied to different
processing techniques available now and those that might become available after research,
development and demonstration (RD&D) (The Royal  Society 2008). An effective life cycle
approach can identify where potential tradeoffs may occur across different media and across
the life cycle stages (Fava, Denison et al. 1990).

Table 2 lists and briefly  describes the following  ten analytical approaches and tools that are
commonly used to assess the environmental impacts of biofuels on a life cycle basis:

   •   Carbon Management/Carbon Footprint
   •   Ecological Footprint
       Exergy Analysis

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   •   Fuel Cycle Analysis
       Greenhouse Gas Life Cycle Analysis
       Life Cycle Assessment
       Life Cycle Risk Assessment
       Material Flow Analysis
       Net Energy Balance
       Sustainability Indicators

Two themes emerge from reviewing these tools: (1) there seems to be no clear definition of
these terms and (2) there is still variability regarding what each tool measures and what units
are to be used. Accordingly, this paper is intended to discuss  general approaches,  and not
specific tools, such as EPA's  MOVES2 or DOE's GREET3. The ten approaches and tools
listed in Table 2 are  discussed in more detail in the following sections.

Table 2. Life-Cycle Based Approaches and Tools Used to Evaluate Biofuels
Common Name
Carbon
Management or
Carbon Footprint



Ecological
Footprint





Description
Measures the total amount
of carbon dioxide (CO2)
emissions that are directly
and indirectly caused by
an activity or are
accumulated over the life
stages of a product,
process, or activity.
Calculates the human
demand on nature by
measuring the land and
sea area required to
provide all the natural
(biological) resources and
services to maintain a
given consumption
pattern, including the
resources it consumes and
the ability to absorb the
waste generated by fossil
and nuclear fuel
consumption. This can
then be compared to
available bio-capacity,
also expressed in land and
sea areas.
Measure
Amount of carbon
dioxide released



Biocapacity and
demand





Units
Total
kilograms
ofCO2



Giga
hectare
(gha)





2 Motor Vehicle Emission Simulator (MOVES)
3 Greenhouse gases, Regulated Emissions, and Energy Use in Transportation (GREET) Model

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Table 2. Continued
Exergy Analysis




Fuel Cycle
Analysis



Greenhouse Gas
Life Cycle
Analysis


Life Cycle
Assessment
(LCA)







Life Cycle Risk
Assessment
(LCRA)






Material Flow
Analysis (MFA)




Based on the second law of
thermodynamics, to provide
a mathematical calculation of
the loss of available work
across a system.
Tracks the number of
interdependent processes to
account for energy inputs and
associated releases to air and
water.
Quantifies the total amount
of carbon dioxide (CO2) and
other GHGs that are emitted
over the full life cycle of a
product, process, or service.
Evaluates multi-media,
cradle-to-grave burdens of an
industrial system by
quantifying energy and
materials used and waste
released to the environment
and assessing multiple
potential impacts.


Considers primary and
secondary contaminants,
multiple environmental
media, fate and transport
processes, cumulative and
aggregate exposure, and
ecological and human health
(cancer and noncancer) risks
across the product life cycle.
Quantifies and analyzes the
flows of a material (or
a substance in a "substance
flow analysis") in a well-
defined system usually at the
regional or national level.
Exergy




Energy efficiency,
air emissions
criteria pollutants,
toxics, water
impacts
Greenhouse gases
(GHGs) including
CO2


Multiple, to include
global warming,
ozone depletion,
human health,
ecological health,
eutrophication,
acidification, smog
formation, resource
use, land use, and
water use.
Human health and
ecological impact







Material flows





Joules (J)




Multiple




C02-
equivalents
(C02-eq).


Multiple









Not
applicable
(usually a
probability)





Kilograms
(kg)




                                     10

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Table 2. Continued
Net Energy
Balance







Sustainability
Indicators










Determines the net energy
value (NEV) by subtracting
the energy needed to
produce a fuel (input
energy) from the useful
energy in the fuel (output
energy). Net Energy Ratio
(a ratio of less than one
indicates a net energy loss.)
A select group of categories
for which information and
data on the economy,
society and the environment
are needed to determine if
actions are heading toward a
satisfactory outcome.
Indicators for environmental
sustainability include the
state of the environment as
well as future environmental
conditions.
Energy flows








Multiple











Btu








Multiple











Where possible, applications to biofuels, especially corn ethanol, are included if available. Corn
ethanol is a  commonly  studied  biofuel  and  an important  feedstock  in  biofuels
production in  the United States. As of July 15,  2010,  the Renewable Fuels Association
reported 200 operating ethanol biorefmeries and  another 13 under construction or expanding
(http://www.ethanolrfa.org/blo-refinery-locatlons/). Figure 2 shows that the majority of corn
production occurs along the central corridor of the United States, known as the Corn Belt
States.
                                           11

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 Figure 2. The Locations of Ethanol Biorefmeries in the United States as of June 2008
  Active
   A    Corn
   A    Milo
   A    Multiple/Other Feedstock

  Under Construction/Expanding
   0    Corn
   •    Cellilosic Materials
   _    Multiple/Other Feedstock
125   250  375  500 Miles
                                                                           e. energy. qov.'afdc'pdfe'ethanol refineries. pdf
Data Source: Renewable Fuels Association and Ethanol Producer Magazine, June 2008
                                                  12

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3.1 Carbon Management

With the recent urgency associated with global climate change, many methods and tools have
been developed  to  calculate  and account for carbon emissions.  The open-access journal
Carbon Balance and Management  is dedicated to providing  research results aimed at a
comprehensive, policy relevant understanding of the global carbon cycle. According to the
journal's website (http://www.cbmjournal.com/info/about/), the global  carbon cycle involves
important interactions between climate, atmospheric carbon dioxide (€62) and the terrestrial
and  oceanic  biospheres.   The carbon management methodology accounts  for  dissolved
organic carbon, biomass carbon and produced CO2 and identifies potential atmospheric CO2
sources and sinks.

"Carbon Footprint" is a term that has become widely used in relation to carbon management
and  the  threat of global climate change (for  example,  http://www.carbonfootprint.com/).
Despite its ubiquitous appearance, there seems to be no clear definition of this term. There is
still  much confusion as to what it actually means, what it measures, and what unit is to be
used. While commonly understood to refer to certain gaseous emissions that are relevant  to
climate change and  associated with human production or consumption activities, there is no
agreement on how to measure or quantify  a carbon footprint.  Questions remain  regarding
whether the carbon components should be weighted and normalized based on their potential
effect in the atmosphere. Other questions that need to be answered include the following:

    •  Should the carbon footprint  include just carbon dioxide (CO2) emissions or other
       GHG emissions as well, e.g., methane?

       Should it be restricted to carbon-based gases or can it include substances that do not
       have a carbon atom in their molecule, e.g., N2O, which is another powerful GHG?

       Should the  carbon footprint be  restricted  to substances  with a global  warming
       potential at all since there are gaseous emissions that are  carbon-based and relevant  to
       the environment and health, such as carbon  monoxide (CO), which can  convert into
       CO2 through chemical processes in the atmosphere?

       Should the measure include all sources of emissions, including those that do not stem
       from fossil fuels, e.g., CO2 emissions from soils? (Wiedmann and Minx 2007)

Sometimes the  carbon footprint is  expressed in kilograms of carbon rather than  in
kilograms of CO2. CO2 can be converted to carbon by multiplying by a factor of 0.27 (1,000
kg CO2 equals 270 kg carbon4). But more  commonly, carbon  footprinting accounts for all
GHG releases, not only carbon dioxide. Other GHGs that might be emitted, such as methane
and N2O, are  also counted in the calculation of a  carbon footprint. They are converted into the
amount of CO2 that would cause the same effects  on global warming (this is  called CO2-
equivalents).  This   was  the  approach  that  was taken in   an  assessment  by  the
U.S. Environmental Protection  Agency  for a  life  cycle  greenhouse  gas  analysis they
conducted in support  of  the   national  Renewable  Fuel  Standard (RFS) program (EPA
2010).
4 CO2 has an atomic weight of 44 (a carbon atom weighs 12; an oxygen atom weighs 16), therefore, the carbon
content of 1,000 kg CO2 = 1,000 x 12/44 ~ 270.

                                         13

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The  assessment of GHG emissions is  covered in  more detail  in a later section (see 3.5
Greenhouse Gas Life Cycle Analysis).

In a calculation for ethanol, most of the carbon footprint falls into one of several categories in
roughly ascending order (depending on the source and process):  the fuel used to produce it,
the fuel used to grow or transport the feedstock, the carbon content of the fuel itself, and the
lost carbon not sequestered in the vegetation that would  have been on the land used to grow
the feedstock. The  main difference across carbon footprint calculations  appears to largely
depend on how  land use is modeled. Determining where a crop is grown can have a more
significant impact on the  outcome than what  type of crop is grown (Johnson and Heinen
2008). For example, land use for ethanol feedstock that  is already in production  will  have a
carbon footprint at the low end of the range since there is  little  net reduction in the  carbon
sink. Conversely, converting  forests to cropland,  or the use of marginal lands that produce
low yields, will have a carbon footprint at the high end of the range (Dikeman 2008).
                                          14

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          An Example of a Carbon Management (COi) Study

Bias de Oliviera et al. (Bias de Oliveira, Vaughan et al. 2005) calculated the
CC>2 balance for corn ethanol  production, distribution, and combustion in the
United States  and  found a total  CC>2  release  of  5,030  kg/ha  (see
below).  They accounted for the generation of CC>2 from the harvesting and
processing  of one  hectare of corn to produce  3.04  m3 of  ethanol.  After
gasoline is added to form the mixture, the total fuel volume of 3.58 m3 of E85
will  allow the reference vehicle to run for approximately 24,400 km.  They
assumed that the production and distribution of gasoline results in 375  kg of
CO2 emitted per m3 of gasoline produced. Consequently, 203  kg  of CO2 are
emitted from the production and distribution of the 0.54 m3 of gasoline added
to 3.04 m3  of ethanol  to form the  E85  mixture.  Combustion  of this
volume of gasoline emits 1.267 Mg of CC>2.

                                               Total CC>2 released
       Process                                      (kg/ha)

       Agricultural Inputs                             1237
       Increase in Soil Organic Carbon                  -660
       Corn Transportation                             154
       Ethanol Conversion                            2721
       Ethanol Bistribution                             108
       Gasoline Portion of E85:
              - Production and Bistribution             203
              - Combustion                           1267
       Total                                          5030

Based upon this example and  comparing E85 to an equal  amount of gasoline,
the CC>2 emissions for the gasoline portion can be reapportioned to  calculate
emissions for 100% gasoline, such that:

                    (203 + 1267) X (1.00/0.15) = 9800 kg CO2

Adjusting for thermal efficiency:   9800 X 0.75 = 7350 kg CO2

Therefore, according to this data, the comparison of driving a vehicle  24,400
km using the two fuels results  in the following CC>2 emissions:

              E85  =1.267 MgCO2        Gasoline  =  7.350 Mg CO2

Thus, in this analysis, using corn ethanol instead of gasoline can potentially
reduce CC>2 releases by almost one-sixth.
                                  15

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3.2 Ecological Footprint

Ecological Footprint was originally designed to measure the amount of land area a human
population requires to  produce the resources it consumes and to absorb its waste under a
prevailing technology. More recent calculations also include water use.

Ecological  Footprint measures the  amount  of cropland,  grazing  land,  forest area,  and
fishing grounds that are needed to satisfy humanity's need for food,  clothing,  shelter, and
products and  services. In addition to that,  it  measures the amount of  land  required to
sequester our emissions after subtraction of the oceans' absorptive capacity. In modeling land
use, Ecological Footprint expresses all the  land area the earth has available for generating
renewable resources using a single unified metric, the global  hectare (or global acre). A
global hectare is a mathematical representation of the productivity of real land, established by
Wackernagel in his  1994 Ph.D. thesis (Wackernagel  1994). It is calculated in a manner
that allows  a  comparison of the  productivity of  different land types around the globe.  It
encompasses all products and services derived from raw materials that came from a land area
(or out of the earth) as well as resulting emissions that need to be absorbed somewhere.

Humanity's  Ecological Footprint  has been  steadily increasing over the past four decades.
According to the Living Planet Report 2006, humanity as  a whole uses nearly 25%  more
resources than the planet can  make available  annually. In other words, humanity today
would need  1  1A planets to sustain us. Some people use more while some people use less. If
everybody lived like the average American, we  would need more than five planets. Italians
live on  about  2 1/3 planets, while the people of Thailand  use  only 3A  of a planet (WWF
2006).  Over the  years,  we  have  been able  to  increase biocapacity,  mainly  through
increased crop yields and expanding area under cultivation; however, this increase has not
been able to keep  up with the increase of the world  population and increased consumption
(Vos 2007).
                                         16

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                         An Example of Ecological Footprinting

Sustainability Planning Partners (Vos 2007) presented examples of different fuels that can be
used in a typical passenger car. The Toyota Prius hybrid vehicle was added  for comparison
purposes as well as the per capita biocapacity available to each person on the planet (1.78 Global
Hectares). Calculations were based on an average annual use of 12,500 miles using the 2006
EPA fuel mileage rating system.
      Ecological Footprint of Fueling a Passenger Car for 12,500 miles (Source: Vos 2007)
       0*

                                Global Hectares



            <


J*
                                                
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3.3 Exergy Analysis
"Exergy" was introduced by Rant in 1956 to describe the maximum amount of work that may
be obtained from a thermodynamic system under ideal conditions. Based on the second law
of thermodynamics, it reflects the maximum (mechanical) work possible during a process, i.e.,
available energy that brings the system  into equilibrium with the surroundings.  Exergy,
therefore, is the potential of a system to cause a change as it achieves equilibrium with  its
environment. Thus, exergy has been applied to ecological evaluation, resource  accounting,
and  environmental  impact  assessment.   The  dispersion  of  pollutants  throughout  the
environment is  thought  to  be essentially a process that converts  the  exergy of mixing
embodied in the initial state (the concentrated pollutant)  into entropy of the final state (the
dispersed pollutant) (Seager and Theis 2003).

Although exergy analysis is a most useful method as a way to  evaluate the thermodynamic
efficiencies  of biomass conversion processes, researchers  have attempted  to  apply exergy
calculations to  industrial  systems  to  assess  environmental  impacts.  Increased energy
efficiency benefits the  environment by avoiding energy use and the  corresponding resource
consumption and  pollution  generation.  Exergy and energy  analyses are  best  carried out
together to most effectively find ways to improve industrial systems (Kanoglu, Dincer et al.
2009). Exergy analysis of both utilities and feedstocks as inputs, and products, waste streams
and generated irreversibilities as  outputs, shows  how efficiently resources  are employed
toward products. An exergetic life cycle analysis adopts a life cycle perspective by quantifying
exergy on a cradle-to-grave basis. Figure 3 presents the  exergy values along  the life cycle
stages of corn ethanol.

Figure 3. Flows  of Exergy Associated with the Annual Production of Bioethanol from
One Hectare of Corn (GJ ha1 • yr'1)
                                   46,000
                                   Solar Irradation
                                   46,000
           Non-
         renewable
         Agricultural
         Resources
9.92
         Renewable
         Industrial
                         4.96
(Source: Dewulf, Langenhove et al. 2005)

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Researchers sometimes consider the exergy of the current formation of natural resources from
a small number of exergy  inputs  (usually solar radiation, tidal forces, and crustal/geothermal
heat).  This application  not  only requires  assumptions about  reference states, but it also
requires assumptions about the real environments of the past that might have been close to
those reference states.

Because the exergy  that is embodied  in  resources,  products, and waste  materials has the
potential to cause change in both the industrial environment as well as the natural ecosystem,
exergy and entropy  have been proposed  not  only  as a measure for economic losses and
dematerialisation, but also for waste  accounting and ecotoxicity. While Dewulf et al. are
supporters  of the use of exergy analysis as a tool in environmental impact analysis, claiming
it as possibly the most mature field of application, particularly with respect to resource and
efficiency  accounting,  they are  also  quick to point out the tool's  deficiencies  (Dewulf,
Langenhove et al. 2008). Emissions, for example, have an exergy value because they are not
in thermodynamic equilibrium with the surroundings. However, their exergy value does not
represent their environmental impact. Exergy analysis is much more oriented toward resource
and product, and, hence, efficiency. Nevertheless, efforts to assess environmental impact not
only through  resource intake  but also through  emission generation  have been developed
based an exergy analysis.

When compared to other resource accounting methods, exergy has the major advantage that it
is  able to weigh different masses in a scientifically  sound way that brings mass and energy
into  a  single scale. Different kinds of resources, including renewable resources (biomass,
solar, wind, hydropower), fossil  fuels, nuclear fuels, metal ores, minerals, water resources,
and atmospheric resources, can be quantified on a single scale. The resource category "land
use" is still omitted in most exergy calculations.

Exergy  analysis  continues   to  be   developed   and  promoted  within the   field  of
thermodynamics as a way to design and develop more sustainable industrial processes. It is
supported by individuals who believe  that exergy is  a good method to provide  insights into
energy systems to  identify potential   reductions in thermodynamic losses and efficiency
improvements   (Rosen  and Bulucea 2009). However,  a defensible  link  between  exergy
calculations and environmental impact has yet to be fully demonstrated (Rosen and Dincer
2001; Rosen 2009).
3.4 Fuel Cycle Analysis

Joshi  et al. (Joshi, Lave et al. 2000) provide a good description of the general approach for
fuel cycle analysis (more commonly referred to as a "Well-to-Wheel" study by individuals in
the transportation  sector). Basically, a fuel cycle analysis attempts to track the number of
interdependent processes to account for energy inputs and associated air and water emissions,
which may include criteria pollutants and toxic compounds. Significant interdependences are
accounted  for where other fuels, such  as residual oil, coal and  electricity,  are used  as
intermediate energy inputs. The production processes also result in a number of co-products
to which energy and environmental impacts must be allocated. While modeling practices vary
across studies, the basic structure is similar and involves the following features:
                                          19

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       For fossil  fuels, the fuel cycle is divided into four stages:  feedstock  extraction;
       feedstock transportation and storage; fuel production; and fuel transportation, storage
       and distribution.

       For biofuels, the biomass farming stage  constitutes the feedstock extraction phase.
       The major  inputs to farming include fertilizers and agricultural chemicals in addition
       to energy.

       For each of these stages, the energy requirement and fuel mix are estimated.

       Depending on the equipment in which the fuel is combusted (boilers, vehicles, ocean
       tankers,  compressors,  etc.),  appropriate  combustion  emission  factors are used  to
       estimate combustion-related emissions.

       Non-combustion emissions  such as process emissions, venting/flaring and fugitive
       emissions are also estimated for each stage.

       For biofuels, life cycle energy use and emissions for fertilizers  and other inputs are
       accounted.

       The  emissions  associated with  co-products  are allocated using selected  criteria.
       Relative processing energy intensity is most commonly used as the basis of allocation
       for fossil fuels. A common basis for biofuel co-product allocation is less  obvious.

       These individual stage energy use and emissions are aggregated to  estimate full fuel
       cycle emissions.
Joshi et al. (Joshi et al. 2000) point out that unavoidable variations occur in modeling large,
complex fuel systems.  Accordingly, final estimates of energy  use and emissions per GJ
of   fuel  delivered  to  a vehicle can  vary significantly across  studies for gasoline and
bioethanol.  Reconciliation  of  differences is  difficult  since  estimates,  calculations  and
assumptions are seldom available in published reports.
                                           20

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                 An Example of a Fuel Cycle Analysis

Argonne National Lab (Wang, Saricks et al.  1999) conducted a comparative
analysis of fuel-cycle petroleum use, GHG emissions, and fossil energy use of
fuel ethanol relative to conventional gasoline. The fuel-cycle analysis included
all  production,  combustion,  and  transportation stages — from  feedstock
recovery to vehicular fuel combustion — for both ethanol and gasoline.  The
study modeled  emissions  of three major GHGs:  carbon dioxide  (€62),
methane (CFL;),  and nitrous  oxide (N2O), as well as  emissions of five criteria
pollutants: volatile  organic compounds [VOCs],  carbon  monoxide  [CO],
nitrogen oxides [NOx],  particulate matter  with  a diameter of less than 10
microns [PMio], and sulfur oxides [SOx].
       Reductions in Energy Use and Emissions per Vehicle-Mile for
            Corn-Based Ethanol (1999) Compared to Gasoline

      	E10     E85     E95	E10    E85     E95

                       Dry Milling                 Wet Milling
Petroleum          6.4%   74.9%   87.7%     6.1%   72.5%   85.0%
GHGEmissions     1.3%   18.8%   24.9%     0.8%   13.7%   19.1%
Fossil Energy       2.7%   35.0%   44.3%     2.7%   34.4%   42.3%
 Reductions in Energy Use and Emissions per Gallon for Corn-Based Ethanol
                      (1999) Compared to Gasoline

                   E10    E85     E95       E10    E85     E95

                       Dry Milling                 Wet Milling
Petroleum          93.3%  94.9%   94.7%     90.2%  91.9%   91.8%
GHGEmissions     19.2%  23.8%   26.9%     12.4%  17.3%   20.7%
Fossil Energy       40.3%  44.4%   46.5%     39.5%  43.6%   45.7%
The results showed that using a gallon of ethanol, regardless of the blend mix,
can achieve large emissions and energy use benefits, although the benefits are
enhanced slightly for the more efficient vehicle/fuel technologies using E85
and E95. The differences among the per-gallon-of-ethanol results for ethanol
in each of the  three blends  are  caused primarily by the fuel  economy
differences of the vehicles fueled by E10, E85, and E95.
                                 21

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 3.5 Greenhouse Gas Life Cycle Analysis
 Many studies over the past several years have attempted to answer the question of whether or
 not biofuel  production  and use will result in a net reduction of GHG emissions when
 compared to gasoline. The  Greenhouse Gas Protocol (GHG Protocol) is a joint initiative of
 the World Resources Institute (WRI) and  the World Business Council  for  Sustainable
 Development (WBCSD). The protocol is intended  mainly  for  corporate or company-level
 reporting, but the principles  of the protocol can  also be applied to a  single product.  The
 protocol  categorizes GHG emissions into "direct"  and "indirect" emissions.  GHG emissions
 from the  production and use of biofuels are calculated as:

       -Ł••   ^ec  "l   ^p   "td   ^u  ^ccs ~ ^ccr   ^ee->

 where:

 E = total emissions from the use of the fuel;
 eec= emissions from the extraction or cultivation of raw materials;
 BI= annualized emissions from carbon stock changes caused by land use change;
 ep= emissions from processing;
 etf= emissions from transport  and distribution;
 eu= emissions from the fuel in use;
 eccs= emission savings from carbon capture and sequestration;
 eccr= emission savings from carbon capture and replacement; and
 eee= emission savings from excess electricity from  cogeneration.

 Emissions from the manufacture of machinery and equipment are not taken into account
 (European Commission 2008).
The  Green Car Congress  (Green Car Congress 2009) reports that Emanuela Menichetti and
Martina Otto (2009) reviewed and assessed 30 LCA studies, particularly those relating to the
energy balance and greenhouse gas (GHG)  emissions of biofuels produced from a range of
crops and other biomass feedstocks using various conversion technologies (Menichetti and Otto
2009). Among their general  observations was  that  while the number of full LCA studies
continues to increase, it is still relatively small,  and that most studies focus on traditional first
generation feedstocks such as corn, sugarcane, rapeseed and wheat. Other reported observations
included:
        Most  studies  only  include  energy  consumption  (sometimes only  non-renewable
        energy, sometimes total energy) and CO2 emissions. A few studies also include other
        relevant impact indicators such  as  acidification potential,  eutrophication  potential,
        ozone depletion potential and various toxicity potentials. However, very few studies
        include water use impacts.

        Methodologies to develop biodiversity quality indicators are still under discussion. No
        study in the review presents results in terms of biodiversity.
                                          22

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     • Very  few  studies  take  into  account land  use impacts  driven by  biofuel  crop
       production. More specifically, only one third of the studies defines an alternative land
       use reference system and calculates the carbon stock. Potential  impacts in terms of
       indirect land use change driven by increased bioenergy demand are not considered in
       the sample analyzed.

     • The transparency level of reports is  quite heterogeneous with respect  to hypothesis
       and assumptions, yields,  heating  values, emission  factors,  and other background
       methodological choices. Very few studies include a data quality  review according to
       the requirements of the ISO standards for LCA.

     • Heterogeneity  was  observed  in terms of the  treatment of  co-products  and
       allocation methods that were followed.

     • Social issues are very often overlooked in the studies. This is not  surprising, given the
       purely environmental focus of LCA technique.

     • Many databases and LCA software programs are used  to model data. In  particular,
       some of the life cycle inventory databases used in the studies appear relatively  old.
       This affects the  quality  of results,  regardless of the  quality of the  primary data
       collected.

More analysis  and research  is needed in order to improve the incorporation of land use change
into estimates of GHG emissions from biofuels. The  calculation of GHG  emissions associated
with biofuels is complicated by the addition of factors associated with both direct and indirect
land use changes. In addition, only recently  has the potential for soil to act as a net sink for
carbon begun to be included in studies. Improvements can be made to  existing methods by
being more precise in defining system boundaries.  In its assessments to inform  regulatory
determinations, the U.S. EPA recognizes that as the state of scientific knowledge continues to
evolve in this area,  the life  cycle GHG assessments for  a variety of fuel  pathways  will
continue to be enhanced. The U.S. EPA is seeking expert advice from the National Academy
of Sciences as well as other experts (EPA 2010).
                                          23

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          An Example of a Greenhouse Gas Life Cycle Analysis

As part of proposed revisions  to the National Renewable Fuel  Standard
program (commonly known as the RFS program), EPA (EPA 2010) analyzed
life cycle greenhouse gas (GHG)  emissions  from increased renewable fuels
use in order to determine whether or not renewable fuels produced under
varying conditions will meet the greenhouse gas thresholds for the different
fuel types for which the  Energy Independence and Security Act establishes
mandates.

The study accounted for  secondary or indirect impacts of expanded biofuels
use over a 30-year time horizon with 0% discount rate and a  100-year time
horizon with a 2% discount rate  (the figure below shows the results for the
later scenario, comparing gasoline and corn ethanol). They calculated a net
present value of emissions  because it provides  a  common metric for the
direct  comparison  of life cycle  emissions from biofuels and petroleum fuels.
EPA's analysis suggests that the assessment of life cycle  GHG emissions for
biofuels is significantly affected by the secondary agricultural sector.

 Life Cycle GHG Results for Gasoline and Corn Ethanol, Using 100-Year Net
                   Present Value with 2% Discount Rate
                                                    -jel Procuct :n

                                                    Tailpipe

                                                    htemational Land Use Change
                                                    htemational Farm Inputs and
                                                    Pert M2O
                                                   Other (He and feedstock
                                                   transport)
                                                   Domestic Soi' Carbon
                                                    Internationa! Livestock

                                                    htemational Rice Methane

                                                    Domestic R ce Methane

                                                              lri|- :-:.  «••-
                                                   FertN2O
                                                   Domestic Livestock
                                                 — Cel uios c Threshold

                                                 — -'t.oi ' .e:: and Biod esel
                                                   "T '&sho c
                                                 — Conventional Threshold

                                                   Net Emissions *
(Source: EPA 2010)
                                 24

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3.6 Life Cycle Assessment
Life cycle assessment (LCA) accounts for all the inputs and outputs across a product system
from cradle to grave in order to model the potential environmental impacts of resource use
and releases to the environment (International  Standards Organization 1997;  Environmental
Protection Agency 2006). By including the impacts throughout the product life cycle, LCA
provides a  comprehensive view of a product's environmental aspects. It is also valuable in
evaluating  the  many  interdependent processes that are involved in a product system. A
change to one part of this  system may  have unintended consequences elsewhere.    LCA
identifies the potential transfer of environmental impacts from one medium to another (e.g.,
eliminating air emissions by  creating a wastewater effluent instead)  and/or from  one life
cycle stage to another (e.g., from use and reuse of the product to the raw material acquisition
stage).   If  an LCA were not  performed, the transfer might not be recognized  and properly
included in the analysis because it is outside of the typical scope  or focus of product design
and selection processes.

Quality LCAs require large amounts of input and output data, called the life cycle inventory
(LCI) data. While international activities, such  as ecoinvent (ecoinvent Centre 2005) and the
European Commission's International Reference Life Cycle Data System, have been initiated
to assist  users in accessing LCI data more easily,  LCA practitioners and researchers often
have to develop their own data or modify  data from other countries. Having easy access to
consistent LCI  data is needed in order for  effective LCA applications to continue  (NREL
2009).

Inventory data are subjected to life cycle impact assessment models, which seek to establish a
linkage between a system and the potential, related impacts. The impact models are often
derived and simplified versions of more sophisticated models within each  of the various
impact categories.   Although consensus has yet to be  reached on which impact categories
should be included in an LCA, the following are commonly used:

             Ozone Depletion                    •       Acidification
             Global Warming                    •       Smog Formation
             Human Health                       •       Fossil Fuel Use
             Ecotoxicity                          •       Land Use
             Eutrophication                       •       Water Use

These simplified models are suitable for relative comparisons of the potential to  cause human
or environmental damage, but are not indicators of absolute risk or actual damage to human
health  or the environment.  For example, risk assessments  are often very narrowly focused
on a single chemical at a very  specific location.  In the case of a traditional risk assessment, it
is possible to conduct very detailed modeling of the predicted impacts of the chemical on the
population  exposed and even to predict the probability of the  population being impacted
by  the emission.   In the  case of LCA,   hundreds  of chemical emissions (and resource
stressors) that are occurring at various locations are evaluated for their potential impacts in
multiple  impact categories.  The sheer number of stressors being evaluated, the variety of
locations, and  the  diversity  of impact categories makes  it impossible to  conduct the
assessment at the same level  of rigor as a  traditional risk assessment.  Instead, models are
based on the accepted models within each  of the impact categories using assumptions and
                                         25

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default  values  as  necessary.   The  resulting impact models are  suitable  for relative
comparisons, though insufficient for absolute predictions of risk.

Standardized LCA methodology does not include economic factors, such as monetary costs, or
social factors, such as child labor.

Furthermore, LCA results can vary widely depending on how the system boundary is drawn
and the assumptions that are applied to calculate the input and output data (LCI), as well as
the modeling of the environmental impacts. An important variation relates to how the various
co-products from industrial processes are modeled (Curran 2007).

Von Blottnitz and Curran pointed  out in 2007  that a full LCA of bioethanol in the United
States is needed (von Blottnitz  and Curran 2007).   While this  still holds true today for the
United States, comparative studies for Europe have been conducted.
                                          26

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                An Example of a Life Cycle Assessment of Biofuels

Zah et al. (2007) conducted LCAs of several biofuels (bioethanol, biomethanol, biodiesel
and biogas)  in  Switzerland  using  a limited set of impacts: GWP  (global warming
potential),  CED (cumulated  non-renewable  energy demand), SMOG (summer  smog
potential),  EUTR  (eutrophication  caused by fertilizer use)  and ETOX (ecotoxicity).
Calculations were  based on the method of ecological scarcity (UBP 06). The emission
standard petrol EUROS,  set  by the European  Union in  2000 for  gasoline-powered
passenger cars, was selected as the reference product, i.e.,  it was set to equal  100%. Zah
et al. list a number  of considerations related to this study regarding LCA methodology:

   •   Although   the  LCA   approach  used  here is  very  comprehensive,  certain
       environmental impacts are covered only incompletely or not at all. For example,
       the effects of water utilization  are  not covered because they  differ  greatly
       depending  on  local conditions (the quantity of precipitation, ground water  level,
       etc.).  Biodiversity losses are  also incomplete  because the data  is  lacking on
       tropical ecosystems.
   •   The assessment approach calculated  only the primary environmental  impacts of
       the process chain, e.g., energy consumption and  pollutant emission  during  the
       cultivation  of energy rapeseed. Secondary effects were not covered. For instance,
       food was  grown beforehand on the  energy rapeseed field;  afterward food had
       to be imported, causing additional transports and additional environmental impacts
       due to the transports.
   •   No distinction is made with cultivation biomass (e.g., grain or potatoes) between
       harvest waste  and biomass produced specifically for fuel production. Nor does
       the method differentiate  between the use of already cultivated fields  and newly
       cultivated fallow fields. Therefore, the method neglects the environmental impacts
       associated with these aspects of the fields, such as a reduction  in biodiversity in
       newly cultivated fallow fields.
   •   On the basis of the data from  existing life cycle inventories,  most of the results
       refer to existing process chains, and thus cover  Reference  Year 2004. Future
       developments  are  not  judged. However, a glimpse  of future developments is
       provided by the sensitivity analyses and possible optimization potentials.
   •   Since many allocations have been calculated from  sales revenue, and revenue
       depends on market dynamics, the results  of this study are  not "chiseled in stone"
       and may have to be verified later.
   •   The  process   chains investigated  represent  only  a subset  of  all  production
       processes.  Many more production paths are  conceivable. However, the  paths
       chosen  are   considered  especially  relevant  for  the  current  situation  in
       Switzerland.
   •   The data  from existing life cycle inventories represent average conditions in the
       respective production countries (Switzerland, Europe, Brazil, U.S, etc.) and  apply
       as an integral whole as regards to use in Switzerland. Therefore, the results may
       not be applied without qualification to decision situations in partial  regions or
       individual  plants because the environmental impacts in individual  cases may
       differ radically from the average situation.

The study provides no answers to the questions  of the future consequences of a shift to
renewable fuels (e.g.,  the environmental  consequences of agricultural products were to be
grown on such a  large scale  for energetic utilization  that agricultural production as  a
whole had to be intensified) or of any possible rebound effects (Zah, Boni et al.  2007).

                                        27

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 An Example of a Life Cycle Assessment of Biofuels (continued)

The table below notes the overall environmental Life Cycle Assessment of all unblended biofuels studied in
comparison to a fossil reference. GWP = greenhouse warming potential, CED = cumulated non-renewable
energy demand, SMOG = summer smog potential, EUTR = excessive fertilizer use, ETOX = ecotoxicity.
Reference ( = 100%) is petrol EUROS in each case.

Methane manure, optimized
Methane manure+cosubstrate, optimized
100% Recycled plant oil ME FR
Ethanol whey CH
100% Recycled plant oil ME CH
Methanol fixed bed CH
Methane wood
Methanol fluidized bed CH
Ethanol sugar cane BR
Ethanol grass CH
Ethanol wood CH
Ethanol sweet sorghum CN
Ethanol sugar beets CH
Methane sewage sludge
Methane grass biorefinery
100% Soy ME US
Methane biowaste
100% Palm oil ME MY
100% Rapeseed ME CH
Methane manure+cosubstrate
Methane manure
100% Rapeseed ME RER
Ethanol corn US
Ethanol rye RER
Ethanol potatoes CH
100% Soy ME BR
Natural gas, EURO3
Diesel, low sulphur EURO3
Petrol, low sulphur EURO3
GWP
%
7
14
26
30
30
30
33
35
36
36
37
47
47
50
52
52
55
58
60
65
70
77
93
96
97
105
80
93
100
CED
%
40
40
43
43
43
48
50
52
41
49
48
53
53
55
48
49
42
57
57
40
40
64
79
77
79
70
95
92
100
SMOG
%
52
57
50
70
50
100
90
100
500
75
73
130
90
70
70
210
75
380
65
80
95
160
130
125
73
500
60
74
100
EUTR
%
299
220
65
550
165
110
135
112
265
135
380
500
500
60
500
500
75
348
500
390
410
500
500
500
475
500
67
175
100
ETOX
%
40
40
40
45
40
65
75
70
70
50
45
75
70
40
48
51
50
500
51
46
46
65
105
70
48
500
46
80
100
(Source: Zah, Boni et al. 2007)
                                              28

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3.7 Life Cycle Risk Assessment
Life Cycle Risk Assessment (LCRA) integrates the traditional risk assessment paradigm with
a life cycle perspective. It attempts to examine potential human health and ecological impacts
(both positive and negative)  in a broad, systematic manner. The life cycle nature  of the
approach  indicates that  it encompasses  a  cradle-to-grave framework while accounting for
multi-media environmental fate  and transport, exposure,  and effects on both ecological
receptors  and  human health. Other dimensions such as economic,  political,  security, or
societal factors are typically excluded.

Two examples of LCRA approaches are 1) the Nano Risk Framework that was developed
jointly  by Environmental  Defense (ED)  and  DuPont  to address  concerns  related to
nanomaterials  and their applications and 2) the EPA's  Comprehensive Environmental
Assessment (CEA).

Nano Risk Framework

In 2005,  ED  and DuPont  entered into a  partnership  to  develop a framework for the
responsible development, production, use, and end-of-life disposal  or recycling of engineered
nanoscale materials. The resulting "Nano Risk Framework" (Figure 4) develops profiles of
nanomaterials'  properties,  inherent hazards,  and  associated exposures throughout the
material's life cycle (ED-DuPont 2007).
Figure 4. ED-DuPont Nano Risk Framework
                                              Iterate
   Describe Material
   and Application
                                     Assess, prioritize and generate data
(Source: ED-DuPont 2007)
Comprehensive Environmental Assessment

CEA is a life-cycle based approach that was developed by the EPA's National Center for
Environmental Assessment (NCEA) to identify and assess potential risk related to the release
of pollutants (Davis and Thomas 2006). As listed in Column 1 of Figure 5, the life cycle of a
product is typically comprised of several stages, including feedstock production or extraction,
manufacturing processes, distribution, storage, use, and disposal  of the product and waste by-
products. At any stage across the life cycle, pollutants may enter one or more environmental
pathways:  air,  water,  and  soil (Column  2). It  is  important to identify these  primary
contaminants and, to the extent possible,  the transport and transformation processes  they
                                         29

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undergo. The idea is to characterize the primary as well as secondary or by-product pollutants
associated with the entire life cycle for all relevant media (Column 3). The existence of a
contaminant in the environment does not necessarily mean  that humans or other specific
organisms are exposed to it. Thus, CEA is described as going  beyond a conventional LCA to
apply exposure assessment, a key feature of risk  assessment. As indicated in Column 4,
exposure and  dose, i.e.,  the  amount of  substance actually taken  into an organism, are
relevant to humans and biota generally.

In addition to  characterizing exposure  and  dose,  the  health  and  ecological  hazards
associated with respective contaminants need to be described  qualitatively and quantitatively
(Column  5).  To  characterize risk quantitatively,  the dose-response  characteristics  of  a
toxicant must be considered in relation to exposure  potential.  Some pollutants may pose low
risk because the exposure potential is low or the hazard potential  is low, or both.  In other
cases, risk may be relatively high when exposure potential is low, but hazard potential is high,
or vice versa (Davis and Thomas 2006).

Figure 5. Framework for Conducting a Comprehensive Environmental Assessment
(Adapted from Davis and Thomas 2006)
 Life Cycle      Environmental  Fate &
 Stages         Pathways      Transport
                                Exposure -
                                Dose
                                Effects
  Feedstocks

  Manufacture

  Distribution

  Storage

  Use

  Disposal    J
Air

Water

Soil
Primary
contaminants

Secondary
contaminants.
Biota

Human
populations
Ecosystems

Human Health
CEA  can  also involve a broad array of technical experts  and stakeholders offering their
individual analytic judgments  in  a  formal, structured manner that leads to a collective
understanding of the trade-offs associated with different fuels (or other technological issues).

-------
                   An Example of Life Cycle Risk Assessment

The  California  Energy  Policy  Council (LLNL  1999)  assessed  certain  potential
environmental  and health impacts related to  methyl tertiary butyl ether (MTBE) and
ethanol as fuel oxygenates. The California analysis exemplifies some of the key features
of risk assessment in a life cycle framework and considered multi-media impacts of the
two oxygenates in a comparative  manner.  For  example,  cancer and noncancer risks
from selected air pollutants associated with MTBE and ethanol are presented below.
Comparative Life Cycle Model Based on Cumulative Cancer Risks and Noncancer
Hazard Indexes (HI) for Selected Air Pollutants in the South Coast Region of California
for MTBE and Ethanol Oxygenates in Gasoline (2003 Projections)
Risk Description
Cumulative lifetime
cancer risk
Cumulative HI for acute
eye irritation
Cumulative HI for acute
respiratory irritation
Cumulative HI for chronic
respiratory irritation
Estimate
Ranee
Upper
Lower
Upper
Lower
Upper
Lower
Upper
Lower
2003 MTBE
1.9X10'4
1.8X10'4
9.6
6.7
3.8
3.7
5.1
5.1
2003 2% EtOH,
bv weight
1.8X10'4
1.7X10'4
9.5
6.6
3.8
3.7
5.1
5.0
(Source: LLNL 1999)
                                     31

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3.8 Material Flow Analysis
Material Flow Analysis or Accounting (MFA) tracks the amounts of materials, ranging from
timber and fuel  to metals and agricultural  products,  as they  enter and exit the economy
through various types of transactions. These materials can accumulate in capital stock such as
housing and automobiles  or  exit to the environment at any phase  of their commercial  life
cycle, from extraction to processing, manufacturing, use, disposal, or recycling (Wernick  and
Irwin 2005).

On a regional as well as national  level,  MFA is a useful tool  for  improving resource
management. MFA serves as a system-wide diagnostic procedure related to environmental
problems,  supports  the planning of adequate  management  measures and provides  for
monitoring the efficacy of those measures. Furthermore, MFA allows  early warning  and
supports precautionary measures. By  quantifying linkages between  environmental problems
and  human  activities, the aggregated information  from  an MFA study  can help detect
potential problem shifting between regions and sectors and can support decision making.

At present, there is no  global consensus on MFA methodology, and the United States  still
lacks a comprehensive approach for  accounting and tracking material flows,  but a common
goal is understood. That is, the goal is to analyze the flows (in kilograms) of a material in a
well-defined system, by space and time,  in order to identify and quantify material exchanges
between the economy and the natural  environment.  The term "material" stands for both
substances and material goods. The procedure  and some elements of studies  that have been
conducted have common features. The core principle of MFA is the mass balance principle,
i.e., the law of conservation of mass where inputs to an  economy (extractions + imports) equal
outputs from the economy (consumptions +  exports  +  accumulation + waste). Figure  6
depicts the various flows  across the  economy that are modeled in an MFA.  The  procedure
usually consists of four steps: goal and system definition, process chain analysis, accounting
and balancing, and modeling  and evaluation. The results of an MFA can be used to minimize
the flow of materials while maximizing the human welfare generated by the flow. As such,  it
is a method for evaluating the efficiency of using material resources. The analysis allows for
the monitoring of wastes that are typically unaccounted for in traditional economic analyses
(Rogich, Cassara et al. 2008).
                                        32

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Figure 6. Aggregate Material How Accounting (MFA) Indicators
      tMft   <
                                                                                              DOMESTIC (ENVIRONMENT
  tot4l Mdteriiif Hequtfeaittnt   TMK — Dornesikc txtraction -+-ki)po*t& •*• Dome&tlc Hidder Ht>'»v*  »
        Dirwtt M^li^tdl biput   rVsrtl - O«J««BV|IC F»1rj«tittr> i Importv >
Direct Mdtcrlml Consumption   DMC - DM|- txporti
 Pom*»vtic Proc«rt*«Kt Output   DPO - tWWC- N«t Add ttinni fa Stock «ft*cjn:k