The Environmental Protection Agency has released a final rule determining what biofuels meet the renewable fuels standard, part of a federal effort to meet a target of tripling the amount of ethanol and other biofuels in the U.S. motor fuel supply by 2022.
The rule says corn-based ethanol produced in modern plants powered by natural gas qualifies as a renewable fuel, taking into consideration that a fuel must produce 20 percent fewer greenhouse emissions than gasoline to qualify. While ethanol made in any new coal-fired factories would not qualify, the final rule allows an exemption so that existing coal-fired plants can continue to produce ethanol that will be considered a renewable fuel for purposes of the standard.
The RFS2 announcement was one of three intended to boost biofuels production and reduce U.S. dependence on foreign oil that President Obama outlined during a meeting with a bipartisan group of governors from around the country.
Renewable Fuels Standard
EPA's final rule implements the long-term renewable fuels mandate of 36 billion gallons by 2022 established by Congress. The RFS requires biofuels production to grow from last year's 11.1 billion gallons to 36 billion gallons in 2022, with 21 billion gallons to come from advanced biofuels. Increasing renewable fuels will reduce dependence on oil by more than 328 million barrels a year and reduce greenhouse gas emissions more than 138 million tonnes a year when fully phased in by 2022. For the first time, some renewable fuels must achieve greenhouse gas emission reductions ––compared to the gasoline and diesel fuels they displace –– in order to be counted towards compliance with volume standards. The EPA rule can be accessed at this Web site.
Under RFS2, Congress directed that to qualify as renewable, a fuel must reduce life-cycle greenhouse gas emissions by at least 20 percent compared to gasoline. The law requires EPA to analyze indirect emissions arising from land-use changes resulting from using corn and other food grains for energy.
EPA's method of analyzing the indirect emissions drew much criticism from ethanol manufacturers, who expressed concern that corn-based ethanol might not qualify if those indirect emissions pushed corn-based ethanol above the 20 percent threshold.
In the end, the final rule found less effect on overseas greenhouse gas emissions from the production of corn-based ethanol. This is due to a new estimate of higher future corn yields and a greater use of corn residues, or distillers of grains and solubles, for animal feed than originally estimated. This will take less corn out of the world market, EPA said, leading to lower emissions from clearing forest land to grow crops.
In announcing the final rule, EPA Administrator Lisa Jackson said that it was based on "the soundest available science," and used more sophisticated modeling than did the proposed rule announced in May 2009.
Jackson said the final rule uses updated analyses showing that the impact of indirect land-use changes is less than the agency thought when it released the proposed rule. This allows corn-based ethanol produced using the most-efficient processes to qualify as renewable, she said.
Reactions to RFS Announcement
House Agriculture Committee Chairman Collin Peterson (D-Minn.) released a statement saying, "I am pleased that ethanol and biodiesel will qualify as advanced biofuels under the RFS. However, I am concerned about some provisions in the final rule that fail to use science-based standards. To think that we can credibly measure the impact of international indirect land use is completely unrealistic, and I will continue to push for legislation that prevents unreliable methods and unfair standards from burdening the biofuels industry."
Peterson is co-sponsoring legislation with House Armed Services Chairman Ike Skelton (D-Mo.) and Rep. Jo Ann Emerson (R-Mo.) that would prevent EPA from regulating greenhouse gas emissions under the Clean Air Act. The bill (HR 4572) also includes provisions that would prevent EPA from using international indirect land use calculations in biofuels regulations and would expand the definition of renewable biomass.
Renewable Fuels Association President Bob Dinneen said, "EPA was right to recognize that ethanol from all sources provides significant carbon benefits compared to gasoline. As structured, the RFS is a workable program that will achieve the stated policy goals of reduced oil dependence, economic opportunity, and environmental stewardship."
According to Dinneen, EPA's modeling finds that corn-based ethanol achieves a 21 percent greenhouse gas reduction compared to gasoline when dubious ideas of international indirect land use change (ILUC) are included. Without ILUC, corn-based ethanol achieves a 52 percent GHG reduction while cellulosic ethanol achieves GHG reduction of 72-130 percent depending upon feedstock and conversion process. The modeling also found that all GHG reductions for ethanol exceed those mandated by the RFS2.
The American Soybean Association said the EPA's announcement "provides a positive outcome for biodiesel and soy biodiesel," something the organization says is "vitally important as demand for domestically produced soybean oil and the future of the biodiesel industry in the U.S. hinged on the outcome."
The National Corn Growers Association went even further in praising the decision –– and boosting their own commodity. NCGA President Darrin Ihnen issued a statement that said, in part that EPA's renewable fuel standard regulations "are significant because they provide further evidence of corn ethanol's superiority over conventional gasoline when it comes to greenhouse gas emissions."
In addition to the EPA rule on renewable fuels, the president said that USDA has proposed a rule on a biomass crop assistance program that would provide financing to increase the conversion of biomass to bioenergy.
Biomass Crop Assistance Program
Under the program, USDA provides grants and loans and other financial support to help biofuels and renewable energy commercialization. BCAP has already begun to provide matching payments to individuals delivering biomass for the collection, harvest, storage, and transportation of biomass to eligible biomass conversion facilities. The USDA rule on BCAP can be accessed at this Web site.
Biofuels Working Group
In May, President Obama established the Biofuels Interagency Working Group –– co-chaired by USDA, the Department of Energy, and EPA, and with input from many others –– to develop a comprehensive approach to accelerating the investment in and production of US biofuels and reducing the country's dependence on fossil fuels. The Working Group issued its first report Feb. 3, a document that focusers on short term government solutions supporting the existing biofuels industry, as well as accelerating the commercial establishment of advanced biofuels and a viable long-term market by transforming how the federal government does business across departments and using strategic public-private partnerships. The full report is available in PDF format at this Web site.
