Next Gen Biofuels Advisory

Transcription

1 Next Gen Biofuels Advisory Task Force A Partial Overview of Some Issues, Regulations and Approvals Required for Biofuels September 4, 2012 The information provided in this slideshow is for discussion purposes only and is not intended to serve as legal advice

2 Issues for biofuels Whether public policies emanate from the Minnesota Legislature or Congress, biofuels don t exist or serve us in a vacuum

3 See, e.g., the underlying public Policy Purpose of the EPA Transportation Fuel Program...

4 Protect public health and the environment by improving fuel quality and controlling fuel properties. Clean fuels help reduce harmful emissions from a wide variety of motor vehicles, engines, and equipment. (U.S. EPA)

5 It s about public health & more ---> RFS Renewable Energy AND Air Quality...

6 RFS1 - contrast & compare... Energy Policy Act of 2005 P7.5 billion gallons of renewable fuel by 2012

7 Renewable Fuels & Additives "alternative fuels" and "renewable fuels" are sometimes used interchangeably, although they carry very specific meanings in statute and regulation (U.S. EPA)

8 Generally alternative fuels mean alternatives to: traditional gasoline and diesel fuels (U.S. EPA)

9 Renewable fuels are those derived from renewable, non-petroleum sources (e.g., crops) (U.S. EPA)

10 RFS2 Energy Independence & Security Act of 2007 PIncludes diesel P 36 billion gallons by 2022 P New categories of renewable fuels and separate volumes PGHG measures to ensure less than gasoline

11 Grandfathered? If not (pathways)... (a) General requirements. (1) To the extent permitted under paragraphs (b) and ( c) of this section, producers and importers of renewable fuel must generate RINs to represent that fuel if the fuel: (I) Qualifies for a D code pursuant to 40 CFR (f), or EPA has approved a petition for use of a D code pursuant to ; and (ii) Is demonstrated to be produced from renewable biomass pursuant to the reporting requirements of and the recordkeeping requirements of

12 Table 2 to Advanced Technologies Corn oil fractionation that is applied to at least 90% of the corn used to produce ethanol on a calendar year basis. Corn oil extraction that is applied to the whole stillage and/or derivatives of whole stillage and results in recovery of corn oil at an annual average rate equal to or greater than 1.33 pounds oil per bushel of corn processed into ethanol. Membrane separation in which at least 90% of ethanol dehydration is carried out using a hydrophilic membrane on a calendar year basis. Raw starch hydrolysis that is used for at least 90% of starch hydrolysis used to produce ethanol instead of hydrolysis using a traditional high heat cooking process, calculated on a calendar year basis. Combined heat and power such that, on a calendar year basis, at least 90% of the thermal energy associated with ethanol production (including thermal energy produced at the facility and that which is derived from an off-site waste heat supplier), exclusive of any thermal energy used for the drying of distillers grains and solubles, is used to produce electricity prior to being used to meet the process heat requirements of the facility.

13 What Triggers Scrutiny of Biofuels? TITLE 40--Protection of Environment CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY SUBCHAPTER C--AIR PROGRAMS

14 Title 40: Protection of Environment PART 80 REGULATION OF FUELS AND FUEL ADDITIVES Subpart M Renewable Fuel Standard

15 Registration of Fuels & Fuel Additives Procedures Title 40 CFR Part 79. Testing requirements Health data reporting - compliance or certain exemptions?

16 Fuel linked to end use (remember switch to unleaded, catalytic converter?... ) Section 211(f)(1) of the [Clean Air] Act [Title II, Part A -Motor Vehicle Emission & Fuel Standards, Regulation of Fuels], makes it unlawful for any manufacturer of a fuel or fuel additive to first introduce into commerce, or to increase the concentration in use of, any fuel or fuel additive for use in motor vehicles manufactured after model year 1974 which is not substantially similar to any fuel or fuel additive utilized in the certification of any model year 1975, or subsequent model year, vehicle or engine under section 206 of the Act.

17 ... fuel or fuel additives must possess, at the time of manufacture, all of the physical and chemical characteristics of an unleaded gasoline as specified in ASTM Standard D for at least one of the Seasonal and Geographical Volatility Classes specified in the standard....

18 Waiver under CAA (substantially similar)? 211(f)(4)... applicant has established that such fuel or fuel additive or a specified concentration thereof, and the emission products of such fuel or fuel additive or specified concentration thereof, will not cause or contribute to a failure of any emission control device or system (over the useful life of the motor vehicle, motor vehicle engine, nonroad engine or nonroad vehicle in which such device or system is used) to achieve compliance by the vehicle or engine with the emission standards with respect to which it has been certified pursuant to sections 7525 and 7547 (a) of this title.

19 Some open questions... P Engines for higher compression, turbocharged, high mileage - fuel requirements? P Does a renewable fuel need an ASTM & National Institute of Standards & Technology specification for commercial sale? P Renewable fuel registered, but not to generate RINs? - commercial status? P Other issues based on testing & end use of fuel?

20 Minnesota Bio-Fuels Association