Proposed Rule; Renewable Fuel Standard Program; Grain Sorghum Oil Pathway, 61205-61213 [2017-27946]
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Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Proposed Rules
to this action because this measure does
not modify any SIP control requirement
that was in effect before November 15,
1990.
We are proposing to find that the
submitted measure satisfies CAA
requirements for enforceability, SIP
revisions, and nontraditional emission
reduction programs as interpreted in
EPA guidance documents. The TSD
contains more information on our
evaluation of this measure.
C. Public Comment and Proposed
Action
The EPA proposes to fully approve
the submitted measure under CAA
section 110(k)(3) based on a conclusion
that the measure satisfies all applicable
requirements. We will accept comments
from the public on this proposal until
January 26, 2018. If we take final action
to approve the submitted measure, our
final action will incorporate this
measure into the federally enforceable
SIP.
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III. Incorporation by Reference
In this action, the EPA is proposing to
include in a final EPA rule regulatory
text that includes incorporation by
reference. In accordance with
requirements of 1 CFR 51.5, the EPA is
proposing to incorporate by reference
the NSAQMD measure described in
Table 1 of this preamble. The EPA has
made, and will continue to make, these
materials available through
www.regulations.gov and at the EPA
Region IX Office (please contact the
person identified in the FOR FURTHER
INFORMATION CONTACT section of this
preamble for more information).
IV. Statutory and Executive Order
Reviews
Under the Clean Air Act, the
Administrator is required to approve a
SIP submission that complies with the
provisions of the Act and applicable
federal regulations. 42 U.S.C. 7410(k);
40 CFR 52.02(a). Thus, in reviewing SIP
submissions, the EPA’s role is to
approve state choices, provided that
they meet the criteria of the Clean Air
Act. Accordingly, this proposed action
merely proposes to approve state law as
meeting federal requirements and does
not impose additional requirements
beyond those imposed by state law. For
that reason, this proposed action:
• Is not a ‘‘significant regulatory
action’’ subject to review by the Office
of Management and Budget under
Executive Orders 12866 (58 FR 51735,
October 4, 1993) and 13563 (76 FR 3821,
January 21, 2011);
• Is not an Executive Order 13771 (82
FR 9339, February 2, 2017) regulatory
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action because SIP approvals are
exempted under Executive Order 12866;
• Does not impose an information
collection burden under the provisions
of the Paperwork Reduction Act (44
U.S.C. 3501 et seq.);
• Is certified as not having a
significant economic impact on a
substantial number of small entities
under the Regulatory Flexibility Act (5
U.S.C. 601 et seq.);
• Does not contain any unfunded
mandate or significantly or uniquely
affect small governments, as described
in the Unfunded Mandates Reform Act
of 1995 (Pub. L. 104–4);
• Does not have Federalism
implications as specified in Executive
Order 13132 (64 FR 43255, August 10,
1999);
• Is not an economically significant
regulatory action based on health or
safety risks subject to Executive Order
13045 (62 FR 19885, April 23, 1997);
• Is not a significant regulatory action
subject to Executive Order 13211 (66 FR
28355, May 22, 2001);
• Is not subject to requirements of
Section 12(d) of the National
Technology Transfer and Advancement
Act of 1995 (15 U.S.C. 272 note) because
application of those requirements would
be inconsistent with the Clean Air Act;
and
• Does not provide the EPA with the
discretionary authority to address
disproportionate human health or
environmental effects with practical,
appropriate, and legally permissible
methods under Executive Order 12898
(59 FR 7629, February 16, 1994).
In addition, the SIP is not approved to
apply on any Indian reservation land or
in any other area where the EPA or an
Indian tribe has demonstrated that a
tribe has jurisdiction. In those areas of
Indian country, the rule does not have
tribal implications and will not impose
substantial direct costs on tribal
governments or preempt tribal law as
specified by Executive Order 13175 (65
FR 67249, November 9, 2000).
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Incorporation by
reference, Intergovernmental relations,
Particulate matter, Reporting and
recordkeeping requirements.
Authority: 42 U.S.C. 7401 et seq.
Dated: December 14, 2017.
Deborah Jordan,
Acting Regional Administrator, Region IX.
[FR Doc. 2017–27950 Filed 12–26–17; 8:45 am]
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ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 80
[EPA–HQ–OAR–2017–0655; FRL–9972–59–
OAR]
RIN 2060–AT82
Proposed Rule; Renewable Fuel
Standard Program; Grain Sorghum Oil
Pathway
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
In this proposed rule, the
Environmental Protection Agency (EPA)
is providing an opportunity to comment
on an analysis of the lifecycle
greenhouse gas (GHG) emissions
associated with certain biofuels that are
produced from grain sorghum oil
extracted at dry mill ethanol plants at
any point downstream from sorghum
grinding, also known as distiller
sorghum oil. EPA seeks comment on its
proposed assessment that using
distillers sorghum oil as feedstock
results in no significant agricultural
sector GHG emissions; and that
biodiesel and heating oil produced from
distillers sorghum oil via a
transesterification process, and
renewable diesel, jet fuel, heating oil,
naphtha, and liquefied petroleum gas
(LPG) produced from distillers sorghum
oil via a hydrotreating process, would
meet the lifecycle GHG emissions
reduction threshold of 50 percent
required for advanced biofuels, and
biomass-based diesel under the
Renewable Fuel Standard program.
Based on these analyses, EPA is
proposing to amend the RFS program
regulations to define the term ‘‘distillers
sorghum oil’’. We also propose to add to
the regulations approved pathways from
the production of biodiesel and heating
oil from distillers sorghum oil via a
transesterification process, and
renewable diesel, jet fuel, heating oil,
naphtha, and liquefied petroleum gas
(LPG) produced from distillers sorghum
oil via a hydrotreating process.
DATES: Comments must be received on
or before January 26, 2018.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–HQ–
OAR–2017–0655, at https://
www.regulations.gov. Follow the online
instructions for submitting comments.
Once submitted, comments cannot be
edited or withdrawn from
Regulations.gov. The EPA may publish
any comment received to its public
docket. Do not submit electronically any
information you consider to be
SUMMARY:
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Confidential Business Information (CBI)
or other information whose disclosure is
restricted by statute. Multimedia
submissions (audio, video, etc.) must be
accompanied by a written comment.
The written comment is considered the
official comment and should include
discussion of all points you wish to
make. The EPA will generally not
consider comments or comment
contents located outside of the primary
submission (i.e., on the web, cloud, or
other file sharing system). For
additional submission methods, the full
EPA public comment policy,
information about CBI or multimedia
submissions, and general guidance on
making effective comments, please visit
https://www.epa.gov/dockets/
commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT:
Diana Galperin, Office of Air and
Radiation, Office of Transportation and
Air Quality, Mail Code: 6401A, U.S.
Environmental Protection Agency, 1200
Pennsylvania Avenue NW, Washington,
DC 20460; telephone number: 202–564–
5687; email address: Galperin.diana@
epa.gov.
SUPPLEMENTARY INFORMATION:
Outline of This Preamble
I. General Information
II. Public Participation
III. Introduction
IV. Analysis of GHG Emissions Associated
With Production of Biofuels From
Distillers Sorghum Oil
A. Overview of Distillers Sorghum Oil
B. Analysis of Lifecycle GHG Emissions
1. Livestock Sector Impacts
2. Feedstock Production
3. Feedstock Transport
4. Feedstock Pretreatment
5. Fuel Production
6. Fuel Distribution
7. Fuel Use
8. Results of GHG Lifecycle Analysis
V. Consideration of Lifecycle Analysis
Results
VI. Summary
VII. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory
Planning and Review and Executive
Order 13563: Improving Regulation and
Regulatory Review
B. Executive Order 13771: Reducing
Regulations and Controlling Regulatory
Costs
C. Paperwork Reduction Act
D. Regulatory Flexibility Act (RFA)
E. Unfunded Mandates Reform Act
(UMRA)
F. Executive Order 13132: Federalism
G. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
H. Executive Order 13045: Protection of
Children From Environmental Health
Risks and Safety Risks
I. Executive Order 13211: Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use
J. National Technology Transfer
Advancement Act (NTTAA)
K. Executive Order 12898: Federal Actions
To Address Environmental Justice in
Minority Populations and Low-Income
Populations
I. General Information
A. Does this action apply to me?
Entities potentially affected by this
proposed rule are those involved with
the production, distribution, and sale of
transportation fuels, including gasoline
and diesel fuel or renewable fuels such
as ethanol, biodiesel, heating oil,
renewable diesel, naphtha and liquefied
petroleum gas. Potentially regulated
categories include:
NAICS 1 codes
Examples of potentially affected entities
Sorghum Farming ...........................................................................................................................................................
Petroleum refineries (including importers). .....................................................................................................................
Ethyl alcohol manufacturing. ..........................................................................................................................................
Other basic organic chemical manufacturing. ................................................................................................................
Chemical and allied products merchant wholesalers. ....................................................................................................
Petroleum Bulk Stations and Terminals; Petroleum ......................................................................................................
Other fuel dealers. ..........................................................................................................................................................
This table is not intended to be
exhaustive, but rather provides a guide
for readers regarding entities likely to be
regulated by this action. This table lists
the types of entities that the EPA is now
aware could potentially be affected by
this action. Other types of entities not
listed in the table could also be affected.
To determine whether your entity is
regulated by this action, you should
carefully examine the applicability
criteria in the referenced regulations. If
you have any questions regarding the
applicability of this action to a
particular entity, consult the person
listed in the FOR FURTHER INFORMATION
CONTACT section.
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B. What action is the Agency taking?
EPA is proposing to amend the RFS
program regulations to define the term
‘‘distillers sorghum oil’’ as oil from
grain sorghum that is extracted at a dry
mill ethanol plant at any location
downstream of grinding the grain
1 North
sorghum kernel, provided that the grain
sorghum is converted to ethanol, the oil
is rendered unfit for food uses without
further refining, and the distillers grains
resulting from the dry mill and oil
extraction processes are marketable as
animal feed. We also propose to add to
Table 1 to 80.1426(f), approved
pathways from the production of
biodiesel and heating oil from distillers
sorghum oil via a transesterification
process, and renewable diesel, jet fuel,
heating oil, naphtha, and liquefied
petroleum gas (LPG) produced from
distillers sorghum oil via a
hydrotreating process. Alternatively, or
in addition, EPA may consider the
comments it receives in response to this
document in evaluating facility-specific
pathway petitions submitted pursuant
to 40 CFR 80.1416 that propose using
distillers sorghum oil to make biofuel.
American Industry Classification System.
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C. What is the Agency’s authority for
taking this action?
Statutory authority for this action
comes from Clean Air Act sections 114,
208, 211, and 301.
II. Public Participation
EPA will not hold a public hearing on
this matter unless a request is received
by the person identified in the FOR
FURTHER INFORMATION CONTACT section of
this preamble by January 11, 2018. If
EPA receives such a request, we will
publish information related to the
timing and location of the hearing and
a new deadline for public comment.
III. Introduction
Section 211(o) of the Clean Air Act
(CAA) establishes the Renewable Fuel
Standard (RFS) program, under which
EPA sets annual percentage standards
specifying the amount of renewable
fuel, as well as three subcategories of
renewable fuel, that must be used to
reduce or replace fossil fuel present in
transportation fuel, heating oil, or jet
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fuel. Non-exempt 2 renewable fuels must
achieve at least a 20 percent reduction
in lifecycle GHG emissions as compared
to a 2005 petroleum baseline. Advanced
biofuel and biomass-based diesel must
achieve at least a 50 percent reduction,
and cellulosic biofuel must achieve at
least a 60 percent reduction.
In addition to the lifecycle GHG
reduction requirements, renewable
identification numbers (RINs) may only
be generated if the fuel meets the other
definitional criteria for renewable fuel
(e.g., produced from renewable biomass
as defined in the regulations, and used
to reduce or replace the quantity of
fossil fuel present in transportation fuel,
heating oil, or jet fuel) in CAA section
211(o) and the RFS regulations at 40
CFR part 80 subpart M.
Since the formation of the RFS
program, EPA has periodically
promulgated rules to add new pathways
to the regulations.3 In addition, EPA has
approved facility-specific pathways
through the petition process in 40 CFR
80.1416. There are three critical
components of approved fuel pathways
under the RFS program: (1) Fuel type;
(2) feedstock; and (3) production
process. Each pathway is associated
with a specific ‘‘D code’’ depending on
whether the fuel meets the requirements
for renewable fuel, advanced fuel,
cellulosic fuel, or biomass-based diesel.
EPA’s lifecycle analyses are used to
assess the overall GHG emissions of a
fuel throughout each stage of its
production and use. The results of these
analyses, considering uncertainty and
the weight of available evidence, are
used to determine whether a fuel meets
the necessary GHG reductions required
under the CAA. Lifecycle analysis
2 A baseline volume of renewable fuel produced
from facilities that commenced construction on or
before December 19, 2007, and which completed
construction by December 19, 2010 without an 18month hiatus in construction, is exempt from the
minimum 20 percent GHG reduction requirement
that otherwise applies to renewable fuel. In
addition, a baseline volume of ethanol from
facilities that commenced construction after
December 19, 2007, and on or before December 31,
2009, qualifies for the same exemption if
construction was completed within 36 months
without an 18-month hiatus in construction; the
facility was fired with natural gas, biomass, or any
combination thereof, at all times the facility
operated between December 19, 2007 and December
31, 2009; and the baseline volume continues to be
produced through processes fired with natural gas,
biomass, or any combination thereof.
3 Please see information on Pathways I and
Pathways II in 40 CFR part 80 subpart M, and in
the Federal Register at 78 FR 14190 (March 5, 2013)
and 79 FR 42128 (July 18, 2014). More information
on these can be found at: https://www.epa.gov/
renewable-fuel-standard-program/final-ruleidentify-additional-fuel-pathways-under-renewablefuel and https://www.epa.gov/renewable-fuelstandard-program/renewable-fuel-pathways-ii-finalrule-identify-additional-fuel.
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includes an assessment of emissions
related to the full fuel lifecycle,
including feedstock production,
feedstock transportation, fuel
production, fuel transportation and
distribution, and tailpipe emissions. Per
the CAA definition of lifecycle GHG
emissions, EPA’s lifecycle analyses also
include an assessment of significant
indirect emissions, such as those from
land use changes and agricultural sector
impacts.
EPA received a petition from the
National Sorghum Producers (NSP),
submitted under partial claims of
confidential business information (CBI),
requesting that EPA evaluate the GHG
emissions associated with biofuels
produced using grain sorghum oil
derived from dry mill ethanol
production as a feedstock, and that EPA
provide a determination of the
renewable fuel categories, if any, for
which such biofuels may be eligible. In
this action, EPA is proposing to amend
the RFS program regulations to define
the term ‘‘distillers sorghum oil’’ as oil
from grain sorghum that is extracted at
a dry mill ethanol plant at any location
downstream of grinding the grain
sorghum kernel, provided that the grain
sorghum is converted to ethanol, the oil
is rendered unfit for food uses without
further refining, and the distillers grains
resulting from the dry mill and oil
extraction processes are marketable as
animal feed. We also propose to add to
Table 1 to 40 CFR 80.1426(f), approved
pathways from the production of
biodiesel and heating oil from distillers
sorghum oil via a transesterification
process, and renewable diesel, jet fuel,
heating oil, naphtha, and LPG produced
from distillers sorghum oil via a
hydrotreating process. Alternatively, or
in addition, EPA may consider the
comments it receives in response to this
document in evaluating facility-specific
pathway petitions submitted pursuant
to 40 CFR 80.1416 that propose using
distillers sorghum oil to make biofuel.
This preamble describes EPA’s
analysis of the GHG emissions
associated with distillers sorghum oil
when used to produce specified
biofuels. The analysis considers a
scenario where distillers sorghum oil is
extracted from distillers grains with
solubles (DGS) at dry mill plants that
produce ethanol from grain sorghum
and where the remaining reduced-oil
DGS co-product is used as animal feed.
The distillers sorghum oil is then used
as a feedstock for conversion into
certain biofuels. As described in Section
IV of this preamble, we estimate that the
lifecycle GHG emissions associated with
the production of biodiesel and heating
oil produced from distillers sorghum oil
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via a transesterification process, and
renewable diesel, jet fuel, naphtha, and
LPG, produced from distillers sorghum
oil via a hydrotreating process, are
approximately 80 percent less than the
lifecycle GHG emissions associated with
the baseline petroleum fuels they would
replace. Based on these results, we
propose to find that these biofuels
would meet the 50 percent GHG
reduction threshold required for
advanced biofuel and biomass-based
diesel. We also anticipate that heating
oil produced through transesterification
or hydrotreating from distillers sorghum
oil would meet the 50 percent GHG
emission reduction threshold required
for advanced biofuel and biomass-based
diesel.4 EPA is seeking public comment
on its analyses of the lifecycle GHG
emissions related to biofuels produced
from distillers sorghum oil.
IV. Analysis of GHG Emissions
Associated With Production of Biofuels
From Distillers Sorghum Oil
A. Overview of Distillers Sorghum Oil
Dry mill ethanol plants grind and
ferment grain sorghum, produce ethanol
from the fermented grain sorghum
starch, and also produce a DGS coproduct (made of non-fermentable
solids, solubles syrup, and sorghum oil)
that is sold as a type of livestock feed.
A portion of the oil that would
otherwise reside in the DGS can be
extracted at the ethanol plant, typically
through gravimetric methods. At dry
mill ethanol plants, sorghum oil is
recovered through methods nearly
identical to that of corn oil extracted
from DGS, and corn and sorghum oil
extraction can occur at the same
facilities.
EPA has approved pathways for the
production of ethanol from grain
sorghum made through a dry mill
process as qualifying for renewable fuel
(D code 6) RINs, and in some cases
advanced biofuel (D code 5) RINs,
depending on process energy sources
used during production.5 However, the
regulations do not currently include
pathways for the production of other
biofuels from grain sorghum. According
to the U.S. Department of Agriculture
(USDA), the largest regions for grain
sorghum production in the United
States are located in Texas, Oklahoma,
and Kansas.6 Currently about 30 percent
4 As defined in the RFS regulations at 40 CFR
80.1401, biomass-based diesel excludes renewable
fuel that is co-processed with petroleum. Such fuel
may qualify as advanced biofuel if it meets the 50
percent GHG reduction threshold.
5 Table 1 to 40 CFR 80.1426, Rows R and S.
6 USDA, NASS, ‘‘Sorghum for Grain 2016
Harvested Acres by County for Selected States,’’
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of grain sorghum grown, or 120 million
bushels a year, goes towards ethanol
production.7 For comparison, in recent
years over 5,200 million bushels of corn
have been used for ethanol production
annually.8 Distillers sorghum oil is still
a relatively niche product, and the NSP
petition anticipates a potential of 12 to
21 million ethanol-equivalent gallons of
fuel to be produced from the oil per
year.
We propose to define distillers
sorghum oil to mean oil recovered at a
point downstream of where a dry mill
grain sorghum ethanol plant grinds the
grain sorghum, provided that the grain
sorghum is converted to ethanol, the oil
is rendered unfit for food uses without
further refining, and the distillers grains
resulting from the dry mill and oil
extraction processes are marketable as
animal feed. So long as these criteria are
met, a variety of recovery methods
could be implemented. For example,
this would include recovery of sorghum
oil before fermentation from the slurry
or from liquefaction tanks. It would also
include recovery of sorghum oil after
fermentation from the thin stillage and/
or DGS. Further, it would also include
recovery of sorghum oil by a third-party
from DGS produced by a dry mill
sorghum ethanol plant.
B. Analysis of Lifecycle GHG Emissions
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EPA evaluated the GHG emissions
associated with using distillers sorghum
oil as a biofuel feedstock based on
information provided by the petitioner
and other available data sources. GHG
emissions include emissions from
production and transport of distillers
sorghum oil; the processing of the oil
into biofuel; transport of the biofuel
from the production facility to the fuelblender; and, ultimately the use of the
biofuel by the end consumer. The
methodology EPA used for this analysis
is generally the same approach used for
the March 2010 RFS rule for lifecycle
analyses of several other biofuel
feedstocks, such as distillers corn oil
and yellow grease.9 We believe that
https://www.nass.usda.gov/Charts_and_Maps/
graphics/AS-HA-RGBChor.pdf.
7 Sorghum Checkoff, ‘‘Renewables,’’ https://
www.sorghumcheckoff.com/market-opportunities/
renewables, accessed 09–05–2017.
8 USDA, ERS, ‘‘Table 5— Corn supply,
disappearance, and share of total corn used for
ethanol,’’ U.S. Bioenergy Statistics, https://
www.ers.usda.gov/data-products/us-bioenergystatistics/us-bioenergy-statistics/#Feedstocks,
accessed 09–05–2017.
9 The March 2010 RFS rule preamble (75 FR
14670, March 26, 2010) and Regulatory Impact
Analysis (RIA) (EPA–420–R–10–006) provide
further discussion of our approach. These
documents are available online at https://
www.epa.gov/renewable-fuel-standard-program/
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applying the same methodology for
these feedstocks is appropriate given
similarities in how these feedstocks are
produced, transported and processed
into biofuel. These similarities are
explained further in this section.
EPA’s lifecycle analyses include
upstream emissions, which include the
significant direct and indirect GHG
emissions (including such emissions
from land use changes) associated with
producing a feedstock and transporting
it to the processing facility. All of the
upstream emissions were calculated and
taken into account in EPA’s evaluation
of the lifecycle GHG emissions
associated with grain sorghum
ethanol.10 Based on our analysis,
producing distillers sorghum oil at a dry
mill ethanol plant converting grain
sorghum to ethanol, and using the
extracted sorghum oil as a biofuel
feedstock does not result in additional
upstream emissions, compared to the
upstream emissions that have already
been calculated and attributed to grain
sorghum ethanol. Further, based on our
analysis, the production of distillers
sorghum oil does not significantly
impact the upstream emissions
associated with grain sorghum ethanol.
While producing distillers sorghum oil
may impact livestock markets, through
the effects of de-oiling DGS, we discuss
in the next section why, based on the
data we have reviewed, we do not
anticipate this to cause any significant
indirect impacts. We welcome
comments on this data and analysis.
1. Livestock Sector Impacts
During a typical dry mill ethanol
production process, DGS are produced.
These DGS are then used as animal feed,
thereby displacing feed crops and the
GHG emissions associated with growing
and transporting those feed crops. When
distillers sorghum oil is produced, DGS
continue to be created with reduced oil
content. A significant portion of this
analysis focuses on reviewing how
reduced-oil DGS compare to full-oil
DGS in terms of feed values and
displacement of other feeds.
Chemically, full-oil and reduced-oil
sorghum DGS share similar
compositions, primarily made up of
crude protein, fat, and natural and acid
detergent fibers. Where the two
products differ most significantly is in
their acid detergent fiber and fat
concentrations. Table IV.1 shows the
renewable-fuel-standard-rfs2-final-rule-additionalresources.
10 See the December 2012 grain sorghum ethanol
rule (77 FR 74592).
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key nutrients that make up dried full-oil
and reduced-oil DGS.
TABLE IV.1—KEY NUTRIENT MAKE-UP
OF FULL-OIL AND REDUCED-OIL
DRIED DISTILLERS GRAINS WITH
SOLUBLES (DDGS) 11
Nutrient
Crude Protein, % ......
Crude Fat, % (aka
Ether Extract) ........
Neutral Detergent
Fiber (NDF), % ......
Acid Detergent Fiber
(ADF), % ...............
Ash, % ......................
Calcium, % ...............
Phosphorus, % .........
Lysine, % ..................
Methionine, % ...........
Cystine, % ................
Tryptophan, % ..........
Full-oil
sorghum
DDGS
Reducedoil
sorghum
DDGS
30.80
31.36
9.75
3.91
33.60
37.23
22.68
6.62
0.12
0.76
0.82
0.54
0.53
0.25
31.91
7.60
0.08
0.96
0.62
0.47
0.61
0.23
The difference in fat values is
important as crude fat concentrations
impact net energy uptake by the
livestock. A memorandum to the docket
shows the total net energy profiles by
livestock of full-oil and reduced-oil
sorghum DGS.12 Should fat content not
be at sufficient levels, livestock
producers might need to add nutrients
or other types of feed to meet
appropriate nutritional targets. This is
reflected in the ‘‘displacement rate’’ of
a DGS, which indicates how much
weight a pound of distillers grain can
replace of another feed. A lower
displacement rate for a reduced-oil
distillers grain as compared to a full-oil
distillers grain could result in additional
GHG emissions as it suggests that
additional feed is required. In the case
of reduced-oil sorghum DGS, we believe
that it is unlikely that additional feed
will be needed to backfill for the
extracted oil.
Research suggests that for poultry and
swine, ‘‘increased concentrations of free
fatty acids have a negative impact on
11 The chart lists the most prominent nutrients in
distillers grains. Data provided by the National
Sorghum Producers. Data for full-oil Sorghum
DDGS is sourced from Nutrient Requirements of
Swine, 2012 National Academies Press, Washington
DC, pg 329. Data for reduced-oil Sorghum DDGS
was calculated by National Sorghum Producers
using the ratio of (1) corn DDGS, between 6 to 9
percent Oil; and (2) corn DDGS, less than 4 percent
oil from Nutrient Requirements of Swine, 2012
National Academies Press, Washington, DC, pp. 266
and 267.
12 ‘‘Summary of Net Energy Impacts of ReducedOil Sorghum Dried Distillers Grains with Solubles
(DDGS) on Livestock,’’ Air Docket EPA–HQ–OAR–
2017–0655.
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lipid digestion and energy content.’’ 13
Free fatty acids are a class of acids that
form part of a lipid molecule. Full-oil
DGS typically contain higher levels of
free fatty acids and thus may have a
negative impact on the fat digestion of
poultry and swine. This supports the
conclusion that while the fat content
may be lower for reduced-oil DGS,
feeding values of this product should
not be worse than full-oil DGS for
poultry and swine.
For dairy, there are also benefits from
feeding reduced-oil DGS as compared to
full-oil DGS. Research on dairy cows
shows that reduced-oil DGS produce a
lessened likelihood of the onset of milk
fat depression.14 Milk fat depression
occurs when milk fat is reduced by 0.2
percent or more.15 If milk fat depression
occurs over the long term, a decline in
overall milk production may occur as
well as worsened health conditions of
the herd. High fat diets have been linked
with this condition and have been
shown to worsen the rumen
environment of dairy cattle.16 Therefore,
dairy producers seek to avoid high fat
diets. Given the benefits of reduced-oil
DGS over full-oil DGS for milk fat
production, it is expected that reducedoil DGS will be preferred over full-oil
DGS by dairy producers and that
displacement rates will be no worse
than those of full-oil DGS.
An impact on displacement rates may
occur when reduced-oil instead of fulloil DGS are used for beef cattle, which
has the ability to digest additional fat.
Table IV.2 shows the displacement
ratios for the livestock sectors where
dried DGS (DDGS) are used. In this
table, for instance, 1 pound of reducedoil DDGS fed to beef cattle displaces
1.173 pounds of corn. A pound of fulloil and reduced-oil DDGS also displace
equal portions (0.056 pounds) of urea.
Urea is a non-protein nitrogen
compound that is typically fed to cattle
for aiding the production of protein by
rumen microbes.17 These values show
that for dairy, swine, and poultry,
reduced-oil DDGS replace the same
amounts of alternative feed despite
containing less oil.
TABLE IV.2—FULL-OIL AND REDUCED-OIL SORGHUM DISTILLERS GRAINS WITH SOLUBLES DISPLACEMENT RATIOS 18
[lb of ingredient/lb of sorghum distillers grains with solubles, dry matter basis]
Beef cattle
Dairy cattle
Poultry 19
Swine
Ingredient
Full-Oil
Corn .................
Soybean Meal ..
Urea .................
Reduced-Oil
1.196
......................
0.056
Full-Oil
1.173
......................
0.056
Reduced-Oil
0.731
0.633
0.731
0.633
Full-Oil
0.890
0.095
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We anticipate that sorghum oil
producers will seek to sell reduced-oil
DGS to poultry, swine, and dairy cow
producers, as these markets allow them
to obtain a higher value for their
product. Dairy cattle producers may be
willing to pay a premium for reducedoil distillers grains, as data suggests
lower oil DGs improve milk production.
Sales of reduced-oil DGS to the beef
cattle market are less likely, and in these
cases we anticipate that should a higher
fat product be required, the fat content
of the DGS could be augmented through
the addition of distillers sorghum oil,
thereby reducing the volumes of biofuel
produced from distillers sorghum oil
but not causing additional indirect GHG
emissions. Therefore, we do not expect
that sorghum oil extraction will have a
significant impact on the feed value of
DGS and thus will have no significant
indirect GHG impacts per pound of
DGS. We welcome comment on this
assessment.
13 Kerr, B.J., W.A. Dozier, and G.C. Shurson.
(2016). ‘‘Lipid digestibility and energy content of
distillers’ corn oil in swine and poultry,’’ Journal
of Animal Science. 94:2900–2908. doi:10.2527/
jas.2016–0440, pp. 2905.
14 H.A. Ramirez-Ramirez, E. Castillo Lopez, C.J.R.
Jenkins, N.D. Aluthge, C. Anderson, S.C. Fernando,
K.J. Harvatine, P.J. Kononoff, (2016). ‘‘Reduced-fat
dried distillers grains with solubles reduces the risk
for milk fat depression and supports milk
production and ruminal fermentation in dairy
cows,’’ Journal of Dairy Science, Volume 99, Issue
3 Pages 1912–1928, ISSN 0022–0302, https://
dx.doi.org/10.3168/jds.2015-9712. (https://
www.sciencedirect.com/science/article/pii/S002203
0216000515)
15 University of Kentucky, ‘‘Preventing Milk Fat
Depression in Dairy Cows,’’ https://afs.ca.uky.edu/
dairy/preventing-milk-fat-depression-dairy-cows.
Accessed September 8, 2018. On the herd level milk
fats range from 3 to 5 percent normally. Oetzel,
Garret R., ‘‘Subacute Ruminal Acidosis in Dairy
Herds: Physiology, Pathophysiology, Milk Fat
Responses, and Nutritional Management.’’
Preconference Seminar 7A: Dairy Herd Problem
Investigation Strategies: Lameness, Cow Comfort,
and Ruminal Acidosis, American Association of
Bovine Practitioners, 40th Annual Conference,
September 17, 2007—Vancouver, BC, Canada,
https://www.vetmed.wisc.edu/dms/fapm/
fapmtools/2nutr/sara1aabp.pdf pp.98.
16 PennState Extension, ‘‘Troubleshooting
Problems with Milkfat Depression,’’ August 14,
2017, https://extension.psu.edu/troubleshootingproblems-with-milkfat-depression. Accessed
September 8, 2017.
17 PennState Extension, ‘‘Urea in Beef Cattle
Rations,’’ August 8, 2017, https://
extension.psu.edu/urea-in-beef-cattle-rations.
Accessed October 18, 2017.
18 Information provided by National Sorghum
Producers, using the following sources Arora et al.,
(2008). Argonne National Laboratory. ‘‘Update of
distillers grains displacement ratios for corn ethanol
life-cycle analysis’’; Kerr et al., (2016). ‘‘Lipid
digestibility and energy content of distillers’ corn
oil in swine and poultry,’’ Journal of Animal
Science 94:2900-8.; Opheim et al., (2016). ‘‘Biofuel
feedstock and blended coproducts compared with
deoiled corn distillers grains in feedlot diets: Effects
on cattle growth performance, apparent total tract
nutrient digestibility, and carcass characteristics,’’
Journal of Animal Science 94:227.; Ramirez et al.,
(2016). ‘‘Reduced-fat dried distillers grains with
solubles reduces the risk for milk fat depression and
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Reduced-Oil
0.890
0.095
Full-Oil
0.292
Reduced-Oil
0.292
2. Feedstock Production
Distillers sorghum oil is removed
from DGS at dry mill ethanol plants
using the same equipment and
technologies used for corn oil
extraction. Oil extraction requires
thermal energy to heat the DGS and
electricity to power centrifuges, pumps
and other oil recovery equipment. Our
analysis for the March 2010 RFS final
rule,20 the NSP petition, and two
studies,21 22 indicate that although
extracting oil from DGS uses thermal
supports milk production and ruminal fermentation
in dairy cows,’’ Journal of Dairy Science 99:191228. Poultry displacement ratios were provided by
the National Sorghum Producers and calculated
based on data from the Iowa State Extension
Services, Agricultural Marketing and Resources
Center, ‘‘Estimated U.S. Dried Distillers Grains with
Solubles (DDGS) Production and Use, https://
www.extension.iastate.edu/agdm/crops/outlook/
dgsbalancesheet.pdf.
19 Protein sources such as soybean meal can be
used to supplement sorghum DGS for poultry.
20 See section 1.4.1.3 of USEPA (2010).
Renewable fuel standard program (RFS2) regulatory
impact analysis. U.S. Environmental Protection
Agency Office of Transportation Air Quality, EPA–
420–R–10–006. Washington, DC. https://
www.epa.gov/sites/production/files/2015-08/
documents/420r10006.pdf.
21 Wang, Z., et al. (2015). ‘‘Influence of corn oil
recovery on life-cycle greenhouse gas emissions of
corn ethanol and corn oil biodiesel.’’ Biotechnology
for Biofuels 8(1): 178.
22 Mueller, S., Kwik, J. (2013). ‘‘2012 Corn
Ethanol: Emerging Plant Energy and Environmental
Technologies.’’
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energy, it also leads to relatively less
thermal energy being used later in the
process to dry the DGS, resulting in an
overall negligible change in thermal
energy requirements for plants that dry
their DGS. Our analysis here includes
both the thermal and electrical energy
requirements to remove the distillers
sorghum oil. We do not account for the
reduction in thermal energy needed for
DGS drying mentioned above, so this
can be viewed as a conservative
approach (i.e., resulting in higher
estimated GHG emissions) for plants
that dry their DGS.23 Based on data
reviewed by EPA,24 we assume 200 Btu
(British thermal units) of grid electricity
and 800 Btu of natural gas are used to
extract distillers sorghum oil from DGS,
per pound of distillers sorghum oil
extracted. These parameters are based
on energy requirements associated with
extracting oil from DGS at dry mill
ethanol plants, but we believe they are
also appropriate and conservative in
cases where the oil is extracted at any
point downstream from sorghum
grinding.
As discussed above, we do not expect
sorghum oil extraction to significantly
change the feed value of DGS on a per
pound basis. According to the NSP
petition, grain sorghum oil yields
should be 0.67 pounds per bushel of
grain sorghum feedstock.25 EPA’s
modeling for the December 2012 grain
sorghum ethanol final rule (77 FR
74592) assumed average dried DGS
yield of 17 pounds per bushel of grain
sorghum feedstock. Thus, sorghum oil
extraction may reduce the total mass of
DGS produced by up to approximately
4 percent. If full-oil and reduced-oil
DGS have equivalent feed value on a per
pound basis, we would expect a
reduction in the total mass of DGS
produced to impact livestock feed
markets and result in a net increase in
GHG emissions if production of other
feed crops (e.g., corn, soybeans)
increased to backfill the lost DGS, given
23 The purpose of lifecycle assessment under the
RFS program is not to precisely estimate lifecycle
GHG emissions associated with particular biofuels,
but instead to determine whether or not the fuels
satisfy specified lifecycle GHG emissions thresholds
to qualify as one or more of the four types of
renewable fuel specified in the statute. Where there
are a range of possible outcomes and the fuel
satisfies the GHG reduction requirements when
‘‘conservative’’ assumptions are used, then a more
precise quantification of the matter is not required
for purposes of a pathway determination.
24 See sources referenced in footnotes 20 and 21
for energy use associated with oil extraction, and
California Air Resources Board (2014). ‘‘CaliforniaModified GREET Fuel Pathway: Biodiesel Produced
in the Midwestern and the Western U.S. from Corn
Oil Extracted at Dry Mill Ethanol Plants that
Produce Wet Distiller’s Grains with Solubles.’’ Staff
Summary, Method 1 Fuel Pathway.
25 NSP petition, section F.2.iv
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that producing additional corn and
soybeans would result in more GHG
emissions.26 However, if reduced-oil
DGS are more beneficial than full oil
DGS for dairy cows, on a per pound of
DGS basis, that could offset some or all
of the impacts associated with the DGS
mass reduction. The information
currently available makes the magnitude
of these countervailing impacts difficult
to determine, and we did not include
any emissions impacts from DGS mass
reduction in our lifecycle GHG analysis
of biofuels produced from distillers
sorghum oil. We invite comment on our
analysis of the GHG emissions
associated with extracting sorghum oil
from DGS.
3. Feedstock Transport
In our analysis, distillers sorghum oil
is transported 50 miles by heavy duty
truck from the dry mill ethanol plant to
the biodiesel or hydrotreating facility
where it is converted to transportation
fuel. GHG emissions associated with
feedstock transport are relatively small,
and modest changes in transport
distance are unlikely to affect the results
of our analysis.
4. Feedstock Pretreatment
For emissions from feedstock
pretreatment and fuel production, we
perform two analyses. In the first
analysis, we calculate the emissions
from biodiesel produced using
transesterification. In the second
analysis, we calculate the emissions
from renewable diesel, jet fuel, LPG, and
naphtha, produced using hydrotreating.
In Section V below, we then explain
how similar results can be inferred for
heating oil.
Before distillers sorghum oil is
converted to biodiesel via
transesterification, it is processed to
remove free-fatty acids. This process
requires thermal energy. Our evaluation
of yellow grease for the March 2010 RFS
final rule included 14,532 Btu of natural
gas per gallon of biodiesel produced for
pretreatment, and we have applied the
same assumption for this analysis.
According to the NSP petition, distillers
sorghum oil has free fatty acid content
near or below 15 percent, which is in
the range of yellow grease free fatty acid
26 For example, the California Air Resources
Board (CARB) estimated this impact would be
approximately 10 kgCO2e/mmBtu of biodiesel
produced from distillers corn oil (https://
www.arb.ca.gov/fuels/lcfs/2a2b/apps/co_bd_wdgsrpt-102414.pdf). Applying such an impact to our
analysis of biofuels produced from distillers
sorghum oil would not change the GHG thresholds
results for the biofuels produced from distillers
sorghum oil evaluated in this document.
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contents (<15 percent).27 This rate of
thermal energy use for pretreatment is
higher than thermal energy rates used in
other lifecycle assessments EPA
reviewed,28 and can be viewed as a
conservative assumption (i.e., resulting
in higher GHG emissions).
Pretreatment to remove free-fatty
acids is not required when distillers
sorghum oil is used to produce
renewable diesel, jet fuel, LPG and
naphtha through a hydrotreating
process.
5. Fuel Production
For biodiesel production, we used the
transesterification analysis for the
March 2010 RFS rule for yellow grease
biodiesel.29 Based on comparison of this
yellow grease analysis and the mass and
energy balance data in the NSP petition,
submitted under claim of CBI, the
conversion of yellow grease and
distillers sorghum oil are expected to
require similar energy inputs and yield
similar amounts of biodiesel and
methanol as outputs.
For production of renewable diesel,
jet fuel, naphtha and LPG via a
hydrotreating process, we used the same
data and approach as used in the March
2013 Pathways I rule (78 FR 14190,
March 5, 2013), and subsequent facilityspecific petitions involving
hydrotreating processes.30 The March
2013 Pathways I rule evaluated two
hydrotreating configurations: One
optimized for renewable diesel
production and one optimized for jet
fuel production. For this analysis we
evaluated a hydrotreating process
maximized for renewable diesel
production, as that is the most common
configuration. The jet fuel configuration
results in higher emissions
(approximately 5 kgCO2e/mmBtu
higher), but the threshold GHG
reduction results discussed below are
not sensitive to this assumption.
Our previous analyses of
hydrotreating processes have applied an
energy allocation approach for RINgenerating co-products that qualify as
renewable fuel.31 This approach results
in higher lifecycle GHG emissions for
each of the fuel products than other
approaches considered, such as a
27 See Table 15 in the January 5, 2012 Pathways
I direct final rule (77 FR 722).
28 See for example: https://www.arb.ca.gov/fuels/
lcfs/2a2b/apps/co_bd_wdgs-rpt-102414.pdf.
29 For details see section 2.4 of the RIA for the
March 2010 RFS final rule.
30 For determination documents responding to
facility specific petitions, see: https://www.epa.gov/
renewable-fuelstandard-program/approvedpathways-renewable-fuel.
31 See the March 2013 Pathways I rule,
specifically 78 FR 14198–14200 (March 5, 2013).
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displacement approach, and thus can be
viewed as a conservative approach.
In the allocation approach, all the
emissions from the hydrotreating
process are allocated across all coproducts. There are a number of ways to
do the allocation, for example on the
basis of energy, mass, or economic
value. Consistent with the approach
taken in the hydrotreating analysis for
the March 2013 RFS rule, for this
analysis of fuels produced from
distillers sorghum oil feedstock through
a hydrotreating process we allocated
emissions to the renewable diesel,
naphtha and LPG based on the energy
content (using lower-heating values) of
the products produced. Emissions from
the process were allocated equally to all
of the Btus of fuel produced. Therefore,
on a per Btu basis, all of the primary
products coming from the hydrotreating
facility have the same emissions from
the fuel production stage of the
lifecycle. For this analysis, the energy
content was the most appropriate basis
for allocating emissions because all of
March 2010 RFS final rule. For biodiesel
we used the biodiesel emissions factor.
For renewable diesel and jet fuel we
used the emissions factors for non-CO2
GHGs for baseline diesel fuel. For
naphtha we used the emissions factors
for non-CO2 GHGs for baseline gasoline
fuel. For LPG we used the LPG non-CO2
emissions factor developed for the
March 2010 RFS rule. The tailpipe
emissions are relatively small, and the
threshold GHG reduction results are not
sensitive to these assumptions. More
details on our analysis of fuel use
emissions are described in a memo 32 to
the rulemaking docket.
the fuel products are used as sources of
energy. Energy content also has the
advantage of being a fixed factor as
opposed to market prices which
fluctuate over time.
6. Fuel Distribution
We used the fuel distribution results
from the biodiesel analysis for the
March 2010 RFS rule. Fuel distribution
emissions are relatively small compared
to baseline lifecycle GHG emissions (see
Table IV.3 below), and although they
may be different for different types of
fuel, for the purposes of this analysis we
assume that renewable diesel, jet fuel,
LPG, and naphtha, have the same fuel
distribution emissions per mmBtu of
fuel used. Even if we applied a more
precise value for fuel distribution
emissions, we do not expect that
revision to change our assessment that
these fuels meet a 50 percent GHG
emission reduction.
8. Results of GHG Lifecycle Analysis
Table IV.3 shows the lifecycle GHG
emissions associated with biofuels
produced from distillers sorghum oil
that result from our assessment. The
table also shows the percent reduction
relative to the petroleum baseline. All of
the fuels are compared to the diesel
baseline, except for naphtha which is
compared to the gasoline baseline.
7. Fuel Use
For this analysis we applied fuel use
emissions factors developed for the
TABLE IV.3—LIFECYCLE GHG EMISSIONS ASSOCIATED WITH BIOFUELS PRODUCED FROM DISTILLERS SORGHUM OIL
(kgCO2-eq/MJ)
Renewable
diesel, jet fuel
Fuel
Biodiesel
Production process
Transesterification
Naphtha
2005 Diesel
baseline
LPG
Hydrotreating
2005 Gasoline
baseline
Refining
Feedstock Production ........................
Feedstock Transport ..........................
Feedstock Pretreatment .....................
Fuel Production ..................................
Fuel Distribution .................................
Fuel Use .............................................
5.6
0.2
8.4
1.2
0.8
0.7
6.2
0.3
........................
8.0
0.8
0.7
6.2
0.3
........................
8.0
0.8
1.7
6.2
0.3
........................
8.0
0.8
1.5
18.0
19.2
79.0
79.0
Total ............................................
17.0
16.0
17.0
16.8
97.0
98.2
Percent Reduction .............................
82
84
82
83
........................
........................
Based on the lifecycle GHG emissions
results presented above, all of the
pathways evaluated would meet the 50
percent GHG reduction threshold
required for advanced biofuel and
biomass-based diesel.
The results presented above would
also justify qualifying heating oil
produced from distillers sorghum oil as
meeting the 50 percent GHG threshold.
In previous rulemakings, EPA
considered the lifecycle GHG impacts
associated with heating oil and
determined that heating oil produced
from a range of feedstocks (e.g., soybean
oil, distillers corn oil) via a
transesterification or hydrotreating
process satisfies the 50 percent lifecycle
GHG reduction required for advanced
biofuel.33 Based on the results presented
above, we anticipate that biofuels such
as heating oil produced from distillers
sorghum oil have significantly lower
lifecycle GHG emissions than the same
fuels produced from soybean oil, when
the same production processes are
used.34 Therefore, based on EPA’s
previous lifecycle evaluations for
heating oil produced from soybean oil,
we believe that heating oil produced
from distillers sorghum oil would also
satisfy the 50 percent GHG reduction
requirement.
32 See, ‘‘Summary of Key Assumptions for EPA’s
Analysis of the Lifecycle Greenhouse Gas Emissions
Associated with Biofuels Produced from Distillers
Sorghum Oil,’’ Air Docket EPA–HQ–OAR–2017–
0655.
33 See the March 2013 RFS Pathway I rule (78 FR
14190, March 5, 2013).
34 For example, in analysis for the March 2010
RFS rule, EPA found that soybean oil biodiesel
achieves a 57 percent GHG reduction (based on the
mean result from our uncertainty assessment),
whereas the results in Table IV.3, above, show
biodiesel produced from distillers sorghum oil
achieve a greater than 80 percent reduction.
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V. Consideration of Lifecycle Analysis
Results
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VI. Summary
Based on our GHG lifecycle
evaluation described above, we propose
to find that biodiesel and heating oil
produced from distillers sorghum oil via
a transesterification process, and
renewable diesel, jet fuel and heating oil
produced from distillers sorghum oil via
a hydrotreating process meet the 50
percent GHG reduction threshold
requirement for advanced biofuel and
biomass-based diesel. This finding
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would support a determination that
these fuels are eligible for biomassbased diesel (D-code 4) RINs if they are
produced through a process that does
not co-process renewable biomass and
petroleum, and for advanced biofuel
(D-code 5) RINs if they are produced
through a process that does co-process
renewable biomass and petroleum. EPA
invites comment on all aspects of its
analysis of these proposed biofuel
pathways.
E. Unfunded Mandates Reform Act
(UMRA)
VII. Statutory and Executive Order
Reviews
This action does not have federalism
implications. It will not have substantial
direct effects on the states, on the
relationship between the national
government and the states, or on the
distribution of power and
responsibilities among the various
levels of government.
Additional information about these
statutes and Executive Orders can be
found at https://www2.epa.gov/lawsregulations/laws-and-executive-orders.
A. Executive Order 12866: Regulatory
Planning and Review and Executive
Order 13563: Improving Regulation and
Regulatory Review
This action is not a significant
regulatory action and was therefore not
submitted to the Office of Management
and Budget (OMB) for review.
B. Executive Order 13771: Reducing
Regulations and Controlling Regulatory
Costs
This action is not expected to be an
Executive Order 13771 regulatory action
because this action is not significant
under Executive Order 12866.
C. Paperwork Reduction Act (PRA)
This action does not impose any new
information collection burden under the
provisions of the Paperwork Reduction
Act, 44 U.S.C. 3501 et seq., and
therefore is not subject to these
requirements.
daltland on DSKBBV9HB2PROD with PROPOSALS
D. Regulatory Flexibility Act (RFA)
I certify that this action will not have
a significant economic impact on a
substantial number of small entities
under the RFA. This action will not
impose any requirements on small
entities. An agency may certify that a
rule will not have a significant
economic impact on a substantial
number of small entities if the rule
relieves regulatory burden, has no net
burden or otherwise has a positive
economic effect on the small entities
subject to the rule. This rule proposes to
provide a positive economic effect for
distillers sorghum oil producers and
producers of biofuels from distillers
sorghum oil as they would be able to
participate in the RFS program, see CAA
section 211(o).
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20:10 Dec 26, 2017
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This action does not contain an
unfunded mandate of $100 million or
more as described in UMRA, 2 U.S.C.
1531–1538, and does not significantly or
uniquely affect small governments. The
action imposes no enforceable duty on
any state, local or tribal governments or
the private sector.
F. Executive Order 13132: Federalism
G. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
This action does not have tribal
implications as specified in Executive
Order 13175. This proposed rule would
affect only producers of distillers
sorghum oil and producers of biofuels
made from distillers sorghum oil. Thus,
Executive Order 13175 does not apply
to this action.
H. Executive Order 13045: Protection of
Children From Environmental Health
Risks and Safety Risks
The EPA interprets Executive Order
13045 as applying only to those
regulatory actions that concern
environmental health or safety risks that
EPA has reason to believe may
disproportionately affect children, per
the definition of ‘‘covered regulatory
action’’ in section 2–202 of the
Executive Order. This action is not
subject to Executive Order 13045
because it because it does not concern
an environmental health risk or safety
risk.
I. Executive Order 13211: Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use
This action is not subject to Executive
Order 13211 because it is not a
significant regulatory action under
Executive Order 12866.
J. National Technology Transfer
Advancement Act (NTTAA)
This rulemaking does not involve
technical standards.
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K. Executive Order 12898: Federal
Actions To Address Environmental
Justice in Minority Populations and
Low-Income Populations
The EPA believes that this action does
not have disproportionately high and
adverse human health or environmental
effects on minority populations, lowincome populations and/or indigenous
peoples, as specified in Executive Order
12898 (59 FR 7629, February 16, 1994).
This proposed rule does not affect the
level of protection provided to human
health or the environment by applicable
air quality standards. This action does
not relax the control measures on
sources regulated by the fuel programs
and RFS regulations and therefore will
not cause emissions increases from
these sources.
List of Subjects in 40 CFR Part 80
Environmental protection,
Administrative practice and procedure,
Air pollution control, Diesel Fuel, Fuel
additives, Gasoline, Imports, Oil
imports, Petroleum, Renewable fuel.
Dated: December 19, 2017.
E. Scott Pruitt,
Administrator.
For the reasons set forth in the
preamble, EPA proposes to amend 40
CFR part 80 as follows:
PART 80—REGULATION OF FUEL
AND FUEL ADDITIVES
1. The authority for part 80 continues
to read as follows:
■
Authority: 42 U.S.C. 7414, 7521, 7542,
7545, and 7601(a).
Subpart M—[Amended]
2. Section 80.1401 is amended by
adding in alphabetical order a new
definition for ‘‘distillers sorghum oil’’ to
read as follows:
■
§ 80.1401
Definitions.
*
*
*
*
*
Distillers sorghum oil means oil
recovered at a point downstream of
where a dry mill grain sorghum ethanol
plant grinds the grain sorghum,
provided that the grain sorghum is
converted to ethanol, the oil is rendered
unfit for food uses without further
refining, and the distillers grains
resulting from the dry mill and oil
extraction processes are marketable as
animal feed.
*
*
*
*
*
■ 3. Section 80.1426, paragraph (f)(1) is
amended by revising entries F, H, and
I in Table 1 to § 80.1426 to read as
follows:
E:\FR\FM\27DEP1.SGM
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61213
Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Proposed Rules
§ 80.1426 How are RINs generated and
assigned to batches of renewable fuel by
renewable fuel producers or importers?
*
*
*
*
(f) * * *
(1) * * *
*
TABLE 1 TO § 80.1426—APPLICABLE D CODES FOR EACH FUEL PATHWAY FOR USE IN GENERATING RINS
Entry
Fuel type
Feedstock
Production process requirements
D-code
*
F ...............
*
*
*
Biodiesel, renewable diesel, jet fuel Soy bean oil; Oil from annual
and heating oil, biodiesel.
covercrops; Oil from algae grown
photosynthetically; Biogenic waste
oils/fats/greases; Non-food grade
corn oil; Camelina sativa oil; Distillers sorghum oil.
*
*
One
of
the
following:
TransEsterification Hydrotreating
Excluding processes that co-process renewable biomass and petroleum.
*
*
H ..............
*
*
*
Biodiesel, renewable diesel, jet fuel Soy bean oil; Oil from annual
and heating oil.
covercrops; Oil from algae grown
photosynthetically; Biogenic waste
oils/fats/greases; Non-food grade
corn oil; Camelina sativa oil; Distillers sorghum oil.
Naphtha, LPG .................................. Camelina sativa oil; Distillers sorghum oil.
*
*
One
of
the
following:
TransEsterification Hydrotreating
Includes only processes that coprocess renewable biomass and
petroleum.
*
I ................
*
*
*
*
*
*
*
*
[FR Doc. 2017–27946 Filed 12–26–17; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 131
[EPA–HQ–OW–2017–0010; FRL–9972–46–
OW]
RIN 2040–AF69
Water Quality Standards for the State
of Missouri’s Lakes and Reservoirs
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
The Environmental Protection
Agency (EPA or Agency) proposes to
establish federal nutrient criteria to
protect designated uses for the State of
Missouri’s lakes and reservoirs. On
August 16, 2011, EPA disapproved most
of the numeric criteria for total nitrogen,
total phosphorus, and chlorophyll a that
the State submitted to EPA in 2009. EPA
acknowledged the importance of
Missouri’s proactive efforts to address
nutrient pollution by adopting numeric
nutrient criteria. However, EPA
concluded that the Missouri Department
of Natural Resources (MDNR) had failed
to demonstrate the criteria would
protect the State’s designated uses and
were not based on a sound scientific
rationale. The Clean Water Act (CWA)
directs EPA to promptly propose water
daltland on DSKBBV9HB2PROD with PROPOSALS
SUMMARY:
VerDate Sep<11>2014
20:10 Dec 26, 2017
Jkt 244001
*
Frm 00022
Fmt 4702
*
Sfmt 4702
5
Hydrotreating ....................................
quality standards (WQS) that meet CWA
requirements if a state does not adopt
WQS addressing EPA’s disapproval. On
February 24, 2016, the Missouri
Coalition for the Environment (MCE)
filed a lawsuit alleging that EPA failed
to satisfy its statutory obligation to act
‘‘promptly.’’ On December 1, 2016, EPA
entered into a consent decree with MCE
committing to sign a notice of proposed
rulemaking by December 15, 2017 to
address EPA’s 2011 disapproval, unless
the State submits and EPA approves
criteria that address the disapproval on
or before December 15, 2017. As of the
date of this proposed rule, Missouri has
not submitted new or revised standards
to address EPA’s 2011 disapproval and
EPA has not approved such water
quality standards. Therefore, under the
terms of the consent decree, EPA is
signing a notice of proposed rulemaking
that proposes new water quality
standards addressing EPA’s August 16,
2011 disapproval. In this proposal, EPA
seeks comment on two primary
alternatives. Under the first alternative,
EPA proposes nutrient protection values
and eutrophication impact factors in a
combined criterion approach. Under the
second alternative, EPA proposes a
similar combined criterion approach
that would mirror the State of
Missouri’s October 2017 proposal for
lake nutrient water quality standards.
EPA will not proceed with final
rulemaking (or will withdraw its final
rule, if applicable) to address its 2011
disapproval if Missouri adopts and
PO 00000
4
*
5
*
submits criteria to address EPA’s 2011
disapproval and EPA approves them as
meeting CWA requirements.
DATES: Comments must be received on
or before February 26, 2018.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–HQ–
OW–2017–0010, at https://
www.regulations.gov. Follow the online
instructions for submitting comments.
Once submitted, comments cannot be
edited or removed from regulations.gov.
EPA may publish any comment received
to its public docket. Do not submit
electronically any information you
consider to be Confidential Business
Information (CBI) or other information
whose disclosure is restricted by statute.
Multimedia submissions (audio, video,
etc.) must be accompanied by a written
comment. The written comment is
considered the official comment and
should include discussion of all points
you wish to make. EPA will generally
not consider comments or comment
contents located outside of the primary
submission (i.e. on the web, cloud, or
other file sharing system). For
additional submission methods, the full
EPA public comment policy,
information about CBI or multimedia
submissions, and general guidance on
making effective comments, please visit
https://www2.epa.gov/dockets/
commenting-epa-dockets.
EPA is offering two online public
hearings so that interested parties may
provide verbal comments on this
proposed rule. The first public hearing
E:\FR\FM\27DEP1.SGM
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]]>Agencies
[Federal Register Volume 82, Number 247 (Wednesday, December 27, 2017)]
[Proposed Rules]
[Pages 61205-61213]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-27946]
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 80
[EPA-HQ-OAR-2017-0655; FRL-9972-59-OAR]
RIN 2060-AT82
Proposed Rule; Renewable Fuel Standard Program; Grain Sorghum Oil
Pathway
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: In this proposed rule, the Environmental Protection Agency
(EPA) is providing an opportunity to comment on an analysis of the
lifecycle greenhouse gas (GHG) emissions associated with certain
biofuels that are produced from grain sorghum oil extracted at dry mill
ethanol plants at any point downstream from sorghum grinding, also
known as distiller sorghum oil. EPA seeks comment on its proposed
assessment that using distillers sorghum oil as feedstock results in no
significant agricultural sector GHG emissions; and that biodiesel and
heating oil produced from distillers sorghum oil via a
transesterification process, and renewable diesel, jet fuel, heating
oil, naphtha, and liquefied petroleum gas (LPG) produced from
distillers sorghum oil via a hydrotreating process, would meet the
lifecycle GHG emissions reduction threshold of 50 percent required for
advanced biofuels, and biomass-based diesel under the Renewable Fuel
Standard program. Based on these analyses, EPA is proposing to amend
the RFS program regulations to define the term ``distillers sorghum
oil''. We also propose to add to the regulations approved pathways from
the production of biodiesel and heating oil from distillers sorghum oil
via a transesterification process, and renewable diesel, jet fuel,
heating oil, naphtha, and liquefied petroleum gas (LPG) produced from
distillers sorghum oil via a hydrotreating process.
DATES: Comments must be received on or before January 26, 2018.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2017-0655, at https://www.regulations.gov. Follow the online
instructions for submitting comments. Once submitted, comments cannot
be edited or withdrawn from Regulations.gov. The EPA may publish any
comment received to its public docket. Do not submit electronically any
information you consider to be
[[Page 61206]]
Confidential Business Information (CBI) or other information whose
disclosure is restricted by statute. Multimedia submissions (audio,
video, etc.) must be accompanied by a written comment. The written
comment is considered the official comment and should include
discussion of all points you wish to make. The EPA will generally not
consider comments or comment contents located outside of the primary
submission (i.e., on the web, cloud, or other file sharing system). For
additional submission methods, the full EPA public comment policy,
information about CBI or multimedia submissions, and general guidance
on making effective comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT: Diana Galperin, Office of Air and
Radiation, Office of Transportation and Air Quality, Mail Code: 6401A,
U.S. Environmental Protection Agency, 1200 Pennsylvania Avenue NW,
Washington, DC 20460; telephone number: 202-564-5687; email address:
[email protected].
SUPPLEMENTARY INFORMATION:
Outline of This Preamble
I. General Information
II. Public Participation
III. Introduction
IV. Analysis of GHG Emissions Associated With Production of Biofuels
From Distillers Sorghum Oil
A. Overview of Distillers Sorghum Oil
B. Analysis of Lifecycle GHG Emissions
1. Livestock Sector Impacts
2. Feedstock Production
3. Feedstock Transport
4. Feedstock Pretreatment
5. Fuel Production
6. Fuel Distribution
7. Fuel Use
8. Results of GHG Lifecycle Analysis
V. Consideration of Lifecycle Analysis Results
VI. Summary
VII. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review and
Executive Order 13563: Improving Regulation and Regulatory Review
B. Executive Order 13771: Reducing Regulations and Controlling
Regulatory Costs
C. Paperwork Reduction Act
D. Regulatory Flexibility Act (RFA)
E. Unfunded Mandates Reform Act (UMRA)
F. Executive Order 13132: Federalism
G. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
H. Executive Order 13045: Protection of Children From
Environmental Health Risks and Safety Risks
I. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
J. National Technology Transfer Advancement Act (NTTAA)
K. Executive Order 12898: Federal Actions To Address
Environmental Justice in Minority Populations and Low-Income
Populations
I. General Information
A. Does this action apply to me?
Entities potentially affected by this proposed rule are those
involved with the production, distribution, and sale of transportation
fuels, including gasoline and diesel fuel or renewable fuels such as
ethanol, biodiesel, heating oil, renewable diesel, naphtha and
liquefied petroleum gas. Potentially regulated categories include:
------------------------------------------------------------------------
Examples of potentially affected
entities NAICS \1\ codes
------------------------------------------------------------------------
Sorghum Farming.................. 11119, 111191, 111199
Petroleum refineries (including 324110
importers)..
Ethyl alcohol manufacturing...... 325193
Other basic organic chemical 325199
manufacturing..
Chemical and allied products 424690
merchant wholesalers..
Petroleum Bulk Stations and 424710, 424720
Terminals; Petroleum.
Other fuel dealers............... 454310
------------------------------------------------------------------------
This table is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be regulated by this
action. This table lists the types of entities that the EPA is now
aware could potentially be affected by this action. Other types of
entities not listed in the table could also be affected. To determine
whether your entity is regulated by this action, you should carefully
examine the applicability criteria in the referenced regulations. If
you have any questions regarding the applicability of this action to a
particular entity, consult the person listed in the FOR FURTHER
INFORMATION CONTACT section.
---------------------------------------------------------------------------
\1\ North American Industry Classification System.
---------------------------------------------------------------------------
B. What action is the Agency taking?
EPA is proposing to amend the RFS program regulations to define the
term ``distillers sorghum oil'' as oil from grain sorghum that is
extracted at a dry mill ethanol plant at any location downstream of
grinding the grain sorghum kernel, provided that the grain sorghum is
converted to ethanol, the oil is rendered unfit for food uses without
further refining, and the distillers grains resulting from the dry mill
and oil extraction processes are marketable as animal feed. We also
propose to add to Table 1 to 80.1426(f), approved pathways from the
production of biodiesel and heating oil from distillers sorghum oil via
a transesterification process, and renewable diesel, jet fuel, heating
oil, naphtha, and liquefied petroleum gas (LPG) produced from
distillers sorghum oil via a hydrotreating process. Alternatively, or
in addition, EPA may consider the comments it receives in response to
this document in evaluating facility-specific pathway petitions
submitted pursuant to 40 CFR 80.1416 that propose using distillers
sorghum oil to make biofuel.
C. What is the Agency's authority for taking this action?
Statutory authority for this action comes from Clean Air Act
sections 114, 208, 211, and 301.
II. Public Participation
EPA will not hold a public hearing on this matter unless a request
is received by the person identified in the FOR FURTHER INFORMATION
CONTACT section of this preamble by January 11, 2018. If EPA receives
such a request, we will publish information related to the timing and
location of the hearing and a new deadline for public comment.
III. Introduction
Section 211(o) of the Clean Air Act (CAA) establishes the Renewable
Fuel Standard (RFS) program, under which EPA sets annual percentage
standards specifying the amount of renewable fuel, as well as three
subcategories of renewable fuel, that must be used to reduce or replace
fossil fuel present in transportation fuel, heating oil, or jet
[[Page 61207]]
fuel. Non-exempt \2\ renewable fuels must achieve at least a 20 percent
reduction in lifecycle GHG emissions as compared to a 2005 petroleum
baseline. Advanced biofuel and biomass-based diesel must achieve at
least a 50 percent reduction, and cellulosic biofuel must achieve at
least a 60 percent reduction.
---------------------------------------------------------------------------
\2\ A baseline volume of renewable fuel produced from facilities
that commenced construction on or before December 19, 2007, and
which completed construction by December 19, 2010 without an 18-
month hiatus in construction, is exempt from the minimum 20 percent
GHG reduction requirement that otherwise applies to renewable fuel.
In addition, a baseline volume of ethanol from facilities that
commenced construction after December 19, 2007, and on or before
December 31, 2009, qualifies for the same exemption if construction
was completed within 36 months without an 18-month hiatus in
construction; the facility was fired with natural gas, biomass, or
any combination thereof, at all times the facility operated between
December 19, 2007 and December 31, 2009; and the baseline volume
continues to be produced through processes fired with natural gas,
biomass, or any combination thereof.
---------------------------------------------------------------------------
In addition to the lifecycle GHG reduction requirements, renewable
identification numbers (RINs) may only be generated if the fuel meets
the other definitional criteria for renewable fuel (e.g., produced from
renewable biomass as defined in the regulations, and used to reduce or
replace the quantity of fossil fuel present in transportation fuel,
heating oil, or jet fuel) in CAA section 211(o) and the RFS regulations
at 40 CFR part 80 subpart M.
Since the formation of the RFS program, EPA has periodically
promulgated rules to add new pathways to the regulations.\3\ In
addition, EPA has approved facility-specific pathways through the
petition process in 40 CFR 80.1416. There are three critical components
of approved fuel pathways under the RFS program: (1) Fuel type; (2)
feedstock; and (3) production process. Each pathway is associated with
a specific ``D code'' depending on whether the fuel meets the
requirements for renewable fuel, advanced fuel, cellulosic fuel, or
biomass-based diesel.
---------------------------------------------------------------------------
\3\ Please see information on Pathways I and Pathways II in 40
CFR part 80 subpart M, and in the Federal Register at 78 FR 14190
(March 5, 2013) and 79 FR 42128 (July 18, 2014). More information on
these can be found at: https://www.epa.gov/renewable-fuel-standard-program/final-rule-identify-additional-fuel-pathways-under-renewable-fuel and https://www.epa.gov/renewable-fuel-standard-program/renewable-fuel-pathways-ii-final-rule-identify-additional-fuel.
---------------------------------------------------------------------------
EPA's lifecycle analyses are used to assess the overall GHG
emissions of a fuel throughout each stage of its production and use.
The results of these analyses, considering uncertainty and the weight
of available evidence, are used to determine whether a fuel meets the
necessary GHG reductions required under the CAA. Lifecycle analysis
includes an assessment of emissions related to the full fuel lifecycle,
including feedstock production, feedstock transportation, fuel
production, fuel transportation and distribution, and tailpipe
emissions. Per the CAA definition of lifecycle GHG emissions, EPA's
lifecycle analyses also include an assessment of significant indirect
emissions, such as those from land use changes and agricultural sector
impacts.
EPA received a petition from the National Sorghum Producers (NSP),
submitted under partial claims of confidential business information
(CBI), requesting that EPA evaluate the GHG emissions associated with
biofuels produced using grain sorghum oil derived from dry mill ethanol
production as a feedstock, and that EPA provide a determination of the
renewable fuel categories, if any, for which such biofuels may be
eligible. In this action, EPA is proposing to amend the RFS program
regulations to define the term ``distillers sorghum oil'' as oil from
grain sorghum that is extracted at a dry mill ethanol plant at any
location downstream of grinding the grain sorghum kernel, provided that
the grain sorghum is converted to ethanol, the oil is rendered unfit
for food uses without further refining, and the distillers grains
resulting from the dry mill and oil extraction processes are marketable
as animal feed. We also propose to add to Table 1 to 40 CFR 80.1426(f),
approved pathways from the production of biodiesel and heating oil from
distillers sorghum oil via a transesterification process, and renewable
diesel, jet fuel, heating oil, naphtha, and LPG produced from
distillers sorghum oil via a hydrotreating process. Alternatively, or
in addition, EPA may consider the comments it receives in response to
this document in evaluating facility-specific pathway petitions
submitted pursuant to 40 CFR 80.1416 that propose using distillers
sorghum oil to make biofuel.
This preamble describes EPA's analysis of the GHG emissions
associated with distillers sorghum oil when used to produce specified
biofuels. The analysis considers a scenario where distillers sorghum
oil is extracted from distillers grains with solubles (DGS) at dry mill
plants that produce ethanol from grain sorghum and where the remaining
reduced-oil DGS co-product is used as animal feed. The distillers
sorghum oil is then used as a feedstock for conversion into certain
biofuels. As described in Section IV of this preamble, we estimate that
the lifecycle GHG emissions associated with the production of biodiesel
and heating oil produced from distillers sorghum oil via a
transesterification process, and renewable diesel, jet fuel, naphtha,
and LPG, produced from distillers sorghum oil via a hydrotreating
process, are approximately 80 percent less than the lifecycle GHG
emissions associated with the baseline petroleum fuels they would
replace. Based on these results, we propose to find that these biofuels
would meet the 50 percent GHG reduction threshold required for advanced
biofuel and biomass-based diesel. We also anticipate that heating oil
produced through transesterification or hydrotreating from distillers
sorghum oil would meet the 50 percent GHG emission reduction threshold
required for advanced biofuel and biomass-based diesel.\4\ EPA is
seeking public comment on its analyses of the lifecycle GHG emissions
related to biofuels produced from distillers sorghum oil.
---------------------------------------------------------------------------
\4\ As defined in the RFS regulations at 40 CFR 80.1401,
biomass-based diesel excludes renewable fuel that is co-processed
with petroleum. Such fuel may qualify as advanced biofuel if it
meets the 50 percent GHG reduction threshold.
---------------------------------------------------------------------------
IV. Analysis of GHG Emissions Associated With Production of Biofuels
From Distillers Sorghum Oil
A. Overview of Distillers Sorghum Oil
Dry mill ethanol plants grind and ferment grain sorghum, produce
ethanol from the fermented grain sorghum starch, and also produce a DGS
co-product (made of non-fermentable solids, solubles syrup, and sorghum
oil) that is sold as a type of livestock feed. A portion of the oil
that would otherwise reside in the DGS can be extracted at the ethanol
plant, typically through gravimetric methods. At dry mill ethanol
plants, sorghum oil is recovered through methods nearly identical to
that of corn oil extracted from DGS, and corn and sorghum oil
extraction can occur at the same facilities.
EPA has approved pathways for the production of ethanol from grain
sorghum made through a dry mill process as qualifying for renewable
fuel (D code 6) RINs, and in some cases advanced biofuel (D code 5)
RINs, depending on process energy sources used during production.\5\
However, the regulations do not currently include pathways for the
production of other biofuels from grain sorghum. According to the U.S.
Department of Agriculture (USDA), the largest regions for grain sorghum
production in the United States are located in Texas, Oklahoma, and
Kansas.\6\ Currently about 30 percent
[[Page 61208]]
of grain sorghum grown, or 120 million bushels a year, goes towards
ethanol production.\7\ For comparison, in recent years over 5,200
million bushels of corn have been used for ethanol production
annually.\8\ Distillers sorghum oil is still a relatively niche
product, and the NSP petition anticipates a potential of 12 to 21
million ethanol-equivalent gallons of fuel to be produced from the oil
per year.
---------------------------------------------------------------------------
\5\ Table 1 to 40 CFR 80.1426, Rows R and S.
\6\ USDA, NASS, ``Sorghum for Grain 2016 Harvested Acres by
County for Selected States,'' https://www.nass.usda.gov/Charts_and_Maps/graphics/AS-HA-RGBChor.pdf.
\7\ Sorghum Checkoff, ``Renewables,'' https://www.sorghumcheckoff.com/market-opportunities/renewables, accessed
09-05-2017.
\8\ USDA, ERS, ``Table 5-- Corn supply, disappearance, and share
of total corn used for ethanol,'' U.S. Bioenergy Statistics, https://www.ers.usda.gov/data-products/us-bioenergy-statistics/us-bioenergy-statistics/#Feedstocks, accessed 09-05-2017.
---------------------------------------------------------------------------
We propose to define distillers sorghum oil to mean oil recovered
at a point downstream of where a dry mill grain sorghum ethanol plant
grinds the grain sorghum, provided that the grain sorghum is converted
to ethanol, the oil is rendered unfit for food uses without further
refining, and the distillers grains resulting from the dry mill and oil
extraction processes are marketable as animal feed. So long as these
criteria are met, a variety of recovery methods could be implemented.
For example, this would include recovery of sorghum oil before
fermentation from the slurry or from liquefaction tanks. It would also
include recovery of sorghum oil after fermentation from the thin
stillage and/or DGS. Further, it would also include recovery of sorghum
oil by a third-party from DGS produced by a dry mill sorghum ethanol
plant.
B. Analysis of Lifecycle GHG Emissions
EPA evaluated the GHG emissions associated with using distillers
sorghum oil as a biofuel feedstock based on information provided by the
petitioner and other available data sources. GHG emissions include
emissions from production and transport of distillers sorghum oil; the
processing of the oil into biofuel; transport of the biofuel from the
production facility to the fuel-blender; and, ultimately the use of the
biofuel by the end consumer. The methodology EPA used for this analysis
is generally the same approach used for the March 2010 RFS rule for
lifecycle analyses of several other biofuel feedstocks, such as
distillers corn oil and yellow grease.\9\ We believe that applying the
same methodology for these feedstocks is appropriate given similarities
in how these feedstocks are produced, transported and processed into
biofuel. These similarities are explained further in this section.
---------------------------------------------------------------------------
\9\ The March 2010 RFS rule preamble (75 FR 14670, March 26,
2010) and Regulatory Impact Analysis (RIA) (EPA-420-R-10-006)
provide further discussion of our approach. These documents are
available online at https://www.epa.gov/renewable-fuel-standard-program/renewable-fuel-standard-rfs2-final-rule-additional-resources.
---------------------------------------------------------------------------
EPA's lifecycle analyses include upstream emissions, which include
the significant direct and indirect GHG emissions (including such
emissions from land use changes) associated with producing a feedstock
and transporting it to the processing facility. All of the upstream
emissions were calculated and taken into account in EPA's evaluation of
the lifecycle GHG emissions associated with grain sorghum ethanol.\10\
Based on our analysis, producing distillers sorghum oil at a dry mill
ethanol plant converting grain sorghum to ethanol, and using the
extracted sorghum oil as a biofuel feedstock does not result in
additional upstream emissions, compared to the upstream emissions that
have already been calculated and attributed to grain sorghum ethanol.
Further, based on our analysis, the production of distillers sorghum
oil does not significantly impact the upstream emissions associated
with grain sorghum ethanol. While producing distillers sorghum oil may
impact livestock markets, through the effects of de-oiling DGS, we
discuss in the next section why, based on the data we have reviewed, we
do not anticipate this to cause any significant indirect impacts. We
welcome comments on this data and analysis.
---------------------------------------------------------------------------
\10\ See the December 2012 grain sorghum ethanol rule (77 FR
74592).
---------------------------------------------------------------------------
1. Livestock Sector Impacts
During a typical dry mill ethanol production process, DGS are
produced. These DGS are then used as animal feed, thereby displacing
feed crops and the GHG emissions associated with growing and
transporting those feed crops. When distillers sorghum oil is produced,
DGS continue to be created with reduced oil content. A significant
portion of this analysis focuses on reviewing how reduced-oil DGS
compare to full-oil DGS in terms of feed values and displacement of
other feeds.
Chemically, full-oil and reduced-oil sorghum DGS share similar
compositions, primarily made up of crude protein, fat, and natural and
acid detergent fibers. Where the two products differ most significantly
is in their acid detergent fiber and fat concentrations. Table IV.1
shows the key nutrients that make up dried full-oil and reduced-oil
DGS.
---------------------------------------------------------------------------
\11\ The chart lists the most prominent nutrients in distillers
grains. Data provided by the National Sorghum Producers. Data for
full-oil Sorghum DDGS is sourced from Nutrient Requirements of
Swine, 2012 National Academies Press, Washington DC, pg 329. Data
for reduced-oil Sorghum DDGS was calculated by National Sorghum
Producers using the ratio of (1) corn DDGS, between 6 to 9 percent
Oil; and (2) corn DDGS, less than 4 percent oil from Nutrient
Requirements of Swine, 2012 National Academies Press, Washington,
DC, pp. 266 and 267.
Table IV.1--Key Nutrient Make-Up of Full-Oil and Reduced-Oil Dried
Distillers Grains With Solubles (DDGS) \11\
------------------------------------------------------------------------
Reduced-
Full-oil oil
Nutrient sorghum sorghum
DDGS DDGS
------------------------------------------------------------------------
Crude Protein, %.................................. 30.80 31.36
Crude Fat, % (aka Ether Extract).................. 9.75 3.91
Neutral Detergent Fiber (NDF), %.................. 33.60 37.23
Acid Detergent Fiber (ADF), %..................... 22.68 31.91
Ash, %............................................ 6.62 7.60
Calcium, %........................................ 0.12 0.08
Phosphorus, %..................................... 0.76 0.96
Lysine, %......................................... 0.82 0.62
Methionine, %..................................... 0.54 0.47
Cystine, %........................................ 0.53 0.61
Tryptophan, %..................................... 0.25 0.23
------------------------------------------------------------------------
The difference in fat values is important as crude fat
concentrations impact net energy uptake by the livestock. A memorandum
to the docket shows the total net energy profiles by livestock of full-
oil and reduced-oil sorghum DGS.\12\ Should fat content not be at
sufficient levels, livestock producers might need to add nutrients or
other types of feed to meet appropriate nutritional targets. This is
reflected in the ``displacement rate'' of a DGS, which indicates how
much weight a pound of distillers grain can replace of another feed. A
lower displacement rate for a reduced-oil distillers grain as compared
to a full-oil distillers grain could result in additional GHG emissions
as it suggests that additional feed is required. In the case of
reduced-oil sorghum DGS, we believe that it is unlikely that additional
feed will be needed to backfill for the extracted oil.
---------------------------------------------------------------------------
\12\ ``Summary of Net Energy Impacts of Reduced-Oil Sorghum
Dried Distillers Grains with Solubles (DDGS) on Livestock,'' Air
Docket EPA-HQ-OAR-2017-0655.
---------------------------------------------------------------------------
Research suggests that for poultry and swine, ``increased
concentrations of free fatty acids have a negative impact on
[[Page 61209]]
lipid digestion and energy content.'' \13\ Free fatty acids are a class
of acids that form part of a lipid molecule. Full-oil DGS typically
contain higher levels of free fatty acids and thus may have a negative
impact on the fat digestion of poultry and swine. This supports the
conclusion that while the fat content may be lower for reduced-oil DGS,
feeding values of this product should not be worse than full-oil DGS
for poultry and swine.
---------------------------------------------------------------------------
\13\ Kerr, B.J., W.A. Dozier, and G.C. Shurson. (2016). ``Lipid
digestibility and energy content of distillers' corn oil in swine
and poultry,'' Journal of Animal Science. 94:2900-2908. doi:10.2527/
jas.2016-0440, pp. 2905.
---------------------------------------------------------------------------
For dairy, there are also benefits from feeding reduced-oil DGS as
compared to full-oil DGS. Research on dairy cows shows that reduced-oil
DGS produce a lessened likelihood of the onset of milk fat
depression.\14\ Milk fat depression occurs when milk fat is reduced by
0.2 percent or more.\15\ If milk fat depression occurs over the long
term, a decline in overall milk production may occur as well as
worsened health conditions of the herd. High fat diets have been linked
with this condition and have been shown to worsen the rumen environment
of dairy cattle.\16\ Therefore, dairy producers seek to avoid high fat
diets. Given the benefits of reduced-oil DGS over full-oil DGS for milk
fat production, it is expected that reduced-oil DGS will be preferred
over full-oil DGS by dairy producers and that displacement rates will
be no worse than those of full-oil DGS.
---------------------------------------------------------------------------
\14\ H.A. Ramirez-Ramirez, E. Castillo Lopez, C.J.R. Jenkins,
N.D. Aluthge, C. Anderson, S.C. Fernando, K.J. Harvatine, P.J.
Kononoff, (2016). ``Reduced-fat dried distillers grains with
solubles reduces the risk for milk fat depression and supports milk
production and ruminal fermentation in dairy cows,'' Journal of
Dairy Science, Volume 99, Issue 3 Pages 1912-1928, ISSN 0022-0302,
https://dx.doi.org/10.3168/jds.2015-9712. (https://www.sciencedirect.com/science/article/pii/S0022030216000515)
\15\ University of Kentucky, ``Preventing Milk Fat Depression in
Dairy Cows,'' https://afs.ca.uky.edu/dairy/preventing-milk-fat-depression-dairy-cows. Accessed September 8, 2018. On the herd level
milk fats range from 3 to 5 percent normally. Oetzel, Garret R.,
``Subacute Ruminal Acidosis in Dairy Herds: Physiology,
Pathophysiology, Milk Fat Responses, and Nutritional Management.''
Preconference Seminar 7A: Dairy Herd Problem Investigation
Strategies: Lameness, Cow Comfort, and Ruminal Acidosis, American
Association of Bovine Practitioners, 40th Annual Conference,
September 17, 2007--Vancouver, BC, Canada, https://www.vetmed.wisc.edu/dms/fapm/fapmtools/2nutr/sara1aabp.pdf pp.98.
\16\ PennState Extension, ``Troubleshooting Problems with
Milkfat Depression,'' August 14, 2017, https://extension.psu.edu/troubleshooting-problems-with-milkfat-depression. Accessed September
8, 2017.
---------------------------------------------------------------------------
An impact on displacement rates may occur when reduced-oil instead
of full-oil DGS are used for beef cattle, which has the ability to
digest additional fat. Table IV.2 shows the displacement ratios for the
livestock sectors where dried DGS (DDGS) are used. In this table, for
instance, 1 pound of reduced-oil DDGS fed to beef cattle displaces
1.173 pounds of corn. A pound of full-oil and reduced-oil DDGS also
displace equal portions (0.056 pounds) of urea. Urea is a non-protein
nitrogen compound that is typically fed to cattle for aiding the
production of protein by rumen microbes.\17\ These values show that for
dairy, swine, and poultry, reduced-oil DDGS replace the same amounts of
alternative feed despite containing less oil.
---------------------------------------------------------------------------
\17\ PennState Extension, ``Urea in Beef Cattle Rations,''
August 8, 2017, https://extension.psu.edu/urea-in-beef-cattle-rations. Accessed October 18, 2017.
Table IV.2--Full-Oil and Reduced-Oil Sorghum Distillers Grains With Solubles Displacement Ratios \18\
[lb of ingredient/lb of sorghum distillers grains with solubles, dry matter basis]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Beef cattle Dairy cattle Swine Poultry \19\
Ingredient ---------------------------------------------------------------------------------------------------------------
Full-Oil Reduced-Oil Full-Oil Reduced-Oil Full-Oil Reduced-Oil Full-Oil Reduced-Oil
--------------------------------------------------------------------------------------------------------------------------------------------------------
Corn.................................... 1.196 1.173 0.731 0.731 0.890 0.890 0.292 0.292
Soybean Meal............................ ............ ............ 0.633 0.633 0.095 0.095
Urea.................................... 0.056 0.056
--------------------------------------------------------------------------------------------------------------------------------------------------------
We anticipate that sorghum oil producers will seek to sell reduced-
oil DGS to poultry, swine, and dairy cow producers, as these markets
allow them to obtain a higher value for their product. Dairy cattle
producers may be willing to pay a premium for reduced-oil distillers
grains, as data suggests lower oil DGs improve milk production. Sales
of reduced-oil DGS to the beef cattle market are less likely, and in
these cases we anticipate that should a higher fat product be required,
the fat content of the DGS could be augmented through the addition of
distillers sorghum oil, thereby reducing the volumes of biofuel
produced from distillers sorghum oil but not causing additional
indirect GHG emissions. Therefore, we do not expect that sorghum oil
extraction will have a significant impact on the feed value of DGS and
thus will have no significant indirect GHG impacts per pound of DGS. We
welcome comment on this assessment.
---------------------------------------------------------------------------
\18\ Information provided by National Sorghum Producers, using
the following sources Arora et al., (2008). Argonne National
Laboratory. ``Update of distillers grains displacement ratios for
corn ethanol life-cycle analysis''; Kerr et al., (2016). ``Lipid
digestibility and energy content of distillers' corn oil in swine
and poultry,'' Journal of Animal Science 94:2900-8.; Opheim et al.,
(2016). ``Biofuel feedstock and blended coproducts compared with
deoiled corn distillers grains in feedlot diets: Effects on cattle
growth performance, apparent total tract nutrient digestibility, and
carcass characteristics,'' Journal of Animal Science 94:227.;
Ramirez et al., (2016). ``Reduced-fat dried distillers grains with
solubles reduces the risk for milk fat depression and supports milk
production and ruminal fermentation in dairy cows,'' Journal of
Dairy Science 99:1912-28. Poultry displacement ratios were provided
by the National Sorghum Producers and calculated based on data from
the Iowa State Extension Services, Agricultural Marketing and
Resources Center, ``Estimated U.S. Dried Distillers Grains with
Solubles (DDGS) Production and Use, https://www.extension.iastate.edu/agdm/crops/outlook/dgsbalancesheet.pdf.
\19\ Protein sources such as soybean meal can be used to
supplement sorghum DGS for poultry.
---------------------------------------------------------------------------
2. Feedstock Production
Distillers sorghum oil is removed from DGS at dry mill ethanol
plants using the same equipment and technologies used for corn oil
extraction. Oil extraction requires thermal energy to heat the DGS and
electricity to power centrifuges, pumps and other oil recovery
equipment. Our analysis for the March 2010 RFS final rule,\20\ the NSP
petition, and two studies,21 22 indicate that although
extracting oil from DGS uses thermal
[[Page 61210]]
energy, it also leads to relatively less thermal energy being used
later in the process to dry the DGS, resulting in an overall negligible
change in thermal energy requirements for plants that dry their DGS.
Our analysis here includes both the thermal and electrical energy
requirements to remove the distillers sorghum oil. We do not account
for the reduction in thermal energy needed for DGS drying mentioned
above, so this can be viewed as a conservative approach (i.e.,
resulting in higher estimated GHG emissions) for plants that dry their
DGS.\23\ Based on data reviewed by EPA,\24\ we assume 200 Btu (British
thermal units) of grid electricity and 800 Btu of natural gas are used
to extract distillers sorghum oil from DGS, per pound of distillers
sorghum oil extracted. These parameters are based on energy
requirements associated with extracting oil from DGS at dry mill
ethanol plants, but we believe they are also appropriate and
conservative in cases where the oil is extracted at any point
downstream from sorghum grinding.
---------------------------------------------------------------------------
\20\ See section 1.4.1.3 of USEPA (2010). Renewable fuel
standard program (RFS2) regulatory impact analysis. U.S.
Environmental Protection Agency Office of Transportation Air
Quality, EPA-420-R-10-006. Washington, DC. https://www.epa.gov/sites/production/files/2015-08/documents/420r10006.pdf.
\21\ Wang, Z., et al. (2015). ``Influence of corn oil recovery
on life-cycle greenhouse gas emissions of corn ethanol and corn oil
biodiesel.'' Biotechnology for Biofuels 8(1): 178.
\22\ Mueller, S., Kwik, J. (2013). ``2012 Corn Ethanol: Emerging
Plant Energy and Environmental Technologies.''
\23\ The purpose of lifecycle assessment under the RFS program
is not to precisely estimate lifecycle GHG emissions associated with
particular biofuels, but instead to determine whether or not the
fuels satisfy specified lifecycle GHG emissions thresholds to
qualify as one or more of the four types of renewable fuel specified
in the statute. Where there are a range of possible outcomes and the
fuel satisfies the GHG reduction requirements when ``conservative''
assumptions are used, then a more precise quantification of the
matter is not required for purposes of a pathway determination.
\24\ See sources referenced in footnotes 20 and 21 for energy
use associated with oil extraction, and California Air Resources
Board (2014). ``California-Modified GREET Fuel Pathway: Biodiesel
Produced in the Midwestern and the Western U.S. from Corn Oil
Extracted at Dry Mill Ethanol Plants that Produce Wet Distiller's
Grains with Solubles.'' Staff Summary, Method 1 Fuel Pathway.
---------------------------------------------------------------------------
As discussed above, we do not expect sorghum oil extraction to
significantly change the feed value of DGS on a per pound basis.
According to the NSP petition, grain sorghum oil yields should be 0.67
pounds per bushel of grain sorghum feedstock.\25\ EPA's modeling for
the December 2012 grain sorghum ethanol final rule (77 FR 74592)
assumed average dried DGS yield of 17 pounds per bushel of grain
sorghum feedstock. Thus, sorghum oil extraction may reduce the total
mass of DGS produced by up to approximately 4 percent. If full-oil and
reduced-oil DGS have equivalent feed value on a per pound basis, we
would expect a reduction in the total mass of DGS produced to impact
livestock feed markets and result in a net increase in GHG emissions if
production of other feed crops (e.g., corn, soybeans) increased to
backfill the lost DGS, given that producing additional corn and
soybeans would result in more GHG emissions.\26\ However, if reduced-
oil DGS are more beneficial than full oil DGS for dairy cows, on a per
pound of DGS basis, that could offset some or all of the impacts
associated with the DGS mass reduction. The information currently
available makes the magnitude of these countervailing impacts difficult
to determine, and we did not include any emissions impacts from DGS
mass reduction in our lifecycle GHG analysis of biofuels produced from
distillers sorghum oil. We invite comment on our analysis of the GHG
emissions associated with extracting sorghum oil from DGS.
---------------------------------------------------------------------------
\25\ NSP petition, section F.2.iv
\26\ For example, the California Air Resources Board (CARB)
estimated this impact would be approximately 10 kgCO2e/
mmBtu of biodiesel produced from distillers corn oil (https://www.arb.ca.gov/fuels/lcfs/2a2b/apps/co_bd_wdgs-rpt-102414.pdf).
Applying such an impact to our analysis of biofuels produced from
distillers sorghum oil would not change the GHG thresholds results
for the biofuels produced from distillers sorghum oil evaluated in
this document.
---------------------------------------------------------------------------
3. Feedstock Transport
In our analysis, distillers sorghum oil is transported 50 miles by
heavy duty truck from the dry mill ethanol plant to the biodiesel or
hydrotreating facility where it is converted to transportation fuel.
GHG emissions associated with feedstock transport are relatively small,
and modest changes in transport distance are unlikely to affect the
results of our analysis.
4. Feedstock Pretreatment
For emissions from feedstock pretreatment and fuel production, we
perform two analyses. In the first analysis, we calculate the emissions
from biodiesel produced using transesterification. In the second
analysis, we calculate the emissions from renewable diesel, jet fuel,
LPG, and naphtha, produced using hydrotreating. In Section V below, we
then explain how similar results can be inferred for heating oil.
Before distillers sorghum oil is converted to biodiesel via
transesterification, it is processed to remove free-fatty acids. This
process requires thermal energy. Our evaluation of yellow grease for
the March 2010 RFS final rule included 14,532 Btu of natural gas per
gallon of biodiesel produced for pretreatment, and we have applied the
same assumption for this analysis. According to the NSP petition,
distillers sorghum oil has free fatty acid content near or below 15
percent, which is in the range of yellow grease free fatty acid
contents (<15 percent).\27\ This rate of thermal energy use for
pretreatment is higher than thermal energy rates used in other
lifecycle assessments EPA reviewed,\28\ and can be viewed as a
conservative assumption (i.e., resulting in higher GHG emissions).
---------------------------------------------------------------------------
\27\ See Table 15 in the January 5, 2012 Pathways I direct final
rule (77 FR 722).
\28\ See for example: https://www.arb.ca.gov/fuels/lcfs/2a2b/apps/co_bd_wdgs-rpt-102414.pdf.
---------------------------------------------------------------------------
Pretreatment to remove free-fatty acids is not required when
distillers sorghum oil is used to produce renewable diesel, jet fuel,
LPG and naphtha through a hydrotreating process.
5. Fuel Production
For biodiesel production, we used the transesterification analysis
for the March 2010 RFS rule for yellow grease biodiesel.\29\ Based on
comparison of this yellow grease analysis and the mass and energy
balance data in the NSP petition, submitted under claim of CBI, the
conversion of yellow grease and distillers sorghum oil are expected to
require similar energy inputs and yield similar amounts of biodiesel
and methanol as outputs.
---------------------------------------------------------------------------
\29\ For details see section 2.4 of the RIA for the March 2010
RFS final rule.
---------------------------------------------------------------------------
For production of renewable diesel, jet fuel, naphtha and LPG via a
hydrotreating process, we used the same data and approach as used in
the March 2013 Pathways I rule (78 FR 14190, March 5, 2013), and
subsequent facility-specific petitions involving hydrotreating
processes.\30\ The March 2013 Pathways I rule evaluated two
hydrotreating configurations: One optimized for renewable diesel
production and one optimized for jet fuel production. For this analysis
we evaluated a hydrotreating process maximized for renewable diesel
production, as that is the most common configuration. The jet fuel
configuration results in higher emissions (approximately 5
kgCO2e/mmBtu higher), but the threshold GHG reduction
results discussed below are not sensitive to this assumption.
---------------------------------------------------------------------------
\30\ For determination documents responding to facility specific
petitions, see: https://www.epa.gov/renewable-fuelstandard-program/approved-pathways-renewable-fuel.
---------------------------------------------------------------------------
Our previous analyses of hydrotreating processes have applied an
energy allocation approach for RIN-generating co-products that qualify
as renewable fuel.\31\ This approach results in higher lifecycle GHG
emissions for each of the fuel products than other approaches
considered, such as a
[[Page 61211]]
displacement approach, and thus can be viewed as a conservative
approach.
---------------------------------------------------------------------------
\31\ See the March 2013 Pathways I rule, specifically 78 FR
14198-14200 (March 5, 2013).
---------------------------------------------------------------------------
In the allocation approach, all the emissions from the
hydrotreating process are allocated across all co-products. There are a
number of ways to do the allocation, for example on the basis of
energy, mass, or economic value. Consistent with the approach taken in
the hydrotreating analysis for the March 2013 RFS rule, for this
analysis of fuels produced from distillers sorghum oil feedstock
through a hydrotreating process we allocated emissions to the renewable
diesel, naphtha and LPG based on the energy content (using lower-
heating values) of the products produced. Emissions from the process
were allocated equally to all of the Btus of fuel produced. Therefore,
on a per Btu basis, all of the primary products coming from the
hydrotreating facility have the same emissions from the fuel production
stage of the lifecycle. For this analysis, the energy content was the
most appropriate basis for allocating emissions because all of the fuel
products are used as sources of energy. Energy content also has the
advantage of being a fixed factor as opposed to market prices which
fluctuate over time.
6. Fuel Distribution
We used the fuel distribution results from the biodiesel analysis
for the March 2010 RFS rule. Fuel distribution emissions are relatively
small compared to baseline lifecycle GHG emissions (see Table IV.3
below), and although they may be different for different types of fuel,
for the purposes of this analysis we assume that renewable diesel, jet
fuel, LPG, and naphtha, have the same fuel distribution emissions per
mmBtu of fuel used. Even if we applied a more precise value for fuel
distribution emissions, we do not expect that revision to change our
assessment that these fuels meet a 50 percent GHG emission reduction.
7. Fuel Use
For this analysis we applied fuel use emissions factors developed
for the March 2010 RFS final rule. For biodiesel we used the biodiesel
emissions factor. For renewable diesel and jet fuel we used the
emissions factors for non-CO2 GHGs for baseline diesel fuel.
For naphtha we used the emissions factors for non-CO2 GHGs
for baseline gasoline fuel. For LPG we used the LPG non-CO2
emissions factor developed for the March 2010 RFS rule. The tailpipe
emissions are relatively small, and the threshold GHG reduction results
are not sensitive to these assumptions. More details on our analysis of
fuel use emissions are described in a memo \32\ to the rulemaking
docket.
---------------------------------------------------------------------------
\32\ See, ``Summary of Key Assumptions for EPA's Analysis of the
Lifecycle Greenhouse Gas Emissions Associated with Biofuels Produced
from Distillers Sorghum Oil,'' Air Docket EPA-HQ-OAR-2017-0655.
---------------------------------------------------------------------------
8. Results of GHG Lifecycle Analysis
Table IV.3 shows the lifecycle GHG emissions associated with
biofuels produced from distillers sorghum oil that result from our
assessment. The table also shows the percent reduction relative to the
petroleum baseline. All of the fuels are compared to the diesel
baseline, except for naphtha which is compared to the gasoline
baseline.
Table IV.3--Lifecycle GHG Emissions Associated With Biofuels Produced From Distillers Sorghum Oil (kgCO2-eq/MJ)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Renewable
Fuel Biodiesel diesel, jet Naphtha LPG 2005 Diesel 2005 Gasoline
fuel baseline baseline
--------------------------------------------------------------------------------------------------------------------------------------------------------
Production process Transesterificati
on Hydrotreating
Refining
--------------------------------------------------------------------------------------------------------------------------------------------------------
Feedstock Production................................. 5.6 6.2 6.2 6.2 18.0 19.2
Feedstock Transport.................................. 0.2 0.3 0.3 0.3
Feedstock Pretreatment............................... 8.4 .............. .............. ..............
Fuel Production...................................... 1.2 8.0 8.0 8.0
Fuel Distribution.................................... 0.8 0.8 0.8 0.8
Fuel Use............................................. 0.7 0.7 1.7 1.5 79.0 79.0
--------------------------------------------------------------------------------------------------
Total............................................ 17.0 16.0 17.0 16.8 97.0 98.2
--------------------------------------------------------------------------------------------------------------------------------------------------------
Percent Reduction.................................... 82 84 82 83 .............. ..............
--------------------------------------------------------------------------------------------------------------------------------------------------------
V. Consideration of Lifecycle Analysis Results
Based on the lifecycle GHG emissions results presented above, all
of the pathways evaluated would meet the 50 percent GHG reduction
threshold required for advanced biofuel and biomass-based diesel.
The results presented above would also justify qualifying heating
oil produced from distillers sorghum oil as meeting the 50 percent GHG
threshold. In previous rulemakings, EPA considered the lifecycle GHG
impacts associated with heating oil and determined that heating oil
produced from a range of feedstocks (e.g., soybean oil, distillers corn
oil) via a transesterification or hydrotreating process satisfies the
50 percent lifecycle GHG reduction required for advanced biofuel.\33\
Based on the results presented above, we anticipate that biofuels such
as heating oil produced from distillers sorghum oil have significantly
lower lifecycle GHG emissions than the same fuels produced from soybean
oil, when the same production processes are used.\34\ Therefore, based
on EPA's previous lifecycle evaluations for heating oil produced from
soybean oil, we believe that heating oil produced from distillers
sorghum oil would also satisfy the 50 percent GHG reduction
requirement.
---------------------------------------------------------------------------
\33\ See the March 2013 RFS Pathway I rule (78 FR 14190, March
5, 2013).
\34\ For example, in analysis for the March 2010 RFS rule, EPA
found that soybean oil biodiesel achieves a 57 percent GHG reduction
(based on the mean result from our uncertainty assessment), whereas
the results in Table IV.3, above, show biodiesel produced from
distillers sorghum oil achieve a greater than 80 percent reduction.
---------------------------------------------------------------------------
VI. Summary
Based on our GHG lifecycle evaluation described above, we propose
to find that biodiesel and heating oil produced from distillers sorghum
oil via a transesterification process, and renewable diesel, jet fuel
and heating oil produced from distillers sorghum oil via a
hydrotreating process meet the 50 percent GHG reduction threshold
requirement for advanced biofuel and biomass-based diesel. This finding
[[Page 61212]]
would support a determination that these fuels are eligible for
biomass-based diesel (D-code 4) RINs if they are produced through a
process that does not co-process renewable biomass and petroleum, and
for advanced biofuel (D-code 5) RINs if they are produced through a
process that does co-process renewable biomass and petroleum. EPA
invites comment on all aspects of its analysis of these proposed
biofuel pathways.
VII. Statutory and Executive Order Reviews
Additional information about these statutes and Executive Orders
can be found at https://www2.epa.gov/laws-regulations/laws-and-executive-orders.
A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review
This action is not a significant regulatory action and was
therefore not submitted to the Office of Management and Budget (OMB)
for review.
B. Executive Order 13771: Reducing Regulations and Controlling
Regulatory Costs
This action is not expected to be an Executive Order 13771
regulatory action because this action is not significant under
Executive Order 12866.
C. Paperwork Reduction Act (PRA)
This action does not impose any new information collection burden
under the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et
seq., and therefore is not subject to these requirements.
D. Regulatory Flexibility Act (RFA)
I certify that this action will not have a significant economic
impact on a substantial number of small entities under the RFA. This
action will not impose any requirements on small entities. An agency
may certify that a rule will not have a significant economic impact on
a substantial number of small entities if the rule relieves regulatory
burden, has no net burden or otherwise has a positive economic effect
on the small entities subject to the rule. This rule proposes to
provide a positive economic effect for distillers sorghum oil producers
and producers of biofuels from distillers sorghum oil as they would be
able to participate in the RFS program, see CAA section 211(o).
E. Unfunded Mandates Reform Act (UMRA)
This action does not contain an unfunded mandate of $100 million or
more as described in UMRA, 2 U.S.C. 1531-1538, and does not
significantly or uniquely affect small governments. The action imposes
no enforceable duty on any state, local or tribal governments or the
private sector.
F. Executive Order 13132: Federalism
This action does not have federalism implications. It will not have
substantial direct effects on the states, on the relationship between
the national government and the states, or on the distribution of power
and responsibilities among the various levels of government.
G. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
This action does not have tribal implications as specified in
Executive Order 13175. This proposed rule would affect only producers
of distillers sorghum oil and producers of biofuels made from
distillers sorghum oil. Thus, Executive Order 13175 does not apply to
this action.
H. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks
The EPA interprets Executive Order 13045 as applying only to those
regulatory actions that concern environmental health or safety risks
that EPA has reason to believe may disproportionately affect children,
per the definition of ``covered regulatory action'' in section 2-202 of
the Executive Order. This action is not subject to Executive Order
13045 because it because it does not concern an environmental health
risk or safety risk.
I. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
This action is not subject to Executive Order 13211 because it is
not a significant regulatory action under Executive Order 12866.
J. National Technology Transfer Advancement Act (NTTAA)
This rulemaking does not involve technical standards.
K. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations
The EPA believes that this action does not have disproportionately
high and adverse human health or environmental effects on minority
populations, low-income populations and/or indigenous peoples, as
specified in Executive Order 12898 (59 FR 7629, February 16, 1994).
This proposed rule does not affect the level of protection provided to
human health or the environment by applicable air quality standards.
This action does not relax the control measures on sources regulated by
the fuel programs and RFS regulations and therefore will not cause
emissions increases from these sources.
List of Subjects in 40 CFR Part 80
Environmental protection, Administrative practice and procedure,
Air pollution control, Diesel Fuel, Fuel additives, Gasoline, Imports,
Oil imports, Petroleum, Renewable fuel.
Dated: December 19, 2017.
E. Scott Pruitt,
Administrator.
For the reasons set forth in the preamble, EPA proposes to amend 40
CFR part 80 as follows:
PART 80--REGULATION OF FUEL AND FUEL ADDITIVES
0
1. The authority for part 80 continues to read as follows:
Authority: 42 U.S.C. 7414, 7521, 7542, 7545, and 7601(a).
Subpart M--[Amended]
0
2. Section 80.1401 is amended by adding in alphabetical order a new
definition for ``distillers sorghum oil'' to read as follows:
Sec. 80.1401 Definitions.
* * * * *
Distillers sorghum oil means oil recovered at a point downstream of
where a dry mill grain sorghum ethanol plant grinds the grain sorghum,
provided that the grain sorghum is converted to ethanol, the oil is
rendered unfit for food uses without further refining, and the
distillers grains resulting from the dry mill and oil extraction
processes are marketable as animal feed.
* * * * *
0
3. Section 80.1426, paragraph (f)(1) is amended by revising entries F,
H, and I in Table 1 to Sec. 80.1426 to read as follows:
[[Page 61213]]
Sec. 80.1426 How are RINs generated and assigned to batches of
renewable fuel by renewable fuel producers or importers?
* * * * *
(f) * * *
(1) * * *
Table 1 to Sec. 80.1426--Applicable D Codes for Each Fuel Pathway for Use in Generating RINs
----------------------------------------------------------------------------------------------------------------
Production process
Entry Fuel type Feedstock requirements D-code
----------------------------------------------------------------------------------------------------------------
* * * * * * *
F................................ Biodiesel, Soy bean oil; Oil One of the 4
renewable diesel, from annual following:
jet fuel and covercrops; Oil TransEsterificatio
heating oil, from algae grown n Hydrotreating
biodiesel. photosynthetically Excluding
; Biogenic waste processes that co-
oils/fats/greases; process renewable
Non-food grade biomass and
corn oil; Camelina petroleum.
sativa oil;
Distillers sorghum
oil.
* * * * * * *
H................................ Biodiesel, Soy bean oil; Oil One of the 5
renewable diesel, from annual following:
jet fuel and covercrops; Oil TransEsterificatio
heating oil. from algae grown n Hydrotreating
photosynthetically Includes only
; Biogenic waste processes that co-
oils/fats/greases; process renewable
Non-food grade biomass and
corn oil; Camelina petroleum.
sativa oil;
Distillers sorghum
oil.
I................................ Naphtha, LPG....... Camelina sativa Hydrotreating...... 5
oil; Distillers
sorghum oil.
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[FR Doc. 2017-27946 Filed 12-26-17; 8:45 am]
BILLING CODE 6560-50-P
