EPA Mobile Source Rule Update WESTAR Spring Business Meeting
description
Transcript of EPA Mobile Source Rule Update WESTAR Spring Business Meeting
EPA Mobile Source Rule UpdateEPA Mobile Source Rule UpdateWESTAR Spring Business MeetingWESTAR Spring Business Meeting
3 April 20073 April 2007
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EPA Mobile Source Rule Update EPA Mobile Source Rule Update
Diesel locomotives and marine enginesDiesel locomotives and marine enginesOcean-going vesselsOcean-going vesselsSmall lawn & garden gasoline engines and Small lawn & garden gasoline engines and recreational gasoline marine enginesrecreational gasoline marine enginesMobile source air toxicsMobile source air toxicsRenewable fuels standardRenewable fuels standard
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EPA’s Locomotive and Marine EPA’s Locomotive and Marine Diesel ProposalDiesel Proposal
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Reconciling the Transportation Sector With the Environment:Reconciling the Transportation Sector With the Environment:
A Comprehensive and Collaborative ApproachA Comprehensive and Collaborative Approach
Light-duty Vehicles (1999)
Heavy-duty Vehicles (2001)
Clean Nonroad Diesel (2004)
Common Aspects--Common Aspects--
Systems approach– low sulfur fuel Systems approach– low sulfur fuel enables clean technologiesenables clean technologies
Very large environmental benefitsVery large environmental benefits
Responsive to clean air goalsResponsive to clean air goals
Highway
Farm, Industrial, ConstructionLocomotive/ Category 1
And 2 Diesel Marine Proposal
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Locomotive & Diesel Marine - a large mobile source:Locomotive & Diesel Marine - a large mobile source:1/3 of NOx and 2/3 of diesel PM in 20301/3 of NOx and 2/3 of diesel PM in 2030
Diesel PM2.5
Total=78,000 tons/yr(diesel-fueled engines)
Mobile Source NOxTotal=4,500,000 tons/yr
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What the Rule Covers-- LocomotivesWhat the Rule Covers-- Locomotives
Switch
Line-Haul
Passenger
Sales ~700-1200 / yearTypically rebuilt every 5-7 years
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What the Rule Covers--What the Rule Covers--
Marine DieselsMarine Diesels
Category 1 Commercial (<5 liter/cylinder)~15,000/year (about half are aux engines)
Recreational~15,000/year
Category 2 (5 to 30 liter/cyl) <300/year
<75 hp<10,000/year
gen sets sailboats
cruisers
yachts
auxiliary power for ocean-going vessels
workboats fishing vesselspolice boats
ferries
tugboats
Great Lakes freighters
Covered in separate initiative ocean-going ships
Category 3(>30 liter/cyl)
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Proposed Locomotive StandardsProposed Locomotive Standards
Remanufactured Locomotive StandardsRemanufactured Locomotive Standards
Newly-built Locomotive StandardsNewly-built Locomotive Standards
New Long-TermNew Long-Term
(Tier 4) Standards(Tier 4) Standards
New InterimNew Interim
(Tier 3) Standards(Tier 3) Standards
RemanufacturedRemanufactured
Tier 2Tier 2
RemanufacturedRemanufactured
Tier 0 & 1Tier 0 & 1
locomotive locomotive
groupsgroups
PM 2015PM 2015
NOx 2017NOx 2017
20122012
20020088 as available as available
2013 required2013 required
20020088 as available as available
2010 required2010 required
datedate
1.31.3
5.55.5
5.55.5
7.4 - 8.07.4 - 8.0
standardstandard
(g/hp-hr)(g/hp-hr)
80%80%
-- --
-- --
~20%~20%
reductionreduction
%%
reductionreduction
%%
standardstandard
(g/hp-hr)(g/hp-hr)
~90%~90%
50%50%
50%50%
~60%~60%
NONOxx
0.030.03
0.100.10
0.100.10
0.220.22
PMPM
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Proposed Marine Diesel StandardsProposed Marine Diesel Standards
Existing Marine EnginesExisting Marine Engines
(requesting comment on(requesting comment on
remanufacturing stds)remanufacturing stds)
New Long-Term (Tier 4)New Long-Term (Tier 4)
Commercial >600kWCommercial >600kW
New Interim (Tier 3)New Interim (Tier 3)
0-20%0-20%
reductionreduction
1.31.3
varies byvaries by
engine sizeengine size
standardstandard
(g/hp-hr)(g/hp-hr)
~80%~80%
~20%~20%
reductionreduction
%%
reductionreduction
%%
standardstandard
(g/hp-hr)(g/hp-hr)
~90%~90%
~50%~50%
NONOxx
20-60%20-60%
reductionreduction20082008
0.030.032014-2014-20172017
varies byvaries by
engine sizeengine size2009-2009-20142014
PMPM
datedate
1010
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2005 2010 2015 2020 2025 2030 2035 2040
Base 50-State
Control 50-State
Nationwide PM Reductions From the Proposal
PM
with current standards
with proposed standards
Calendar Year
Pa
rtic
ula
te M
atte
r (a
nnu
al t
ons)
1111
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2005 2010 2015 2020 2025 2030 2035 2040
Base 50-State
Control 50-State
NOx
Nationwide NOx Reductions From the Proposal
with current standards
with proposed standards
Calendar Year
NO
x (a
nnu
al to
ns)
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Proposal Annual Costs and Benefits in Proposal Annual Costs and Benefits in 20302030
3%3%Unit cost as % of typical new locomotive price Unit cost as % of typical new locomotive price
(similar for marine; varies vessel to vessel)(similar for marine; varies vessel to vessel)
765,000765,00028,00028,000Inventory reduction, tonsInventory reduction, tons
20:120:1
$12B$12B
$5560$5560
$159M$159M
PMPM NONOxx
Monetized benefitsMonetized benefits
Benefit to cost ratioBenefit to cost ratio
Cost per tonCost per ton
CostCost
$580$580
$446M$446M
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The Process Toward CompletionThe Process Toward Completion
Proposal signed by Administrator Johnson Proposal signed by Administrator Johnson March 1March 1
Comment period open for 90 days after Comment period open for 90 days after publication (~July 1st)publication (~July 1st)
Hearings in Seattle May 8 and Chicago May 10Hearings in Seattle May 8 and Chicago May 10
Targeting final rule before the end of the yearTargeting final rule before the end of the year
Ocean-going VesselsOcean-going Vessels
- IMO Deliberations- IMO Deliberations
- EPA OGV Rulemaking- EPA OGV Rulemaking
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Standards Comparison – IMO vs. Standards Comparison – IMO vs. other US mobile source categoriesother US mobile source categories
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
0 2 4 6 8 10 12 14
NOx (g/bhp-hr)
PM
(g
/bh
p-h
r)
Low Speed-Engine
Trucks 2010; Nonroad machines 2014;Future Diesel Marine Category 1 and 2 and Locomotives
Highway Trucks 1991
IMO NOx Limits
Diesel Marine (<30 liters/cylinder) 2004-2007
Typical Medium Speed-Engine
High Speed-Engine
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2030 US Mobile Source PM2.5 Inventory2030 US Mobile Source PM2.5 Inventory(250,000 tons total)(250,000 tons total)
Recent detailed investigation by US EPA, California, and University of Delaware scientists indicate ocean-going marine vessel PM inventories for the US are low by as much as a factor of 3 for the baseline year 2001, and by as much as a factor of 5 for 2020
Other Off-highway/Nonroad Engines
32%
Highway27%
Ocean-going Marine Vessels21%
(53,000 tons)
Locomotives, Catergory 1 & 2 Diesel Marine
20%
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2030 US Mobile Source NOx Inventory2030 US Mobile Source NOx Inventory(4.5 million tons total)(4.5 million tons total)
Recent detailed investigation by US EPA, California, and University of Delaware scientists indicate ocean-going marine vessel NOx inventories for the US are low by as much as a factor of 3 for the baseline year 2001, and by as much as a factor of 5 for 2020
Highway35%
Ocean-going Marine Vessels
12%(530,000 tons)
Other Off-highway/Nonroad Engines
18%
Locomotive, Category 1 and 2 Diesel Marine
35%
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2030 US Mobile Source SOx Inventory2030 US Mobile Source SOx Inventory(480,000 tons total)(480,000 tons total)
Highway10%
Other Off-highway/Nonroad Engines
6%
Locomotives, Catergory 1 & 2 Diesel Marine
1%
Ocean-going Marine Vessels
83%
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Marine Emission StandardsMarine Emission Standards
There are two sources of standards that There are two sources of standards that apply to marine diesel engines in the U.S.apply to marine diesel engines in the U.S.– International Maritime Organization (IMO)International Maritime Organization (IMO)
Annex VI to the International Convention on the Annex VI to the International Convention on the Prevention of Pollution from ShipsPrevention of Pollution from Ships
– U.S. Federal standardsU.S. Federal standards Promulgated by EPA under the Clean Air ActPromulgated by EPA under the Clean Air Act
2020
US EPA Regulation for Category 3 EnginesUS EPA Regulation for Category 3 Engines2003 US EPA Regulation: 2-part approach2003 US EPA Regulation: 2-part approach– Near term standards: Equivalent to the International Maritime Near term standards: Equivalent to the International Maritime
Organizations Tier 1 standardsOrganizations Tier 1 standards– Long-term standards: Commitment to finalize an additional tier of Long-term standards: Commitment to finalize an additional tier of
standards in the futurestandards in the future
EPA is committed to taking additional regulatory action EPA is committed to taking additional regulatory action under the Clean Air Actunder the Clean Air Act– Regulations stipulate a final rulemaking action by 4/27/07Regulations stipulate a final rulemaking action by 4/27/07
We expect to issue an advanced regulatory We expect to issue an advanced regulatory announcement within the next few monthsannouncement within the next few months
EPA is also committed to the IMO Annex VI (air EPA is also committed to the IMO Annex VI (air pollution) negotiation processpollution) negotiation process
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Background on IMO and US PositionsBackground on IMO and US Positions
July 2005 – IMO agreed to deliberate on potential July 2005 – IMO agreed to deliberate on potential amendments to Annex VIamendments to Annex VI
EPA, as part of the US Gov’t, has been very active on air EPA, as part of the US Gov’t, has been very active on air pollution issues at IMOpollution issues at IMO– Consistently advocated for stringent standards based on advanced Consistently advocated for stringent standards based on advanced
emission technology solutionsemission technology solutions
US Gov’t has submitted a proposal to IMO which outlines US Gov’t has submitted a proposal to IMO which outlines an approach for long-term reductions in PM, NOx and SOx an approach for long-term reductions in PM, NOx and SOx from OGVsfrom OGVs
We expect the IMO deliberations to continue into 2008We expect the IMO deliberations to continue into 2008
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Key Elements of the US ConceptKey Elements of the US ConceptNOx standards for new build engines > 30 l/cyl NOx standards for new build engines > 30 l/cyl (Category 3)(Category 3)
– NOx reductions for pre-2000 enginesNOx reductions for pre-2000 engines– Interim NOx standards for new engines, 2011-2015Interim NOx standards for new engines, 2011-2015– Long-term NOx standards for new engines based on advanced Long-term NOx standards for new engines based on advanced
technologies (i.e., selective catalytic reduction), 2016+technologies (i.e., selective catalytic reduction), 2016+Applicable to engines operating in defined areas, e.g., 200 miles from shore Applicable to engines operating in defined areas, e.g., 200 miles from shore for specific regionsfor specific regions
PM & SOx: PM & SOx: – Performance standard applicable to all vessels operating in defined Performance standard applicable to all vessels operating in defined
areas [x miles from shore] effective in [2011]areas [x miles from shore] effective in [2011]SOx level of [0.4] g/kW-hrSOx level of [0.4] g/kW-hrPM limit similar to existing US EPA Tier 2 diesel marine (engine-out PM limit similar to existing US EPA Tier 2 diesel marine (engine-out standards)standards)
– Compliance could be through the use of low-sulphur fuel ( ~1,000 ppm Compliance could be through the use of low-sulphur fuel ( ~1,000 ppm S) and/or the use of SOx scrubbing technologyS) and/or the use of SOx scrubbing technology
Next Steps – US position to be discussed at IMO meeting later this Next Steps – US position to be discussed at IMO meeting later this monthmonth
Small Gasoline Engines and Small Gasoline Engines and Recreational Gasoline Marine Recreational Gasoline Marine
RulemakingRulemaking
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EPA’s Current Small Gasoline EPA’s Current Small Gasoline Engine Standards Engine Standards
Small engines: <25 horsepower, used in lawn & garden, and Small engines: <25 horsepower, used in lawn & garden, and industrial equipment industrial equipment (e.g, mowers, chain saws, generators)(e.g, mowers, chain saws, generators)
Phase 1 standards took effect in 1997Phase 1 standards took effect in 1997– Standards represented a 33% reduction in HC+NOx from uncontrolled levels Standards represented a 33% reduction in HC+NOx from uncontrolled levels
for all enginesfor all engines
Phase 2 standards are phased-in from 2001-07Phase 2 standards are phased-in from 2001-07– Non-handheld (NHH) standards represented a 60% HC+NOx reduction Non-handheld (NHH) standards represented a 60% HC+NOx reduction
beyond Phase 1 levelsbeyond Phase 1 levelsStandards were based on 4-stroke engine improvementsStandards were based on 4-stroke engine improvements
– Handheld (HH) standards represented a 70% HC+NOx reduction beyond Handheld (HH) standards represented a 70% HC+NOx reduction beyond Phase 1 levelsPhase 1 levels
Standards were based on application of catalysts to most 2-stroke Standards were based on application of catalysts to most 2-stroke enginesengines~2/3 of new HH engines sold in the United States have catalysts currently~2/3 of new HH engines sold in the United States have catalysts currently
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California Tier 3 RequirementsCalifornia Tier 3 Requirements
California adopted Tier 3 standards for small California adopted Tier 3 standards for small gasoline engines gasoline engines – The reductions from the California exhaust standards The reductions from the California exhaust standards
represent a reduction of 35% from EPA’s Phase 2 represent a reduction of 35% from EPA’s Phase 2 exhaust programexhaust program
– Standards based on catalysts for non-handheld Standards based on catalysts for non-handheld productsproducts
ARB also adopted evaporative emissions ARB also adopted evaporative emissions controlscontrols– Tank, hose, and permeation controlTank, hose, and permeation control– Canister to control diurnal, running loss, and hot soak.Canister to control diurnal, running loss, and hot soak.
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EPA’s Plans for New Phase 3 StandardsEPA’s Plans for New Phase 3 Standards• In 2004, Congress directed EPA to propose new In 2004, Congress directed EPA to propose new
standards for spark-ignition (gasoline) engines < 50 hpstandards for spark-ignition (gasoline) engines < 50 hp
• We are pursuing new standards for the following engine We are pursuing new standards for the following engine categories:categories:
Non-Handheld Lawn/Garden Non-Handheld Lawn/Garden Handheld Lawn/GardenHandheld Lawn/GardenOutboard and Personal Watercraft (PWC) marine engines Outboard and Personal Watercraft (PWC) marine engines
Sterndrive and inboard marine enginesSterndrive and inboard marine engines
• For lawn/garden engines, we plan to adopt California’s For lawn/garden engines, we plan to adopt California’s Tier 3 standards starting with 2011-2012 model year Tier 3 standards starting with 2011-2012 model year nonhandheld enginesnonhandheld engines• Also proposing tank permeation, fuel line, and diurnal emissions Also proposing tank permeation, fuel line, and diurnal emissions
standardsstandards
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Gasoline Marine StandardsGasoline Marine Standards
Outboard/Personal Watercraft: adopt California standards Outboard/Personal Watercraft: adopt California standards in 2009in 2009– 65% reduction in HC+NOx65% reduction in HC+NOx
Sterndrive/Inboard: Adopt California HC+NOx standard in Sterndrive/Inboard: Adopt California HC+NOx standard in 20092009– 70% reduction in HC+NOx (catalyst forcing)70% reduction in HC+NOx (catalyst forcing)– Substantial reductions in CO emissionsSubstantial reductions in CO emissions– One manufacturer has certified for California program and is now One manufacturer has certified for California program and is now
sellingselling
Marine fuel evaporative emissions currently uncontrolledMarine fuel evaporative emissions currently uncontrolled– Proposing tank permeation, fuel line, and diurnal emissions Proposing tank permeation, fuel line, and diurnal emissions
standardsstandards
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Small Gasoline Engines and Gasoline MarineSmall Gasoline Engines and Gasoline MarineEstimated Impacts and Next StepsEstimated Impacts and Next Steps
2030 Annual Emission Reduction Estimates2030 Annual Emission Reduction Estimates– 630,000 tons VOC630,000 tons VOC– 98,000 tons NOx98,000 tons NOx– 6,300 tons PM6,300 tons PM
NPRM expected within a few weeksNPRM expected within a few weeks
Final rule targeted for early 2008Final rule targeted for early 2008
Mobile Source Air Toxics Mobile Source Air Toxics (MSAT 2) Final Rule(MSAT 2) Final Rule
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Why an MSAT2 Rule?Why an MSAT2 Rule?
Section 202(l) of the Clean Air ActSection 202(l) of the Clean Air Act– Requires standards to control toxics from Requires standards to control toxics from
motor vehicles and/or motor vehicle fuelsmotor vehicles and/or motor vehicle fuelsGreatest emissions reduction achievable with Greatest emissions reduction achievable with technology, considering cost, lead time, etc. technology, considering cost, lead time, etc.
First MSAT rule in 2001First MSAT rule in 2001– Toxic emissions standard for gasolineToxic emissions standard for gasoline– Identified data gaps, committed to researchIdentified data gaps, committed to research– Committed to additional rulemakingCommitted to additional rulemaking
MSAT 2 Final Rule Published February MSAT 2 Final Rule Published February 26, 200726, 2007
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MSAT2 Final Rule ElementsMSAT2 Final Rule Elements
National benzene standards for gasolineNational benzene standards for gasoline
Cold VOC exhaust standards and Cold VOC exhaust standards and evaporative standards for light-duty evaporative standards for light-duty vehiclesvehicles
Standards for portable fuel containersStandards for portable fuel containers
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Gasoline Benzene Content Standards Gasoline Benzene Content Standards
0.62 vol% annual average standard0.62 vol% annual average standard– 2004 average benzene content: 1 vol%2004 average benzene content: 1 vol%– Applies to each refineryApplies to each refinery– Nationwide banking and tradingNationwide banking and trading– Effective in 2011Effective in 2011
1.3 vol% maximum average1.3 vol% maximum average– Must be met with actual production (no credits)Must be met with actual production (no credits)– Effective in 2012Effective in 2012
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Vehicle StandardsVehicle StandardsNew cold temp hydrocarbon standardsNew cold temp hydrocarbon standards– Vehicles are certified at 75Vehicles are certified at 75ºº F, but recent data F, but recent data
show emissions sharply increase at 20show emissions sharply increase at 20ºº F F– New std. will reduce benzene, 1,3-butadiene, New std. will reduce benzene, 1,3-butadiene,
formaldehyde, etc.formaldehyde, etc.
Evaporative standardsEvaporative standards– Harmonized with CaliforniaHarmonized with California– Codifies approach manufacturers are already Codifies approach manufacturers are already
takingtaking
Phase in from 2009-2015Phase in from 2009-2015
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Portable Fuel Container StandardPortable Fuel Container StandardGas cans, diesel and kerosene containersGas cans, diesel and kerosene containers
Hydrocarbon standard starting in 2009Hydrocarbon standard starting in 2009
Reduces evaporation, permeation, spillageReduces evaporation, permeation, spillage– Durable permeation barriersDurable permeation barriers– Automatically closing spoutsAutomatically closing spouts– Well-sealed cansWell-sealed cans
Consistent with revised California programConsistent with revised California program
Attached garages contribute significantly to Attached garages contribute significantly to personal exposure to benzenepersonal exposure to benzene
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MSAT Final Rule ImpactsMSAT Final Rule ImpactsReduces MSATs by 330,000 tons in 2030Reduces MSATs by 330,000 tons in 2030– Including 61,000 tons of benzeneIncluding 61,000 tons of benzene
Toxic emissions from light-duty vehicles will be Toxic emissions from light-duty vehicles will be reduced 80% between 1999 and 2030reduced 80% between 1999 and 2030– As a result of this proposal and other standards in As a result of this proposal and other standards in
place place
Criteria pollutant co-benefitsCriteria pollutant co-benefits– 1.1 million tons of VOC reduced in 20301.1 million tons of VOC reduced in 2030
From vehicles and gas cansFrom vehicles and gas cans
– 19,000 tons of direct PM-2.5 reduced 19,000 tons of direct PM-2.5 reduced From vehiclesFrom vehicles
The Renewable Fuels The Renewable Fuels StandardStandard
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The RFS – The Program BasicsThe RFS – The Program Basics
The Energy Policy Act (EPAct) of 2005 specified renewable The Energy Policy Act (EPAct) of 2005 specified renewable fuel volumes fuel volumes
– 2006: 4.0 billion gallons/yr2006: 4.0 billion gallons/yr– 2007: 4.72007: 4.7– 2008: 5.42008: 5.4– 2009: 6.12009: 6.1– 2010: 6.82010: 6.8– 2011: 7.42011: 7.4– 2012: 7.52012: 7.5– 2013+: Same percent of renewables for 2012 (0.25 billion gal of 2013+: Same percent of renewables for 2012 (0.25 billion gal of
which must be cellulosic ethanol)which must be cellulosic ethanol)
Each year EPA must convert RFS into percent of gasoline Each year EPA must convert RFS into percent of gasoline production standards that apply to refiners, importers, production standards that apply to refiners, importers, gasoline blenders.gasoline blenders.
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Ethanol is Sweeping the NationEthanol is Sweeping the Nation
0
2
4
6
8
10
12
14
16
18
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Year
Eth
an
ol
Us
e (
Bg
al)
Per RFS Per AEO 2006 Per AEO 2007 Assum ing 100% E10
76% of all Gasoline @ E10
If 100% of all Gasoline is E10
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Relative Value of Different RenewablesRelative Value of Different Renewables
EPAct specifies that 1 gal of cellulosic ethanol counts as EPAct specifies that 1 gal of cellulosic ethanol counts as 2.5 gallons for compliance purposes.2.5 gallons for compliance purposes.
We proposed to base the “Equivalence Value” or credit We proposed to base the “Equivalence Value” or credit for other renewables on volumetric energy content in for other renewables on volumetric energy content in comparison to ethanol (adjusted for renewable content):comparison to ethanol (adjusted for renewable content):– Corn-ethanol: Corn-ethanol: 1.01.0– Cellulosic biomass ethanol: Cellulosic biomass ethanol: 2.52.5– Biodiesel (alkyl esters): Biodiesel (alkyl esters): 1.51.5– Renewable diesel: Renewable diesel: 1.71.7– Biobutanol: Biobutanol: 1.31.3
Sought comment on life cycle energy, petroleum, or Sought comment on life cycle energy, petroleum, or green house gas (GHG) emissions as the basis for these green house gas (GHG) emissions as the basis for these values.values.
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Not Pictured
AK: 0% ETOH
HI: 100% ETOH
DC: 100% ETOH
What The Country May Look Like in 2009What The Country May Look Like in 20099.6 Bgal Ethanol
100% E10
<10% E1010-50% E10
50-100% E10
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Emissions & Air Quality*Emissions & Air Quality*
NationwideNationwide Localized maximumLocalized maximum
COCO 1.3 - 3.6 % decrease1.3 - 3.6 % decrease N/AN/A
BenzeneBenzene 1.7 - 6.2 % decrease1.7 - 6.2 % decrease N/AN/A
NOx + VOCNOx + VOC 0.5 - 1.0 % increase0.5 - 1.0 % increase 3 - 6 % increase 3 - 6 % increase (Summer)(Summer)
OzoneOzone ~ 0.1 ppb increase~ 0.1 ppb increase 0.1 - 0.2 ppb increase0.1 - 0.2 ppb increase
Impacts will vary by region, since renewable fuel use Impacts will vary by region, since renewable fuel use varies significantlyvaries significantly
* Incremental Impacts in 2012 compared to 2004 reference case* Incremental Impacts in 2012 compared to 2004 reference case
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Next StepsNext StepsFRM expected out within a few weeksFRM expected out within a few weeksImplementation workshop for industryImplementation workshop for industry– Jointly sponsored by EPA, RFA, ACE, NBB, API, Jointly sponsored by EPA, RFA, ACE, NBB, API,
NPRA, etc.NPRA, etc.
Implementation – the 3 RsImplementation – the 3 Rs– Registration, Recordkeeping, ReportingRegistration, Recordkeeping, Reporting
What’s Next ?What’s Next ?– The President has already called for an expansion of The President has already called for an expansion of
the RFS programthe RFS program35 Billion gallons by 201735 Billion gallons by 2017Renewable fuels and Alternative fuelsRenewable fuels and Alternative fuels
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AppendixAppendix
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MSAT2 Final Rule –MSAT2 Final Rule –Benzene Levels Before and AfterBenzene Levels Before and After
2004 2004 BenzeneBenzene
Vol%Vol%
Benzene VolBenzene Vol% With % With
ProgramProgram
% % ReductionReduction
PADD 1PADD 1 0.670.67 0.520.52 22%22%
PADD 2 PADD 2 1.261.26 0.630.63 50%50%
PADD 3PADD 3 0.850.85 0.610.61 28%28%
PADD 4PADD 4 1.561.56 0.900.90 42%42%
PADD 5 (no CA)PADD 5 (no CA) 1.801.80 0.690.69 62%62%
TotalTotal 1.001.00 0.620.62 38%38%
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III
III
IV
V
Petroleum Administration forDefense Districts (PADDs)
4646
Costs of Renewable FuelsCosts of Renewable Fuels
Increases in the use of renewable fuels are expected to Increases in the use of renewable fuels are expected to add 0.3 - 1 c/gal to the cost of gasoline for the nation as add 0.3 - 1 c/gal to the cost of gasoline for the nation as a whole (at $47/bbl crude)*a whole (at $47/bbl crude)*
In the Final Rulemaking also assessing impacts onIn the Final Rulemaking also assessing impacts on– Agricultural sector economyAgricultural sector economy– Energy SecurityEnergy Security
EthanolEthanol $1.30 - 1.36 per gal$1.30 - 1.36 per gal
BiodieselBiodiesel $2.00 - 2.22 per gal$2.00 - 2.22 per gal
Production & Distribution Costs
* Incremental Impacts in 2012 compared to 2004 reference case* Incremental Impacts in 2012 compared to 2004 reference case