Current U.S. Environmental Protection Agency Renewable Fuels ActivitiesSeptember 2006

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Recent Renewable Fuels Developments in U.S. Passage of the Energy Policy Act of 2005

Established a new national renewable fuels program (the Renewable Fuels Standard) to be implemented by EPA

President Bush’s State of the Union Speech Replace > 75 percent of Middle East oil imports by 2025 Make cellulosic ethanol cost competitive by 2012

State bans on MTBE going into affect Ethanol preferred alternative

Removal of the oxygen mandate for Reformulated Gasoline (RFG) Reduces need to add ethanol as an oxygenate

States continue to pass renewable fuel mandates and incentives

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Three areas of Federal activity Regulations to implement a renewable fuels

mandate Voluntary programs to encourage production

and use of renewable fuels with greatest potential environmental benefit

Research into fuel properties and emissions impacts

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Renewable Fuels Standard

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Proposed Regulations Signed September 7, 2006 Described in detail a program to assure the

required amount of renewable fuel used in the U.S. transportation sector

Assessed impacts Cost of producing and distributing renewable fuel Cost for reformulating fuel to accept the

renewable fuel and still meet fuel specifications Vehicle emissions impacts and lifecycle GHG

Final rule expected early 2007

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RFS--The Program Basics

EPA regulations must ensure the use of renewable fuelsused by transportation meet minimum volumes 2006: 4.0 billion gallons/yr 2007: 4.7 2008: 5.4 2009: 6.1 2010: 6.8 2011: 7.4 2012: 7.5 2013+: Same percent of renewables for 2012 (250

million gallons of which must be cellulosic ethanol)

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Proposed Rule…. Defines who are the liable parties

Refiners/blenders/importers

Establishes a credit trading program Not every gallon of gasoline has to contain renewables Not every refiner’s production has to contain renewables

Establish “appropriate” credit for different renewables 1.0 gallon of cellulosic ethanol worth 2.5 gallons of ethanol

from sugars or starch Other renewables (e.g. biodiesel) based on energy content compared to denatured ethanol

Provide for… Deficit carryover from one year to the next Small refiner exemptions during first five years

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Potentially Qualifying Renewable Fuels Ethanol

Corn Other Starches Cellulose Sugar

Biodiesel (ester) and Renewable Diesel Veg Oils and Animal Fats

ETBE

Others…

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Promoting Renewable Fuel Blends with the Greatest Environmental Benefit

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E-85 and Biodiesel Working to promote the use of E-85 and biodiesel through a

voluntary partnership program (involving automakers, oil refiners, fuels producers, fleet owners, states…)

This effort is designed to: Maximize the environmental benefits of these fuels Create a voluntary complement to the goals set forth in

the Renewable Fuels Standard Help meet the Administration’s goals of improving energy

security

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E - 85 E85 is a blend of 85% renewable ethanol and 15% gasoline Only specially-designed Flex Fuel Vehicles can run on E85

Benefits--Relative to Regular Gasoline Reduced petroleum consumption Decreased emissions of benzene, a harmful air toxic Reduced greenhouse gas emissions of approximately 20%

Benefits--Relative to E - 10 E-85 consumes over 8 times the ethanol, making it easier to meet the

RFS targets while reducing ethanol transportation and blending costs Reduced volatility and therefore reduced VOC and NOx emissions Potentially better energy efficiency (further distance driven per Btu)

5 million flex-fueled vehicles (FFVs) are on the road today Automakers are planning increased production volumes

However, only about 1% of current FFVs are fueled with E85…

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Expanding Use of E85 Lack of awareness

Many FFV drivers are not aware that their vehicle can run on E-85 Much of the general public is not aware of E-85’s environmental

and energy security benefits

Lack of infrastructure Only 600 out of approximately 170,000 gas stations in the US offer E-85 Most of these are independent stations concentrated in the

Midwest

Lack of an economic incentive Because of E-85’s reduced fuel economy (miles per gallon), it must

be priced significantly lower than gasoline Historically, E-85 prices have not been competitive, although higher

gas prices and increasing ethanol production will make E85 more competitive

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Biodiesel Renewable fuel derived from natural oils like soybean oil Can be used with petroleum based diesel fuel in existing diesel

engines

Benefits Significant reductions in PM, CO, and toxics

NOx increases of 10% for B100, although only 0.5% for B5 70.5% reduction in lifecycle GHG emissions (for every gallon of

petrodiesel displaced) For B5, GHG emissions are reduced by 3.5%

Adds cetane and lubricity Relatively easy to blend

But currently not cost competitive with petroleum diesel

EPA’s Focus “Low-blends” of biodiesel (B5-B20)

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Voluntary Program Efforts Address the barriers to using E-85 and biodiesel Form a partnership with automakers, petroleum

companies, fuels producers, corporate fleets, and states Raise consumer awareness of the benefits of E-85 and B5 Provide greater access to E-85 by increasing the number of

E85 fueling pumps available Help large corporate and state fleets convert a significant

portion of their vehicles to E85 Encourage FFV drivers, corporate fleets, and heavy-duty

diesel fleets to fuel with E-85 and/or biodiesel Increase the number of gallons of E-85 and biodiesel in the

fuel supply

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Research and Analysis Testing to determine emission impacts of

emerging renewable fuels, especially on latest technology engines Toxic emissions as well as criteria polutants

Lifecycle GHG emissions of various renewable fuels

Economic impacts (farmers, refiners, consumers)

Energy security benefits

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Contact Information

Robert Larson

Associate Director

Transportation and Climate Division

US Environmental Protection Agency

Email: Robert Larson/AA/USEPA/US@EPA