Document EqBamNE0oD4Jz0onE0mQMVLYR

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C. 20460 mm ll-fc OFRCE OF AIR AND RADIATION Ms, Tricia Braid Illinois Com Communications Director 14129 Carole Drive Bloomington, Illinois 61705 Dear Ms, Braid: Thank you for your letter of February 23,2018, on behalf of 19 signators to U.S. Environmental Protection Agency Administrator E, Scott Pruitt requesting that EPA adopt an updated analysis of the lifecycle greenhouse gas (GHG) emissions associated with com starch ethanol. The Administrator requested that 1respond on Ms behalf. The Office of Transportation and Air Quality is responsible for implementing the Renewable Fuel Standard (RFS) program, including evaluation of biofuel lifecycle GHG emissions. 'Your letter says that EPA's lifecycle analysis of com ethanol for the March 2010 Renewable Fuel Standard (RFS) rule (the "2010 LCA") is outdated and needs to be updated to reflect improvements in com and ethanol production. However, for many of the reasons alluded to in your letter, the direct impacts of modifying our com starch EGA on the RFS program may be quite limited due to the "grandfathering" exemptions and other definitions contained in the Clean Air Act (CAA): The vast majority of corn starch ethanol currently produced In the U.S. Is exempt from the 20 percent GHG reduction requirement to qualify as renewable fuel,1CAA 21 l(o)(2)(A )(i) and 40 CFR 80.1403(d) exempt from the GHG requirements renewable fuel produced at facilities that commenced construction after December 19, 2007, or at ethanol plants fired by natural gas or biomass that commenced construction prior to December 31,2009. * Modifying the 2010 LCA would have no direct Impact on the RFS status of existing ethanol plants,, even those that are not grandfathered, Under CAA 211(c)(4)(G), any change in analytical, methodology compared to the 2010 LCA, "shall only apply to renewable -fuel from facilities that commence construction after the effective date of such adjustment, revision, or change."1 1in 2017,14.86 billion RiNs were generated for conventional (D-code 6} ethanol. Technically, not all of this ethanol was produced from com starch (it could be from other starches such as sorghum). Of those 14,86 billion RiNs, 13.24 billion or 89% were generated using a grandfathered pathway. internet Address (URL) * http://www.epa.gov Recycied/Rocyciabis Printed with Vegetable Oil Cased Inks as Recycled Paper (Minimum Postconsumer content! Sierra Club v. EPA 18cv3472 NDCA Tier 3/4 ED 002061 00161532-00001 * T ie vast majority of corn starch ethanol already qualifies for tie only KFS fuel category for which it is eligible. The definition of advanced biofuel at CAA 211(o)(1)(B)(i) excludes "ethanol derived from com starch." As described above, a large volume of ethanol is exempt from the GIIG requirements to qualify as renewable fuel. Many producers who are expanding beyond their grandfathered baseline capacity have been approved under our expedited Efficient Producer Petition Process,2 While we appreciate the point raised in your letter that other countries may use EPA's analysis to justify tariffs or limit exports from the U.S., it is important to note that the 2010 LCA was designed to meet the requirements specified in the CAA. The CAA definition of lifecycle greenhouse gas emissions Includes "significant Indirect emissions such as significant emissions from, land use changes," The scenarios considered for the 2010 LCA were specifically designed to evaluate com starch ethanol used under the RFS program, and may not apply to other situations or policies. Other countries or jurisdictions reviewing EPA's 2010 LCA as part of their policy formation should do so carefully and appreciate its original purpose and scope. Your letter encourages EPA to adopt either "DOE/Argonne's latest published results or USDA's recently reported data." Both of these studies rely on the GTAP-BIO model to estimate indirect land use change (ILUC) GHG emissions associated with com ethanol, For many of the reasons described in the March 2010 rulemaking, we continue to believe there are important limitations of the GTAP-BIO model that make it Ill-suited for conducting the type of lifecycle analysis required under the CAA. We also note that the USDA report and the DOE/Argonne analyses used a different methodology than EPA's 2010 LCA, and it Is not clear whether those studies satisfy the definition of lifecycle GHG emissions required by the CAA, EPA continues to monitor the science regarding lifecycle GHG emissions associated with biofuels, Overall new research since the 2010 LCA has Improved our understanding of biofuel lifecycle GHG emissions, but given the inherent uncertainty associated with modeling of indirect emissions, the overall conclusions we can draw from this body of modelling have not changed. As we do lifecycle assessments for new fuel pathways, the most recent science and data tire incorporated where possible. For example, EPA has updated the analysis to reflect new data on forest carbon stocks, projected yields, and agricultural Inputs as appropriate. Our analyses have also incorporated advances in process technology efficiencies as biofuel facilities demonstrate improvements In their GHG emissions. Your letter states that EPA's forthcoming Triennial Report to Congress "offers a new opportunity" to update our LCA of corn ethanol The Agency is currently working to complete, in the spring of 2018, the report to Congress required under Section 204 of the Energy Independence and Security Act of 2007 (EISA). It Is too early to comment on the contents of the forthcoming report.1 1For more information on the Efficient Producer Petition Process, see: httos://www.ega.gov/renewabie-fei-sroducer-getition-under-rgnewabie-f'uei Sierra Club v. EPA 18cv3472 NDCA Tier 3/4 ED 002061 00161532-00002 Thank you for your continued interest in RFS program. Please do not hesitate to contact me if you have any questions regarding this matter. Sincerely, K arl Si/mon, Director Transportation and Climate Division Sierra Club v. EPA 18cv3472 NDCA Tier 3/4 ED 002061 00161532-00003