Under the Energy Independence and Security Act of 2007 (EISA), Congress created requirements for how much renewable fuel (corn ethanol, biomass-based diesel, cellulosic ethanol, and other "advanced "fuels) must be blended in the nation's petroleum supply.
Although the revision does not change the fact that 36 billion gallons of biofuels are required to be consumed in 2022, it does make two significant changes.
RFS is that lifecycle GHG emissions
First, one of the unique aspects of the RFS is that lifecycle GHG emissions of qualifying renewable fuel must be less than lifecycle GHG emissions of the 2005 baseline average gasoline or diesel fuel that it replaces.
According to Green Tech Media, "when the EPA originally calculated indirect land use, corn ethanol was found to have a higher carbon footprint than an equal gallon of gasoline - and thus would not qualify under the RFS. The corn ethanol lobby (i.e. Big Agriculture) cried foul and claimed that since there was no universally agreed upon methodology for evaluating indirect-land use effects, the EPA should shelve it. The corn ethanol lobby also mobilized their Republican and Democratic friends in Congress who subsequently threatened to pass laws taking away the EPA's power to regulate "indirect land use" effects in life-cycle greenhouse gas analysis."
Under the final determinations established Wednesday, the EPA ruled that corn ethanol produced from a "new or expanded capacity from an existing natural gas-fired facility using advanced efficient technologies" complies with the 20% GHG emission threshold.
Advanced Biofuels
While the EPA kept in place the target of 36 billion gallons of biofuel in 2022 (of which corn ethanol is not to exceed 15 billion gallons), it greatly reduced the amount of cellulosic ethanol required to be blended in 2010 (from 100 million gallons to 6.5 million gallons).
Cellulosic ethanol is a wonderful improvement over corn ethanol. There are a plethora of non-food based feedstocks that can be used (e.g. agricultural residues, woody biomass, municipal solid waste, etc) and lifecycle greenhouse gases are lower due to the ability to burn the lignin and co-generate electricity. Yet, the costs of producing a gallon of cellulosic ethanol still remains higher than corn ethanol, due to the expensive enzymes required for breaking down complex polysaccharides into simple sugars for fermentation. BUT...The industry is coming to market much slower than anticipated.
While GreenTechMedia expects the first commercial facility to go online in 2010 (Range Fuel's 20 MGY facility in Colorado), 2012 should be the year where a massive ramp up occurs (see GTM report Biofuels 2010: Spotting the Next Wave).