EPA Alternative Fuel Programs Update

Scott DavisAir Planning & Implementation Branch Chief

EPA Region 4-Atlanta, GA

A&WMA Southern Section ConferenceAugust 20, 2015

Overview of EPA Fuels Responsibilities

• Regulatory Responsibilities• Fuels and Vehicles

• Research, Development and Analysis• Success Story

• Voluntary Programs• Current activities in the Southeast

• EPA Headquarters activity on fuels is primarily through the Office of Transportation and Air Quality (OTAQ)

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Regulatory Responsibilities

• Clean Air Act gives EPA authority in a number areas• Fuel quality standards, fuel and additive registration• Vehicle certification – Conventional, Flex-fuel vehicles, and Alternative

fuel vehicles

• Fuel Economy Labels (joint regulation by EPA and National Highway Traffic Safety Administration (NHTSA)

• 2005 Energy Policy Act and 2007 Energy Independence and Security Act (EISA) provide EPA authority to:

• Implement the Renewable Fuel Standard (RFS1 and RFS2)• Perform studies on the emissions impact of renewable fuels

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Regulatory Fuels Definitions

• Alternative Fuels are understood to mean alternatives to traditional gasoline and diesel fuels, including:

• Gaseous Fuels – hydrogen, natural gas, propane• Alcohols – ethanol, methanol, butanol• Vegetable and waste-derived oils• Electricity

• Renewable Fuels are derived from renewable, non-petroleum sources such as crops, animal waste, or municipal solid waste.

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Fuel Economy Labels

• July 2011 rule by EPA and NHTSA was most dramatic overhaul to fuel economy labels since introduced 35 years earlier.

• Took effect starting with 2013 Model Year vehicles

• Provides information on vehicle’s fuel economy, energy use, fuel costs, and environmental impacts.

• Consumers can make comparisons – car by car – to help save on fuel costs and reduce emissions.

• Labels are being required for seven different vehicle technologies: • Gasoline,• diesel, • ethanol flexible fuel vehicles (FFV), • compressed natural gas vehicles (CNG) • battery electric vehicles (EV)• fuel cell vehicles (FCV)• and plug-in hybrid electric vehicles (PHEV)

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Electric Vehicle Label

• On December 14, 2012, EPA revised the primary (health-based) annual PM2.5 standard by lowering the level from 15.0 to 12.0 µg/m3

• U.S. Court of Appeals, D.C. Circuit issued its decision on May 9, 2014 regarding a lawsuit challenging the final PM NAAQS

• Court denied petitions for review on all accounts

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• Original RFS program began with the Energy Policy Act of 2005

• Energy Independence and Security Act (EISA) of 2007 significantly amended and expanded the program

• Statutes direct EPA to implement the program (key consultation roles for US Dept of Agriculture, Dept of Energy)

• The RFS is a national standard with 4 categories of renewable fuels

• EISA significantly increased the size of the program, boosting the long-term goal to 36 billion gallons of renewable fuel

• Yearly volume requirements out to 2022

• Explicit definitions for renewable fuels to qualify (e.g., GHG emissions)

• Inclusion of specific types of waiver authorities

Renewable Fuel Standard (RFS) Program

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• Biomass-Based Diesel: Minimum of 1 Bgal by 2012 and beyond– Must meet a 50% lifecycle GHG reduction threshold

• Cellulosic Biofuel: Minimum of 16 Bgal by 2022– Renewable fuel produced from cellulose, hemicellulose, or lignin– Must meet a 60% lifecycle GHG reduction threshold

• Advanced Biofuel: Minimum of 21 Bgal by 2022 (Minimum of 4 billion additional)– Essentially anything but corn starch ethanol– Must meet a 50% lifecycle GHG reduction threshold

• Total Renewable Biofuel: 36 Bgal by 2022 (Minimum of 15 Bgal additional)– Ethanol derived from corn starch – or any other qualifying renewable fuel – Must meet 20% lifecycle GHG reduction threshold - Only applies to fuel produced in new facilities

• Lifecycle GHG reduction comparisons are based on a 2005 petroleum baseline as mandated by EISA.

• NOTE: Existing biofuel facilities (domestic and foreign) are not required to meet GHG threshold for conventional biofuel category – facilities are “grandfathered”

EISA’s Four Fuel Categories

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Interaction Between the Four Standards

Biomass-Based Diesel Standard

Cellulosic Standard

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Renewable Fuel Standard (where we are now)

• Consent decree proposed on April 10, 2015, to settle deadline suits for EPA to issue annual RFS levels by statutory dates

• EPA would issue final annual volume standards for both 2014 and 2015

• EPA proposed volume standard requirements on June 1, 2015 • Proposed volume requirements for 2015• Re-proposed volume requirements for 2014 that reflect the volumes of

renewable fuel that were actually used in 2014• Proposed standards for 2016 in the same action• Proposed biomass-based diesel volume requirements for 2017

• Comment period closed on July 27, 2015

• Next: Finalize 2014, 2015 and 2016 standards by November 30, 2015 (also includes 2017 biomass-based diesel)

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Recent Activities & Background (2013-14)

EPA established statutory volumes up thru 2013 2014 brought a number of new issues EPA could not ignore

For the first time, EPA proposed adjustments to the total renewable fuel and advanced biofuel standards to address these market issues

EPA provided a strong indication that this would likely be the case when the Final 2013 RFS Rule was issued in August 2013

EPA’s stated intention was to put the RFS program on a manageable trajectory that will support continued growth in renewable fuels

Key issues included: Challenges with supplying more ethanol to the market than can be provided through

blending of 10% ethanol in gasoline (E10) - Blendwall Availability and Consumption of other blends or fuel types Availability of Advanced biofuels

Cellulosic Other Advanced

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THE 2014 RULEMAKING PROPOSED VOLUME REQUIREMENTS FOR THE RFS PROGRAM AND OUTLINED A POTENTIAL PATH FORWARD FOR 2014 AND BEYOND

THE PROPOSAL, ISSUED NOVEMBER 2013, WAS THE STARTING POINT IN SEEKING INPUT FROM THE PUBLIC EPA HELD A PUBLIC HEARING DECEMBER 2013 COMMENT PERIOD CLOSED AT THE END OF FEBRUARY 2014

THE PROPOSAL OFFERED A NUMBER OF APPROACHES AND RANGES OF VOLUMES IN SETTING THE 2014 STANDARDS

STAKEHOLDERS WEIGHED IN WITH WELL OVER 340,000 COMMENTS

DECEMBER 2014: AGENCY ANNOUNCED INTENTION TO TAKE ACTION ON 2014, 2015 AND LIKELY 2016 IN 2015

CONSENT DECREE ANNOUNCED APRIL 10, 2015

Recent Activities & Background (2013-14)

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2015 Consent Decree• The American Petroleum Institute (API) and the American Fuel and Petrochemical Manufacturers

(AFPM) filed suit over the delays in the Agency issuing the annual standards by the Statutory required dates

• April 10, 2015: EPA announced a proposed settlement with API and AFPM over deadlines for issuing The standards

– EPA received public comment on the terms of the settlement for 30 days before deciding whether to proceed with the settlement and seek entry of the consent decree

• Under the proposed consent decree EPA would issue final annual volume standards for both 2014 and 2015

– EPA proposed volume requirements for 2015 by June 1, 2015 and;– Will finalize 2014 and 2015 Standards (and resolve pending waiver petition for 2014) by November

30, 2015.– Comment period closed on July 27, 2015

• While not required Under the Proposed Consent decree, EPA also announced the volume standards rule will include the following elements in addition to the requirements of the consent decree:

– Re-propose volume requirements for 2014 that reflect the volumes of renewable fuel that were actually used in 2014.

– Finalize standards for 2016 in same action – EPA will also propose and finalize biomass-based diesel volume requirement for 2017

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Research, Development and Analysis

• Advanced Technology Development and Review (National Motor Vehicle and Fuel Lab in Ann Arbor, MI)

• Analysis – including life cycle assessment of renewable fuels and environmental and economic impacts of increased biofuel production

• EPA Success Story – the Hydraulic Hybrid Vehicle (HHV)• EPA partnered with UPS, Eaton Corp, International Truck and Engine Corp, US

Army-National Automotive Center and Morgan-Olson, with technical support from FEV Engine Technology and Southwest Research Institute.

• HHV operates on 2 power sources – fuel efficient diesel engine and advanced series hydraulic hybrid. Braking energy is stored in HHV accumulator and used to propel the vehicle.

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Hydraulic Hybrid

• EPA and its partners unveiled the innovative Hydraulic Hybrid (HH) technology in June 2006– the first-ever urban delivery van with a full series HH drivetrain in a UPS vehicle.

• UPS ordered 7 new HHVs in Oct 2008, eventually operating 20 in Atlanta and 20 in Baltimore beginning in 2012, achieving results of:

• 35% better fuel economy; • 30% or more reduction in carbon dioxide, a primary greenhouse gas; • Recouping additional cost for new HH technology in less than 3 years.

• HH yard hosteler was displayed by EPA in April 2009.• 2nd Generation HH drivetrain now used in 200 refuse trucks across US.• 3rd Generation HH technology planned for buses and medium duty

trucks in January 2016.

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Voluntary Programs – EPA HQ

• Several active voluntary programs to promote the use of cleaner alternative fuels and reduce emissions:

• (1) National Clean Diesel Campaign (EPA OTAQ)• Promotes clean air strategies by working with manufacturers, fleets, air

quality professionals, communities and state and local groups to reduce diesel emissions. One strategy is the use of cleaner fuels.

• Funded since 2005 through the Diesel Emissions Reduction Act (DERA)• Implemented through Regional Collaborative efforts.

• (2) SmartWay Transport Partnership (EPA OTAQ)• Work with ground freight industry to reduce fuel consumption and CO2

emissions and improve energy security

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Voluntary Programs – EPA Region 4

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• EPA Region 4 provides direct support to these programs here in the southeast:

• Southeast Diesel Collaborative

• Green Racing Program

GOAL: Improve air quality and public health by GOAL: Improve air quality and public health by reducing emissions from existing diesel engines.reducing emissions from existing diesel engines.

Southeast Diesel Collaborative

Southeast Diesel Collaborative (SEDC)

• Voluntary public and private partnership formed in 2006 (part of the NCDC), focused on clean diesel opportunities that incorporate Energy, the Environment and Economics

• Composed of over 900 partners from government, industry, state/local groups

• Focus Based strategy• Freight• Non-road• Public Fleets

• Includes broad support for alternative fuel projects across all sectors• Projects completed included biodiesel for construction and railyards, CNG trucking

and refuse fleets, propane for military equipment, and electric buses/airport equipment.

• August 18-19, 2015 held 10th Annual Partners Meeting

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SEDC Accomplishments

• Number of Projects: 477• Number Engines: over 54,000 engines• Emissions Reduced: approx. 826,000 tons of emissions

• NOx 37,000, VOC 4000, PM 3000, CO 12,000, CO2 770,000 [total tons of emissions]

• Children Impacted: over 14,000 buses and ~ 3 million children impacted through idle reduction and retrofits

• Funding• EPA Grants: ~ $76 million (DERA, ARRA, other Mobile Source related)• Partner Investment (leveraged): ~ $708 million

• GO to www.southeastdiesel.org for more information !!22

Green Racing: Background

2008: EPA, DOE, and Society of Automotive Engineers joined leaders in the auto industry, International Motorsports, and race team owners to develop a co-sponsorship and Green Racing Protocols.

Green Racing started in the American LeMans Series and is now part of the Tudor United Sports Car Championship.

Green Racing uses motorsports as a development tool and provides an incentive for the development, competition, and marketing of green technologies that are eventually used in consumer vehicles. o The race track is a proving ground (under extreme testing conditions) for alternative

technologies and renewable fuels that is easily transferred to production vehicles.o Ready-made audience/fan base to enable effective marketing and outreach.

Green Racing helps meet our environmental goals of reducing greenhouse gas and petroleum usage through new technologies and fuels: o High efficiency vehicles, lower friction components, perfection of diesel filters,

aerodynamic improvementso E10, E85, Cellulosic Ethanol, Biodiesel, Isobutanol fuels.

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Green Racing- Successand Collaboration

• Reaches millions of fans raising public awareness of vehicle technologies that improve fuel economy and help reduce greenhouse gas emissions while delivering a message that green can be exciting and fast.

• Green Racing Simulator (EPA/DOE consumer/youth education)

Recent Developments:• First overall race win by a hybrid car was in 2014: The Audi Diesel Hybrid won over

conventional entries.• Delta Wing- experimental entry demonstrated higher efficiency with half the weight,

half the aerodynamic drag, and half the power. Performs at level of traditional race cars, a consistent top finisher over last 2 years.

• Several teams have won races on E85 fuel.Upcoming EPA Region 4 Green Racing Support:• 2015 Series Championship at Petit LeMans (Road Atlanta) on Sept 30-Oct 3

• Outreach for programs promoting clean air and children’s health• Support pediatric cancer organization, school’s STEM education

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QUESTIONS ?

Scott DavisEPA Region 4, Atlanta, GAdavis.scottr@epa.gov (404) 562-9127

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