National Cottonseed Products Association Cottonseed Oil & the Renewable Fuel Standard RFS2 Background/History Renewable Fuels Standard (RFS) The Energy Independence & Security Act (EISA) of 2007 expanded the RFS to 36 billion gallons beginning in 2009 through 2022. Creates minimum use requirements for the following classes of renewable fuels: o Conventional Biofuels o Advanced Biofuels - Cellulosic Biofuels - Biomass-Based Diesel (including biodiesel) - Undifferentiated Advanced Biofuels (including biodiesel) RFS2 Schedule Volume in billions Conventional Advanced Year of gallons Biofuels Biofuels 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Undifferentiated Cellulosic Biomass-Based Advanced Total Biodiesel Biofuels Diesel Biofuels Potential (Biodiesel) (Biodiesel) (Biodiesel) 4.000 4.000 4.700 4.700 8.500 8.500 11.100 10.500 0.600 0.500 0.100 12.950 12.000 0.950 0.100 0.650 0.200 13.950 12.600 1.350 0.250 0.800 0.300 15.200 13.200 2.000 0.500 1.000 0.500 16.550 13.800 2.750 1.000 ≥1.000* 0.750 18.150 14.400 3.750 1.750 ≥1.000* 1.000 20.500 15.000 5.500 3.000 ≥1.000* 1.500 22.250 15.000 7.250 4.250 ≥1.000* 2.000 24.000 15.000 9.000 5.500 ≥1.000* 2.500 26.000 15.000 11.000 7.000 ≥1.000* 3.000 28.000 15.000 13.000 8.500 ≥1.000* 3.500 30.000 15.000 15.000 10.500 ≥1.000* 3.500 33.000 15.000 18.000 13.500 ≥1.000* 3.500 36.000 15.000 21.000 16.000 ≥1.000* 4.000 * Secretary determines minimum use allocation for "biomass-based diesel" 0.600 0.850 1.100 1.500 1.750 2.000 2.500 3.000 3.500 4.000 4.500 4.500 4.500 5.000 RFS2 Background Biodiesel must be from renewable biomass and have lifecycle greenhouse gas emissions, including direct and indirect (such as land use change) emissions, at least 50% less than petroleum. December 2007 - EISA passed January 1, 2009 – Date it was supposed to be effective May 2009 - EPA issued Proposed Rule February 2010 – EPA issued Final Rule July 1, 2010 – RFS2 program went into effect RFS2 Background EPA Final Rule biodiesel eligibility was confined to soybean oil and waste grease EPA used a range and median score to accommodate uncertainty around indirect land use change Other feedstocks required to petition EPA for eligibility and undergo a separate Life-Cycle Analysis (LCA) Canola oil was first additional feedstock to be approved; Canola LCA was 50.5% Palm oil still pending; initial LCA was 17% Cottonseed Status NCPA petition submitted to EPA in November 2011 Petition, as required, includes information on: o production, processing, and uses of cottonseed oil, meal, hulls, and linters o supply & demand for cotton & cottonseed products o biodiesel production from cottonseed oil o land use impacts, or lack thereof, of cottonseed biodiesel Cottonseed Status Recent Action: additional data requested, comments provided on EPA assumptions; EPA modifying models Next steps: meeting on assumptions, run models, preview results, NODA issued w/ 60 or 90 day comment period, submit comments, final rule. Enviro Groups: Canola experience and camelina Outlook Timeline for completion: June – EPA completes model runs, shares results, publishes NODA with 60 or 90 day comment period. August/September - comment period closes November/December – Final Rule issued