1. Applying Greenhouse Gas Emissions Lifecycle Assessment Jennifer L. Christensen WISE Intern 2009 August 5, 2009

2.  Introduction  Renewable Fuels Potential  Legislative History  EISA Lifecycle GGE Criteria  Lifecycle Assessment Methodologies  Lifecycle Assessment Application  EPA Proposed Rule Issues  EPA Recommendations  Federal Government Recommendations

3.  What is the current global environmental crisis?  Global warming and climate change  What can we do about it?  Reduce Greenhouse Gas Emissions (GGE)  Capitalize on GGE reduction potential in transportation sector ▪ 29% of total U.S. GGE in 2006

4.  Current Transportation Fuel:  Gasoline & Diesel ▪ Non-renewable: Fossil Fuel Feedstock ▪ Significant Environmental Impacts  Alternative Transportation Fuel:  Biofuels ▪ Renewable: Biomass Feedstock ▪ Fewer Potential Environmental Impacts

5.  Energy Policy Act (EPAct) of 2005  Created Renewable Fuel Standard (RFS) ▪ Mandated volumes maximizing at 7.5 billion gallons in 2012 ▪ Failed to address sustainability issues regarding increased biofuel production  Energy Independence and Security Act (EISA) of 2007  Modified RFS program ▪ Increased mandated volumes to 36 billion gallons in 2022 ▪ Addressed sustainability issues ▪ Defined renewable biomass ▪ Defined four biofuel categories depending on lifecycle GGE thresholds

6.  Lifecycle GGE Baseline:  2005 average of gasoline and diesel transportation fuels Biofuel Category Feedstock Definition Lifecycle GGE Reduction Criteria ConventionalCorn-based ethanol New: 20% Preexisting: None Cellulosic Derived from cellulose, hemicellulose, or lignin 60% Biomass-based Biodiesel _50% Advanced Anything other than conventional 50%

7.  Developed to assess the environmental impacts of a product or process from “cradle- to-grave”  Included phases:  Primary or direct  Secondary or indirect Source: “Biomass Program,” United States, Department of Energy, Energy Efficiency & Renewable Energy, 2009, 29 July 2009.

8.  Environmental Protection Agency (EPA)  Applied four steps of lifecycle assessment  Issued proposed rule in May 2009 Goal Definition & Scoping Inventory Analysis Impact Assessment Interpretation Source: United States, Environmental Protection Agency, Office of Research and Development, National Risk Management Research Laboratory, Life Cycle Assessment: Principles and Practice, By Scientific Applications International Corporation, May 2006: 4, 29 July 2009.

9.  General Lifecycle Assessment Standards:  International Organization for Standardization (ISO) ▪ ISO 14040:2006  Biofuel Specific Lifecycle Assessment Standards:  None; however, ▪ Global Bioenergy Partnership ▪ Roundtable on Sustainable Biofuels ▪ ISO committee for sustainable bioenergy

10.  Biofuels Pathway:  Mandated inclusion of significant indirect emissions ▪ Indirect land use change  Compared future scenarios in 2022 ▪ Reference Scenario: Business-as-Usual ▪ Control Scenario: EISA 2022 mandate volume  Analyzed marginal impact of increased biofuel production  Petroleum Baseline Pathway:  Mandated 2005 average for gasoline and diesel ▪ Direct emissions, but not indirect emissions  Did not analyze impact of increased biofuel production on petroleum market

11.  Fuel Equity  Inconsistent application of lifecycle assessment methodologies  Trade Equity  American farmer vs. International farmer  Commodity Equity  Inconsistent mandates across commodity markets Source: Zia Haq, personal interview, 24 July 2009.

12.  Direct Emissions:  Depend on scientific models ▪ Relatively straightforward ▪ Argonne National Laboratory’s GREET model  Indirect Emissions:  Depend on economic, as well as scientific models ▪ Unprecedented need to simulate changes in domestic and international agricultural sector ▪ Utilized a piecemeal approach of preexisting models

13.  Regarding RFS lifecycle GGE criteria:  Change petroleum baseline from 2005 average to allow for marginal comparison  Streamline other incentive programs to fund second and third generation biofuels  Regarding future policy decisions:  Utilize lifecycle assessment methodologies to make better rounded policy decisions  Request National Academies of Science to conduct report on this utilization

14.  Regarding EISA final rule:  Issue a statement addressing equity issue of comparing marginal biofuel impacts to average petroleum impacts  Continue to include indirect emissions in biofuel pathways according to scientific reasoning  Enhance modeling capability to reduce uncertainty ▪ Use scientific judgment on model assumptions ▪ Guard against preconceived policy initiatives to define certain assumptions

15.  Regarding future application of lifecycle assessment methodologies:  Partner with national & international stakeholders  Partner with fellow agencies ▪ Department of Energy & U.S. Department of Agriculture  Partner with American National Standards Institute to develop international standards

17. Source: United States, Environmental Protection Agency, Office of Transportation and Air Quality, Assessment and Standards Division, Draft Regulatory Impact Analysis: Changes to Renewable Fuel Standard Program May 2009: 405, 28 July 2009.