82_FR_34798 82 FR 34656 - Notice of Opportunity To Comment on an Analysis of the Greenhouse Gas Emissions Attributable to Production and Transport of Beta vulgaris ssp. vulgaris (Sugar Beets) for Use in Biofuel Production

82 FR 34656 - Notice of Opportunity To Comment on an Analysis of the Greenhouse Gas Emissions Attributable to Production and Transport of Beta vulgaris ssp. vulgaris (Sugar Beets) for Use in Biofuel Production

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 82, Issue 142 (July 26, 2017)

Page Range34656-34663
FR Document2017-15721

In this notice, the Environmental Protection Agency (EPA) is inviting comment on its analysis of the upstream greenhouse gas emissions attributable to the production of Beta vulgaris ssp. vulgaris (sugar beets) for use as a biofuel feedstock. This notice describes EPA's greenhouse gas analysis of sugar beets produced for use as a biofuel feedstock, and describes how EPA may apply this analysis in the future to determine whether biofuels produced from sugar beets meet the necessary greenhouse gas reduction threshold required for qualification as renewable fuel under the Renewable Fuel Standard program. This notice considers a scenario in which non-cellulosic beet sugar is extracted for conversion to biofuel and the remaining beet pulp co- product is used as animal feed. Based on this analysis, we anticipate that biofuels produced from sugar beets could qualify as renewable fuel or advanced biofuel, depending on the type and efficiency of the fuel production process technology used.

Federal Register, Volume 82 Issue 142 (Wednesday, July 26, 2017)
[Federal Register Volume 82, Number 142 (Wednesday, July 26, 2017)]
[Notices]
[Pages 34656-34663]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-15721]


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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2016-0771; FRL-9958-88-OAR]


Notice of Opportunity To Comment on an Analysis of the Greenhouse 
Gas Emissions Attributable to Production and Transport of Beta vulgaris 
ssp. vulgaris (Sugar Beets) for Use in Biofuel Production

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: In this notice, the Environmental Protection Agency (EPA) is 
inviting comment on its analysis of the upstream greenhouse gas 
emissions attributable to the production of Beta vulgaris ssp. vulgaris 
(sugar beets) for use as a biofuel feedstock. This notice describes 
EPA's greenhouse gas analysis of sugar beets produced for use as a 
biofuel feedstock, and describes how EPA may apply this analysis in the 
future to determine whether biofuels produced from sugar beets meet the 
necessary greenhouse gas reduction threshold required for qualification 
as renewable fuel under the Renewable Fuel Standard program. This 
notice considers a scenario in which non-cellulosic beet sugar is 
extracted for conversion to biofuel and the remaining beet pulp co-
product is used as animal feed. Based on this analysis, we anticipate 
that biofuels produced from sugar beets could qualify as renewable fuel 
or advanced biofuel, depending on the type and efficiency of the fuel 
production process technology used.

DATES: Comments must be received on or before August 25, 2017.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2016-0771, at http://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be edited or withdrawn from Regulations.gov. The EPA may publish any 
comment received to its public docket. Do not submit electronically any 
information you consider to be Confidential Business Information (CBI) 
or other information whose disclosure is restricted by statute. 
Multimedia submissions (audio, video, etc.) must be accompanied by a 
written comment. The written comment is considered the official comment 
and should include discussion of all points you wish to make. The EPA 
will generally not consider comments or comment contents located 
outside of the primary submission (i.e., on the web, cloud, or other 
file sharing system). For additional submission methods, the full EPA 
public comment policy, information about CBI or multimedia submissions, 
and general guidance on making effective comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Christopher Ramig, Office of Air and 
Radiation, Office of Transportation and Air Quality, Mail Code: 6401A, 
U.S. Environmental Protection Agency, 1200 Pennsylvania Avenue NW., 
Washington, DC 20460; telephone number: 202-564-1372; fax number: 202-
564-1177; email address: [email protected].

SUPPLEMENTARY INFORMATION: 
    This notice is organized as follows:

I. Introduction
II. Analysis of GHG Emissions Associated With Production and 
Transport of Sugar Beets for Use as a Biofuel Feedstock
    A. Overview of Beta vulgaris ssp. vulgaris (Sugar Beets)
    B. Analysis of Upstream GHG Emissions
    1. Methodology and Scenarios Evaluated
    2. Domestic Impacts
    3. International Impacts
    4. Feedstock Transport
    5. Results of Upstream GHG Lifecycle Analysis
    6. Fuel Production and Distribution
    7. Risk of Potential Invasiveness
III. Summary

I. Introduction

    Section 211(o) of the Clean Air Act establishes the renewable fuel 
standard (``RFS'') program, under which EPA sets annual percentage 
standards specifying the amount of renewable fuel, as well as three 
subcategories of renewable fuel, that must be used to reduce or replace 
fossil fuel present in transportation fuel, heating oil or jet fuel. 
With limited exceptions, renewable fuel produced at facilities that 
commenced construction after enactment of the Energy Independence and 
Security Act of 2007 (``EISA''), must achieve at least a twenty percent 
reduction in lifecycle greenhouse gas emissions as compared to baseline 
2005 transportation fuel. Advanced biofuel and biomass-based diesel 
must achieve at least a fifty percent reduction, and cellulosic biofuel 
must achieve at least a sixty percent reduction.
    As part of changes to the RFS program regulations published on 
March 26, 2010 \1\ (the ``March 2010 RFS rule'') to implement EISA 
amendments to the RFS program, EPA identified a number of renewable 
fuel production pathways that satisfy the greenhouse gas reduction 
requirements of the Act. Table 1 to 40 CFR 80.1426 of the RFS 
regulations lists three critical components of approved fuel pathways: 
(1) Fuel type; (2) feedstock; and (3) production process. In addition, 
for each pathway, the regulations specify a ``D code'' that indicates 
whether fuel produced by the specified pathway meets the requirements 
for renewable fuel or one of the three renewable fuel subcategories. 
EPA may independently approve additional fuel pathways not currently 
listed in Table 1 to 40 CFR 80.1426 for participation in the RFS 
program, or a party may petition for EPA to evaluate a new fuel pathway 
in accordance with 40 CFR 80.1416. Pursuant to 40 CFR 80.1416, EPA 
received petitions from Green Vision Group, Tracy Renewable Energy, and 
Plant Sensory Systems, submitted under

[[Page 34657]]

partial claims of confidential business information (CBI), requesting 
that EPA evaluate the GHG emissions associated with biofuels produced 
using sugar beets as feedstock, and that EPA provide a determination of 
the renewable fuel categories, if any, for which such biofuels may be 
eligible.
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    \1\ See 75 FR 14670.
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    EPA's lifecycle analyses are used to assess the overall GHG impacts 
of a fuel throughout each stage of its production and use. The results 
of these analyses, considering uncertainty and the weight of available 
evidence, are used to determine whether a fuel meets the necessary GHG 
reductions required under the CAA for it to be considered renewable 
fuel or one of the subsets of renewable fuel. Lifecycle analysis 
includes an assessment of emissions related to the full fuel lifecycle, 
including feedstock production, feedstock transportation, fuel 
production, fuel transportation and distribution, and tailpipe 
emissions. Per the CAA definition of lifecycle GHG emissions, EPA's 
lifecycle analyses also include an assessment of significant indirect 
emissions, such as indirect emissions from land use changes and 
agricultural sector impacts.
    This document describes EPA's analysis of the GHG emissions from 
feedstock production and feedstock transport associated with sugar 
beets when used to produce biofuel, including significant indirect 
impacts. This notice considers a scenario in which non-cellulosic beet 
sugar (primarily sucrose, glucose and/or fructose) is extracted for 
conversion to biofuel and the remaining beet pulp co-product is used as 
animal feed. As will be described in Section II, we estimate the GHG 
emissions associated with production and transport of sugar beets for 
use as a biofuel feedstock are approximately 45 kilograms of 
CO2-equivalent per wet short ton (kgCO2e per wet 
short ton) of sugar beets.\2\ Based on these results, we believe 
biofuels produced from sugar beets through recognized conversion 
processes could qualify as advanced biofuel and/or conventional (non-
advanced) renewable fuel, depending on the type and efficiency of the 
fuel production process technology used. EPA is seeking public comment 
on its analysis of greenhouse gas emissions related to sugar beet 
feedstock production and transport.
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    \2\ For purposes of this notice, we assume that sugar beets have 
an average moisture content of 76%. See Food and Agriculture 
Organization, 1999, ``Agribusiness Handbooks Vol. 4 Sugar Beets/
White Sugar'', http://www.responsibleagroinvestment.org/sites/responsibleagroinvestment.org/files/FAO_Agbiz%20handbook_White%20Sugar_0.pdf (Last Accessed: January 4, 
2017).
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    If appropriate, EPA will update this analysis based on comments 
received in response to this notice. EPA will use this updated analysis 
as part of the evaluation of facility-specific petitions received 
pursuant to 40 CFR 80.1416 that propose to use sugar beets as a 
feedstock for the production of biofuel.\3\ Based on this information, 
EPA will determine the GHG emissions associated with petitioners' 
biofuel production processes, as well as emissions associated with the 
transport and use of the finished biofuel. EPA will combine these 
assessments into a full lifecycle GHG analysis used to determine 
whether the fuel produced at an individual facility satisfies the CAA 
GHG emission reduction requirements necessary to qualify as renewable 
fuel or one of the subcategories of renewable fuel under the RFS 
program.
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    \3\ Assuming the fuel pathway proposed in such petitions involve 
extraction of non-cellulosic beet sugar for conversion to biofuel 
and use of the resulting beet pulp co-product as animal feed.
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II. Analysis of GHG Emissions Associated With Production and Transport 
of Sugar Beets for Use as a Biofuel Feedstock

A. Overview of Beta vulgaris ssp. vulgaris (Sugar Beets)

    Beta vulgaris ssp. vulgaris, (commonly known as sugar beets) of the 
order Caryophylalles, is a widely cultivated plant of the Altissima 
group. Sugar beets are cultivated for their high percentage 
concentration of sucrose in their root mass. Domestication of the plant 
group took place approximately 200 years ago in Europe to selectively 
breed for sugar content from crosses between Beta vulgaris cultivars, 
including chard plants and fodder beets.\4\
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    \4\ Juliane C. Dohm et al., ``The Genome of the Recently 
Domesticated Crop Plant Sugar Beet (Beta Vulgaris),'' Nature 505, 
no. 7484 (January 23, 2014): 546-49.
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    Sugar beets are a biennial crop species grown across a wide 
tolerance of soil conditions in areas of temperate climate, and tend to 
be grown in rotation with other plant varieties.\5\ Sugar beets are 
grown for their relatively high sugar content, approximately 13 to 18 
percent of the plant's total mass, with around three quarters of the 
plant mass comprised of water.\6\ Once harvested, sugar beets are 
highly perishable and need to be processed in a short period of 
time.\7\
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    \5\ Michael J. McConnell, ``USDA ERS--Background,'' Crops Sugar 
& Sweeteners Background, October 12, 2016, http://www.ers.usda.gov/topics/crops/sugar-sweeteners/background/.
    \6\ FAO, ``Sugar Crops and Sweeteners and Derived Products,'' 
accessed November 30, 2016, http://www.fao.org/es/faodef/fdef03e.HTM.
    \7\ Michael J. McConnell, ``USDA ERS--Policy,'' USDA ERS--
Policy, November 1, 2016, https://www.ers.usda.gov/topics/crops/sugar-sweeteners/policy.aspx.
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    According to the U.S. Department of Agriculture (USDA), the largest 
region for sugar beet production is the area of the Red River Valley of 
western Minnesota and eastern North Dakota, and sugar beets are 
commonly grown at agricultural scale across five regions of the 
country, encompassing 11 states.\8\ Western regions tend to require 
more irrigation while sugar beets grown in the eastern U.S. region make 
greater use of natural rainfall.\9\
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    \8\ Michael J. McConnell, ``USDA ERS--Background.''
    \9\ Michael J. McConnell, ``USDA ERS--Background.''
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    Since the mid-1990s, sugar beets have accounted for about 55 
percent of sugar production in the U.S.\10\ Sugar beets are included in 
the U.S. sugar program, designed to support domestic sugar prices 
through loans to sugar processors. The U.S. sugar program also includes 
a marketing allotment that sets the amount of sugar that domestic 
processors can sell in the U.S. for human consumption, and provides 
quotas on the amount of sugar that can be imported into the U.S.\11\ 
Sugar produced under the program cannot be used for biofuel purposes 
with an exception for surplus sugar made available under the USDA 
Feedstock Flexibility Program that specifically directs the excess 
sugar to be used for the purpose of domestic biofuel production.\12\
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    \10\ Michael J. McConnell, ``USDA ERS--Background.''
    \11\ The U.S. sugar program is managed by USDA and supports 
domestic sugar prices through loans to sugar processors, a marketing 
allotment program, and quotas on the amount of sugar that can be 
imported to the U.S. Farm Security and Rural Investment Act of 2002. 
Public Law 107-171, Sec. 1401-1403.
    \12\ ``Feedstock Flexibility Program,'' page, accessed November 
17, 2016, https://www.fsa.usda.gov/programs-and-services/energy-programs/feedstock-flexibility/index.
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    Like other sugars, beet sugar can be fermented and used as a 
feedstock for biofuel production. The non-cellulosic sugars of sugar 
beets, the vast majority of which is sucrose, can be converted directly 
into a refined sugar available for processes such as alcoholic 
fermentation to produce biofuels (e.g., ethanol).\13\ Much of the water 
needed

[[Page 34658]]

for the fermentation process is provided by the sugar beets themselves. 
Sugar beet pulp is a fibrous co-product of the beet sugar extraction 
process.\14\ The sugar beet pulp is often dried to reduce 
transportation costs and is widely sold as feed supplement for cattle 
and other livestock.\15\ While biofuel production from beet sugar has 
historically been limited in the U.S., sugar beets accounted for about 
17 percent of European ethanol production in 2014.\16\
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    \13\ Dr. Hossein Shapouri, Dr. Michael Salassi, and J. Nelson 
Fairbanks, ``The Economic Feasibility of Ethanol Production from 
Sugar in the United States'' (USDA, July 2006), http://www.usda.gov/oce/reports/energy/EthanolSugarFeasibilityReport3.pdf.
    \14\ Eggleston, Gillian et al., ``Ethanol from Sugar Crops.'' 
In, Singh, Bharat P., Industrial Crops and Uses. CABI, 2010, pp. 74-
75.
    \15\ Greg Lardy, ``Feeding Sugar Beet Byproducts to Cattle,'' 
accessed November 30, 2016, https://www.ag.ndsu.edu/publications/livestock/feeding-sugar-beet-byproducts-to-cattle.
    \16\ ePURE, ``European Renewable Ethanol--Key Figures,'' 
accessed November 17, 2016, http://epure.org/media/1227/european-renewable-ethanol-statistics-2015.pdf.
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B. Analysis of Upstream GHG Emissions

    EPA evaluated the upstream GHG emissions associated with using 
sugar beets as a biofuel feedstock based on information provided by 
USDA, petitioners, and other data sources. Upstream GHG emissions 
include emissions from production and transport of sugar beets used as 
a biofuel feedstock. The methodology EPA used for this analysis is 
generally the same approach used for the March 2010 RFS rule for 
lifecycle analyses of several other biofuel feedstocks, such as corn, 
soybean oil, and sugarcane.\17\ The subsections below describe this 
methodology, including assumptions and results of our analysis.
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    \17\ The March 2010 RFS rule preamble (75 FR 14670, March 26, 
2010) and Regulatory Impact Analysis (RIA) (EPA-420-R-10-006) 
provide further discussion of our approach. These documents are 
available online at https://www.epa.gov/renewable-fuel-standard-program/renewable-fuel-standard-rfs2-final-rule-additional-resources.
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1. Methodology and Scenarios Evaluated
    The analysis EPA prepared for sugar beets used the same set of 
models that were used for the March 2010 RFS rule, including the 
Forestry and Agricultural Sector Optimization Model (FASOM) developed 
by Texas A&M University for domestic impacts, and the Food and 
Agricultural Policy and Research Institute international models as 
maintained by the Center for Agricultural and Rural Development (FAPRI-
CARD) at Iowa State University for international impacts. For more 
information on the FASOM and FAPRI-CARD models, refer to the March 2010 
RFS rule preamble (75 FR 14670) and Regulatory Impact Analysis 
(RIA).\18\ Several modifications were made to the domestic and 
international agricultural economic modeling that differed from 
previous analyses in order to accurately represent the U.S. sugar 
program.\19\ Memoranda to the docket include detailed information on 
model inputs, assumptions, calculations, and the results of our 
assessment of the upstream GHG emissions for sugar beet biofuels.\20\ 
We invite comments on the scenarios and assumptions used for this 
analysis, in particular on the key assumptions described in this 
section.
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    \18\ The March 2010 RFS rule preamble (75 FR 14670, March 26, 
2010) and Regulatory Impact Analysis (RIA) (EPA-420-R-10-006) 
provide further discussion of our approach. These documents are 
available online at https://www.epa.gov/renewable-fuel-standard-program/renewable-fuel-standard-rfs2-final-rule-additional-resources.
    \19\ These differences are discussed further in Sections II.D.2 
and II.D.3 below.
    \20\ The memoranda and modeling files are available in the 
docket. EPA-HQ-OAR-2016-0771.
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    Sugar beets grown under the U.S. sugar program cannot be used for 
the purpose of biofuel production, except under very limited conditions 
specified in the Feedstock Flexibility Program.\21\ Therefore, for this 
analysis, EPA assumed that there would be no change in sugar production 
on U.S. sugar program-designated acres because of demand for beet sugar 
for biofuel feedstock use.\22\ In our modeling, growers selling sugar 
beets to sugar processors under the U.S. sugar program in the control 
case continued to do so regardless of new demand for sugar beets as a 
biofuel feedstock in the test case. As a result of this assumption, in 
our modeling, demand for acreage to grow sugar beets for biofuel 
feedstock could only be fulfilled by converting acres from other crops 
besides sugar beets, and/or from other land uses besides crop 
production (e.g., pastureland, Conservation Reserve Program land).
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    \21\ Harry Baumes, et al. (USDA), ``Summary of Discussions 
Between US EPA and USDA Regarding Sugar Beets.''
    \22\ The U.S. sugar program designates acres of land used to 
grow sugar beets sold to domestic sugar processors who receive price 
support loans and are regulated by USDA market allotments under the 
program.
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    Our analysis also considers the significant restrictions on the 
trade of sugar beets between the U.S. and other countries. The U.S. 
does not export beet sugar, as this would violate the terms of 
participation in the sugar program. While the U.S. does import cane 
sugar under international agreements, it does not import raw beet 
sugar.\23\ Beet sugar may only enter the U.S. as refined sugar from 
Canada or Mexico under the North American Free Trade Agreement (NAFTA) 
and similar trade agreements, or as components of sugar-containing 
products.\24\ This quantity is strictly regulated. EPA is unaware of 
existing trade agreements that would allow raw beet sugar imports for 
any purpose, including biofuel production. This makes it unlikely that 
beet sugar would be imported for use as biofuel feedstock.
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    \23\ The international agreements that allow for sugar import to 
the U.S. are primarily governed by NAFTA and the Uruguay Round 
Agreement on Agriculture, but also by CAFTA. See USDA's Web site on 
the Sugar Import Program for more details: https://www.fas.usda.gov/programs/sugar-import-program (Last accessed December 30, 2016).
    \24\ Mark A. McMinimy, ``U.S. Sugar Program Fundamentals,'' 
April 6, 2016, https://fas.org/sgp/crs/misc/R43998.pdf.
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    Although sugar beets were modeled as grown in the U.S., we also 
intend that this analysis would cover sugar beets grown and processed 
into biofuels from other countries and imported to the U.S. as finished 
biofuel. We expect the vast majority of beet sugar-based biofuel used 
in the U.S. will come from sugar beets produced in the U.S., and 
incidental amounts of fuel from crops produced in other nations will 
not impact our average GHG emissions. Sugar beets require similar 
climatic regions as those where they are grown in the U.S., and would 
similarly impact crops such as wheat in those regions while sugar beet 
pulp would displace corn as livestock feed. Therefore, EPA interprets 
this upstream analysis as applicable, regardless of the country of 
origin assuming that sugar beet pulp is used as a livestock feed 
supplement.
    To assess the impacts of an increase in sugar beet demand for 
renewable fuel production, EPA modeled two scenarios: (1) A control 
case with ``business-as-usual'' assumptions \25\ and no biofuel 
production from sugar beets

[[Page 34659]]

and (2) a sugar beet biofuel case where 300 million ethanol-equivalent 
gallons of biofuels are assumed to be from beet sugar in 2022, 
requiring the use of 12 million wet short tons of sugar beets for 
biofuel production. The analysis presented in this notice considered 
all GHG emissions associated with the cultivation and production of 
sugar beets intended for biofuel feedstock use, as well as emissions 
from transporting these sugar beets to a biofuel production facility. 
In lifecycle analysis literature these emissions are often referred to 
as the ``upstream'' emissions, because they occur upstream of the fuel 
production facility (i.e., before the biofuel feedstock arrives at that 
facility).
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    \25\ To assess the impacts of an increase in renewable fuel 
volume from business-as-usual (what is likely to have occurred 
without the RFS biofuel mandates) to levels required by the statute, 
we established a control case and other cases for a number of 
biofuels. The control case included a projection of renewable fuel 
volumes that might be used to comply with the RFS renewable fuel 
volume mandates in full. The case is designed such that the only 
difference between the scenario case and the control case is the 
volume of an individual biofuel, all other volumes remaining the 
same. In the March 2010 RFS rule, for each individual biofuel, we 
analyzed the incremental GHG emission impacts of increasing the 
volume of that fuel from business as usual levels to the level of 
that biofuel projected to be used in 2022, together with other 
biofuels, to fully meet the CAA requirements. Rather than focus on 
the GHG emissions impacts associated with a specific gallon of fuel 
and tracking inputs and outputs across different lifecycle stages, 
we determined the overall aggregate impacts across sectors of the 
economy in response to a given volume change in the amount of 
biofuel produced. For this analysis, we compared impacts in the 
control case to the impacts in a new sugar beets case. The control 
case used for the March 2010 RFS rule, and used for this analysis, 
has zero gallons of sugar beet biofuel production.
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    The analysis presented in this notice does not include fuel 
production or ``downstream'' emissions, which consists of emissions 
associated with fuel transport and fuel combustion. Once comments on 
the upstream emissions described in this notice have been considered, 
we intend to combine the upstream analysis with the fuel production and 
downstream emissions associated with fuel produced at an individual 
biofuel facility to determine the lifecycle GHG emissions associated 
with that fuel. This lifecycle analysis would reflect any differences 
in emissions that may exist between producing different types of 
biofuels from sugar beets. Our analysis of the upstream emissions 
associated with sugar beets assumed that non-cellulosic sugars are 
extracted from the beets before the sugars are converted, and that the 
beet pulp would then be sold into feed markets. Fuel production methods 
that also convert the pulp into fuel (e.g., through pyrolysis of the 
beet) or use the pulp for other purposes may not be compatible with 
this analysis.
    We evaluated a scenario with biofuels produced from this amount of 
sugar beets for multiple reasons. Although biofuel production from 
sugar beets is currently small in the U.S., recent trends in domestic 
sugar beet yields and acreage indicate that 12 million wet short tons 
of sugar beets could be produced as biofuel feedstocks if a significant 
market demand emerged. An additional 12 million wet short tons of sugar 
beets would represent a 34 percent increase in U.S. sugar beet 
cultivation compared to 2015 levels.\26\ According to USDA data, 
harvested acres of sugar beets since 2010 were, on average, about 30 
percent lower than their most recent peak levels in the 1990s, an 
average difference of approximately 360,000 harvested acres.\27\ 
Increasing beet yields over time has reduced the number of acres needed 
to satisfy production targets under the U.S. sugar program.\28\ 
National average sugar beet yields since 2010 have been approximately 
25 percent higher than yields during the 1990s, and reached almost 31 
wet short tons per acre in the 2015 crop year.\29\ Were beet acres to 
return to their 1990s peak, the additional approximately 360,000 
harvested acres would produce about 11.2 million wet short tons of 
beets at these 2015 yield levels. However, based on the steady increase 
in yields over time, it seems likely that beet yields will continue to 
increase between now and 2022. If national average beet yields reach at 
least 33.4 wet short tons per acre by 2022, a fairly modest increase of 
about 8 percent over 2015 levels, an additional 12 million wet short 
tons of beets could be produced on these additional 360,000 acres. 
Since further expansion of beet area beyond the historical peak is also 
possible, an increase in beet production of 12 million wet short tons 
appears to be very feasible. We welcome comment on this assumption.
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    \26\ See, USDA, ``Sugarbeet Area and Planted Harvested Yield and 
Production States and United States 2013-2015,'' in Crop Production 
2015 Summary, January 2016, ISSN: 1057-7823, http://usda.mannlib.cornell.edu/usda/current/CropProdSu/CropProdSu-0112-2016.pdf. This assumes an ethanol conversion rate of 25 gallons of 
ethanol/wet short ton of beets.
    \27\ USDA, ``NASS Quick Stats'', https://quickstats.nass.usda.gov (Last Accessed: November 16, 2016).
    \28\ USDA, ``NASS Quick Stats'', https://quickstats.nass.usda.gov (Last Accessed: November 16, 2016).
    \29\ USDA, ``NASS Quick Stats'', https://quickstats.nass.usda.gov (Last Accessed: November 16, 2016).
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    In our analysis, FASOM allowed for sugar beet production in all 
areas of the continental 48 states where sugar beets had been grown 
historically, including states and areas that do not currently take 
part in the U.S. sugar program. The model was allowed to determine 
which of these regions would be optimal for growing sugar beets for 
biofuel feedstock, based on least cost of production and transport, and 
considering the opportunity cost of using that land for other uses 
(e.g., to produce other crops, grazing, forestry). The factors that 
contributed to these crop production choices include crop yield, input 
quantities, and growing strategies.
    Following the methodology established in the March 2010 RFS rule, 
EPA used the FAPRI model to evaluate the international impacts of 
producing and transporting 12 million wet short tons of sugar beets for 
biofuel production in the U.S. The FAPRI model included a 
representation of the U.S. sugar program, and modeled domestic sugar 
production as a function of this program. Production and consumption 
levels in the U.S. were set according to the parameters of the sugar 
program and were not affected by market forces. Because the existing 
U.S. sugar production module in FAPRI did not respond to market forces, 
for modeling purposes EPA had to make assumptions regarding in which 
regions sugar beets for biofuel feedstock use would be grown. Crop 
yields and the quantity of crop area displaced by expanded sugar beet 
production also had to be set by assumption, since the U.S. sugar 
module in FAPRI lacks market forces to create demand-pull for new beet 
acres. In order to derive the quantity of crop area displaced, EPA used 
a crop yield of approximately 26 wet short tons per acre, the 10-year 
national average yield for sugar beets (for crop years 2005 through 
2014).\30\ Actual yields on any given acre may be higher or lower than 
this assumed value, based on factors such as location, annual variation 
in growing conditions, growing practices, and crop rotation strategies. 
Because the FAPRI analysis assumed to displace acres in North Dakota 
and California, we did not believe that it was appropriate to use the 
USDA 2022 national average projections for sugar beets yield. As an 
alternative, EPA believes using the 10-year national average was a 
reasonable assumption for our international agricultural sector 
modeling. The increase in sugar yield trends over the last few decades 
suggests that future yields are unlikely to be lower than the 10-year 
average. As further support for our yield assumptions in FAPRI, we note 
that FASOM projected sugar beet yields in 2022 that are close to the 
assumptions used in FAPRI.\31\ We welcome comment on this assumption.
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    \30\ USDA, ``NASS Quick Stats'', https://quickstats.nass.usda.gov (Last Accessed: November 16, 2016).
    \31\ See ``Sugar Beets for Biofuel Upstream Analysis Technical 
Memorandum'' in the docket for details. EPA-HQ-OAR-2016-0771.
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    For the purposes of FAPRI modeling, EPA assumed that sugar beets 
for fuel use would be produced in equal amounts in North Dakota and 
California for the following reasons: At the onset of our analysis, 
these were the regions with indications of significant sugar beet 
biofuel interest.\32\ They are also

[[Page 34660]]

both regions with a long history of sugar beet production. As a 
simplifying assumption, EPA assumed that all crops grown in each of 
these regions were displaced by sugar beets proportionally to their 
crop area in the control case. We recognize there are significant 
differences in the way the sugar beet biofuel scenarios were 
implemented in FASOM and FAPRI for this analysis. For example, FASOM 
chose to produce all sugar beets for biofuels in North Dakota, whereas 
in FAPRI we modeled this production in North Dakota and California by 
assumption. Since these modeling exercises occurred concurrently, not 
sequentially, we could not anticipate what choices FASOM would make at 
the outset of our FAPRI modeling. This led to some differences in the 
regions utilized to produce beets. However, the nationwide agricultural 
market results projected by FASOM and FAPRI were similar, due to 
similar dominant trends in feed markets and crop exports at the 
national level. The similarity of these relevant national market 
results between the two models, despite differences in U.S. growing 
regions, indicates that the international impacts projected by the 
FAPRI model would not have been significantly different if we had 
applied the growing assumptions from FASOM. These results are discussed 
below and are available in the docket for this notice.\33\ We welcome 
comment on these assumptions and our results.
---------------------------------------------------------------------------

    \32\ At the time of this modeling we had received the petitions 
from Green Vision Group proposing to produce ethanol from sugar 
beets grown in North Dakota and Tracy Renewable Energy proposing to 
produce ethanol from sugar beets grown in California but we had not 
received the petition from Plant Sensory Systems proposing to 
produce ethanol from sugar beets grown in Florida. EPA does not 
expect results would have varied significantly if sugar beets had 
been modeled by assumption in Florida under FAPRI due to the 
similarity of these results to the results from FASOM.
    \33\ See EPA-HQ-OAR-2016-0771.
---------------------------------------------------------------------------

    The sugar beet scenario modeled included a number of key 
assumptions, such as biofuel and pulp yields per wet short ton of 
beets, and the amount of corn livestock feed displaced per pound of 
pulp. These key assumptions are discussed below. Information on 
additional assumptions, including sugar beet crop inputs (e.g., 
fertilizer, energy) is available in the docket for this notice.
    In conducting research for this analysis, we located sources for 
beet pulp yield of 0.06 dry short tons of sugar beet pulp per wet short 
tons of sugar beets \34\ and displacement rates of 0.9 pounds of corn 
feed displaced in cattle diets \35\ for every pound of sugar beet pulp. 
In livestock production, the fibrous sugar beet pulp is used as a 
roughage replacement making it of use primarily for ruminants rather 
than other types of livestock.\36\ In our analysis, sugar beet pulp use 
by the livestock market was an important factor leading to GHG 
reductions. Therefore this notice evaluates only using the non-
cellulosic portion of sugar beets for biofuel production.
---------------------------------------------------------------------------

    \34\ Panella, Lee and Stephen R. Kaffka, ``Sugar Beet (Beta 
vulgaris L) as a Biofuel Feedstock in the United States.'' Chapter 
10 in Sustainability of the Sugar and Sugar Ethanol Industries; 
Eggleston, G.; ACS Symposium Series; American Chemical Society: 
Washington DC, 2010, pp. 165.
    \35\ To make a simplifying assumption, we averaged the value 
from corn in backgrounding diets and finishing diets. Lardy, Greg, 
and Rebecca Schafar, ``Feeding Sugar Beet Byproducts to Cattle,'' 
North Dakota State University, May 2008, pp. 2.
    \36\ Harry Baumes, et al. (USDA), ``Summary of Discussions 
Between US EPA and USDA Regarding Sugar Beets''.
---------------------------------------------------------------------------

2. Domestic Impacts
    On the basis of least cost, FASOM chose to grow all sugar beets in 
North Dakota, with approximately 477,000 acres of land required to grow 
the additional sugar beets.
    The vast majority of the new sugar beet acres in North Dakota was 
from displacement of other crops rather than from new cropland (432,000 
acres from displaced crops, or nearly 91 percent of needed acres). 
Increasing sugar beet production in North Dakota primarily displaced 
wheat acreage, but also soybeans, corn, and hay among other crops.\37\ 
Most of these displaced crops shifted to other U.S. regions, and some 
crops, such as soybeans, shifted to new acreage that was more 
productive than the North Dakota acres from where they were displaced. 
Table II.1 indicates that production levels for hay, soy, and most 
other crops are maintained.\38\ However, national crop area and 
production for wheat and corn declined significantly.
---------------------------------------------------------------------------

    \37\ See ``FASOM Sugar Beets Results'' in the docket. EPA-HQ-
OAR-2016-0771.
    \38\ Soy is captured in the ``All Else'' category in Table II.1. 
See ``FASOM Sugar Beets Results'' in the docket EPA-HQ-OAR-2016-0771 
for more detail.

  Table II.1--Changes in U.S. Production (Million Pounds) and Harvested
       Area (Thousand Acres) in 2022 Relative To Control Case \39\
------------------------------------------------------------------------
                                                          Harvested area
                                            Production       difference
                                            difference     from control
                                           from control        case
                                          case  (million     (thousand
                                              pounds)         acres)
------------------------------------------------------------------------
Sugar Beets.............................         +23,976            +477
Hay.....................................              +8            -106
Corn....................................            -867             -96
Wheat...................................            -352             -98
All Else................................              +3             -56
                                         -------------------------------
    Total...............................         +22,768            +121
------------------------------------------------------------------------

    The reductions in corn and wheat production were driven by 
different proximate causes (though both were ultimately driven by 
increased demand for sugar beets) and led to somewhat different impacts 
on commodity use and trade. In the case of wheat, the decline in 
production led to a decline in exports. As shown in Section II.B.3, the 
decline in wheat exports created pressure on international wheat 
markets and wheat production increased outside the U.S.
---------------------------------------------------------------------------

    \39\ Totals may differ from subtotals due to rounding.
---------------------------------------------------------------------------

    In the case of corn, the potential market impacts were mitigated by 
the increased availability of sugar beet pulp into U.S. feed markets as 
a result of beet sugar biofuel production. As described in Section 
II.A, sugar beet pulp is a co-product used as livestock feed 
supplement, mainly substituting for corn. Based on the FASOM results 
for 2022, approximately 1.4 billion pounds of sugar beet pulp were 
produced and sent to the feed market. In turn this displaced 
approximately 1.2 billion pounds of corn, which was significantly 
greater than the approximately 867 million pounds of corn production 
lost to displaced acres. This led to a decrease in total demand for 
corn in U.S. markets and, as a result, U.S. exports of corn increased. 
As discussed in Section II.B.3 below, this reduced the price of corn 
internationally and lessened the demand pull for corn to be grown in 
other countries.
    The rest of the needed sugar beet acres in North Dakota, 
approximately 46,000 acres, came from new cropland, particularly from 
cropland pasture (high-value pasture land that can also be utilized as 
cropland with minimal preparation) and from acres that would otherwise 
take part in the Conservation Reserve Program. Pasture area rose 
modestly in some other states causing the conversion of some forest 
acres to pasture. This relatively small decrease in forestland pushed 
up prices slightly for forest products, leading foresters to intensify 
growth on their stands. Relative to other feedstocks EPA has evaluated 
for the RFS program, these domestic shifts in land use were minor, and 
after the various land use changes were considered the net domestic 
land use change emissions impacts were close to zero.
3. International Impacts
    In the FAPRI model, the expansion of sugar beet cropland used to 
produce biofuel feedstock also led to increases in corn exports and 
decreases in wheat exports. Similar to the drivers of the

[[Page 34661]]

domestic results discussed in Section II.B.2, beet production displaced 
wheat acres, but the beet pulp co-product reduced domestic demand for 
corn. Further, the magnitude of these export impacts was quite similar 
between the two models, as shown in Table II.2 below.\40\
---------------------------------------------------------------------------

    \40\ Impacts on the exports of other crops were relatively 
minor, but interested readers can examine the full set of FAPRI crop 
trade impacts in the docket.

 Table II.2--Changes in U.S. Corn and Wheat Exports in 2022 Relative To
                          Control Case by Model
                            [Million pounds]
------------------------------------------------------------------------
                                            Difference      Difference
                                           from control    from  control
                                          case in  FASOM   case in FAPRI
------------------------------------------------------------------------
Corn....................................            +307            +355
Wheat...................................            -292            -281
------------------------------------------------------------------------

    With sugar beet pulp displacing corn feed, FAPRI modeling indicated 
that in 2022, both corn production and acreage would decline globally. 
Production outside the U.S. of certain other crops however increased in 
response to U.S. increasing demand for sugar beets; most significantly 
wheat and soybeans. Wheat increased internationally in terms of both 
production and acreage, with a strong response particularly in India. 
Soybean acres and production also increased, particularly in Brazil. 
Table II.3 below summarizes the non-U.S. increases in harvested area by 
crop type, while Table II.4 shows which countries had the largest 
impacts.

 Table II.3--Non-U.S. Harvested Area by Crop in 2022 Relative To Control
                                  Case
                          [Thousand acres] \41\
------------------------------------------------------------------------
                                                            Difference
                                                           from control
                                                               case
------------------------------------------------------------------------
Sugar Beets.............................................               0
Corn....................................................             -45
Wheat...................................................             +43
Soybeans................................................             +20
All Else................................................             +37
                                                         ---------------
    Total...............................................             +55
------------------------------------------------------------------------

    As increasing sugar beet pulp use for livestock feed in the U.S. 
freed up more corn for export, international livestock feed prices 
declined modestly, and with it was a small rise in meat production 
globally. Many of these changes occurred in Brazil and this caused some 
expansion in grazing land, including in the Amazon region. This caused 
further international land use change impacts, as shown in Table II.4 
below.
---------------------------------------------------------------------------

    \41\ These totals do not include pastureland in Brazil. Totals 
may differ from subtotals due to rounding.
    \42\ Totals may differ from subtotals due to rounding. Brazil 
totals include pastureland. Other regions are cropland only.

          Table II.4--Non-U.S. Changes in Agricultural Land by Region in 2022 Relative To Control Case
                                              [Thousand acres] \42\
----------------------------------------------------------------------------------------------------------------
                                                                     Change in       Change in     Total  change
                                                                  area harvested   pasture acres     in acres
----------------------------------------------------------------------------------------------------------------
Brazil..........................................................              +9             +20             +29
India...........................................................             +15  ..............             +15
Rest of Non-USA.................................................             +32  ..............             +32
                                                                 -----------------------------------------------
    Total Non-USA...............................................  ..............  ..............             +75
----------------------------------------------------------------------------------------------------------------

4. Feedstock Transport
    When harvested, sugar beets are heavy and perishable; therefore, 
transport of sugar beets from field to processing site is expected to 
occur over short distances. Information from stakeholders and 
literature states that sugar beets used for biofuels are shipped by 
truck from point of production to the plant with typical distances for 
transport around 30 miles.\43\ GHG emissions for the transport of sugar 
beets are based on emission factors developed for the March 2010 RFS 
rule for trucks including capacity, fuel economy, and type of fuel 
used.\44\
---------------------------------------------------------------------------

    \43\ Farahmand, K., N. Dharmadhikari, and V. Khiabani. 
``Analysis of Transportation Economics of Sugar-Beet Production in 
the Red River Valley of North Dakota and Minnesota using 
Geographical Information System.'' Journal of Renewable Agriculture 
7(2013):126-131.
    \44\ The March 2010 RFS rule preamble (75 FR 14670, March 26, 
2010) and Regulatory Impact Analysis (RIA) (EPA-420-R-10-006) 
provide further discussion of our approach. These documents are 
available online at https://www.epa.gov/renewable-fuel-standard-program/renewable-fuel-standard-rfs2-final-rule-additional-resources.
---------------------------------------------------------------------------

5. Results of Upstream GHG Lifecycle Analysis
    As described above, EPA analyzed the GHG emissions associated with 
feedstock production and transport. Table II.5 below breaks down by 
stage the calculated GHG upstream emissions for producing biofuels from 
sugar beets in 2022.

      Table II.5--Upstream GHG Lifecycle Emissions for Sugar Beets
                         [gCO2-eq/wet short ton]
------------------------------------------------------------------------
                                                Emissions  (gCO2-eq/wet
                   Process                            short ton)
------------------------------------------------------------------------
Net Agriculture (w/o land use change).......                     +21,615
Domestic Land Use Change....................                        -882
International Land Use Change, Mean.........                     +16,038
(Low/High)..................................             (+9249/+23,672)

[[Page 34662]]

 
Feedstock Transport.........................                      +8,183
                                             ---------------------------
    Total Upstream Emissions, Mean..........                     +44,954
    (Low/High)..............................           (+38,210/+52,588)
------------------------------------------------------------------------

    Net agricultural emissions included domestic and international 
impacts related to changes in crop inputs such as fertilizer, energy 
used in agriculture, livestock production, and other agricultural 
changes in the scenario modeled. Increased demand for sugar beets 
resulted in positive net agricultural emissions relative to the control 
case. Compared with other crops, sugar beets required relatively high 
levels of agricultural chemical inputs (e.g., herbicides and 
pesticides).\45\ Domestic land use change emissions were close to zero 
for sugar beets, as described in Section II.B.2.
---------------------------------------------------------------------------

    \45\ Harry Baumes, et al. (USDA), ``Summary of Discussions 
Between US EPA and USDA Regarding Sugar Beets''.
---------------------------------------------------------------------------

    International land use change emissions increased as a result of 
demand for sugar beets. The increase in international land use change 
emissions for sugar beets was significantly larger than the decrease in 
domestic land use change emissions. This is because increased demand 
for sugar beets led to a significant reduction in key U.S. crop exports 
(e.g., wheat exports), but very little change in domestic consumption 
of agricultural goods. These greater international emissions led to a 
net increase in global land use change emissions. Feedstock transport 
included emissions from moving sugar beets from the farm to a biofuel 
production facility, as described in Section II.B.4 above.
6. Fuel Production and Distribution
    Sugar beets are suitable for the same biofuel conversion processes 
as sugarcane. In Europe, where sugar beets are widely used as biofuel 
feedstock, virtually all of the fuel is non-cellulosic beet sugar 
ethanol produced through fermentation with the beet pulp sold into the 
feed markets. Based on these data, and on information from our 
petitioners and other stakeholders, EPA anticipates that most biofuel 
produced from sugar beets in the U.S. would also be from the non-
cellulosic sugars via fermentation. Our upstream analysis would apply 
for all facilities where non-cellulosic beet sugar is converted to 
biofuel and the co-product beet pulp is used as animal feed.
    Given the importance of the beet pulp co-product on the upstream 
GHG emissions associated with beet pulp, pathways that do not produce a 
beet pulp feed coproduct, or use it for purposes other than animal 
feed, may not be compatible with our analysis. EPA would likely need to 
conduct supplemental upstream GHG analysis in order to determine the 
lifecycle GHG emissions associated with fuels produced under these 
types of pathways.
    After reviewing comments received in response to this action, EPA 
will combine the evaluation of upstream GHG emissions associated with 
the use of sugar beet feedstock with an evaluation of the GHG emissions 
associated with individual producers' production processes and finished 
fuels to determine whether fuel produced at petitioners' facilities 
from the sugar in sugar beets satisfy the CAA lifecycle GHG emissions 
reduction requirements for renewable fuels. Each biofuel producer 
seeking to generate Renewable Identification Numbers (RINs) for non-
grandfathered volumes of biofuel from sugar beets will need to submit a 
petition requesting EPA's evaluation of their new renewable fuel 
pathway pursuant to 40 CFR 80.1416 of the RFS regulations, and include 
all of the information specified at 40 CFR 80.1416(b)(1).\46\
---------------------------------------------------------------------------

    \46\ Petitioners with pending petitions involving use of sugar 
from sugar beets as feedstock will not be required to submit new 
petitions. However, if any information has changed from their 
original petitions, EPA will request that they update that 
information.
---------------------------------------------------------------------------

    Because EPA is evaluating the GHG emissions associated with the 
production and transport of sugar beet feedstock through this notice 
and comment process, petitioners requesting EPA's evaluation of biofuel 
pathways involving sugar beet feedstock need not include the 
information for new feedstocks specified at 40 CFR 80.1416(b)(2). Based 
on our evaluation of the upstream GHG emissions attributable to the 
production and transport of sugar beet feedstock, including our 
assumptions regarding the average yield of ethanol in mmBtu per wet 
short ton of sugar beets used, EPA anticipates that if a facility 
produces emissions of no more than approximately 23 kgCO2e/
mmBtu of ethanol, the fuel produced would meet the 50 percent advanced 
biofuel GHG reduction threshold.\47\ If a facility produces no more 
than 53 kgCO2e/mmBtu of ethanol, EPA anticipates it would 
meet the 20 percent renewable fuel GHG reduction threshold. EPA will 
evaluate petitions for fuel produced from sugar beet feedstock on a 
case-by-case basis, and will make adjustments as necessary for each 
facility including consideration of differences in the yield of ethanol 
per wet short ton of sugar beets used.\48\ We welcome comments on this 
application of our upstream analysis.
---------------------------------------------------------------------------

    \47\ In this case, emissions produced by the facility refers to 
fuel production emissions, including emissions associated with 
energy used for fuel, feedstock and co-product operations at the 
facility. For more details on the assumptions used in this analysis, 
see ``Sugar Beets for Biofuel Upstream Analysis Technical 
Memorandum'' in the docket. EPA-HQ-OAR-2016-0771.
    \48\ For example, EPA may need to consider additional feedstock 
transportation emissions in cases where beet sugar extraction and 
biofuel production do not occur in the same location, as may be the 
case for biofuel produced under the USDA Feedstock Flexibility 
Program.
---------------------------------------------------------------------------

7. Risk of Potential Invasiveness
    Sugar beets were not listed on the Federal noxious weed list nor 
did they appear on USDA's composite listing of introduced, invasive, 
and noxious plants by U.S state.49 50 Based on consultation 
with USDA, EPA does not believe sugar beets pose a risk of invasiveness 
at this time. Current cultivars of sugar beets require extensive weed 
management to survive.\51\ However, USDA notes that future cross 
breeding, hybridization, and genetic manipulation could change the

[[Page 34663]]

invasiveness potential of beets, in which case a re-evaluation may be 
required.\52\ Based on currently available information, EPA does not 
believe monitoring and reporting of data for invasiveness concerns 
would be a requirement for biofuel producers generating fuel from sugar 
beets at this time.
---------------------------------------------------------------------------

    \49\ USDA, ``Federal Noxious Weed List,'' July 13, 2016, https://www.aphis.usda.gov/plant_health/plant_pest_info/weeds/downloads/weedlist.pdf.
    \50\ USDA, ``State and Federal Noxious Weeds List,'' accessed 
November 17, 2016, http://plants.usda.gov/java/noxComposite.
    \51\ Harry Baumes, et al. (USDA), ``Summary of Discussions 
Between US EPA and USDA Regarding Sugar Beets.''
    \52\ Harry Baumes, et al. (USDA), ``Summary of Discussions 
Between US EPA and USDA Regarding Sugar Beets.''
---------------------------------------------------------------------------

III. Summary

    EPA invites public comment on its analysis of GHG emissions 
associated with the production and transport of sugar beets as a 
feedstock for biofuel production. This notice analyzes a non-cellulosic 
sugar beet-to-biofuel production process. Although EPA has not received 
a petition for cellulosic sugar beet biofuel production, the agency is 
aware of interest in this process and invites comment on the analysis 
of beet pulp and its effect on agricultural markets. EPA will consider 
public comments received when evaluating petitions received pursuant to 
40 CFR 80.1416 that involve pathways using sugar beets as a feedstock.

    Dated: January 18, 2017.
Christopher Grundler,
Director, Office of Transportation and Air Quality, Office of Air and 
Radiation.
[FR Doc. 2017-15721 Filed 7-25-17; 8:45 am]
 BILLING CODE 6560-50-P



                                                  34656                        Federal Register / Vol. 82, No. 142 / Wednesday, July 26, 2017 / Notices

                                                  submissions, and general guidance on                     attributable to the production of Beta                II. Analysis of GHG Emissions Associated
                                                  making effective comments, please visit                  vulgaris ssp. vulgaris (sugar beets) for                    With Production and Transport of Sugar
                                                  http://www2.epa.gov/dockets/                             use as a biofuel feedstock. This notice                     Beets for Use as a Biofuel Feedstock
                                                  commenting-epa-dockets.                                  describes EPA’s greenhouse gas analysis                  A. Overview of Beta vulgaris ssp. vulgaris
                                                                                                                                                                       (Sugar Beets)
                                                  FOR FURTHER INFORMATION CONTACT: Taly                    of sugar beets produced for use as a                     B. Analysis of Upstream GHG Emissions
                                                  Jolish, Assistant Regional Counsel,                      biofuel feedstock, and describes how                     1. Methodology and Scenarios Evaluated
                                                  Office of Regional Counsel (ORC–3),                      EPA may apply this analysis in the                       2. Domestic Impacts
                                                  Environmental Protection Agency,                         future to determine whether biofuels                     3. International Impacts
                                                  Region 9, 75 Hawthorne Street, San                       produced from sugar beets meet the                       4. Feedstock Transport
                                                  Francisco, CA 94105; tel: (415) 972–                     necessary greenhouse gas reduction                       5. Results of Upstream GHG Lifecycle
                                                  3925; fax: (415) 947–3570; Jolish.Taly@                  threshold required for qualification as                     Analysis
                                                                                                           renewable fuel under the Renewable                       6. Fuel Production and Distribution
                                                  epa.gov.
                                                                                                           Fuel Standard program. This notice                       7. Risk of Potential Invasiveness
                                                  SUPPLEMENTARY INFORMATION: Sycamore                                                                            III. Summary
                                                  LLC is agreeing to perform a removal                     considers a scenario in which non-
                                                  action to clean up soil and soil gas                     cellulosic beet sugar is extracted for                I. Introduction
                                                                                                           conversion to biofuel and the remaining
                                                  contaminated with chlorinated volatile                                                                            Section 211(o) of the Clean Air Act
                                                                                                           beet pulp co-product is used as animal
                                                  organic compounds (VOCs), including                                                                            establishes the renewable fuel standard
                                                                                                           feed. Based on this analysis, we
                                                  tetrachloroethylene, trichloroethylene,                                                                        (‘‘RFS’’) program, under which EPA sets
                                                                                                           anticipate that biofuels produced from
                                                  and cis-1,2-dichloroethylene, and with                                                                         annual percentage standards specifying
                                                                                                           sugar beets could qualify as renewable
                                                  aromatic VOCs, including benzene,                                                                              the amount of renewable fuel, as well as
                                                                                                           fuel or advanced biofuel, depending on
                                                  toluene, and xylene. The removal action                                                                        three subcategories of renewable fuel,
                                                                                                           the type and efficiency of the fuel
                                                  will reduce the risk to future users of                                                                        that must be used to reduce or replace
                                                                                                           production process technology used.
                                                  the property and the surrounding                                                                               fossil fuel present in transportation fuel,
                                                                                                           DATES: Comments must be received on
                                                  community from exposure to                                                                                     heating oil or jet fuel. With limited
                                                  contamination primarily caused by                        or before August 25, 2017.                            exceptions, renewable fuel produced at
                                                  historical dry cleaning operations at the                ADDRESSES: Submit your comments,                      facilities that commenced construction
                                                  property. Under the terms of the                         identified by Docket ID No. EPA–HQ–                   after enactment of the Energy
                                                  settlement, Sycamore LLC will complete                   OAR–2016–0771, at http://                             Independence and Security Act of 2007
                                                  the removal action and pay EPA’s costs                   www.regulations.gov. Follow the online                (‘‘EISA’’), must achieve at least a twenty
                                                  for oversight of the cleanup activities. In              instructions for submitting comments.                 percent reduction in lifecycle
                                                  exchange, Sycamore LLC will receive a                    Once submitted, comments cannot be                    greenhouse gas emissions as compared
                                                  covenant not to sue from the United                      edited or withdrawn from                              to baseline 2005 transportation fuel.
                                                  States.                                                  Regulations.gov. The EPA may publish                  Advanced biofuel and biomass-based
                                                     EPA will consider all comments                        any comment received to its public                    diesel must achieve at least a fifty
                                                  submitted by the date set forth above                    docket. Do not submit electronically any              percent reduction, and cellulosic biofuel
                                                  and may modify or withdraw its consent                   information you consider to be                        must achieve at least a sixty percent
                                                  to the settlement if comments received                   Confidential Business Information (CBI)               reduction.
                                                  disclose facts or considerations that                    or other information whose disclosure is                 As part of changes to the RFS program
                                                  indicate the proposed settlement is                      restricted by statute. Multimedia                     regulations published on March 26,
                                                  inappropriate, improper, or inadequate.                  submissions (audio, video, etc.) must be              2010 1 (the ‘‘March 2010 RFS rule’’) to
                                                                                                           accompanied by a written comment.                     implement EISA amendments to the
                                                    Dated: July 14, 2017.                                  The written comment is considered the
                                                  Enrique Manzanilla,
                                                                                                                                                                 RFS program, EPA identified a number
                                                                                                           official comment and should include                   of renewable fuel production pathways
                                                  Director, Superfund Division, U.S.                       discussion of all points you wish to
                                                  Environmental Protection Agency, Region 9.
                                                                                                                                                                 that satisfy the greenhouse gas reduction
                                                                                                           make. The EPA will generally not                      requirements of the Act. Table 1 to 40
                                                  [FR Doc. 2017–15729 Filed 7–25–17; 8:45 am]              consider comments or comment                          CFR 80.1426 of the RFS regulations lists
                                                  BILLING CODE 6560–50–P                                   contents located outside of the primary               three critical components of approved
                                                                                                           submission (i.e., on the web, cloud, or
                                                                                                                                                                 fuel pathways: (1) Fuel type; (2)
                                                                                                           other file sharing system). For
                                                  ENVIRONMENTAL PROTECTION                                                                                       feedstock; and (3) production process.
                                                                                                           additional submission methods, the full
                                                  AGENCY                                                                                                         In addition, for each pathway, the
                                                                                                           EPA public comment policy,
                                                                                                                                                                 regulations specify a ‘‘D code’’ that
                                                  [EPA–HQ–OAR–2016–0771; FRL–9958–88–                      information about CBI or multimedia
                                                                                                                                                                 indicates whether fuel produced by the
                                                  OAR]                                                     submissions, and general guidance on
                                                                                                                                                                 specified pathway meets the
                                                                                                           making effective comments, please visit
                                                                                                                                                                 requirements for renewable fuel or one
                                                  Notice of Opportunity To Comment on                      https://www.epa.gov/dockets/
                                                                                                                                                                 of the three renewable fuel
                                                  an Analysis of the Greenhouse Gas                        commenting-epa-dockets.
                                                                                                                                                                 subcategories. EPA may independently
                                                  Emissions Attributable to Production                     FOR FURTHER INFORMATION CONTACT:                      approve additional fuel pathways not
                                                  and Transport of Beta vulgaris ssp.                      Christopher Ramig, Office of Air and                  currently listed in Table 1 to 40 CFR
                                                  vulgaris (Sugar Beets) for Use in                        Radiation, Office of Transportation and               80.1426 for participation in the RFS
                                                  Biofuel Production                                       Air Quality, Mail Code: 6401A, U.S.                   program, or a party may petition for
                                                                                                           Environmental Protection Agency, 1200                 EPA to evaluate a new fuel pathway in
                                                  AGENCY: Environmental Protection
mstockstill on DSK30JT082PROD with NOTICES




                                                                                                           Pennsylvania Avenue NW., Washington,                  accordance with 40 CFR 80.1416.
                                                  Agency (EPA).
                                                                                                           DC 20460; telephone number: 202–564–                  Pursuant to 40 CFR 80.1416, EPA
                                                  ACTION: Notice.                                          1372; fax number: 202–564–1177; email                 received petitions from Green Vision
                                                  SUMMARY:   In this notice, the                           address: ramig.christopher@epa.gov.                   Group, Tracy Renewable Energy, and
                                                  Environmental Protection Agency (EPA)                    SUPPLEMENTARY INFORMATION:                            Plant Sensory Systems, submitted under
                                                  is inviting comment on its analysis of                     This notice is organized as follows:
                                                  the upstream greenhouse gas emissions                    I. Introduction                                         1 See   75 FR 14670.



                                             VerDate Sep<11>2014   17:49 Jul 25, 2017   Jkt 241001   PO 00000   Frm 00034   Fmt 4703   Sfmt 4703   E:\FR\FM\26JYN1.SGM     26JYN1


                                                                               Federal Register / Vol. 82, No. 142 / Wednesday, July 26, 2017 / Notices                                                       34657

                                                  partial claims of confidential business                  gas emissions related to sugar beet                     sugar beets are highly perishable and
                                                  information (CBI), requesting that EPA                   feedstock production and transport.                     need to be processed in a short period
                                                  evaluate the GHG emissions associated                       If appropriate, EPA will update this                 of time.7
                                                  with biofuels produced using sugar                       analysis based on comments received in                     According to the U.S. Department of
                                                  beets as feedstock, and that EPA provide                 response to this notice. EPA will use                   Agriculture (USDA), the largest region
                                                  a determination of the renewable fuel                    this updated analysis as part of the                    for sugar beet production is the area of
                                                  categories, if any, for which such                       evaluation of facility-specific petitions               the Red River Valley of western
                                                  biofuels may be eligible.                                received pursuant to 40 CFR 80.1416                     Minnesota and eastern North Dakota,
                                                                                                           that propose to use sugar beets as a                    and sugar beets are commonly grown at
                                                     EPA’s lifecycle analyses are used to                  feedstock for the production of biofuel.3               agricultural scale across five regions of
                                                  assess the overall GHG impacts of a fuel                 Based on this information, EPA will                     the country, encompassing 11 states.8
                                                  throughout each stage of its production                  determine the GHG emissions                             Western regions tend to require more
                                                  and use. The results of these analyses,                  associated with petitioners’ biofuel                    irrigation while sugar beets grown in the
                                                  considering uncertainty and the weight                   production processes, as well as                        eastern U.S. region make greater use of
                                                  of available evidence, are used to                       emissions associated with the transport                 natural rainfall.9
                                                  determine whether a fuel meets the                       and use of the finished biofuel. EPA will                  Since the mid-1990s, sugar beets have
                                                  necessary GHG reductions required                        combine these assessments into a full                   accounted for about 55 percent of sugar
                                                  under the CAA for it to be considered                    lifecycle GHG analysis used to                          production in the U.S.10 Sugar beets are
                                                  renewable fuel or one of the subsets of                  determine whether the fuel produced at                  included in the U.S. sugar program,
                                                  renewable fuel. Lifecycle analysis                       an individual facility satisfies the CAA                designed to support domestic sugar
                                                  includes an assessment of emissions                      GHG emission reduction requirements                     prices through loans to sugar processors.
                                                  related to the full fuel lifecycle,                      necessary to qualify as renewable fuel or               The U.S. sugar program also includes a
                                                  including feedstock production,                          one of the subcategories of renewable                   marketing allotment that sets the
                                                  feedstock transportation, fuel                           fuel under the RFS program.                             amount of sugar that domestic
                                                  production, fuel transportation and                                                                              processors can sell in the U.S. for
                                                                                                           II. Analysis of GHG Emissions
                                                  distribution, and tailpipe emissions. Per                                                                        human consumption, and provides
                                                                                                           Associated With Production and
                                                  the CAA definition of lifecycle GHG                      Transport of Sugar Beets for Use as a                   quotas on the amount of sugar that can
                                                  emissions, EPA’s lifecycle analyses also                 Biofuel Feedstock                                       be imported into the U.S.11 Sugar
                                                  include an assessment of significant                                                                             produced under the program cannot be
                                                  indirect emissions, such as indirect                     A. Overview of Beta vulgaris ssp.                       used for biofuel purposes with an
                                                  emissions from land use changes and                      vulgaris (Sugar Beets)                                  exception for surplus sugar made
                                                  agricultural sector impacts.                               Beta vulgaris ssp. vulgaris,                          available under the USDA Feedstock
                                                     This document describes EPA’s                         (commonly known as sugar beets) of the                  Flexibility Program that specifically
                                                  analysis of the GHG emissions from                       order Caryophylalles, is a widely                       directs the excess sugar to be used for
                                                  feedstock production and feedstock                       cultivated plant of the Altissima group.                the purpose of domestic biofuel
                                                  transport associated with sugar beets                    Sugar beets are cultivated for their high               production.12
                                                  when used to produce biofuel,                            percentage concentration of sucrose in                     Like other sugars, beet sugar can be
                                                  including significant indirect impacts.                  their root mass. Domestication of the                   fermented and used as a feedstock for
                                                  This notice considers a scenario in                      plant group took place approximately                    biofuel production. The non-cellulosic
                                                  which non-cellulosic beet sugar                          200 years ago in Europe to selectively                  sugars of sugar beets, the vast majority
                                                                                                           breed for sugar content from crosses                    of which is sucrose, can be converted
                                                  (primarily sucrose, glucose and/or
                                                                                                           between Beta vulgaris cultivars,                        directly into a refined sugar available for
                                                  fructose) is extracted for conversion to
                                                                                                           including chard plants and fodder                       processes such as alcoholic
                                                  biofuel and the remaining beet pulp co-
                                                                                                           beets.4                                                 fermentation to produce biofuels (e.g.,
                                                  product is used as animal feed. As will
                                                                                                             Sugar beets are a biennial crop species               ethanol).13 Much of the water needed
                                                  be described in Section II, we estimate
                                                  the GHG emissions associated with                        grown across a wide tolerance of soil
                                                                                                                                                                      7 Michael J. McConnell, ‘‘USDA ERS—Policy,’’
                                                  production and transport of sugar beets                  conditions in areas of temperate climate,
                                                                                                                                                                   USDA ERS—Policy, November 1, 2016, https://
                                                  for use as a biofuel feedstock are                       and tend to be grown in rotation with                   www.ers.usda.gov/topics/crops/sugar-sweeteners/
                                                  approximately 45 kilograms of CO2-                       other plant varieties.5 Sugar beets are                 policy.aspx.
                                                  equivalent per wet short ton (kgCO2e                     grown for their relatively high sugar                      8 Michael J. McConnell, ‘‘USDA ERS—

                                                                                                           content, approximately 13 to 18 percent                 Background.’’
                                                  per wet short ton) of sugar beets.2 Based                                                                           9 Michael J. McConnell, ‘‘USDA ERS—
                                                                                                           of the plant’s total mass, with around
                                                  on these results, we believe biofuels                                                                            Background.’’
                                                                                                           three quarters of the plant mass
                                                  produced from sugar beets through                                                                                   10 Michael J. McConnell, ‘‘USDA ERS—
                                                                                                           comprised of water.6 Once harvested,
                                                  recognized conversion processes could                                                                            Background.’’
                                                                                                                                                                      11 The U.S. sugar program is managed by USDA
                                                  qualify as advanced biofuel and/or                         3 Assuming the fuel pathway proposed in such
                                                                                                                                                                   and supports domestic sugar prices through loans
                                                  conventional (non-advanced) renewable                    petitions involve extraction of non-cellulosic beet     to sugar processors, a marketing allotment program,
                                                  fuel, depending on the type and                          sugar for conversion to biofuel and use of the          and quotas on the amount of sugar that can be
                                                  efficiency of the fuel production process                resulting beet pulp co-product as animal feed.          imported to the U.S. Farm Security and Rural
                                                                                                             4 Juliane C. Dohm et al., ‘‘The Genome of the         Investment Act of 2002. Public Law 107–171, Sec.
                                                  technology used. EPA is seeking public
                                                                                                           Recently Domesticated Crop Plant Sugar Beet (Beta       1401–1403.
                                                  comment on its analysis of greenhouse                    Vulgaris),’’ Nature 505, no. 7484 (January 23, 2014):      12 ‘‘Feedstock Flexibility Program,’’ page,
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                                                                                                           546–49.                                                 accessed November 17, 2016, https://
                                                     2 For purposes of this notice, we assume that           5 Michael J. McConnell, ‘‘USDA ERS—                   www.fsa.usda.gov/programs-and-services/energy-
                                                  sugar beets have an average moisture content of          Background,’’ Crops Sugar & Sweeteners                  programs/feedstock-flexibility/index.
                                                  76%. See Food and Agriculture Organization, 1999,        Background, October 12, 2016, http://                      13 Dr. Hossein Shapouri, Dr. Michael Salassi, and

                                                  ‘‘Agribusiness Handbooks Vol. 4 Sugar Beets/White        www.ers.usda.gov/topics/crops/sugar-sweeteners/         J. Nelson Fairbanks, ‘‘The Economic Feasibility of
                                                  Sugar’’, http://www.responsibleagroinvestment.org/       background/.                                            Ethanol Production from Sugar in the United
                                                  sites/responsibleagroinvestment.org/files/FAO_             6 FAO, ‘‘Sugar Crops and Sweeteners and Derived       States’’ (USDA, July 2006), http://www.usda.gov/
                                                  Agbiz%20handbook_White%20Sugar_0.pdf (Last               Products,’’ accessed November 30, 2016, http://         oce/reports/energy/
                                                  Accessed: January 4, 2017).                              www.fao.org/es/faodef/fdef03e.HTM.                      EthanolSugarFeasibilityReport3.pdf.



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                                                  34658                        Federal Register / Vol. 82, No. 142 / Wednesday, July 26, 2017 / Notices

                                                  for the fermentation process is provided                 Several modifications were made to the                  may only enter the U.S. as refined sugar
                                                  by the sugar beets themselves. Sugar                     domestic and international agricultural                 from Canada or Mexico under the North
                                                  beet pulp is a fibrous co-product of the                 economic modeling that differed from                    American Free Trade Agreement
                                                  beet sugar extraction process.14 The                     previous analyses in order to accurately                (NAFTA) and similar trade agreements,
                                                  sugar beet pulp is often dried to reduce                 represent the U.S. sugar program.19                     or as components of sugar-containing
                                                  transportation costs and is widely sold                  Memoranda to the docket include                         products.24 This quantity is strictly
                                                  as feed supplement for cattle and other                  detailed information on model inputs,                   regulated. EPA is unaware of existing
                                                  livestock.15 While biofuel production                    assumptions, calculations, and the                      trade agreements that would allow raw
                                                  from beet sugar has historically been                    results of our assessment of the                        beet sugar imports for any purpose,
                                                  limited in the U.S., sugar beets                         upstream GHG emissions for sugar beet                   including biofuel production. This
                                                  accounted for about 17 percent of                        biofuels.20 We invite comments on the                   makes it unlikely that beet sugar would
                                                  European ethanol production in 2014.16                   scenarios and assumptions used for this                 be imported for use as biofuel feedstock.
                                                                                                           analysis, in particular on the key                         Although sugar beets were modeled as
                                                  B. Analysis of Upstream GHG Emissions                                                                            grown in the U.S., we also intend that
                                                                                                           assumptions described in this section.
                                                     EPA evaluated the upstream GHG                          Sugar beets grown under the U.S.                      this analysis would cover sugar beets
                                                  emissions associated with using sugar                    sugar program cannot be used for the                    grown and processed into biofuels from
                                                  beets as a biofuel feedstock based on                    purpose of biofuel production, except                   other countries and imported to the U.S.
                                                  information provided by USDA,                            under very limited conditions specified                 as finished biofuel. We expect the vast
                                                  petitioners, and other data sources.                     in the Feedstock Flexibility Program.21                 majority of beet sugar-based biofuel
                                                  Upstream GHG emissions include                                                                                   used in the U.S. will come from sugar
                                                                                                           Therefore, for this analysis, EPA
                                                  emissions from production and                                                                                    beets produced in the U.S., and
                                                                                                           assumed that there would be no change
                                                  transport of sugar beets used as a biofuel                                                                       incidental amounts of fuel from crops
                                                                                                           in sugar production on U.S. sugar
                                                  feedstock. The methodology EPA used                                                                              produced in other nations will not
                                                                                                           program-designated acres because of
                                                  for this analysis is generally the same                                                                          impact our average GHG emissions.
                                                                                                           demand for beet sugar for biofuel
                                                  approach used for the March 2010 RFS                                                                             Sugar beets require similar climatic
                                                                                                           feedstock use.22 In our modeling,
                                                  rule for lifecycle analyses of several                                                                           regions as those where they are grown
                                                                                                           growers selling sugar beets to sugar
                                                  other biofuel feedstocks, such as corn,                                                                          in the U.S., and would similarly impact
                                                                                                           processors under the U.S. sugar program
                                                  soybean oil, and sugarcane.17 The                                                                                crops such as wheat in those regions
                                                                                                           in the control case continued to do so
                                                  subsections below describe this                                                                                  while sugar beet pulp would displace
                                                  methodology, including assumptions                       regardless of new demand for sugar
                                                                                                           beets as a biofuel feedstock in the test                corn as livestock feed. Therefore, EPA
                                                  and results of our analysis.                                                                                     interprets this upstream analysis as
                                                                                                           case. As a result of this assumption, in
                                                  1. Methodology and Scenarios                             our modeling, demand for acreage to                     applicable, regardless of the country of
                                                  Evaluated                                                grow sugar beets for biofuel feedstock                  origin assuming that sugar beet pulp is
                                                                                                           could only be fulfilled by converting                   used as a livestock feed supplement.
                                                     The analysis EPA prepared for sugar                                                                              To assess the impacts of an increase
                                                  beets used the same set of models that                   acres from other crops besides sugar
                                                                                                                                                                   in sugar beet demand for renewable fuel
                                                  were used for the March 2010 RFS rule,                   beets, and/or from other land uses
                                                                                                                                                                   production, EPA modeled two
                                                  including the Forestry and Agricultural                  besides crop production (e.g.,
                                                                                                                                                                   scenarios: (1) A control case with
                                                  Sector Optimization Model (FASOM)                        pastureland, Conservation Reserve
                                                                                                                                                                   ‘‘business-as-usual’’ assumptions 25 and
                                                  developed by Texas A&M University for                    Program land).
                                                                                                                                                                   no biofuel production from sugar beets
                                                  domestic impacts, and the Food and                         Our analysis also considers the
                                                  Agricultural Policy and Research                         significant restrictions on the trade of                https://www.fas.usda.gov/programs/sugar-import-
                                                  Institute international models as                        sugar beets between the U.S. and other                  program (Last accessed December 30, 2016).
                                                  maintained by the Center for                             countries. The U.S. does not export beet                   24 Mark A. McMinimy, ‘‘U.S. Sugar Program

                                                  Agricultural and Rural Development                       sugar, as this would violate the terms of               Fundamentals,’’ April 6, 2016, https://fas.org/sgp/
                                                  (FAPRI–CARD) at Iowa State University                    participation in the sugar program.                     crs/misc/R43998.pdf.
                                                                                                                                                                      25 To assess the impacts of an increase in
                                                  for international impacts. For more                      While the U.S. does import cane sugar                   renewable fuel volume from business-as-usual
                                                  information on the FASOM and FAPRI–                      under international agreements, it does                 (what is likely to have occurred without the RFS
                                                  CARD models, refer to the March 2010                     not import raw beet sugar.23 Beet sugar                 biofuel mandates) to levels required by the statute,
                                                  RFS rule preamble (75 FR 14670) and                                                                              we established a control case and other cases for a
                                                                                                                                                                   number of biofuels. The control case included a
                                                  Regulatory Impact Analysis (RIA).18                      Analysis (RIA) (EPA–420–R–10–006) provide
                                                                                                                                                                   projection of renewable fuel volumes that might be
                                                                                                           further discussion of our approach. These
                                                                                                           documents are available online at https://              used to comply with the RFS renewable fuel
                                                    14 Eggleston, Gillian et al., ‘‘Ethanol from Sugar
                                                                                                           www.epa.gov/renewable-fuel-standard-program/            volume mandates in full. The case is designed such
                                                  Crops.’’ In, Singh, Bharat P., Industrial Crops and                                                              that the only difference between the scenario case
                                                                                                           renewable-fuel-standard-rfs2-final-rule-additional-
                                                  Uses. CABI, 2010, pp. 74–75.                                                                                     and the control case is the volume of an individual
                                                    15 Greg Lardy, ‘‘Feeding Sugar Beet Byproducts to
                                                                                                           resources.
                                                                                                              19 These differences are discussed further in        biofuel, all other volumes remaining the same. In
                                                  Cattle,’’ accessed November 30, 2016, https://                                                                   the March 2010 RFS rule, for each individual
                                                  www.ag.ndsu.edu/publications/livestock/feeding-          Sections II.D.2 and II.D.3 below.
                                                                                                              20 The memoranda and modeling files are
                                                                                                                                                                   biofuel, we analyzed the incremental GHG emission
                                                  sugar-beet-byproducts-to-cattle.                                                                                 impacts of increasing the volume of that fuel from
                                                    16 ePURE, ‘‘European Renewable Ethanol—Key             available in the docket. EPA–HQ–OAR–2016–0771.          business as usual levels to the level of that biofuel
                                                                                                              21 Harry Baumes, et al. (USDA), ‘‘Summary of
                                                  Figures,’’ accessed November 17, 2016, http://                                                                   projected to be used in 2022, together with other
                                                  epure.org/media/1227/european-renewable-                 Discussions Between US EPA and USDA Regarding           biofuels, to fully meet the CAA requirements.
                                                  ethanol-statistics-2015.pdf.                             Sugar Beets.’’                                          Rather than focus on the GHG emissions impacts
                                                    17 The March 2010 RFS rule preamble (75 FR                22 The U.S. sugar program designates acres of land
                                                                                                                                                                   associated with a specific gallon of fuel and
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                                                  14670, March 26, 2010) and Regulatory Impact             used to grow sugar beets sold to domestic sugar         tracking inputs and outputs across different
                                                  Analysis (RIA) (EPA–420–R–10–006) provide                processors who receive price support loans and are      lifecycle stages, we determined the overall aggregate
                                                  further discussion of our approach. These                regulated by USDA market allotments under the           impacts across sectors of the economy in response
                                                  documents are available online at https://               program.                                                to a given volume change in the amount of biofuel
                                                  www.epa.gov/renewable-fuel-standard-program/                23 The international agreements that allow for       produced. For this analysis, we compared impacts
                                                  renewable-fuel-standard-rfs2-final-rule-additional-      sugar import to the U.S. are primarily governed by      in the control case to the impacts in a new sugar
                                                  resources.                                               NAFTA and the Uruguay Round Agreement on                beets case. The control case used for the March
                                                    18 The March 2010 RFS rule preamble (75 FR             Agriculture, but also by CAFTA. See USDA’s Web          2010 RFS rule, and used for this analysis, has zero
                                                  14670, March 26, 2010) and Regulatory Impact             site on the Sugar Import Program for more details:      gallons of sugar beet biofuel production.



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                                                                               Federal Register / Vol. 82, No. 142 / Wednesday, July 26, 2017 / Notices                                                    34659

                                                  and (2) a sugar beet biofuel case where                  acres of sugar beets since 2010 were, on              model included a representation of the
                                                  300 million ethanol-equivalent gallons                   average, about 30 percent lower than                  U.S. sugar program, and modeled
                                                  of biofuels are assumed to be from beet                  their most recent peak levels in the                  domestic sugar production as a function
                                                  sugar in 2022, requiring the use of 12                   1990s, an average difference of                       of this program. Production and
                                                  million wet short tons of sugar beets for                approximately 360,000 harvested                       consumption levels in the U.S. were set
                                                  biofuel production. The analysis                         acres.27 Increasing beet yields over time             according to the parameters of the sugar
                                                  presented in this notice considered all                  has reduced the number of acres needed                program and were not affected by
                                                  GHG emissions associated with the                        to satisfy production targets under the               market forces. Because the existing U.S.
                                                  cultivation and production of sugar                      U.S. sugar program.28 National average                sugar production module in FAPRI did
                                                  beets intended for biofuel feedstock use,                sugar beet yields since 2010 have been                not respond to market forces, for
                                                  as well as emissions from transporting                   approximately 25 percent higher than                  modeling purposes EPA had to make
                                                  these sugar beets to a biofuel production                yields during the 1990s, and reached                  assumptions regarding in which regions
                                                  facility. In lifecycle analysis literature               almost 31 wet short tons per acre in the              sugar beets for biofuel feedstock use
                                                  these emissions are often referred to as                 2015 crop year.29 Were beet acres to                  would be grown. Crop yields and the
                                                  the ‘‘upstream’’ emissions, because they                 return to their 1990s peak, the                       quantity of crop area displaced by
                                                  occur upstream of the fuel production                    additional approximately 360,000                      expanded sugar beet production also
                                                  facility (i.e., before the biofuel feedstock             harvested acres would produce about                   had to be set by assumption, since the
                                                  arrives at that facility).                               11.2 million wet short tons of beets at               U.S. sugar module in FAPRI lacks
                                                     The analysis presented in this notice                 these 2015 yield levels. However, based               market forces to create demand-pull for
                                                  does not include fuel production or                      on the steady increase in yields over                 new beet acres. In order to derive the
                                                  ‘‘downstream’’ emissions, which                          time, it seems likely that beet yields will           quantity of crop area displaced, EPA
                                                  consists of emissions associated with                    continue to increase between now and                  used a crop yield of approximately 26
                                                  fuel transport and fuel combustion.                      2022. If national average beet yields                 wet short tons per acre, the 10-year
                                                  Once comments on the upstream                            reach at least 33.4 wet short tons per                national average yield for sugar beets
                                                  emissions described in this notice have                  acre by 2022, a fairly modest increase of             (for crop years 2005 through 2014).30
                                                  been considered, we intend to combine                    about 8 percent over 2015 levels, an                  Actual yields on any given acre may be
                                                  the upstream analysis with the fuel                      additional 12 million wet short tons of               higher or lower than this assumed
                                                  production and downstream emissions                      beets could be produced on these                      value, based on factors such as location,
                                                  associated with fuel produced at an                      additional 360,000 acres. Since further               annual variation in growing conditions,
                                                  individual biofuel facility to determine                 expansion of beet area beyond the                     growing practices, and crop rotation
                                                  the lifecycle GHG emissions associated                   historical peak is also possible, an                  strategies. Because the FAPRI analysis
                                                  with that fuel. This lifecycle analysis                  increase in beet production of 12                     assumed to displace acres in North
                                                  would reflect any differences in                         million wet short tons appears to be                  Dakota and California, we did not
                                                  emissions that may exist between                         very feasible. We welcome comment on                  believe that it was appropriate to use the
                                                  producing different types of biofuels                    this assumption.                                      USDA 2022 national average projections
                                                  from sugar beets. Our analysis of the                       In our analysis, FASOM allowed for                 for sugar beets yield. As an alternative,
                                                  upstream emissions associated with                       sugar beet production in all areas of the             EPA believes using the 10-year national
                                                  sugar beets assumed that non-cellulosic                  continental 48 states where sugar beets               average was a reasonable assumption for
                                                  sugars are extracted from the beets                      had been grown historically, including                our international agricultural sector
                                                  before the sugars are converted, and that                states and areas that do not currently                modeling. The increase in sugar yield
                                                  the beet pulp would then be sold into                    take part in the U.S. sugar program. The              trends over the last few decades
                                                  feed markets. Fuel production methods                    model was allowed to determine which                  suggests that future yields are unlikely
                                                  that also convert the pulp into fuel (e.g.,              of these regions would be optimal for                 to be lower than the 10-year average. As
                                                  through pyrolysis of the beet) or use the                growing sugar beets for biofuel                       further support for our yield
                                                  pulp for other purposes may not be                       feedstock, based on least cost of                     assumptions in FAPRI, we note that
                                                  compatible with this analysis.                           production and transport, and                         FASOM projected sugar beet yields in
                                                     We evaluated a scenario with biofuels                 considering the opportunity cost of                   2022 that are close to the assumptions
                                                  produced from this amount of sugar                       using that land for other uses (e.g., to              used in FAPRI.31 We welcome comment
                                                  beets for multiple reasons. Although                     produce other crops, grazing, forestry).              on this assumption.
                                                  biofuel production from sugar beets is                   The factors that contributed to these                    For the purposes of FAPRI modeling,
                                                  currently small in the U.S., recent                      crop production choices include crop                  EPA assumed that sugar beets for fuel
                                                  trends in domestic sugar beet yields and                 yield, input quantities, and growing                  use would be produced in equal
                                                  acreage indicate that 12 million wet                     strategies.                                           amounts in North Dakota and California
                                                  short tons of sugar beets could be                          Following the methodology                          for the following reasons: At the onset
                                                  produced as biofuel feedstocks if a                      established in the March 2010 RFS rule,               of our analysis, these were the regions
                                                  significant market demand emerged. An                    EPA used the FAPRI model to evaluate                  with indications of significant sugar
                                                  additional 12 million wet short tons of                  the international impacts of producing                beet biofuel interest.32 They are also
                                                  sugar beets would represent a 34                         and transporting 12 million wet short
                                                                                                                                                                   30 USDA, ‘‘NASS Quick Stats’’, https://
                                                  percent increase in U.S. sugar beet                      tons of sugar beets for biofuel
                                                                                                                                                                 quickstats.nass.usda.gov (Last Accessed: November
                                                  cultivation compared to 2015 levels.26                   production in the U.S. The FAPRI                      16, 2016).
                                                  According to USDA data, harvested                                                                                31 See ‘‘Sugar Beets for Biofuel Upstream Analysis
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                                                                                                             27 USDA, ‘‘NASS Quick Stats’’, https://
                                                                                                                                                                 Technical Memorandum’’ in the docket for details.
                                                    26 See,USDA, ‘‘Sugarbeet Area and Planted              quickstats.nass.usda.gov (Last Accessed: November     EPA–HQ–OAR–2016–0771.
                                                  Harvested Yield and Production States and United         16, 2016).                                              32 At the time of this modeling we had received
                                                                                                             28 USDA, ‘‘NASS Quick Stats’’, https://
                                                  States 2013–2015,’’ in Crop Production 2015                                                                    the petitions from Green Vision Group proposing to
                                                  Summary, January 2016, ISSN: 1057–7823, http://          quickstats.nass.usda.gov (Last Accessed: November     produce ethanol from sugar beets grown in North
                                                  usda.mannlib.cornell.edu/usda/current/                   16, 2016).                                            Dakota and Tracy Renewable Energy proposing to
                                                  CropProdSu/CropProdSu-0112-2016.pdf. This                  29 USDA, ‘‘NASS Quick Stats’’, https://             produce ethanol from sugar beets grown in
                                                  assumes an ethanol conversion rate of 25 gallons of      quickstats.nass.usda.gov (Last Accessed: November     California but we had not received the petition from
                                                  ethanol/wet short ton of beets.                          16, 2016).                                                                                       Continued




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                                                  34660                         Federal Register / Vol. 82, No. 142 / Wednesday, July 26, 2017 / Notices

                                                  both regions with a long history of sugar                beet pulp. In livestock production, the                    The reductions in corn and wheat
                                                  beet production. As a simplifying                        fibrous sugar beet pulp is used as a                    production were driven by different
                                                  assumption, EPA assumed that all crops                   roughage replacement making it of use                   proximate causes (though both were
                                                  grown in each of these regions were                      primarily for ruminants rather than                     ultimately driven by increased demand
                                                  displaced by sugar beets proportionally                  other types of livestock.36 In our                      for sugar beets) and led to somewhat
                                                  to their crop area in the control case. We               analysis, sugar beet pulp use by the                    different impacts on commodity use and
                                                  recognize there are significant                          livestock market was an important                       trade. In the case of wheat, the decline
                                                  differences in the way the sugar beet                    factor leading to GHG reductions.                       in production led to a decline in
                                                  biofuel scenarios were implemented in                    Therefore this notice evaluates only                    exports. As shown in Section II.B.3, the
                                                  FASOM and FAPRI for this analysis. For                   using the non-cellulosic portion of sugar               decline in wheat exports created
                                                  example, FASOM chose to produce all                      beets for biofuel production.                           pressure on international wheat markets
                                                  sugar beets for biofuels in North Dakota,                                                                        and wheat production increased outside
                                                  whereas in FAPRI we modeled this                         2. Domestic Impacts                                     the U.S.
                                                  production in North Dakota and                              On the basis of least cost, FASOM                       In the case of corn, the potential
                                                  California by assumption. Since these                    chose to grow all sugar beets in North                  market impacts were mitigated by the
                                                  modeling exercises occurred                              Dakota, with approximately 477,000                      increased availability of sugar beet pulp
                                                  concurrently, not sequentially, we could                 acres of land required to grow the                      into U.S. feed markets as a result of beet
                                                  not anticipate what choices FASOM                        additional sugar beets.                                 sugar biofuel production. As described
                                                  would make at the outset of our FAPRI                       The vast majority of the new sugar                   in Section II.A, sugar beet pulp is a co-
                                                  modeling. This led to some differences                   beet acres in North Dakota was from                     product used as livestock feed
                                                  in the regions utilized to produce beets.                displacement of other crops rather than                 supplement, mainly substituting for
                                                  However, the nationwide agricultural                     from new cropland (432,000 acres from                   corn. Based on the FASOM results for
                                                  market results projected by FASOM and                    displaced crops, or nearly 91 percent of                2022, approximately 1.4 billion pounds
                                                  FAPRI were similar, due to similar                       needed acres). Increasing sugar beet                    of sugar beet pulp were produced and
                                                  dominant trends in feed markets and                      production in North Dakota primarily                    sent to the feed market. In turn this
                                                  crop exports at the national level. The                  displaced wheat acreage, but also                       displaced approximately 1.2 billion
                                                  similarity of these relevant national                    soybeans, corn, and hay among other                     pounds of corn, which was significantly
                                                  market results between the two models,                   crops.37 Most of these displaced crops                  greater than the approximately 867
                                                  despite differences in U.S. growing                      shifted to other U.S. regions, and some                 million pounds of corn production lost
                                                  regions, indicates that the international                crops, such as soybeans, shifted to new                 to displaced acres. This led to a
                                                  impacts projected by the FAPRI model                     acreage that was more productive than                   decrease in total demand for corn in
                                                  would not have been significantly                        the North Dakota acres from where they                  U.S. markets and, as a result, U.S.
                                                  different if we had applied the growing                  were displaced. Table II.1 indicates that               exports of corn increased. As discussed
                                                  assumptions from FASOM. These                            production levels for hay, soy, and most                in Section II.B.3 below, this reduced the
                                                  results are discussed below and are                      other crops are maintained.38 However,                  price of corn internationally and
                                                  available in the docket for this notice.33               national crop area and production for                   lessened the demand pull for corn to be
                                                  We welcome comment on these                              wheat and corn declined significantly.                  grown in other countries.
                                                  assumptions and our results.                                                                                        The rest of the needed sugar beet
                                                     The sugar beet scenario modeled                         TABLE II.1—CHANGES IN U.S. PRO-                       acres in North Dakota, approximately
                                                  included a number of key assumptions,                                                                            46,000 acres, came from new cropland,
                                                                                                              DUCTION (MILLION POUNDS) AND
                                                  such as biofuel and pulp yields per wet                                                                          particularly from cropland pasture
                                                  short ton of beets, and the amount of                       HARVESTED    AREA     (THOUSAND
                                                                                                                                                                   (high-value pasture land that can also be
                                                  corn livestock feed displaced per pound                     ACRES) IN 2022 RELATIVE TO CON-                      utilized as cropland with minimal
                                                  of pulp. These key assumptions are                          TROL CASE 39                                         preparation) and from acres that would
                                                  discussed below. Information on                                                                                  otherwise take part in the Conservation
                                                  additional assumptions, including sugar                                      Production          Harvested
                                                                                                                                difference            area         Reserve Program. Pasture area rose
                                                  beet crop inputs (e.g., fertilizer, energy)                                 from control      difference from    modestly in some other states causing
                                                  is available in the docket for this notice.                                      case          control case      the conversion of some forest acres to
                                                     In conducting research for this                                             (million          (thousand       pasture. This relatively small decrease
                                                  analysis, we located sources for beet                                          pounds)             acres)
                                                                                                                                                                   in forestland pushed up prices slightly
                                                  pulp yield of 0.06 dry short tons of                                                                             for forest products, leading foresters to
                                                  sugar beet pulp per wet short tons of                    Sugar
                                                                                                             Beets .....            +23,976               +477     intensify growth on their stands.
                                                  sugar beets 34 and displacement rates of                 Hay ...........               +8               ¥106     Relative to other feedstocks EPA has
                                                  0.9 pounds of corn feed displaced in                     Corn ..........            ¥867                 ¥96     evaluated for the RFS program, these
                                                  cattle diets 35 for every pound of sugar                 Wheat .......              ¥352                 ¥98     domestic shifts in land use were minor,
                                                                                                           All Else ......               +3                ¥56     and after the various land use changes
                                                  Plant Sensory Systems proposing to produce
                                                  ethanol from sugar beets grown in Florida. EPA                                                                   were considered the net domestic land
                                                                                                                Total ...           +22,768                +121
                                                  does not expect results would have varied                                                                        use change emissions impacts were
                                                  significantly if sugar beets had been modeled by                                                                 close to zero.
                                                  assumption in Florida under FAPRI due to the
                                                  similarity of these results to the results from          diets and finishing diets. Lardy, Greg, and Rebecca     3. International Impacts
                                                  FASOM.                                                   Schafar, ‘‘Feeding Sugar Beet Byproducts to Cattle,’’
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                                                    33 See EPA–HQ–OAR–2016–0771.                           North Dakota State University, May 2008, pp. 2.            In the FAPRI model, the expansion of
                                                    34 Panella, Lee and Stephen R. Kaffka, ‘‘Sugar
                                                                                                             36 Harry Baumes, et al. (USDA), ‘‘Summary of
                                                                                                                                                                   sugar beet cropland used to produce
                                                  Beet (Beta vulgaris L) as a Biofuel Feedstock in the     Discussions Between US EPA and USDA Regarding           biofuel feedstock also led to increases in
                                                  United States.’’ Chapter 10 in Sustainability of the     Sugar Beets’’.
                                                                                                             37 See ‘‘FASOM Sugar Beets Results’’ in the
                                                                                                                                                                   corn exports and decreases in wheat
                                                  Sugar and Sugar Ethanol Industries; Eggleston, G.;
                                                  ACS Symposium Series; American Chemical                  docket. EPA–HQ–OAR–2016–0771.                           exports. Similar to the drivers of the
                                                  Society: Washington DC, 2010, pp. 165.                     38 Soy is captured in the ‘‘All Else’’ category in
                                                    35 To make a simplifying assumption, we                Table II.1. See ‘‘FASOM Sugar Beets Results’’ in the      39 Totals may differ from subtotals due to

                                                  averaged the value from corn in backgrounding            docket EPA–HQ–OAR–2016–0771 for more detail.            rounding.



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                                                                                           Federal Register / Vol. 82, No. 142 / Wednesday, July 26, 2017 / Notices                                                                                                   34661

                                                  domestic results discussed in Section                                        outside the U.S. of certain other crops                                          TABLE II.3—NON-U.S. HARVESTED
                                                  II.B.2, beet production displaced wheat                                      however increased in response to U.S.                                            AREA BY CROP IN 2022 RELATIVE
                                                  acres, but the beet pulp co-product                                          increasing demand for sugar beets; most                                          TO CONTROL CASE—Continued
                                                  reduced domestic demand for corn.                                            significantly wheat and soybeans.
                                                                                                                                                                                                                                   [Thousand acres] 41
                                                  Further, the magnitude of these export                                       Wheat increased internationally in
                                                  impacts was quite similar between the                                        terms of both production and acreage,
                                                                                                                                                                                                                                                                  Difference
                                                  two models, as shown in Table II.2                                           with a strong response particularly in                                                                                            from control
                                                  below.40                                                                     India. Soybean acres and production                                                                                                   case
                                                                                                                               also increased, particularly in Brazil.
                                                    TABLE II.2—CHANGES IN U.S. CORN                                            Table II.3 below summarizes the non-                                         Soybeans ..............................                       +20
                                                     AND WHEAT EXPORTS IN 2022 REL-                                            U.S. increases in harvested area by crop                                     All Else ..................................                   +37
                                                     ATIVE TO CONTROL CASE BY MODEL                                            type, while Table II.4 shows which
                                                                                                                               countries had the largest impacts.                                                  Total ...............................                  +55
                                                                          [Million pounds]

                                                                            Difference                Difference
                                                                                                                                   TABLE II.3—NON-U.S. HARVESTED    As increasing sugar beet pulp use for
                                                                           from control                  from                      AREA BY CROP IN 2022 RELATIVE livestock feed in the U.S. freed up more
                                                                              case in                  control                     TO CONTROL CASE               corn for export, international livestock
                                                                             FASOM                  case in FAPRI                                                                                  feed prices declined modestly, and with
                                                                                                                                                    [Thousand acres] 41
                                                  Corn ..........                     +307                        +355                                                                             it was a small rise in meat production
                                                  Wheat .......                       ¥292                        ¥281                                                               Difference    globally. Many of these changes
                                                                                                                                                                                    from control   occurred in Brazil and this caused some
                                                                                                                                                                                        case       expansion in grazing land, including in
                                                    With sugar beet pulp displacing corn
                                                  feed, FAPRI modeling indicated that in                                       Sugar Beets ..........................                            0 the Amazon region. This caused further
                                                  2022, both corn production and acreage                                       Corn ......................................                   ¥45 international land use change impacts,
                                                  would decline globally. Production                                           Wheat ...................................                      +43 as shown in Table II.4 below.

                                                               TABLE II.4—NON-U.S. CHANGES IN AGRICULTURAL LAND BY REGION IN 2022 RELATIVE TO CONTROL CASE
                                                                                                                                                    [Thousand acres] 42

                                                                                                                                                                                                                                                                    Total
                                                                                                                                                                                                          Change in                  Change in                    change in
                                                                                                                                                                                                        area harvested              pasture acres                   acres

                                                  Brazil ............................................................................................................................................                     +9                          +20                 +29
                                                  India .............................................................................................................................................                    +15        ........................              +15
                                                  Rest of Non-USA .........................................................................................................................                              +32        ........................              +32

                                                         Total Non-USA .....................................................................................................................            ........................    ........................              +75



                                                  4. Feedstock Transport                                                       plant with typical distances for                                             5. Results of Upstream GHG Lifecycle
                                                     When harvested, sugar beets are                                           transport around 30 miles.43 GHG                                             Analysis
                                                  heavy and perishable; therefore,                                             emissions for the transport of sugar                                           As described above, EPA analyzed the
                                                  transport of sugar beets from field to                                       beets are based on emission factors                                          GHG emissions associated with
                                                  processing site is expected to occur over                                    developed for the March 2010 RFS rule                                        feedstock production and transport.
                                                  short distances. Information from                                            for trucks including capacity, fuel                                          Table II.5 below breaks down by stage
                                                  stakeholders and literature states that                                      economy, and type of fuel used.44                                            the calculated GHG upstream emissions
                                                  sugar beets used for biofuels are shipped                                                                                                                 for producing biofuels from sugar beets
                                                  by truck from point of production to the                                                                                                                  in 2022.

                                                                                                TABLE II.5—UPSTREAM GHG LIFECYCLE EMISSIONS FOR SUGAR BEETS
                                                                                                                                                 [gCO2-eq/wet short ton]

                                                                                                                                                                                                                                                   Emissions
                                                                                                                                     Process                                                                                                 (gCO2-eq/wet short ton)

                                                  Net Agriculture (w/o land use change) ..........................................................................................................................                                                     +21,615
                                                  Domestic Land Use Change .........................................................................................................................................                                                     ¥882
                                                  International Land Use Change, Mean .........................................................................................................................                                                        +16,038
                                                  (Low/High) ......................................................................................................................................................................                            (+9249/+23,672)
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                                                    40 Impacts on the exports of other crops were                                42 Totals may differ from subtotals due to                                   44 The March 2010 RFS rule preamble (75 FR

                                                  relatively minor, but interested readers can examine                         rounding. Brazil totals include pastureland. Other                           14670, March 26, 2010) and Regulatory Impact
                                                  the full set of FAPRI crop trade impacts in the                              regions are cropland only.                                                   Analysis (RIA) (EPA–420–R–10–006) provide
                                                                                                                                 43 Farahmand, K., N. Dharmadhikari, and V.
                                                  docket.                                                                                                                                                   further discussion of our approach. These
                                                    41 These totals do not include pastureland in                              Khiabani. ‘‘Analysis of Transportation Economics of                          documents are available online at https://
                                                                                                                               Sugar-Beet Production in the Red River Valley of
                                                  Brazil. Totals may differ from subtotals due to                                                                                                           www.epa.gov/renewable-fuel-standard-program/
                                                                                                                               North Dakota and Minnesota using Geographical
                                                  rounding.                                                                    Information System.’’ Journal of Renewable                                   renewable-fuel-standard-rfs2-final-rule-additional-
                                                                                                                               Agriculture 7(2013):126–131.                                                 resources.




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                                                  34662                                  Federal Register / Vol. 82, No. 142 / Wednesday, July 26, 2017 / Notices

                                                                                   TABLE II.5—UPSTREAM GHG LIFECYCLE EMISSIONS FOR SUGAR BEETS—Continued
                                                                                                                                              [gCO2-eq/wet short ton]

                                                                                                                                                                                                                                          Emissions
                                                                                                                                  Process                                                                                           (gCO2-eq/wet short ton)

                                                  Feedstock Transport ......................................................................................................................................................                          +8,183

                                                        Total Upstream Emissions, Mean ..........................................................................................................................                                    +44,954
                                                        (Low/High) ..............................................................................................................................................................          (+38,210/+52,588)



                                                     Net agricultural emissions included                                    biofuel and the co-product beet pulp is                                     including our assumptions regarding the
                                                  domestic and international impacts                                        used as animal feed.                                                        average yield of ethanol in mmBtu per
                                                  related to changes in crop inputs such                                       Given the importance of the beet pulp                                    wet short ton of sugar beets used, EPA
                                                  as fertilizer, energy used in agriculture,                                co-product on the upstream GHG                                              anticipates that if a facility produces
                                                  livestock production, and other                                           emissions associated with beet pulp,                                        emissions of no more than
                                                  agricultural changes in the scenario                                      pathways that do not produce a beet                                         approximately 23 kgCO2e/mmBtu of
                                                  modeled. Increased demand for sugar                                       pulp feed coproduct, or use it for                                          ethanol, the fuel produced would meet
                                                  beets resulted in positive net                                            purposes other than animal feed, may                                        the 50 percent advanced biofuel GHG
                                                  agricultural emissions relative to the                                    not be compatible with our analysis.                                        reduction threshold.47 If a facility
                                                  control case. Compared with other                                         EPA would likely need to conduct                                            produces no more than 53 kgCO2e/
                                                  crops, sugar beets required relatively                                    supplemental upstream GHG analysis in                                       mmBtu of ethanol, EPA anticipates it
                                                  high levels of agricultural chemical                                      order to determine the lifecycle GHG                                        would meet the 20 percent renewable
                                                  inputs (e.g., herbicides and                                              emissions associated with fuels                                             fuel GHG reduction threshold. EPA will
                                                  pesticides).45 Domestic land use change                                   produced under these types of                                               evaluate petitions for fuel produced
                                                  emissions were close to zero for sugar                                    pathways.                                                                   from sugar beet feedstock on a case-by-
                                                  beets, as described in Section II.B.2.                                       After reviewing comments received in                                     case basis, and will make adjustments as
                                                                                                                            response to this action, EPA will                                           necessary for each facility including
                                                     International land use change                                          combine the evaluation of upstream                                          consideration of differences in the yield
                                                  emissions increased as a result of                                        GHG emissions associated with the use                                       of ethanol per wet short ton of sugar
                                                  demand for sugar beets. The increase in                                   of sugar beet feedstock with an                                             beets used.48 We welcome comments on
                                                  international land use change emissions                                   evaluation of the GHG emissions                                             this application of our upstream
                                                  for sugar beets was significantly larger                                  associated with individual producers’                                       analysis.
                                                  than the decrease in domestic land use                                    production processes and finished fuels
                                                  change emissions. This is because                                         to determine whether fuel produced at                                       7. Risk of Potential Invasiveness
                                                  increased demand for sugar beets led to                                   petitioners’ facilities from the sugar in                                      Sugar beets were not listed on the
                                                  a significant reduction in key U.S. crop                                  sugar beets satisfy the CAA lifecycle                                       Federal noxious weed list nor did they
                                                  exports (e.g., wheat exports), but very                                   GHG emissions reduction requirements                                        appear on USDA’s composite listing of
                                                  little change in domestic consumption                                     for renewable fuels. Each biofuel                                           introduced, invasive, and noxious
                                                  of agricultural goods. These greater                                      producer seeking to generate Renewable                                      plants by U.S state.49 50 Based on
                                                  international emissions led to a net                                      Identification Numbers (RINs) for non-                                      consultation with USDA, EPA does not
                                                  increase in global land use change                                        grandfathered volumes of biofuel from                                       believe sugar beets pose a risk of
                                                  emissions. Feedstock transport included                                   sugar beets will need to submit a                                           invasiveness at this time. Current
                                                  emissions from moving sugar beets from                                    petition requesting EPA’s evaluation of                                     cultivars of sugar beets require extensive
                                                  the farm to a biofuel production facility,                                their new renewable fuel pathway                                            weed management to survive.51
                                                  as described in Section II.B.4 above.                                     pursuant to 40 CFR 80.1416 of the RFS                                       However, USDA notes that future cross
                                                                                                                            regulations, and include all of the                                         breeding, hybridization, and genetic
                                                  6. Fuel Production and Distribution
                                                                                                                            information specified at 40 CFR                                             manipulation could change the
                                                     Sugar beets are suitable for the same                                  80.1416(b)(1).46
                                                  biofuel conversion processes as                                              Because EPA is evaluating the GHG                                          47 In this case, emissions produced by the facility

                                                                                                                            emissions associated with the                                               refers to fuel production emissions, including
                                                  sugarcane. In Europe, where sugar beets                                                                                                               emissions associated with energy used for fuel,
                                                  are widely used as biofuel feedstock,                                     production and transport of sugar beet                                      feedstock and co-product operations at the facility.
                                                  virtually all of the fuel is non-cellulosic                               feedstock through this notice and                                           For more details on the assumptions used in this
                                                  beet sugar ethanol produced through                                       comment process, petitioners requesting                                     analysis, see ‘‘Sugar Beets for Biofuel Upstream
                                                                                                                            EPA’s evaluation of biofuel pathways                                        Analysis Technical Memorandum’’ in the docket.
                                                  fermentation with the beet pulp sold                                                                                                                  EPA–HQ–OAR–2016–0771.
                                                  into the feed markets. Based on these                                     involving sugar beet feedstock need not                                       48 For example, EPA may need to consider

                                                  data, and on information from our                                         include the information for new                                             additional feedstock transportation emissions in
                                                  petitioners and other stakeholders, EPA                                   feedstocks specified at 40 CFR                                              cases where beet sugar extraction and biofuel
                                                                                                                            80.1416(b)(2). Based on our evaluation                                      production do not occur in the same location, as
                                                  anticipates that most biofuel produced                                                                                                                may be the case for biofuel produced under the
                                                  from sugar beets in the U.S. would also                                   of the upstream GHG emissions                                               USDA Feedstock Flexibility Program.
                                                                                                                            attributable to the production and
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                                                  be from the non-cellulosic sugars via                                                                                                                   49 USDA, ‘‘Federal Noxious Weed List,’’ July 13,

                                                  fermentation. Our upstream analysis                                       transport of sugar beet feedstock,                                          2016, https://www.aphis.usda.gov/plant_health/
                                                  would apply for all facilities where non-                                                                                                             plant_pest_info/weeds/downloads/weedlist.pdf.
                                                                                                                              46 Petitioners with pending petitions involving                             50 USDA, ‘‘State and Federal Noxious Weeds
                                                  cellulosic beet sugar is converted to                                                                                                                 List,’’ accessed November 17, 2016, http://
                                                                                                                            use of sugar from sugar beets as feedstock will not
                                                                                                                            be required to submit new petitions. However, if                            plants.usda.gov/java/noxComposite.
                                                    45 Harry Baumes, et al. (USDA), ‘‘Summary of                            any information has changed from their original                               51 Harry Baumes, et al. (USDA), ‘‘Summary of

                                                  Discussions Between US EPA and USDA Regarding                             petitions, EPA will request that they update that                           Discussions Between US EPA and USDA Regarding
                                                  Sugar Beets’’.                                                            information.                                                                Sugar Beets.’’



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                                                                               Federal Register / Vol. 82, No. 142 / Wednesday, July 26, 2017 / Notices                                           34663

                                                  invasiveness potential of beets, in which                DATES:  The public meeting will be held               draft Toxicological Review of
                                                  case a re-evaluation may be required.52                  on Tuesday, August 29, 2017, from                     Hexahydro-1,3,5-trinitro-1,3,5-triazine
                                                  Based on currently available                             10:30 a.m. to 5:00 p.m. and Wednesday,                (RDX) currently posted to the IRIS
                                                  information, EPA does not believe                        August 30, 2016, from 9:00 a.m. to 1:00               database includes an oral reference dose
                                                  monitoring and reporting of data for                     p.m.                                                  (RfD) (posted in 1988), and a cancer
                                                  invasiveness concerns would be a                         ADDRESSES: The meeting will be held at                descriptor and oral cancer slope factor
                                                  requirement for biofuel producers                        the Residence Inn Arlington Capital                   (posted in 1990). Epidemiological data,
                                                  generating fuel from sugar beets at this                 View, 2850 South Potomac Ave.,                        experimental animal data, and other
                                                  time.                                                    Arlington, VA 22202.                                  relevant data from studies of the
                                                                                                           FOR FURTHER INFORMATION CONTACT: Any                  noncancer and cancer effects of RDX are
                                                  III. Summary                                                                                                   being evaluated in this reassessment.
                                                                                                           member of the public who wants further
                                                     EPA invites public comment on its                     information concerning the meeting                    The reassessment is expected to include
                                                  analysis of GHG emissions associated                     may contact Mr. Thomas Carpenter,                     an updated RfD and oral cancer
                                                  with the production and transport of                     Designated Federal Officer (DFO), EPA                 assessment. Background on the current
                                                  sugar beets as a feedstock for biofuel                   Science Advisory Board (1400R), U.S.                  advisory activity, IRIS Assessment for
                                                  production. This notice analyzes a non-                  Environmental Protection Agency, 1200                 Hexahydro-1,3,5-trinitro-1,3,5-triazine
                                                  cellulosic sugar beet-to-biofuel                         Pennsylvania Avenue NW., Washington,                  (RDX) can be found on the SAB Web
                                                  production process. Although EPA has                     DC 20460; via telephone/voice mail                    site at https://yosemite.epa.gov/sab/
                                                  not received a petition for cellulosic                   (202) 564–4885, or email at                           sabproduct.nsf/0/50370BADC61C408
                                                  sugar beet biofuel production, the                       carpenter.thomas@epa.gov. General                     685257E380077D825?OpenDocument.
                                                  agency is aware of interest in this                                                                               Quality Review of the draft SAB
                                                                                                           information concerning the SAB can be
                                                  process and invites comment on the                                                                             report on Economy-wide Modeling of
                                                                                                           found on the EPA Web site at http://
                                                  analysis of beet pulp and its effect on                                                                        the Benefits and Costs of Environmental
                                                                                                           www.epa.gov/sab.
                                                  agricultural markets. EPA will consider                                                                        Regulation: The EPA requested that the
                                                                                                           SUPPLEMENTARY INFORMATION:                            SAB provide review of the EPA’s
                                                  public comments received when
                                                                                                              Background: The SAB was                            modeling and ability to measure full
                                                  evaluating petitions received pursuant
                                                                                                           established pursuant to the                           regulatory impacts and to make
                                                  to 40 CFR 80.1416 that involve
                                                                                                           Environmental Research, Development,                  recommendations on the use of
                                                  pathways using sugar beets as a
                                                                                                           and Demonstration Authorization Act                   economy-wide modeling frameworks to
                                                  feedstock.
                                                                                                           (ERDDAA), codified at 42 U.S.C. 4365,                 characterize the social costs, benefits,
                                                    Dated: January 18, 2017.                               to provide independent scientific and                 and economic impacts of air regulations
                                                  Christopher Grundler,                                    technical advice to the Administrator on              with the aim of improving benefit-cost
                                                  Director, Office of Transportation and Air               the scientific and technical basis for                and economic impact analyses used to
                                                  Quality, Office of Air and Radiation.                    Agency positions and regulations. The                 inform decision-making at the agency.
                                                  [FR Doc. 2017–15721 Filed 7–25–17; 8:45 am]              SAB is a Federal Advisory Committee                   As a first step, the EPA has asked the
                                                  BILLING CODE 6560–50–P                                   chartered under the Federal Advisory                  SAB to provide feedback on its draft
                                                                                                           Committee Act (FACA), 5 U.S.C., App.                  charge questions and analytic blueprint.
                                                                                                           2. The SAB will comply with the                       Background on the current advisory
                                                  ENVIRONMENTAL PROTECTION                                 provisions of FACA and all appropriate                activity, Economy-wide Modeling of the
                                                  AGENCY                                                   SAB Staff Office procedural policies.                 Benefits and Costs of Environmental
                                                  [FRL–9965–17–OA]                                         Pursuant to FACA and EPA policy,                      Regulation can be found on the SAB
                                                                                                           notice is hereby given that the SAB will              Web site at https://yosemite.epa.gov/
                                                  Notification of a Public Meeting of the                  hold a public meeting to discuss and                  sab/sabproduct.nsf/LookupWebProjects
                                                  Chartered Science Advisory Board                         deliberate on the topics below. The                   CurrentBOARD/07e67cf77b54734
                                                                                                           chartered SAB will conduct quality                    285257bb0004f87ed!OpenDocument&
                                                  AGENCY: Environmental Protection                         reviews of three draft reports. The SAB
                                                  Agency (EPA).                                                                                                  TableRow=2.1#2.
                                                                                                           quality review process ensures that all                  Quality review of a draft SAB review
                                                  ACTION: Notice.                                          draft reports developed by SAB panels,                report on the Framework for Assessing
                                                  SUMMARY:   The Environmental Protection                  committees or workgroups are reviewed                 Biogenic CO2 Emissions from Stationary
                                                  Agency (EPA) Science Advisory Board                      and approved by the Chartered SAB                     Sources: In 2012, the SAB completed a
                                                  (SAB) Staff Office announces a public                    before being finalized and transmitted to             review of the first draft accounting
                                                  meeting of the chartered SAB to:                         the EPA Administrator. These reviews                  framework addressing scientific and
                                                  Conduct three quality reviews of (1) the                 are conducted in a public meeting as                  technical issues associated with
                                                  SAB peer review of EPA’s Draft                           required by FACA.                                     biogenic carbon dioxide (CO2)
                                                                                                              Quality Review of the draft SAB                    emissions, Accounting Framework for
                                                  Assessment entitled Toxicological
                                                                                                           Review of EPA’s Draft Assessment                      Biogenic CO2 Emissions from Stationary
                                                  Review of Hexahydro-1,3,5-trinitro-
                                                                                                           entitled Toxicological Review of                      Sources (September 2011). The EPA
                                                  1,3,5-triazine (RDX); (2) the draft SAB
                                                                                                           Hexahydro-1,3,5-trinitro-1,3,5-triazine               subsequently revised the 2011
                                                  report on Economy-wide Modeling of
                                                                                                           (RDX): The National Center for                        framework and requested the SAB to
                                                  the Benefits and Costs of Environmental
                                                                                                           Environmental Assessment (NCEA) in                    conduct a review of the Framework for
                                                  Regulation and (3) the draft SAB review
                                                                                                           the EPA’s Office of Research and                      Assessing Biogenic CO2 Emissions from
                                                  of the EPA’s Framework for Assessing
                                                                                                           Development (ORD) develops                            Stationary Sources (November 2014).
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                                                  Biogenic CO2 Emissions from Stationary
                                                                                                           toxicological reviews/assessments for                 The purpose of the 2014 framework is
                                                  Sources (2014); and receive briefings on
                                                                                                           various chemicals for IRIS. NCEA is                   to develop a method for calculating the
                                                  SAB projects and future topics from the
                                                                                                           developing a draft IRIS assessment for                adjustment, or Biogenic Assessment
                                                  EPA.
                                                                                                           Hexahydro-1,3,5-trinitro-1,3,5-triazine               Factor (BAF), for carbon emissions
                                                    52 Harry Baumes, et al. (USDA), ‘‘Summary of           (RDX) and has asked the SAB to peer                   associated with the combustion of
                                                  Discussions Between US EPA and USDA Regarding            review the draft document. The draft                  biogenic feedstocks taking into account
                                                  Sugar Beets.’’                                           will be a reassessment of RDX. NCEA’s                 the biological carbon cycle effects


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Document Created: 2017-07-26 01:30:12
Document Modified: 2017-07-26 01:30:12
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesComments must be received on or before August 25, 2017.
ContactChristopher Ramig, Office of Air and Radiation, Office of Transportation and Air Quality, Mail Code: 6401A, U.S. Environmental Protection Agency, 1200 Pennsylvania Avenue NW., Washington, DC 20460; telephone number: 202-564-1372; fax number: 202-
FR Citation82 FR 34656 

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