[Federal Register Volume 83, Number 149 (Thursday, August 2, 2018)]
[Rules and Regulations]
[Pages 37735-37746]
[FR Doc No: 2018-16246]

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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents.

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Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 /
Rules and Regulations

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 80

[EPA-HQ-OAR-2017-0655; FRL-9981-57-OAR]
RIN 2060-AT82

Renewable Fuel Standard Program: Grain Sorghum Oil Pathway

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: In this action, the Environmental Protection Agency (EPA)
determines that biodiesel and heating oil produced from distillers
sorghum oil via a transesterification process, and renewable diesel,
jet fuel, heating oil, naphtha, and liquefied petroleum gas (LPG)
produced from distillers sorghum oil via a hydrotreating process, meet
the lifecycle GHG emissions reduction threshold of 50 percent required
for advanced biofuels and biomass-based diesel under the Renewable Fuel
Standard (RFS) program. Based on these analyses, EPA is adding these
pathways to the list of approved renewable fuel production pathways in
the RFS regulations. EPA is also amending the RFS regulations by adding
a new definition of ``distillers sorghum oil,'' and replacing existing
references to ``non-food grade corn oil'' with the newly defined term
``distillers corn oil.''

DATES: The final rule is effective October 1, 2018.

ADDRESSES: The EPA has established a docket for this action under
Docket ID No. EPA-HQ-OAR-2017-0655. All the documents in the docket are
listed on the http://www.regulations.gov website. Although listed in
the index, some information is not publicly available, e.g., CBI or
other information whose disclosure is restricted by statute. Certain
other material, such as copyrighted material, is not placed on the
internet and will be publicly available only in hard copy form.
Publicly available docket materials are available electronically
through http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Diana Galperin, 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:<PHONE_NUMBER>; email address:
[email protected].

SUPPLEMENTARY INFORMATION:

Outline of This Preamble

I. General Information
    A. Does this action apply to me?
    B. What action is the agency taking?
    C. What is the agency's authority for taking this action?
    D. What are the incremental costs and benefits of this action?
II. Introduction
III. Analysis of GHG Emissions Associated With Production of
Biofuels From Distillers Sorghum Oil
    A. Overview of Distillers Sorghum Oil
    B. Analysis of Lifecycle GHG Emissions
    1. Livestock Sector Impacts
    a. Nutritional Impacts
    b. Mass Loss
    2. Feedstock Production
    3. Feedstock Transport
    4. Feedstock Pretreatment
    5. Fuel Production
    6. Fuel Distribution
    7. Fuel Use
    8. Results of GHG Lifecycle Analysis
IV. Definition of Distillers Corn Oil
V. Summary
VI. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review and
Executive Order 13563: Improving Regulation and Regulatory Review
    B. Executive Order 13771: Reducing Regulations and Controlling
Regulatory Costs
    C. Paperwork Reduction Act (PRA)
    D. Regulatory Flexibility Act (RFA)
    E. Unfunded Mandates Reform Act (UMRA)
    F. Executive Order 13132: Federalism
    G. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
    H. Executive Order 13045: Protection of Children From
Environmental Health Risks and Safety Risks
    I. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
    J. National Technology Transfer Advancement Act (NTTAA)
    K. Executive Order 12898: Federal Actions To Address
Environmental Justice in Minority Populations and Low-Income
Populations
    L. Congressional Review Act (CRA)

I. General Information

A. Does this action apply to me?

    Entities potentially affected by this action are those involved
with the production, distribution, and sale of transportation fuels,
including gasoline and diesel fuel or renewable fuels such as ethanol,
biodiesel, heating oil, renewable diesel, naphtha and liquefied
petroleum gas. Potentially regulated categories include:
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    \1\ North American Industry Classification System.

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       Examples of potentially affected entities         NAICS\1\ codes
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Petroleum refineries (including importers)............            324110
Ethyl alcohol manufacturing...........................            325193
Other basic organic chemical manufacturing............            325199
Chemical and allied products merchant wholesalers.....            424690
Petroleum bulk stations and terminals.................    424710, 424720
Other fuel dealers....................................            454310
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    This table is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be regulated by this
action. This table lists the types of entities that the EPA is now
aware could potentially be affected by

this action. Other types of entities not listed in the table could also
be affected. To determine whether your entity is regulated by this
action, you should carefully examine the applicability criteria in the
referenced regulations. If you have any questions regarding the
applicability of this action to a particular entity, consult the person
listed in the FOR FURTHER INFORMATION CONTACT section.

B. What action is the agency taking?

    EPA is amending the RFS regulations to add a new definition of
``distillers sorghum oil'' and to replace existing references to ``non-
food grade corn oil'' with the newly defined term ``distillers corn
oil.'' This rule also adds the following pathways to rows F and H of
Table 1 to 80.1426: (1) Biodiesel and heating oil produced from
distillers sorghum oil and commingled distillers sorghum and corn oil
via a transesterification process; and (2) renewable diesel, jet fuel,
and heating oil produced from distillers sorghum oil and commingled
distillers sorghum and corn oil via a hydrotreating process. Pathways
for naphtha and LPG produced from distillers sorghum oil via a
hydrotreating process are also added to row I of Table 1 to 40 CFR
80.1426. These pathways are approved for biomass-based diesel (D-code
4) or advanced biofuel (D-code 5) renewable identification numbers
(RINs), depending on the fuel type and whether the production process
involves co-processing renewable biomass and petroleum.\2\
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    \2\ The term ``biomass-based diesel'' is defined in the statute
to exclude any renewable fuels derived from co-processing biomass
with a petroleum feedstock. CAA Section 211(o)(1)(D).
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C. What is the agency's authority for taking this action?

    Statutory authority for this action comes from Clean Air Act
sections 114, 208, 211, and 301.

D. What are the incremental costs and benefits of this action?

    There are no incremental costs from this action. This action allows
for additional flexibility and feedstock production options for
participating in the Renewable Fuel Standard (RFS) program.

II. Introduction

    Section 211(o) of the Clean Air Act (CAA) establishes the 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. Non-exempt
renewable fuels must achieve at least a 20 percent reduction in
lifecycle greenhouse gas (GHG) emissions as compared to a 2005
petroleum baseline.\3\ Advanced biofuel and biomass-based diesel must
achieve at least a 50 percent reduction, and cellulosic biofuel must
achieve at least a 60 percent reduction.
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    \3\ A baseline volume of renewable fuel produced from facilities
that commenced construction on or before December 19, 2007, and
which completed construction by December 19, 2010, without an 18-
month hiatus in construction, is exempt from the minimum 20 percent
GHG reduction requirement that otherwise applies to renewable fuel.
In addition, a baseline volume of ethanol from facilities that
commenced construction after December 19, 2007, and on or before
December 31, 2009, qualifies for the same exemption if construction
was completed within 36 months without an 18-month hiatus in
construction; the facility was fired with natural gas, biomass, or
any combination thereof, at all times the facility operated between
December 19, 2007, and December 31, 2009; and the baseline volume
continues to be produced through processes fired with natural gas,
biomass, or any combination thereof.
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    In addition to the lifecycle GHG reduction requirements, there are
other definitional criteria for renewable fuel (e.g., produced from
renewable biomass as defined in the statute and regulations, and used
to reduce or replace the quantity of fossil fuel present in
transportation fuel, heating oil, or jet fuel) in CAA section 211(o)
and the RFS regulations at 40 CFR part 80 subpart M.
    Since the formation of the RFS program, EPA has periodically
promulgated rules to add new pathways to the regulations.\4\ In
addition, EPA has approved facility-specific pathways through the
petition process in 40 CFR 80.1416. There are three critical components
of approved fuel pathways under the RFS program: (1) Fuel type; (2)
feedstock; and (3) production process. Each pathway is associated with
a specific ``D-code'' that corresponds to one of the four categories of
renewable fuel--general renewable fuel, advanced biofuel, cellulosic
biofuel, or biomass-based diesel.
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    \4\ Please see information on Pathways I and Pathways II in 40
CFR part 80 subpart M, and in the Federal Register at 78 FR 14190
(March 5, 2013) and 79 FR 42128 (July 18, 2014). More information on
these can be found at: https://www.epa.gov/renewable-fuel-standard-program/final-rule-identify-additional-fuel-pathways-under-renewable-fuel and https://www.epa.gov/renewable-fuel-standard-program/renewable-fuel-pathways-ii-final-rule-identify-additional-fuel.
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    EPA's lifecycle analyses are used to assess the overall GHG
emissions 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. 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 those from land use changes and agricultural sector
impacts.
    EPA received a petition from the National Sorghum Producers (NSP),
submitted under partial claims of confidential business information
(CBI), requesting that EPA evaluate the GHG emissions associated with
biofuels produced using as a feedstock grain sorghum oil derived from
dry mill ethanol production, and that EPA provide a determination of
the renewable fuel categories, if any, for which such biofuels may be
eligible. EPA issued a proposed rule in December 2017 \5\ to establish
approved pathways for the use of grain sorghum oil, and received
comments on this proposal. In this action, EPA is amending the RFS
program regulations to define the term ``distillers sorghum oil.'' We
are also adding pathways to rows F, H and I of Table 1 to 40 CFR
80.1426 for biodiesel, renewable diesel, heating oil, naphtha, and LPG
produced from distillers sorghum oil, via transesterification or
hydrotreating processes.
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    \5\ 82 FR 61205 (December 27, 2017).
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    This preamble describes EPA's analysis of the GHG emissions
associated with distillers sorghum oil when used to produce specified
biofuels via particular processes. The analysis considers a scenario
where distillers sorghum oil is recovered from distillers grains with
solubles (DGS) at dry mill plants that produce biofuel from grain
sorghum and where the remaining reduced-oil DGS co-product is used as
animal feed. The distillers sorghum oil is then used as a feedstock for
conversion into certain biofuels. As described in section III.B.8 of
this preamble, we find that, under these circumstances, biodiesel and
heating oil produced from distillers sorghum oil via a
transesterification process meets the 50 percent GHG reduction
threshold required for advanced biofuel and biomass-based diesel. We
also find that, under these circumstances, renewable diesel, jet fuel,
naphtha, and LPG produced from distillers sorghum oil via a
hydrotreating process meets the 50

percent GHG emission reduction threshold required for advanced biofuel.
    As discussed in section IV of this preamble, EPA is also amending
the RFS regulations to add a new definition for ``distillers corn oil''
that is consistent with the new definition of distillers sorghum oil.
The definitional change for distillers corn oil was proposed in the
November 2016 Renewable Enhancement and Growth Support proposed rule
(the ``November 2016 REGS proposed rule'').\6\ Although that rule
proposed to revise the definition of corn oil extraction, after
considering the comments received, we decided it was more appropriate
to leave the definition of corn oil extraction unchanged, and instead
add and define the term distillers corn oil. This new term, distillers
corn oil, will replace the existing term, non-food grade corn oil
(which some parties have found unclear) in rows F and H of Table 1 to
40 CFR 80.1426. The primary difference between the existing and new
terms is that the new definition of distillers corn oil allows for the
recovery of corn oil at additional points in the ethanol production
process (provided certain conditions are met). Thus, although the new
definition allows additional corn oil to be used as a feedstock in the
relevant pathways, the same life cycle considerations apply and the
analyses for those pathways are unaffected.\7\ The purpose and
practical effect of this final rule, to allow corn oil extraction at
more stages of ethanol production, closely match the notice of proposed
rulemaking on this topic. In light of the practical similarity between
``non-food grade corn oil'' and ``distillers corn oil'' and to avoid
implementation difficulties from continuing to administer registrations
with obsolete terms, fuel producers who are currently registered for
pathways that include non-food grade corn oil as a feedstock will need
to update their registration to include distillers corn oil feedstock
through a company update in EPA's Central Data Exchange (CDX). After
the effective date of this final rule, including a reasonable
transition period to allow for adequate time for registration updates
to be initiated and processed, the non-food grade corn oil feedstock
code will be removed and RINs will not be able to be generated using
that feedstock code.\8\ Fuel producers will be instructed on how and
when to remove the non-food grade corn oil feedstock from their
registration.
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    \6\ 81 FR 80828 (November 16, 2016).
    \7\ See 81 FR 80828, 80900 (``[W]e believe that the precise
timing and method of corn oil extraction is not relevant for GHG
reductions to be accomplished pursuant to pathways F and H, provided
that: (1) The corn is converted to ethanol; (2) The corn oil is
extracted at a point in the dry mill ethanol production process that
renders it unfit for food uses without further refining; and (3) The
resulting DGS from the dry mill operation is marketable as animal
feed.'')
    \8\ For more information on EPA's guidelines for registration
updates see memo to the docket, ``Registration Approach for Fuel
Producers Transitioning from Non-Food Grade Corn Oil to Distillers
Corn Oil Feedstock,'' in Air Docket EPA-HQ-OAR-2017-0655.
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    With no known exceptions, ethanol plants that recover grain sorghum
oil also, and in most cases simultaneously, recover corn oil by the
same methods. Thus, for practical implementation purposes, it is
important to finalize the distillers corn oil definitional changes in
this rulemaking, to provide consistency between these regulatory
definitions. Finally, we also include in this rulemaking pathways for
biodiesel and heating oil produced from commingled distillers sorghum
oil and distillers corn oil via a transesterification process, and
renewable diesel, jet fuel, and, heating oil produced from commingled
distillers sorghum and corn oil via hydrotreating processes.

III. Analysis of GHG Emissions Associated With Production of Biofuels
From Distillers Sorghum Oil

A. Overview of Distillers Sorghum Oil

    Sorghum is native to Africa, but was introduced to the U.S. in the
early 17th century. Grain sorghum belongs to the species Sorghum
bicolor (L.) Moench,\9\ which has been bred for different purposes
including use as a grain (grain sorghum), a source of sugar (sweet
sorghum), and animal forage (biomass sorghum). In the U.S., grain
sorghum is commonly used as animal feed similar to feed corn, although
in some parts of the world it is more often grown for human
consumption. Pathways for ethanol produced from grain sorghum were
approved in a rule published on December 17, 2012 (77 FR 74592). We
also discussed biomass sorghum in a Federal Register Notice published
on December 31, 2014 (79 FR 78857). In that notice, we stated that EPA
does not consider hybrids of Sorghum bicolor and Johnsongrass (Sorghum
halepense) to be biomass sorghum. We would also not consider such
hybrids to be grain sorghum. Johnsongrass hybrids are explicitly
excluded due to concerns regarding their potential to behave as an
invasive species.
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    \9\ See, U.S. Department of Agriculture Natural Resource
Conservation Service, https://plants.sc.egov.usda.gov/core/profile?symbol=SOBI2, accessed July 02, 2018.
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    Dry mill ethanol and butanol \10\ plants grind and ferment grain
sorghum,\11\ produce ethanol or butanol from the fermented grain
sorghum starch, and also produce a DGS co-product (made of non-
fermentable solids, solubles syrup, and sorghum oil) that is sold as a
type of livestock feed. A portion of the oil that would otherwise
reside in the DGS can be recovered at the biofuel plant, typically
through mechanical extraction. Sorghum oil is recovered through methods
identical to that of corn oil recovered from DGS, and corn and sorghum
oil recovery can occur at the same facilities.
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    \10\ Given that ethanol production far exceeds that of butanol,
for the sake of brevity, this preamble often refers only to dry mill
ethanol plants, but butanol plants are implied to be included in
such references, unless stated otherwise.
    \11\ Grain sorghum refers to Sorghum bicolor (L.) Moench ssp.
Bicolor, see: https://plants.usda.gov/core/profile?symbol=sobib.
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    The recovered distillers corn and sorghum oils contain a high
concentration of free-fatty acids, greater than ten percent by
weight,\12\ and are unsuitable for human consumption without further
refining. It can, however, be used without further refining as a
biofuel feedstock or as an ingredient in animal feed. There are
existing approved RFS fuel pathways for biofuels produced from
distillers corn oil \13\ to qualify for advanced biofuel (D-code 5) or
biomass-based diesel (D-code 4) RINs, depending on the production
process used (see rows F and H of Table 1 to 40 CFR 80.1426). This
rulemaking establishes similar pathways for the use of distillers
sorghum oil as currently exist for the use of distillers corn oil, and
also establishes an additional pathway in row I of Table 1 to 40 CFR
80.1426, as discussed further below.
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    \12\ A Moreau, Robert & B Hicks, Kevin & Johnston, David & P.
Laun, Nathan. (2010). The Composition of Crude Corn Oil Recovered
after Fermentation via Centrifugation from a Commercial Dry Grind
Ethanol Process. Journal of the American Oil Chemists' Society. 87.
10.1007/s11746-010-1568-z.
    \13\ This rulemaking replaces the term ``non-food grade corn
oil'' in the feedstock column of rows F and H of Table 1 to 40 CFR
80.1426 with ``distillers corn oil.'' See section VI of this
preamble for further discussion.
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    In previous actions, EPA has approved pathways for the production
of ethanol from grain sorghum made through a dry mill process as
qualifying for renewable fuel (D-code 6) RINs, and in some cases
advanced biofuel (D-code 5) RINs, depending on process energy sources
used during production.\14\ In December 2016, EPA also approved (with
conditions) a facility-specific pathway for advanced butanol
(qualifying for (D-code 5) RINs)

produced from grain sorghum as a feedstock.\15\
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    \14\ Table 1 to 40 CFR 80.1426, Rows R and S.
    \15\ December 22, 2016 pathway approval for Gevo, Inc., https://www.epa.gov/renewable-fuel-standard-program/gevo-inc-approval.
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    Currently about 30 percent of grain sorghum grown, or 120 million
bushels a year, goes towards ethanol production.\16\ Most of this
production occurs in Texas, Oklahoma, and Kansas.\17\ For comparison,
in recent years over 5,200 million bushels of corn have been used for
ethanol production annually.\18\ Distillers sorghum oil can be produced
at these facilities and used for biofuel production or other uses.
However, it is still a relatively niche product, and the NSP petition
anticipates that with approval of an RFS pathway, a potential of 12 to
21 million ethanol-equivalent gallons of biofuel would be produced from
the distiller sorghum oil per year.
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    \16\ Sorghum Checkoff, ``Renewables,'' http://www.sorghumcheckoff.com/market-opportunities/renewables, accessed
09-05-2017, (EPA-HQ-OAR-2017-0655-0015).
    \17\ USDA, NASS, ``Sorghum for Grain 2016 Harvested Acres by
County for Selected States,'' https://www.nass.usda.gov/Charts_and_Maps/graphics/AS-HA-RGBChor.pdf, (EPA-HQ-OAR-2017-0655-
0019).
    \18\ USDA, ERS, ``Table 5--Corn supply, disappearance, and share
of total corn used for ethanol,'' U.S. Bioenergy Statistics, https://www.ers.usda.gov/data-products/us-bioenergy-statistics/us-bioenergy-statistics/#Feedstocks, accessed 09-05-2017, (EPA-HQ-OAR-
2017-0655-0021).
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    To the extent that distillers sorghum oil is used as a biofuel
feedstock, it will often be produced together with distillers corn oil
at ethanol plants using a combination of grain sorghum and corn as
feedstocks for ethanol production. The commingled distiller sorghum and
corn oils will then be shipped as a mixture to a different biofuel
production facility for use as a feedstock.\19\ Due to the recovery
process of the oils from the DGS, where the ethanol plant is using a
feedstock that combines grain sorghum and corn, it is not possible to
physically separate the distillers sorghum and corn oils into two
streams, nor is it possible to account for the volume of sorghum oil or
corn oil in this mixture. Due to this specific recovery process and
inability to separate or allocate volume associated with each oil in
the mixture, we are allowing the mixture of distiller sorghum and corn
oil to be reported together as one volume. For example, the RFS
regulations at 40 CFR 80.1451(b)(ii)(K) require renewable fuel
producers to submit RIN generation reports that include the ``types and
quantities of feedstocks used'' for each batch of renewable fuel
produced or imported. The regulations do not specify a method for fuel
producers to use in determining the quantity of each feedstock when the
feedstocks are received as a commingled shipment, as would likely be
the case for distillers corn oil and distillers sorghum oil. A number
of commenters recommended that EPA clarify the treatment of mixed
distillers corn and sorghum oil in the final rule. Based on these
comments, we believe it is appropriate to clarify the treatment of
commingled distillers corn and sorghum oils in this rule. Given our
expectation that a large share of distillers sorghum oil will be mixed
with distillers corn oil when it is recovered, from a practical
standpoint, approving a distillers sorghum oil pathway without clearly
allowing for the use of commingled shipments would unnecessarily
constrain the use of these potential feedstocks. Further, we
acknowledge that it is not practical to require parties to separate the
oils from this mixture and report the distillers sorghum and corn oils
as individual feedstocks. Taking these factors into consideration and
for ease of implementation, we are adding ``Commingled distillers corn
and sorghum oils'' as a feedstock to rows F and H of Table 1 to 40 CFR
80.1426. Thus, facilities producing fuel through these pathways can
treat commingled distillers corn oil and distillers sorghum oil as a
single feedstock and report the combined volume of these oils in RIN
generation reports under 40 CFR 80.1451(b)(ii)(K). They may also
generate RINs in accordance with the formula in 40 CFR 80.1426(f)(2)
for renewable fuel that can be described by a single pathway.
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    \19\ See comment from the Renewable Fuels Association (EPA-HQ-
OAR-2017-0655-0039) and NSP petition, (EPA-HQ-OAR-2017-0655-0005),
pp. 8.
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    At this time, EPA is not adding ``commingled distillers corn and
sorghum oil'' as a feedstock to row I of Table 1 to 40 CFR 80.1426 for
the production of naphtha and LPG via a hydrotreating process. Non-food
grade corn oil is not currently listed in that row, nor has EPA
proposed to add it (or distillers corn oil). Thus, it would be
premature for EPA to add either distillers corn oil or commingled
distillers corn and sorghum oil as feedstocks in row I. Through the
fuel pathway petition process, EPA previously approved two petitions
allowing the generation of advanced biofuel (D-code 5) RINs for naphtha
and LPG produced from non-food grade corn oil via a hydrotreating
process.\20\ We intend to inform companies with existing facility-
specific pathway approvals for non-food grade corn oil, granted through
the 40 CFR 80.1416 petition process, that such pathway approvals will
be interpreted by EPA as approvals for distillers corn oil. (This gives
such producers the same treatment as producers who registered for non-
food grade corn oil feedstock without first being approved for a
facility-specific petition.) In order to generate (D-code 5) RINs for
naphtha and/or LPG produced from distillers corn oil and/or commingled
distillers corn and sorghum oil, a fuel producer would first need to
petition EPA pursuant to 40 CFR 80.1416, have EPA review and approve
their requested pathway, and then submit and have EPA accept the
registration for the new pathway.
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    \20\ Renewable Energy Group's facility in Geismar, LA (https://www.epa.gov/renewable-fuel-standard-program/reg-geismar-approval-0)
and Diamond Green Diesel's facility in Norco, LA (https://www.epa.gov/renewable-fuel-standard-program/diamond-green-diesel-llc-approval).
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    EPA sought comment in the December 2017 sorghum oil proposed rule
on a proposed definition for distillers sorghum oil. We summarize
comments received below, with a more detailed summary and analysis
included in the docket for this rulemaking. EPA received one comment on
the proposed definition, asking that EPA clarify the phrase ``rendered
unfit for food uses'' to specify that this means human food uses and
not animal food uses. In this comment EPA was also asked to finalize
revisions to the definition of corn oil extraction that was proposed in
the November 2016 REGS proposed rule. The requested clarification is
consistent with EPA's intended meaning, and we are finalizing a
definition that says, ``the oil is unfit for human food use without
further refining.'' We are also removing the word ``rendered'' from
this part of the definition, as it is unnecessary and seemed to raise
questions for commenters without any clear benefit.
    EPA received a number of comments on the November 2016 REGS
proposed rule related to the proposed changes to the definition of corn
oil extraction contained in that proposed rule. Based on these
comments, we have made a number of changes to the proposed definition
of distillers sorghum oil to ensure that it aligns with the definition
of distillers corn oil. These comments and associated changes are
discussed in section IV, and in more detail in a response to comment
document in the docket for this rulemaking.
    As part of this rule, we are adding a definition of distillers
sorghum oil in 40 CFR 80.1401. So long as the criteria in the
definition are met, a variety of recovery methods could be

implemented. For example, this would include recovery of sorghum oil
before fermentation from the slurry or from liquefaction tanks. It
would also include recovery of sorghum oil after fermentation from the
thin stillage and/or DGS. Further, it would also include recovery of
sorghum oil by a third-party, and/or at a separate location from the
biofuel plant. The definition of distillers sorghum oil is consistent
with the definition of distillers corn oil, which is also being
finalized in this rule (see section IV of this preamble).

B. Analysis of Lifecycle GHG Emissions

    EPA evaluated the GHG emissions associated with using distillers
sorghum oil as a biofuel feedstock based on information provided by the
petitioner, input from the U.S. Department of Agriculture (USDA),
public comments, and other available data sources. GHG emissions
include emissions from production and transport of grain sorghum, the
production and transport of distillers sorghum oil; the processing of
the oil into biofuel; transport of the biofuel from the production
facility to the fuel-blender; and, ultimately the use of the biofuel by
the end consumer.
    EPA's lifecycle analyses include significant direct and indirect
GHG emissions (including such emissions from land use changes)
associated with producing a feedstock and transporting it to the
processing facility. All of the emissions associated with growing,
harvesting, and transporting grain sorghum as a biofuel feedstock were
calculated and taken into account in EPA's evaluation of the lifecycle
GHG emissions associated with grain sorghum ethanol and butanol.\21\
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    \21\ See the December 17, 2012 grain sorghum ethanol final rule
(77 FR 74592).
---------------------------------------------------------------------------

    In the proposed rule we described our preliminary finding that
biofuels produced from distillers sorghum oil reduce lifecycle GHG
emissions by approximately 80 percent compared to the petroleum
baseline. These results assumed zero indirect GHG emissions related to
compensating for oil removal from DGS, based on the premise that
certain types of livestock benefit from lower-fat DGS and therefore
removing the sorghum oil would not result in significant indirect
impacts. EPA received two comments arguing that extracting distillers
sorghum oil from DGS reduces the mass, calorific, and fat content of
the DGS, and that there would be significant indirect GHG emissions
associated with replacing these losses with other sources of livestock
feed. As discussed below, we have adjusted our analysis based on these
comments and conducted further analysis to estimate the potential
indirect GHG emissions associated with replacing the extracted
distillers sorghum oil. After accounting for these emissions, based on
available information and reasonable assumptions to account for
uncertainties, our revised analysis continues to show that biofuels
produced from distillers sorghum oil satisfy the 50 percent lifecycle
GHG reduction threshold required to qualify as advanced biofuel or
biomass-based diesel. Finally, some commenters on the proposed
distillers sorghum oil rule suggested that EPA has an obligation to
engage in consultation with the United States Fish and Wildlife Service
and/or that National Marine Fisheries Service under Section 7 of the
Endangered Species Act prior to finalizing the rule. Such consultation
is required for actions in which the Agency has discretion to tailor
its actions for the benefit of threatened or endangered species, or
their critical habitat, and where the action in question ``may effect''
listed species. However, as described in the Response to Comments
Document accompanying this rule, EPA does not have discretion under the
statute to take into consideration possible impacts to threatened or
endangered species or their critical habitat in determining which
biofuels qualify under the renewable fuel standard program as advanced
biofuel or biomass-based diesel and, even if it did have such
discretion, today's rule will have no effect on threatened or
endangered species. As a result, Section 7 consultation is not
required.
1. Livestock Sector Impacts
    During a typical dry mill fermentation process, DGS are produced.
These DGS are then used as animal feed, thereby displacing feed crops
and the GHG emissions associated with growing and transporting those
feed crops. After distillers sorghum oil is removed, DGS continue to be
produced and sold as livestock feed, but with reduced oil content.
    We do not expect sorghum oil removal to have significant impact on
the types and quantities of feed used in the livestock market. EPA's
modeling for the December 2012 grain sorghum ethanol final rule assumed
average dried DGS yield of 17 pounds per bushel of grain sorghum
feedstock.\22\ The oil content of full oil DGS is approximately 1.71
pounds per bushel,\23\ of which approximately 0.67-0.88 pounds per
bushel of grain sorghum feedstock can be recovered using commercially
available mechanical extraction technologies.\24\ When oil is recovered
from the DGS, the total mass of DGS produced could be reduced by up to
approximately 6 percent. However, DGS from grain sorghum represents
less than 3 percent of DGS fed to domestic livestock.\25\ Even if all
distillers sorghum oil were removed from livestock feed, the overall
impact on the livestock sector would be extremely small. To the extent
that sorghum DGS are likely to be fed in combination with corn DGS and
other livestock feed ingredients, the changes in oil content on the
combined feed could potentially be too small to discern.\26\ In that
case, it is unlikely that feedstock suppliers would find a need to
replace the distillers sorghum oil with other oils. As mentioned
previously, EPA has an existing pathway approved for non-food grade
corn oil, now referred to as distillers corn oil. Much of the current
corn DGS on the feed market is already de-oiled, and because all known
current facilities using sorghum blend with corn DGS, we do not expect
any significant changes in oil concentrations from what already exists
on the market. However, based on the comments received, we have
conducted additional analysis on the potential indirect GHG emissions
impacts on a per pound of oil extracted basis.
---------------------------------------------------------------------------

    \22\ See 77 FR 74592 (December 17, 2012).
    \23\ NSP petition (EPA-HQ-OAR-2017-0655-0005), Attachment 4, pp.
7.
    \24\ 0.88 pounds removal is at the highest end of the
information NSP provided and corresponds to a fat content in
reduced-oil distillers grains of 3.91% rather than 7.2% which NSP
considers as a more likely outcome.
    \25\ NSP petition (EPA-HQ-OAR-2017-0655-0005), pp. 19. And,
AgMRC, ``Estimated U.S. Dried Distillers Grains with Solubles (DDGS)
Production & Use,'' https://www.extension.iastate.edu/agdm/crops/outlook/dgsbalancesheet.pdf, (EPA-HQ-OAR-2017-0655-0006).
    \26\ See Air Docket EPA-HQ-OAR-2017-0655, U.S. Department of
Agriculture, Office of the Chief Scientist and Office of the Chief
Economist, ``Memorandum: Technical responses on EPA assumptions
related to the lifecycle GHG assessment of the proposed grain oil
sorghum biofuel pathway,'' March 15, 2018, pp. 4.
---------------------------------------------------------------------------

    Chemically, full-oil and reduced-oil sorghum DGS share similar
compositions; they are primarily made up of crude protein, fat, and
natural and acid detergent fibers.\27\ Where the two products differ
most significantly is in their acid detergent fiber and fat
concentrations.
---------------------------------------------------------------------------

    \27\ Neutral detergent fibers measure the amount of structural
component of plants, while acid detergent fibers measure the least
digestible plant components.

---------------------------------------------------------------------------

    Table III.1 shows the key constituents that make up dried full-oil
and reduced-oil DGS.
---------------------------------------------------------------------------

    \28\ The chart lists the most prominent constituents in
distillers grains. Data provided by the National Sorghum Producers,
see Air docket EPA-HQ-OAR-2017-0655. Data for full-oil sorghum DDGS
is sourced from Nutrient Requirements of Swine, 2012 National
Academies Press, Washington, DC, pp 329. Data for reduced-oil
Sorghum DDGS was calculated by National Sorghum Producers using the
ratio of (1) corn DDGS, between 6 to 9 percent Oil; and (2) corn
DDGS, less than 4 percent oil from Nutrient Requirements of Swine,
2012 National Academies Press, Washington, DC, pp. 266 and 267.

   Table III.1--Key Nutrient Make-Up of Full-Oil and Reduced-Oil Dried
 Distillers Grains With Solubles (DDGS) Derived From Grain Sorghum \28\
------------------------------------------------------------------------
                                                   Full-oil  Reduced-oil
                    Nutrient                       sorghum     sorghum
                                                     DDGS        DDGS
------------------------------------------------------------------------
Crude Protein, %................................      30.80        31.36
Crude Fat, % (aka Ether Extract)................       9.75         3.91
Neutral Detergent Fiber (NDF), %................      33.60        37.23
Acid Detergent Fiber (ADF), %...................      22.68        31.91
Ash, %..........................................       6.62         7.60
Calcium, %......................................       0.12         0.08
Phosphorus, %...................................       0.76         0.96
Lysine, %.......................................       0.82         0.62
Methionine, %...................................       0.54         0.47
Cystine, %......................................       0.53         0.61
Tryptophan, %...................................       0.25         0.23
------------------------------------------------------------------------

    EPA received two comments \29\ regarding the potential greenhouse
gas impacts on the livestock sector if the distillers oil is removed.
One potential impact is based on whether a lower crude fat
concentration would require changes in the livestock feed composition
to make up for the nutritional loss to the livestock (nutritional
impacts). The second potential impact is related to the physical
reduction in DGS mass resulting from the oil recovery (mass loss). We
address both of these potential impacts in the following sections.
---------------------------------------------------------------------------

    \29\ EPA-HQ-OAR-2017-0655-0041, 0042.
---------------------------------------------------------------------------

a. Nutritional Impacts
    The key issue associated with the first potential impact is whether
the reduced calories would impact the amount of feed displaced through
the use of sorghum DGS. Should fat content not be at sufficient levels,
livestock producers might need to add nutrients or other types of feed
to meet appropriate nutritional targets. This is reflected in the
``displacement rate'' of a DGS, which indicates how much weight a pound
of distillers grain can replace of another feed. A lower feed
displacement rate for a reduced-oil distillers grain as compared to a
full-oil distillers grain could result in additional GHG emissions as
it suggests that additional feed is required to replace the missing
oil. Displacement rates are calculated by taking into account nutrient
and energy requirements of livestock and their respective recommended
DGS inclusion rates to maintain animal performance.\30\ The next
section (III.B.1.b. Mass Loss), describes how we used the displacement
rate to analyze the emissions impacts associated with the removal of
oil from sorghum DGS.
---------------------------------------------------------------------------

    \30\ For more detail see, Arora et al., (2008). Argonne National
Laboratory. ``Update of distillers grains displacement ratios for
corn ethanol life[hyphen]cycle analysis'' (EPA-HQ-OAR-2017-0655-
0007).
---------------------------------------------------------------------------

    Research suggests that for several livestock types there are
performance improvements, per pound of DGS, when oil content of fed-DGS
is removed. For instance, for poultry and swine, ``increased
concentrations of free fatty acids have a negative impact on lipid
digestion and energy content.'' \31\ Free fatty acids are a class of
acids that form part of a lipid molecule. Full-oil DGS typically
contain higher levels of free fatty acids and thus may have a negative
impact on the fat digestion of poultry and swine. Thus, while the fat
content may be lower for reduced-oil DGS, per pound feeding values of
this product may not be lower than full-oil DGS for poultry and swine
and the feed displacement rate may not be lower for reduced-oil versus
full-oil DGS.
---------------------------------------------------------------------------

    \31\ Kerr, B.J., W.A. Dozier, and G.C. Shurson. (2016). ``Lipid
digestibility and energy content of distillers' corn oil in swine
and poultry,'' Journal of Animal Science. 94:2900-2908. doi:10.2527/
jas.2016-0440, pp. 2905 (EPA-HQ-OAR-2017-0655-0010).
---------------------------------------------------------------------------

    For dairy, there are also benefits from feeding reduced-oil DGS as
compared to full-oil DGS. Research on dairy cows shows that reduced-oil
DGS produce a lessened likelihood of the onset of milk fat
depression.\32\ Milk fat depression occurs when milk fat is reduced by
0.2 percent or more.\33\ If milk fat depression occurs over the long
term, a decline in overall milk production may occur as well as
worsened health conditions of the herd. High fat diets have been linked
with this condition and have been shown to worsen the rumen environment
of dairy cattle.\34\ Therefore, dairy producers seek to avoid high fat
diets. Given the benefits of reduced-oil DGS over full-oil DGS for milk
fat production, it is expected that reduced-oil DGS will be preferred
over full-oil DGS by dairy producers and that feed displacement rates
will be no lower than those of full-oil DGS.
---------------------------------------------------------------------------

    \32\ H.A. Ramirez-Ramirez, E. Castillo Lopez, C.J.R. Jenkins,
N.D. Aluthge, C. Anderson, S.C. Fernando, K.J. Harvatine, P.J.
Kononoff, (2016). ``Reduced-fat dried distillers grains with
solubles reduces the risk for milk fat depression and supports milk
production and ruminal fermentation in dairy cows,'' Journal of
Dairy Science, Volume 99, Issue 3, Pages 1912-1928, ISSN 0022-0302,
http://dx.doi.org/10.3168/jds.2015-9712. (http://www.sciencedirect.com/science/article/pii/S0022030216000515), (EPA-
HQ-OAR-2017-0655-0014).
    \33\ University of Kentucky, ``Preventing Milk Fat Depression in
Dairy Cows,'' https://afs.ca.uky.edu/dairy/preventing-milk-fat-depression-dairy-cows. Accessed September 08, 2018, (EPA-HQ-OAR-
2017-0655-0017). On the herd level milk fats range from 3 to 5
percent normally. Oetzel, Garret R., ``Subacute Ruminal Acidosis in
Dairy Herds: Physiology, Pathophysiology, Milk Fat Responses, and
Nutritional Management.'' Preconference Seminar 7A: Dairy Herd
Problem Investigation Strategies: Lameness, Cow Comfort, and Ruminal
Acidosis, American Association of Bovine Practitioners, 40th Annual
Conference, September 17, 2007--Vancouver, BC, Canada, https://www.vetmed.wisc.edu/dms/fapm/fapmtools/2nutr/sara1aabp.pdf pp.98.
(EPA-HQ-OAR-2017-0655-0012).
    \34\ Penn State Extension, ``Troubleshooting Problems with
Milkfat Depression,'' August 14, 2017, https://extension.psu.edu/troubleshooting-problems-with-milkfat-depression. Accessed September
08, 2017, (EPA-HQ-OAR-2017-0655-0016).
---------------------------------------------------------------------------

    An impact on displacement rates may occur when reduced-oil instead
of full-oil DGS are used for beef cattle, which require additional fat.
Table III.2 shows the displacement ratios for the livestock sectors
where dried DGS (DDGS) are used. In this table, for instance, 1 pound
of reduced-oil DDGS fed to beef cattle displaces 1.173 pounds of corn,
as opposed to 1.196 pounds of corn for full-oil DDGS. A pound of full-
oil and reduced-oil DDGS also displaces equal amounts (0.056 pounds) of
urea. Urea is a non-protein nitrogen compound that is typically fed to
cattle for aiding the production of protein by rumen microbes.\35\
These values show that for dairy, swine, and poultry, reduced-oil DDGS
replace the same amounts of alternative feed despite containing less
oil than full-oil DDGS. This is not the case, however, with respect to
beef cattle.
---------------------------------------------------------------------------

    \35\ Penn State Extension, ``Urea in Beef Cattle Rations,''
August 08, 2017, https://extension.psu.edu/urea-in-beef-cattle-rations. Accessed October 18, 2017, (EPA-HQ-OAR-2017-0655-0018).

                                             Table III.2--Full-Oil and Reduced-Oil Sorghum Distillers Grains With Solubles Displacement Ratios \36\
                                                       [lb of ingredient/lb of sorghum distillers grains with solubles, dry matter basis]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            Beef cattle                    Dairy cattle                        Swine                       Poultry \37\
                           Ingredient                            -------------------------------------------------------------------------------------------------------------------------------
                                                                     Full-oil       Reduced-oil      Full-oil       Reduced-oil      Full-oil       Reduced-oil      Full-oil       Reduced-oil
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Corn............................................................           1.196           1.173           0.731           0.731           0.890           0.890           0.292           0.292
Soybean Meal....................................................  ..............  ..............           0.633           0.633           0.095           0.095  ..............  ..............
Urea............................................................           0.056           0.056  ..............  ..............  ..............  ..............  ..............  ..............
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

b. Mass Loss
    The second issue raised by the commenters on potential livestock
indirect GHG impacts \38\ relates to the potential impacts of mass
reduction from the removal of oil from sorghum DGS. The commenters also
suggested that EPA consider the impacts of feeding reduced-oil sorghum
DGS to all types of livestock rather than those where performance gains
were likely to be seen. In evaluating these comments, EPA has
undertaken additional analysis to account for the potential indirect
GHG emissions associated with this ``mass loss'' effect. Since sorghum
accounts for less than 3 percent of the domestically consumed
distillers grains, there is very little market data on the impacts of
removing oil from the sorghum DGS on the livestock sector. EPA,
therefore, has relied on the expertise of USDA to inform the livestock
sector impact analysis described below.\39\
---------------------------------------------------------------------------

    \36\ Information provided by National Sorghum Producers, see Air
docket EPA-HQ-OAR-2017-0655, using the following sources Arora et
al., (2008). Argonne National Laboratory. ``Update of distillers
grains displacement ratios for corn ethanol life[hyphen]cycle
analysis,'' (EPA-HQ-OAR-2017-0655-0007); Kerr et al., (2016).
``Lipid digestibility and energy content of distillers' corn oil in
swine and poultry,'' Journal of Animal Science 94:2900-8, (EPA-HQ-
OAR-2017-0655-0010); Opheim et al., (2016). ``Biofuel feedstock and
blended coproducts compared with deoiled corn distillers grains in
feedlot diets: Effects on cattle growth performance, apparent total
tract nutrient digestibility, and carcass characteristics,'' Journal
of Animal Science 94:227, (EPA-HQ-OAR-2017-0655-0013); Ramirez et
al., (2016). ``Reduced-fat dried distillers grains with solubles
reduces the risk for milk fat depression and supports milk
production and ruminal fermentation in dairy cows,'' Journal of
Dairy Science 99:1912-28, (EPA-HQ-OAR-2017-0655-0014). Poultry
displacement ratios were provided by the National Sorghum Producers
and calculated based on data from the Iowa State Extension Services,
Agricultural Marketing and Resources Center, ``Estimated U.S. Dried
Distillers Grains with Solubles (DDGS) Production and Use,'' https://www.extension.iastate.edu/agdm/crops/outlook/dgsbalancesheet.pdf
(EPA-HQ-OAR-2017-0655-0006).
    \37\ Protein sources such as soybean meal can be used to
supplement sorghum DGS for poultry.
    \38\ EPA-HQ-OAR-2017-0655-0041, 0042.
    \39\ See, U.S. Department of Agriculture, Office of the Chief
Scientist and Office of the Chief Economist, ``Memorandum: Technical
responses on EPA assumptions related to the lifecycle GHG assessment
of the proposed grain oil sorghum biofuel pathway,'' March 15, 2018,
Air Docket EPA-HQ-OAR-2017-0655.
---------------------------------------------------------------------------

    When oil is removed from the sorghum DGS, the distillers grains
decrease in mass. Although feed rations are complex, for the purposes
of conducting this analysis, in USDA's judgement it is a reasonable
assumption to use corn to substitute for the mass loss due to sorghum
oil recovery. Corn is a relatively low cost primary product that is
readily available in the locations where sorghum oil is produced.\40\
Furthermore, USDA experts noted that to the extent that other materials
such as crop residues or waste from the human food supply system were
available and used instead, they would likely have a lower GHG profile
than corn.\41\ To the extent that these other materials may be used,
assuming corn substitutes for mass loss is a conservative assumption
for a GHG emissions perspective.\42\
---------------------------------------------------------------------------

    \40\ Corn is demonstrably cheaper than other feedstock
replacements. For instance, in the U.S. corn in the 2016/2017 season
averaged $0.06/lb whereas, soy oil in 2017 averaged $0.32/lb and
corn oil averaged $0.28. See USDA ERS, Feed Grains Yearbook, https://www.ers.usda.gov/data-products/feed-grains-database/feed-grains-yearbook-tables.aspx (accessed on June 14, 2018) and USDA Vegetable
Oils and Animal Fats, Oil Crop Yearbook, https://www.ers.usda.gov/data-products/oil-crops-yearbook.aspx (accessed on June 06, 2018).
    \41\ See, U.S. Department of Agriculture, Office of the Chief
Scientist and Office of the Chief Economist, ``Memorandum: Technical
responses on EPA assumptions related to the lifecycle GHG assessment
of the proposed grain oil sorghum biofuel pathway,'' March 15, 2018,
Air Docket EPA-HQ-OAR-2017-0655.
    \42\ The purpose of lifecycle assessment under the RFS program
is not to precisely estimate lifecycle GHG emissions associated with
particular biofuels, but instead to determine whether or not the
fuels satisfy specified lifecycle GHG emissions thresholds to
qualify as one or more of the four types of renewable fuel specified
in the statute. Where there are a range of possible outcomes and the
fuel satisfies the GHG reduction requirements when ``conservative''
assumptions are used, then a more precise quantification of the
matter is not required for purposes of a pathway determination.
---------------------------------------------------------------------------

    To calculate the impact of the mass loss and the greenhouse gas
emission impacts from the substitution of corn for sorghum DGS, EPA
used data obtained from a study conducted by Argonne National
Laboratory and estimates from NSP for the displacement of feed by DGS
by livestock type (see Table III.2). Using these data, we calculated a
substitution rate for how much corn would be needed for every pound of
grain sorghum oil diverted to biofuel production, by livestock type
(see Table III.3 below).\43\
---------------------------------------------------------------------------

    \43\ See, Summary for the Final Rule of Key Assumptions for
EPA's Analysis of the Lifecycle Greenhouse Gas Emissions Associated
with Biofuels Produced from Distillers Sorghum Oil and Distiller
Sorghum Oil LCA Spreadsheet, Air Docket EPA-HQ-OAR-2017-0655.

                  Table III.3--Feed Substitution Ratio
------------------------------------------------------------------------
                                                            Substitution
                                                              ratio (lb
                                                                feed
          Livestock type                Feed substitute      substitute/
                                                               lb oil
                                                             extracted)
------------------------------------------------------------------------
Beef..............................  Corn..................         1.551
Dairy.............................  Corn..................         0.731
Swine.............................  Corn..................         0.890
Poultry...........................  Corn..................         0.292
------------------------------------------------------------------------

    Using the national average shares for DDGS use by livestock
type,\44\ we calculated a weighted average 1.2 pounds of corn
substituted per pound of distillers sorghum oil removed. Based on our
modeling for the March 2010 RFS rule, we have used an emissions factor
of 0.27 kgCO2e per pound of corn produced, transported and
consumed.\45\ The product of these values gives a livestock sector
impact of 0.31 kgCO2e per pound of distillers sorghum oil,
which represents the potential indirect emissions resulting from
additional corn produced to substitute for a loss in sorghum DGS on a
per pound of oil extracted basis. The product of this value and the
yield for each type of biofuel (pounds of distillers sorghum oil per
mmBtu of fuel) results in the livestock sector GHG impacts listed in
the results table in section III.B.8 of this preamble.
---------------------------------------------------------------------------

    \44\ The data comes from the medium projections for the year
2016-2017 from AgMRC, ``Estimated U.S. Dried Distillers Grains with
Solubles (DDGS) Production & Use,'' https://www.extension.iastate.edu/agdm/crops/outlook/dgsbalancesheet.pdf,
(EPA-HQ-OAR-2017-0655-0006).
    \45\ See the docket memo ``Summary for the Final Rule of Key
Assumptions for EPA's Analysis of the Lifecycle Greenhouse Gas
Emissions Associated with Biofuels Produced from Distillers Sorghum
Oil,'' Air Docket EPA-HQ-OAR-2017-0655, for more details.

---------------------------------------------------------------------------

2. Feedstock Production
    Distillers sorghum oil is removed from DGS at dry mill biofuel
plants using the same equipment and technologies used for distillers
corn oil recovery. Oil recovery requires thermal energy to heat the DGS
and electricity to power centrifuges, pumps and other oil recovery
equipment. Our analysis for the March 2010 RFS final rule,\46\ the NSP
petition, and two studies,\47\ \48\ indicate that although extracting
oil from DGS uses thermal energy, it also leads to relatively less
thermal energy being used later in the process to dry the DGS,
resulting in an overall negligible change in thermal energy
requirements for plants that dry their DGS. Our analysis here includes
both the thermal and electrical energy requirements to remove the
distillers sorghum oil. We do not account for the reduction in thermal
energy needed for DGS drying mentioned above, so this can be viewed as
a conservative approach (i.e., resulting in higher estimated GHG
emissions) for plants that dry their DGS. Based on our review of the
data,\49\ we assume 200 Btu (British thermal units) of grid electricity
and 800 Btu of natural gas are used to recover distillers sorghum oil
from DGS, per pound of distillers sorghum oil recovered. These
parameters are based on energy requirements associated with extracting
oil from DGS at dry mill ethanol plants, but we believe they are also
appropriate and conservative in cases where the oil is recovered at any
point downstream from sorghum grinding.\50\
---------------------------------------------------------------------------

    \46\ See section <IP_ADDRESS> of USEPA (2010). Renewable fuel
standard program (RFS2) regulatory impact analysis. U.S.
Environmental Protection Agency Office of Transportation Air
Quality, EPA-420-R-10-006. Washington, DC. https://www.epa.gov/sites/production/files/2015-08/documents/420r10006.pdf.
    \47\ Wang, Z., et al. (2015). ``Influence of corn oil recovery
on life-cycle greenhouse gas emissions of corn ethanol and corn oil
biodiesel.'' Biotechnology for Biofuels 8(1): 178, (EPA-HQ-OAR-2017-
0655-0020).
    \48\ Mueller, S., Kwik, J. (2013). ``2012 Corn Ethanol: Emerging
Plant Energy and Environmental Technologies.''
    \49\ See sources referenced in footnotes 20 and 21 for energy
use associated with oil extraction, and California Air Resources
Board (2014), (EPA-HQ-OAR-2017-0655-0011). ``California-Modified
GREET Fuel Pathway: Biodiesel Produced in the Midwestern and the
Western U.S. from Corn Oil Extracted at Dry Mill Ethanol Plants that
Produce Wet Distiller's Grains with Solubles.'' Staff Summary,
Method 1 Fuel Pathway (EPA-HQ-OAR-2017-0655-0009).
    \50\ There are limited data on the energy efficiency of
alternative oil extraction technologies. Oil extraction earlier in
the dry mill process would offer energy efficiency benefits later in
the process, as moving oil through the fermentation and ethanol
recovery processes tends to increase energy requirements. Recovery
further downstream at a separate location would likely include
chemical extraction techniques that would yield higher levels of
oil. Overall, we expect any differences to be small in the context
of this distillers sorghum oil analysis.
---------------------------------------------------------------------------

3. Feedstock Transport
    In our analysis, distillers sorghum oil is transported 50 miles by
heavy duty truck from the dry mill ethanol plant to the biodiesel or
hydrotreating facility where it is converted to transportation fuel.
GHG emissions associated with feedstock transport are relatively small,
and modest changes in transport distance would not affect the threshold
determinations based on our analysis.
4. Feedstock Pretreatment
    For emissions from feedstock pretreatment and fuel production, we
perform two analyses. In the first analysis, we calculate the emissions
from biodiesel and heating oil produced using transesterification. In
the second analysis, we calculate the emissions from renewable diesel,
jet fuel, LPG, and naphtha, produced using hydrotreating.
    Before distillers sorghum oil is converted to biodiesel via
transesterification, it is processed to remove free-fatty acids. This
process requires thermal energy. Our evaluation of yellow grease for
the March 2010 RFS final rule included 14,532 Btu of natural gas per
gallon of biodiesel produced for pretreatment, and we have applied the
same assumption for this analysis. According to the NSP petition,
distillers sorghum oil has free fatty acid content near or below 15
percent, which is in the range of yellow grease free fatty acid
contents (<15 percent).\51\ Our assumption on pretreatment thermal
energy use for distillers sorghum oil is higher than thermal energy use
in other (non-EPA) lifecycle assessments of high free-fatty acid
biodiesel feedstocks that we have reviewed,\52\ and can be viewed as a
conservative assumption (i.e., resulting in higher GHG emissions).
---------------------------------------------------------------------------

    \51\ See Table 15 in the January 5, 2012 Pathways I direct final
rule (77 FR 722).
    \52\ See for example: California Environmental Protection Agency
Air Resources board, https://www.arb.ca.gov/fuels/lcfs/2a2b/apps/co_bd_wdgs-rpt-102414.pdf, (EPA-HQ-OAR-2017-0655-0008).
---------------------------------------------------------------------------

    Pretreatment to remove free-fatty acids is not required when
distillers sorghum oil is used to produce renewable diesel, jet fuel,
LPG and naphtha through a hydrotreating process.
5. Fuel Production
    For biodiesel production, we used the transesterification analysis
for the March 2010 RFS rule for yellow grease biodiesel.\53\ Based on
comparison of this yellow grease analysis and the mass and energy
balance data in the NSP petition, submitted under claim of CBI, the
conversion of yellow grease and distillers sorghum oil are expected to
require similar energy inputs and yield similar amounts of biodiesel as
output.
---------------------------------------------------------------------------

    \53\ For details see section 2.4 of the RIA for the March 2010
RFS final rule.
---------------------------------------------------------------------------

    For production of renewable diesel, jet fuel, naphtha and LPG via a
hydrotreating process, we used the same data and approach as used in
the March 2013 Pathways I rule,\54\ and subsequent facility-specific
petitions involving hydrotreating processes.\55\ The March 2013
Pathways I rule evaluated two hydrotreating configurations: One
optimized for renewable diesel production and one optimized for jet
fuel production. For this analysis we evaluated a hydrotreating process
maximized for renewable diesel production, as that is the most common
configuration. The jet fuel configuration results in higher emissions
(approximately 5 kgCO2e/mmBtu higher), but the threshold GHG
reduction results discussed below are not sensitive to this assumption.
---------------------------------------------------------------------------

    \54\ See 78 FR 14190 (March 5, 2013).
    \55\ For determination documents responding to facility specific
petitions, see: https://www.epa.gov/renewable-fuelstandard-program/approved-pathways-renewable-fuel.
---------------------------------------------------------------------------

    Our previous analyses of hydrotreating processes have applied an
energy allocation approach for RIN-generating co-products that qualify
as renewable fuel.\56\ This approach results in higher lifecycle GHG
emissions for each of the fuel products than other approaches
considered, such as a displacement approach, and thus can be viewed as
a conservative approach. We have used this approach in assessing GHG
emissions impacts of fuels derived from distillers sorghum oil.
---------------------------------------------------------------------------

    \56\ See the March 2013 Pathways I rule, specifically 78 FR
14198-14200 (March 5, 2013).
---------------------------------------------------------------------------

    In the allocation approach, all the emissions from the
hydrotreating process are allocated across all co-products. There are a
number of ways to do the allocation, for example on the basis of
energy, mass, or economic value. Consistent with the approach taken in
the hydrotreating analysis for the March 2013 RFS rule, for this
analysis of fuels produced from distillers sorghum oil feedstock
through a hydrotreating process, we allocated emissions to the
renewable diesel, naphtha and LPG based on the energy content (using
lower-heating values) of the products produced. Emissions from the
process were allocated equally to all of the Btus of fuel produced.
Therefore, on a per Btu basis, all of the primary products coming from
the hydrotreating facility have the same emissions from the fuel
production stage of the

lifecycle. For this analysis, the energy content was the most
appropriate basis for allocating emissions because all of the fuel
products are used as sources of energy. Energy content also has the
advantage of being a fixed factor as opposed to market prices which
fluctuate over time.
6. Fuel Distribution
    We used the fuel distribution results from the biodiesel analysis
for the March 2010 RFS rule. Fuel distribution emissions are relatively
small compared to baseline lifecycle GHG emissions (see Table III.4:
Lifecycle GHG Emissions Associated With Biofuels Produced From
Distillers Sorghum Oil (kgCO2-eq/MJ) below), and although
they may be different for different types of fuel, for the purposes of
this analysis we assumed that heating oil, renewable diesel, jet fuel,
LPG, and naphtha have the same fuel distribution emissions as biodiesel
per mmBtu of fuel used.
7. Fuel Use
    For this analysis we applied fuel use emissions factors developed
for the March 2010 RFS final rule. We used the biodiesel emissions
factor for biodiesel and biodiesel used as heating oil. For renewable
diesel and jet fuel we used the emissions factors for non-
CO2 GHGs for baseline diesel fuel. For naphtha we used the
emissions factors for non-CO2 GHGs for baseline gasoline
fuel. For LPG we used the LPG non-CO2 emissions factor
developed for the March 2010 RFS rule. The tailpipe emissions are
relatively small, and the threshold GHG reduction results are not
sensitive to these assumptions. More details on our analysis of fuel
use emissions are described in a memo \57\ to the rulemaking docket.
---------------------------------------------------------------------------

    \57\ See, ``Summary of Key Assumptions for EPA's Analysis of the
Lifecycle Greenhouse Gas Emissions Associated with Biofuels Produced
from Distillers Sorghum Oil,'' Air Docket EPA-HQ-OAR-2017-0655.
---------------------------------------------------------------------------

8. Results of GHG Lifecycle Analysis
    Table III.4 shows the lifecycle GHG emissions associated with
biofuels produced from distillers sorghum oil that result from our
assessment. The table also shows the percent reduction relative to the
petroleum baseline. All of the fuels are compared to the diesel
baseline, except for naphtha which is compared to the gasoline
baseline. Based on the lifecycle GHG emissions results presented above,
all of the pathways evaluated meet the 50 percent GHG reduction
threshold required for advanced biofuel and biomass-based diesel.

                           Table III.4--Lifecycle GHG Emissions Associated With Biofuels Produced From Distillers Sorghum Oil
                                                                      [kgCO2-eq/MJ]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             Renewable
                         Fuel                              Biodiesel,       diesel, jet       Naphtha           LPG         2005 Diesel    2005 Gasoline
                                                          heating oil          fuel                                          baseline        baseline
--------------------------------------------------------------------------------------------------------------------------------------------------------
Production process                                     Transesterificati
                                                                      on                   Hydrotreating
                                                                    Refining
--------------------------------------------------------------------------------------------------------------------------------------------------------
Livestock Sector Impacts.............................               20.7            19.4            19.4            19.4  ..............  ..............
Feedstock Production.................................                6.6             6.2             6.2             6.2            18.0            19.2
Feedstock Transport..................................                0.3             0.3             0.3             0.3
Feedstock Pretreatment...............................                8.4
Fuel Production......................................                1.2             8.0             8.0             8.0
Fuel Distribution....................................                0.8             0.8             0.8             0.8
Fuel Use.............................................                0.7             0.7             1.7             1.5            79.0            79.0
                                                      --------------------------------------------------------------------------------------------------
    Total............................................               38.7            35.4            36.4            36.2            97.0            98.2
--------------------------------------------------------------------------------------------------------------------------------------------------------
Percent Reduction....................................                 60              64              63              63  ..............  ..............
--------------------------------------------------------------------------------------------------------------------------------------------------------

IV. Definition of Distillers Corn Oil

    In the March 2010 RFS final rule, EPA established two pathways
(pathways F and H in Table 1 to 40 CFR 80.1426) for biomass-based
diesel (D-code 4) or advanced biofuel (D-code 5) made from ``non-food
grade corn oil.'' The lifecycle GHG analyses for these pathways were
based on the EPA's modeling of corn oil recovered from DGS produced by
a dry-mill corn ethanol plant through corn oil extraction. In the
November 2016 REGS proposed rule, EPA proposed to revise pathways F and
H in Table 1 to 40 CFR 80.1426 to specify that the feedstock is ``oil
from corn oil extraction,'' rather than ``non-food grade corn oil,''
and to include a revised and somewhat broadened definition of ``corn
oil extraction'' relative to the 2010 definition.\58\
---------------------------------------------------------------------------

    \58\ See section VII.B of the November 2016 REGS proposed rule
(81 FR 80900-01).
---------------------------------------------------------------------------

    The proposed definitional change was motivated by the evolution of
corn oil extraction technology within the ethanol industry, which
allows ethanol producers to recover corn oil at different locations in
the ethanol production process, with potential energy efficiency and
ethanol yield benefits.
    In the November 2016 REGS proposed rule, EPA reasoned that the
precise timing and method of corn oil extraction are not relevant for
meeting the 50 percent GHG reduction threshold associated with pathways
F and H, provided that a number of conditions are satisfied.
Specifically, EPA proposed the following definition for corn oil
extraction: ``Corn oil extraction means the recovery of corn oil at any
point downstream of when a dry mill corn ethanol plant grinds the corn,
provided that the corn is converted to ethanol, the oil is rendered
unfit for food uses without further refining, and the oil extraction
results in distillers grains marketable as animal feed.'' This
definitional change was intended to both address the developments in
corn oil extraction and to define the conditions under which corn oil
qualifies as a feedstock for the purposes of Table 1.
    As explained below, rather than the approach proposed in the 2016
REGS proposed rule, which would have revised the term ``corn oil
extraction'' and replaced ``non-food grade corn oil'' with ``oil from
corn oil extraction'' in rows F and H, EPA is instead leaving the
definition of ``corn oil extraction'' as-is and is finalizing a
definition for the term ``distillers corn oil'' that will be used in
Table 1. The substance of the definition of ``distillers corn oil''
finalized here is consistent with the proposed definition for ``corn
oil

extraction,'' other than changes made in response to comments. Thus,
based on the comments received on the November 2016 REGS proposed rule,
EPA is taking the following actions in this rulemaking: (1) Table 1 to
40 CFR 80.1426 is revised to replace the term ``Non-food grade corn
oil'' with ``Distillers corn oil'' in rows F and H; and (2) 40 CFR
80.1401 is revised to add a definition of ``distillers corn oil''.
    The approach taken in this rule preserves the existing meaning of
corn oil extraction for the purpose of the second row of Table 2 to 40
CFR 80.1426 (the ``corn oil extraction advanced technology''); our
intent was to broaden the non-food grade corn oil pathways listed in
Table 1 to 40 CFR 80.1426, not to modify the corn oil extraction
advanced technology specified in Table 2, which is relevant for corn
starch ethanol pathways. The corn oil extraction advanced technology
was included in the regulations based on analysis completed in the
March 2010 RFS rule for pathways in rows A and B of Table 1 that can
include extracting oil from whole stillage and/or derivatives of whole
stillage, thus reducing energy use at dry mill ethanol plants.\59\ In
order to avoid altering the scope of corn oil extraction for the
purpose of Table 2 (which involves different pathways than rows F and
H), it is most appropriate to create a new definition for distillers
corn oil and to preserve the existing definition of corn oil
extraction. Incidentally, we generally anticipate that corn oil
recovered through corn oil extraction as listed in Table 2 to 40 CFR
80.1426 should be able to qualify as distillers corn oil (provided it
satisfied all of the definitional requirements) for the purpose of the
pathways in rows F and H in Table 1; however, not all distillers corn
oil will necessarily be recovered by processes that qualify as corn oil
extraction. The comments received on EPA's proposed corn oil
definitional changes are summarized below, with a more detailed summary
and analysis included in the docket for this rulemaking.
---------------------------------------------------------------------------

    \59\ EPA has consistently viewed the non-food grade corn oil
pathways as only available for facilities that extract corn oil
produced at dry mill corn ethanol plants (see letter from Karl Simon
of EPA to John W. Bode of the Corn Refiners Association, dated
October 24, 2013). The change from ``non-food grade corn oil'' to
``distillers corn oil'' and the associated definition will more
clearly articulate this and other requirements for purposes of Table
1.
---------------------------------------------------------------------------

    Four commenters on the November 2016 REGS proposed rule supported
EPA's proposed revision to the definition of corn oil extraction.\60\
They said the proposed changes were needed to update the definition
based on technological changes in the industry, and to provide a level
playing field for new oil extraction methods. Seven commenters
supported the proposed revisions and recommended the relatively small
revisions discussed below.\61\ EPA also received four comments on the
December 2017 sorghum oil proposed rule that supported finalizing the
expanded definition of corn oil as part of this rulemaking.\62\ While
EPA is not finalizing the definition of ``corn oil extraction'' that
was proposed in the REGS rule, EPA believes that the approach being
finalized today addresses the concerns of these commenters, as well as
those of other commenters who raised questions about continued use of
the term ``non-food grade corn oil.''
---------------------------------------------------------------------------

    \60\ EPA-HQ-OAR-2016-0041-0231, 0296, 0307 and 0313. For
convenience, EPA is providing citations to the docket for the REGS
proposed rule for comments that were filed in that docket on
proposed changes to the regulations for corn oil, but these comments
have also been included in the docket for this action.
    \61\ EPA-HQ-OAR-2016-0041-0243, 0246, 0260, 0266, 0267, 0277 and
0286.
    \62\ EPA-HQ-OAR-2017-0655-0034, 0039, 0028, 0038.
---------------------------------------------------------------------------

    While no commenters objected to EPA's overall proposal to revise
and expand the types of extracted corn oil that qualify as approved
feedstocks in rows F and H of Table 1 to 40 CFR 80.1426, a number of
commenters requested clarifications or modifications to EPA's proposed
definition. Four commenters suggested that EPA should expand the
definition of corn oil extraction even further to include corn oil
recovered at butanol plants, because the dry mill process for butanol
is very similar to those for dry mill ethanol with respect to
conversion of corn to liquefied mash and recovery of distillers grains
and thin stillage.\63\ Five commenters suggested that EPA should expand
the definition of corn oil extraction to include corn oil from wet
milling.\64\ These commenters stated that all corn oil meets the
requirements of the RFS program and thus should be eligible feedstocks
under the program. Four commenters requested that EPA expand the
definition of corn oil extraction to include corn oil extracted after
corn fractionation.\65\ These commenters stated that the fractionation
process can be set up at a dry grind ethanol plant and the resulting
extracted corn oil will still meet all the requirements for corn oil
extraction. Two commenters requested that EPA clarify the proposed
definition of corn oil extraction by stating that ``the oil is rendered
unfit for human food uses without further refining.'' \66\ One
commenter requested that EPA clarify the proposed definition of corn
oil extraction to state that the resulting distillers grains include
those that have been subjected to further oil recovery by a dry mill or
third party.\67\ Three commenters stated that EPA's proposed addition
of the phrase ``at any point downstream'' is inconsistent with its
proposed approach for biointermediates and should be clarified.\68\ The
commenters also state that the phrase ``oil is rendered unfit'' is
unnecessary since all corn oil obtained from extraction is unfit for
food uses. One commenter recommended using the term ``distillers corn
oil'' as that term is better understood in the industry, and USDA
reporting, to reference corn oil from dry mills.
---------------------------------------------------------------------------

    \63\ EPA-HQ-OAR-2016-0041-0243, 0246, 0267 and 0286.
    \64\ EPA-HQ-OAR-2016-0041-0259, 0270, 0282, 0300 and 0311.
    \65\ EPA-HQ-OAR-2016-0041-0278, 0282, 0300 and 0311.
    \66\ EPA-HQ-OAR-2016-0041-0266 and 0277.
    \67\ EPA-HQ-OAR-2016-0041-0260.
    \68\ EPA-HQ-OAR-2016-0041-0282, 0300 and 0311.
---------------------------------------------------------------------------

    Based on these comments, EPA is finalizing a definition that has
been modified in several ways compared to the one proposed in the
November 2016 REGS proposed rule. First, EPA has decided to use the
term ``distillers corn oil'' because we agree with the commenter that
the term is better understood in the industry and thus enhances the
clarity of the regulations. Second, the definition has been revised to
include corn oil recovered at dry mill butanol plants, given their
similarities in terms of the oil recovery technologies used, the
characteristics of the oil recovered and the resulting DGS co-products.
Third, we have clarified that distillers corn oil is limited to oil
that is unfit for human food use without further refining. Fourth, we
have removed the word ``rendered'' from the definition as it is
unnecessary and seemed to raise questions for commenters. Finally, we
replaced the word ``extraction'' with ``recovery'' to avoid any
confusion about how the definition interacts with the term ``corn oil
extraction'' in 40 CFR 80.1401 and Table 2 to 40 CFR 80.1426.
    Other modifications recommended by commenters have not been
incorporated into the definition finalized by this rulemaking. Corn oil
from wet milling remains excluded from the definition. Corn oil
produced at wet mills is

commonly sold as cooking oil for human food uses, and thus may have
significantly different impacts than distillers corn oil. The GHG
emissions associated with substituting for oil removed from animal
feed, and specifically DGS, may be significantly different than the GHG
emissions associated with substituting for oil removed from cooking oil
markets. Thus, we believe the current LCA is insufficient to extend the
pathway to corn oil produced at wet mills and it would be more
appropriate to address wet mill corn oil through a separate action,
such as a new fuel pathway petition submitted pursuant to 40 CFR
80.1416. Fractionation is also not explicitly included, or otherwise
mentioned, in the revised definition, as EPA has previously found that
oil recovered through fractionation is likely to be sold for human food
use; \69\ use of such oil for biofuel production would require a
modified lifecycle assessment that is beyond the scope of this rule.
Finally, EPA does not believe the definition finalized in this
rulemaking contradicts the biointermediate provisions in the November
2016 REGS proposed rule. Because it is listed as a feedstock in Table 1
to 40 CFR 80.1426, the current regulations accommodate distillers corn
oil used through the pathways in rows F and H unless it is
substantially altered at a separate facility before delivery to the
fuel production facility.
---------------------------------------------------------------------------

    \69\ See the Regulatory Impact Analysis for the March 2010 RFS
rule, section <IP_ADDRESS> (Corn Oil Extracted During Ethanol
Production).
---------------------------------------------------------------------------

V. Summary

    Based on our GHG lifecycle evaluation described above, we find that
biodiesel and heating oil produced from distillers sorghum oil via a
transesterification process, and renewable diesel, jet fuel and heating
oil produced from distillers sorghum oil via a hydrotreating process
meet the 50 percent GHG reduction threshold requirement for advanced
biofuel and biomass-based diesel. Based on this finding, and providing
that all regulatory requirements are satisfied, these fuels are
eligible for biomass-based diesel (D-code 4) RINs if they are produced
through a process that does not co-process renewable biomass and
petroleum, and for advanced biofuel (D-code 5) RINs if they are
produced through a process that does co-process renewable biomass and
petroleum. The RFS regulations are also amended to add new and
consistent definitions for ``distillers sorghum oil'' and ``distillers
corn oil.'' As discussed above, we are allowing commingled distillers
sorghum and corn oil to be reported as one volume under the existing
registration, reporting and recordkeeping requirements, and therefore
are not amending these sections.

VI. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review

    This action is not a significant regulatory action and was
therefore not submitted to the Office of Management and Budget (OMB)
for review.

B. Executive Order 13771: Reducing Regulations and Controlling
Regulatory Costs

    This action is not expected to be an Executive Order 13771
regulatory action because this action is not significant under
Executive Order 12866.

C. Paperwork Reduction Act (PRA)

    This action does not impose any new information collection burden
under the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et
seq., and therefore is not subject to these requirements.

D. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic
impact on a substantial number of small entities under the RFA. This
action will not impose any requirements on small entities. An agency
may certify that a rule will not have a significant economic impact on
a substantial number of small entities if the rule relieves regulatory
burden, has no net burden or otherwise has a positive economic effect
on the small entities subject to the rule. This rule enables distillers
sorghum oil producers and producers of biofuels from distillers sorghum
oil to participate in the RFS program, see CAA section 211(o), if they
choose to do so in order to obtain economic benefits.

E. Unfunded Mandates Reform Act (UMRA)

    This action does not contain an unfunded mandate of $100 million or
more as described in UMRA, 2 U.S.C. 1531-1538, and does not
significantly or uniquely affect small governments. The action imposes
no enforceable duty on any state, local or tribal governments or the
private sector.

F. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have
substantial direct effects on the states, on the relationship between
the national government and the states, or on the distribution of power
and responsibilities among the various levels of government.

G. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

    This action does not have tribal implications as specified in
Executive Order 13175. This final rule would affect only producers of
distillers sorghum oil and producers of biofuels made from distillers
sorghum oil. Thus, Executive Order 13175 does not apply to this action.

H. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks

    The EPA interprets Executive Order 13045 as applying only to those
regulatory actions that concern environmental health or safety risks
that EPA has reason to believe may disproportionately affect children,
per the definition of ``covered regulatory action'' in section 2-202 of
the Executive Order. This action is not subject to Executive Order
13045 because it because it does not concern an environmental health
risk or safety risk.

I. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use

    This action is not subject to Executive Order 13211 because it is
not a significant regulatory action under Executive Order 12866.

J. National Technology Transfer Advancement Act (NTTAA)

    This rulemaking does not involve technical standards.

K. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations

    The EPA believes that this action does not have disproportionately
high and adverse human health or environmental effects on minority
populations, low-income populations and/or indigenous peoples, as
specified in Executive Order 12898 (59 FR 7629, February 16, 1994).
This final rule does not affect the level of protection provided to
human health or the environment by applicable air quality standards.
This action does not relax the control measures on sources regulated by
the fuel programs and RFS regulations and therefore will not cause
emissions increases from these sources.

L. Congressional Review Act (CRA)

    This action is subject to the CRA, and the EPA will submit a rule
report to each House of the Congress and to the Comptroller General of
the United States. This action is not a ``major rule'' as defined by 5
U.S.C. 804(2).

List of Subjects in 40 CFR Part 80

    Environmental protection, Administrative practice and procedure,
Air pollution control, Diesel Fuel, Fuel additives, Gasoline, Imports,
Oil imports, Petroleum, Renewable fuel.

    Dated: July 24, 2018.
Andrew R. Wheeler,
Acting Administrator.

    For the reasons set forth in the preamble, EPA amends 40 CFR part
80 as follows:

PART 80--REGULATION OF FUEL AND FUEL ADDITIVES

0
1. The authority citation for part 80 continues to read as follows:

    Authority: 42 U.S.C. 7414, 7521, 7542, 7545, and 7601(a).

Subpart M--Renewable Fuel Standard

0
2. Section 80.1401 is amended by adding, in alphabetical order,
definitions for ``distillers corn oil'' and ``distillers sorghum oil''
to read as follows:

Sec.  80.1401  Definitions.

* * * * *
    Distillers corn oil means corn oil recovered at any point
downstream of when a dry mill ethanol or butanol plant grinds the corn,
provided that the corn starch is converted to ethanol or butanol, the
recovered oil is unfit for human food use without further refining, and
the distillers grains remaining after the dry mill and oil recovery
processes are marketable as animal feed.
    Distillers sorghum oil means grain sorghum oil recovered at any
point downstream of when a dry mill ethanol or butanol plant grinds the
grain sorghum, provided that the grain sorghum is converted to ethanol
or butanol, the recovered oil is unfit for human food use without
further refining, and the distillers grains remaining after the dry
mill and oil recovery processes are marketable as animal feed.
* * * * *

0
3. Section 80.1426 is amended in paragraph (f)(1), in Table 1 to Sec.
80.1426, by revising entries ``F'', ``H'', and ``I'' to read as
follows:

Sec.  80.1426  How are RINs generated and assigned to batches of
renewable fuel by renewable fuel producers or importers?

* * * * *
    (f) * * *
    (1) * * *

         Table 1 to Sec.   80.1426--Applicable D Codes for Each Fuel Pathway for Use in Generating RINs
----------------------------------------------------------------------------------------------------------------
                                                                             Production process
                                  Fuel type               Feedstock             requirements          D-code
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
F........................  Biodiesel, renewable    Soy bean oil; Oil from  One of the following:               4
                            diesel, jet fuel and    annual covercrops;      Trans-Esterification
                            heating oil.            Oil from algae grown    Hydrotreating
                                                    photosynthetically;     Excluding processes
                                                    Biogenic waste oils/    that co-process
                                                    fats/greases;           renewable biomass
                                                    Camelina sativa oil;    and petroleum.
                                                    Distillers corn oil;
                                                    Distillers sorghum
                                                    oil; Commingled
                                                    distillers corn oil
                                                    and sorghum oil.

                                                  * * * * * * *
H........................  Biodiesel, renewable    Soy bean oil; Oil from  One of the following:               5
                            diesel, jet fuel and    annual covercrops;      Trans-Esterification
                            heating oil.            Oil from algae grown    Hydrotreating
                                                    photosynthetically;     Includes only
                                                    Biogenic waste oils/    processes that co-
                                                    fats/greases;           process renewable
                                                    Camelina sativa oil;    biomass and
                                                    Distillers corn oil;    petroleum.
                                                    Distillers sorghum
                                                    oil; Commingled
                                                    distillers corn oil
                                                    and sorghum oil.
I........................  Naphtha, LPG..........  Camelina sativa oil;    Hydrotreating........               5
                                                    Distillers sorghum
                                                    oil.

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
[FR Doc. 2018-16246 Filed 8-1-18; 8:45 am]
BILLING CODE 6560-50-P