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Fuel/Fue l Additive s Meetin g Summar y

Novembe r3 , 199 4 An n Arbor , M l Present : Jud yGray , EP A

Ken tHelmer , EP A Dou g Orrin , ORTEC H Stev e Howell , MARC-I V Ala n Weber , Nationa l Biodiese l Boar d 

### FE B - S199 5 | ; ! | i •* < < i • 

# Si^lSxe ? Th e meetin g convene d a t10:0 0 a.m . Afte ra shor tintroduction , Webe ran d Howel l describe d th e Nationa l Biodiese l Boar d (NBB ) an d th e variou s marke tsegment s i n whic h biodiese l i s bein g sold . Webe rhighlighte d urba n mas s transits , marin e activities , an d undergroun d minin g wor k a s key , near-ter m markets . Differen tbiodiese l blend s ma yb e sol d i n eac h o fthes e segments . Thus , th e NB B i s attemptin g t o determin e wher e biodiese l fit s wit h th e Fuel/Fue l Additiv e (F/FA ) regulations . Biodiese l Marke t an d F/F ARegistratio n Becaus e th e F/F Aregistratio n regulation s appl yt o on-roa d market s onl y(whic h include s th e bu s market) , th e minin g an d marin e market s woul d no tb e affecte d i n th e nea rterm . Howeve roff-roa d F/F Aregistratio n an d healt h effect s testin g ma yb e implemente d i n th e future . "Trace " Element s F/FA s ca n b e groupe d int o thre e categories : baseline , non-baselin e an d atypical . Atypica l F/FA s contai n element s othe rtha n C,H,N,S , an d 0 . Baselin e an d non baselin e F/FA s contai n n o othe relement s excep tC,H,N,S , an d 0 bu tar e allowe d t o contai n trac e level s o fth e atypica l elements . Th e EP Aconfirme d tha tth e presenc e o ftrac e contaminant s (no tadde d intentionally ) ha s n o effec to n th e groupin g o fa F/FA . Sinc e th e presenc e o ftrac e element s ha s n o bearin g o n F/F Aclassificatio n o r grouping , biodiese l wa s confirme d a s bein g eithe rbaselin e o rnon-baseline , dependin g o n th e concentratio n o foxyge n i n th e fina l blende d fuel . Biodiese l Groupin g Unde rth e curren t regulation s non e o fth e alternativ e fuels , a s define d i n th e regulation , ar e require d t o registe ra s a F/FA . Biodiesel/biodiese l blend s ar e no t classifie d a s alternativ e fuel s fo rpurpose s o fthi s regulation . I twa s mad e clea rtha t th e designatio n o f"alternative " i n thi s regulatio n onl yha s meanin g withi n thi s regulatio n an d shoul d no tb e construe d t o appl yt o othe rregulation s o rgovernmen t policie s suc h a s thos e bein g considere d b yth e Departmen to fEnergy .P. 3

Accordin g t o th e rule , classification s o fF/FAs differen ttha n th e baselin e fue l whic h are use d wit h th e baselin e fue l i n amount s ove r50 % wil l b e determine d b yEP Aupo n inquir yb yth e F/F

Amanufacturer . Sinc e biodiese l fit s withi n th e guideline , th e inquir y wa s presente d a tth e meeting . EP Ashare d that , as th e regulatio n wa s drafted , biodiese l wa s assume d t o b e non-baselin e diese l fue l regardles s o fth e blen d level . EP Aha s n o intentio n o fclassifyin g a hig h blen d o fbiodiese l as a n alternativ e fue l fo r th e purpos e o fth e F/F Aregulations . Blend s o fbiodiese l wit h baselin e diese l whic h resul ti n concentration s o foxyge n les s tha n 1% , however , wil l almos tcertainl yb e classifie d a s a baselin e diese l fuel . Vegetabl e Oil s versu s Anima l Fats Currentl yth e F/FAregulation s creat e tw o non-baselin e group s fo rbiodiesel ; on e fo r vegetabl e oil-base d biodiese l an d on e fo ranima l fat-base d biodiesel . Sinc e th e EP A wa s unfamilia rwit h th e difference s betwee n anima l fa tan d vegetable-base d oil s an d the yoriginat e fro m tw o differen tsources , tw o group s wer e established . Th e NB B share d tha tinformatio n i s availabl e regardin g bot h anima l fat s an d vegetabl e oils , tha t fat s an d oil s are ver ysimila ri n composition , an d tha temission s betwee n biodiese l base d o n differin g fat s an d oil s woul d no tb e qualitativel ydifferen tfro m eac h other . Th e EP Aagreed tha tth e basi ccompositio n o fth e vegetabl e oil s an d anima l fat s wer e qualitativel ysimila r(triglycerides) , bu tha d question s regardin g th e difference s i n othe r substance s whic h ma yb e containe d i n vegetabl e oil s an d anima l fats . NB B share d tha tth e material s othe rtha n triglyceride s are als o simila ran d tha tth e dat a i s available . EP Ashare d tha tthe yare willin g t o revie wthi s dat a an d woul d conside ra technica l amendmen tt o combin e th e anima l an d vegetabl e alky l ester s int o on e groupin g i fth e dat a s o warrants . Biodiese l Blen d Selectio n Th e curren tregulation s stat e tha tth e F/F Ahealt h effect s testin g shoul d b e conducte d o n th e highes tin-us e concentratio n recommende d b yth e manufacture rfo ra produc t i n th e tes tgroup . Th e highes tin-us e concentratio n recommende d fo rbiodiese l woul d change , however , dependin g o n th e marke tbein g considered . Fo rth e urba n bu s market , th e mos tcommo n blen d i s 20 % (B20 ) wher e i n th e minin g o rmarin e marke t 100 % biodiese l ma yb e recommended . Sinc e th e purpos e o fth e ne wF/F Aregulation s i s t o determin e th e maximu m potentia l healt h effec timpact , NB B suggeste d tha tth e testin g o f100 % biodiese l woul d represen tth e maximu m chang e fro m existin g diese l fuel . Testin g o f100 % biodiese l (alon g wit h dat a o n 100 % petrodiesel ) woul d the n encompas s al l o fth e expecte d healt h effects . EP Ashare d tha tthi s woul d b e tru e unles s ther e wer e unexpecte d interaction s wit h th e blends . NB B share d tha tnon e ha s bee n see n thu s far , an d tha texhaus tspeciatio n wil l b e conducte d o n B2 0 blend s thi s year . Th e B2 0 speciatio n dat a woul d indicat e i fan yinteraction s occurred . I t wa s agreed tha tthi s approac h seeme d reasonabl e an d tha tAn n Arbo rwoul d confe rfurthe r o n th e issu e befor e providin g a fina l answer .P. 4

Additive s Testin g a n additiv e doe s no tnecessaril ychang e th e groupin g o fa F/FA . Fo rexample , i fa n additiv e i s use d wit h B1 0 an d i tdoe s no tchang e th e fuel' s characteristic s (oxygen , etc.) , the n i twoul d stil l b e a par t o fth e baselin e grouping . Th e EP Aadvise d t o loo k fo radditive s tha tare compose d o fonl yC,H,N,0 , and/o rS . Thi s guidanc e wa s give n du e t o th e "su b sim " ruling s tha twil l b e mad e i n th e future . Th e testin g o f additiv e combination s i s generall yno tnecessary . Additive s whic h hav e complete d thei rhealt h effect s testin g wit h conventiona l diese l woul d no tb e require d t o hav e testin g repeate d wit h biodiesel . Engin e Selectio n Th e to p fiv e sellin g diese l engin e model s mayno tnecessaril yrepresen tth e to p sellin g engine s i n whic h biodiese l i s bein g used . I twa s advise d tha ttestin g procedure s use d shoul d follo wth e API' s procedure s (includin g engin e selection , t o th e exten ttha t th e sam e engin e specification s are practica l an d applicabl e t o biodiesel) . Thi s cours e o f actio n wil l allo wEP

Astaf ft o us e th e AP I baselin e testin g as a contro l fo rou rresults . Assumin g biodiese l ha s fewe rharmfu l effects , usin g th e sam e tes t engin e an d procedure s wil l benefi tou refforts . Th e AP I ha s indicate d tha tthe ywil l mak e thei r testin g procedure s publi cknowledge . AP I Consortiu m Participatio n Baselin e diese l testin g wil l b e use d i n tw o ways . First , i tserve s a s a contro l t o th e healt h effect s testin g wit h biodiesel . Second , a B1 0 blen d wil l actuall yfal l withi n th e guidelin e fo rbaselin e diese l fuel . Therefore , a fir m coul d joi n th e AP I consortiu m o r conduc tth e baselin e diese l testin g o n thei rown . Novembe r28 , 199 4 Deadlin e Curren tsale s dat a (quantitativ e as wel l as geographi clocation ) an d indicatio n o f consortiu m participatio n shoul d b e delivere d t o th e EP Ab yNovembe r28 , 1994 . I n orde rt o mee tth e deadline , firm s tha tare unsur e o fplan s t o participat e i n grou p testin g maystat e thi s i n thei rsubmission . Wha t Group s Nee d t o Registe rwit h th e EP A Fue l manufacturer s are firm s tha tchang e th e characteristic s o fa fuel . Therefor e an y fir m tha tadd s a bul k

additiv e mus tregiste rwit h th e EP Aan d perfor m healt h effect s testing . Thi s definitio n woul d includ e distributor s o rfleet s tha tad d thei row n additiv e packages . I n addition , fleet s tha tsplas h blen d biodiese l wit h petro-diese l a t thei r facilit ywoul d nee d t o registe rwit h th e EP Aan d provid e healt h effect s data . Healt h effect s testin g dat a can , however , b e provide d b yanothe rfir m an d presente d t o th e EPA . Also , flee toperator s wil l no tb e penalize d fo rfailin g t o registe rwit h th e EP Ai n th e past .P. 5

A n additiv e manufacture ri s a fir m tha tproduces , manufactures , and/o rsell s a n additive . Therefore , firm s sellin g B10 0 mus tregiste rwit h th e EP Aan d provid e healt h effec tdata . Onc e again , eac h fir m doe s no thav e t o pa yfo rhealt h effect s testin g i f anothe rfir m wil l provid e th e necessar ydata . Specia l Exemption s Th e $5 0 millio n exemptio n leve l fo rnon-baselin e additive s include s othe rbusines s sales . Fo rexample , i ffir m Xha d a n esterificatio n facilit ybu tals o mad e rubbe rtires , th e $5 0 millio n sale s leve l woul d represen tbot h tir e sale s an d biodiese l sales . Othe rNotes : AP I wil l hos ta worksho p o n Novembe r17 , 199 4 i n Washington , D.C . t o addres s F/F A issues . Commercia l lab s tha tar e capabl e o fperformin g th e healt h effect s researc h hav e bee n invited . Th e meetin g conclude d a t12:3 0 p.m .

Thi s summar yfairl yreflect s th e remark s an d discussion s hel d durin g th e Novembe r 3 , 199 4 meetin g i n An n Arbor , Ml .

Ala n Weber , NB B