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.

Rules and Regulations Federal Register

37735 

Vol. 83, No. 149 

Thursday, August 2, 2018 

1North American Industry Classification System. 

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. 

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: 202–564– 

5687; email address: galperin.diana@

epa.gov. 

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: 

Examples of potentially affected entities NAICS1 codes 

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 

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 


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37736 Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Rules and Regulations 

2The 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). 

3A 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. 

4Please 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-ruleidentify-additional-fuel-pathways-under-renewablefuel and https://www.epa.gov/renewable-fuelstandard-program/renewable-fuel-pathways-ii-finalrule-identify-additional-fuel. 5 82 FR 61205 (December 27, 2017). 

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 coprocessing renewable biomass and 

petroleum.2

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. 

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. 

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. 

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 


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6 81 FR 80828 (November 16, 2016). 

7See 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.’’) 

8For 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. 

9See, U.S. Department of Agriculture Natural 

Resource Conservation Service, https://

plants.sc.egov.usda.gov/core/profile?symbol=

SOBI2, accessed July 02, 2018. 

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. 

12A 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. 

13This 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. 

14Table 1 to 40 CFR 80.1426, Rows R and S. 

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. 

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. 

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. 

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 (Dcode 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. 

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) 


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15 December 22, 2016 pathway approval for Gevo, 

Inc., https://www.epa.gov/renewable-fuel-standardprogram/gevo-inc-approval. 

16Sorghum Checkoff, ‘‘Renewables,’’ http://

www.sorghumcheckoff.com/market-opportunities/ 

renewables, accessed 09-05-2017, (EPA-HQ-OAR2017-0655-0015). 

17USDA, 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-OAR2017-0655-0019). 

18USDA, 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-bioenergystatistics/us-bioenergy-statistics/#Feedstocks, 

accessed 09–05–2017, (EPA–HQ–OAR–2017–0655– 

0021). 

19See comment from the Renewable Fuels 

Association (EPA–HQ–OAR–2017–0655–0039) and 

NSP petition, (EPA–HQ–OAR–2017–0655–0005), 

pp. 8. 

20Renewable Energy Group’s facility in Geismar, 

LA (https://www.epa.gov/renewable-fuel-standardprogram/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). 

produced from grain sorghum as a 

feedstock.15

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. 

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. 

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 nonfood grade corn oil feedstock without 

first being approved for a facilityspecific 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. 

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 


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Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Rules and Regulations 37739 

21See the December 17, 2012 grain sorghum 

ethanol final rule (77 FR 74592). 

22See 77 FR 74592 (December 17, 2012). 

23NSP 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. 

25NSP 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). 

26See 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. 

27Neutral detergent fibers measure the amount of 

structural component of plants, while acid 

detergent fibers measure the least digestible plant 

components. 

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

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. 

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. 


daltland on DSKBBV9HB2PROD with RULES
37740 Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Rules and Regulations 

28The 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. 

29EPA–HQ–OAR–2017–0655–0041, 0042. 

30For more detail see, Arora et al., (2008). 

Argonne National Laboratory. ‘‘Update of distillers 

grains displacement ratios for corn ethanol 

life-cycle analysis’’ (EPA–HQ–OAR–2017–0655– 

0007). 

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). 

32H.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). 

33University 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). 

34Penn State Extension, ‘‘Troubleshooting 

Problems with Milkfat Depression,’’ August 14, 

2017, https://extension.psu.edu/troubleshootingproblems-with-milkfat-depression. Accessed 

September 08, 2017, (EPA–HQ–OAR–2017–0655– 

0016). 

35Penn 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.1 shows the key constituents 

that make up dried full-oil and reducedoil DGS. 

TABLE III.1—KEY NUTRIENT MAKE-UP

OF FULL-OIL AND REDUCED-OIL

DRIED DISTILLERS GRAINS WITH

SOLUBLES (DDGS) DERIVED FROM

GRAIN SORGHUM 28

Nutrient 

Full-oil 

sorghum 

DDGS 

Reduced-oil 

sorghum 

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. 

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. 

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. 

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 reducedoil 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. 

An impact on displacement rates may 

occur when reduced-oil instead of fulloil 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. 


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Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Rules and Regulations 37741 

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-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). 

37Protein sources such as soybean meal can be 

used to supplement sorghum DGS for poultry. 

38EPA-HQ-OAR–2017–0655–0041, 0042. 

39See, 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. 

40Corn 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-yearbooktables.aspx (accessed on June 14, 2018) and USDA 

Vegetable Oils and Animal Fats, Oil Crop Yearbook, 

https://www.ers.usda.gov/data-products/oil-cropsyearbook.aspx (accessed on June 06, 2018). 

41See, 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. 

42The 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. 

43See, 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. 

44The 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). 

45See 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. 

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] 

Ingredient 

Beef cattle Dairy cattle Swine Poultry 37

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

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

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

TABLE III.3—FEED SUBSTITUTION

RATIO

Livestock type Feed 

substitute 

Substitution 

ratio 

(lb feed 

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. 


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37742 Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Rules and Regulations 

46See section 1.4.1.3 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. 

47Wang, 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). 

48Mueller, S., Kwik, J. (2013). ‘‘2012 Corn 

Ethanol: Emerging Plant Energy and Environmental 

Technologies.’’ 

49See 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). 

50There 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. 

51See Table 15 in the January 5, 2012 Pathways 

I direct final rule (77 FR 722). 

52See for example: California Environmental 

Protection Agency Air Resources board, https://

www.arb.ca.gov/fuels/lcfs/2a2b/apps/co_bd_wdgsrpt-102414.pdf, (EPA–HQ–OAR–2017–0655–0008). 

53For details see section 2.4 of the RIA for the 

March 2010 RFS final rule. 

54See 78 FR 14190 (March 5, 2013). 

55For determination documents responding to 

facility specific petitions, see: https://www.epa.gov/ 

renewable-fuelstandard-program/approvedpathways-renewable-fuel. 

56See the March 2013 Pathways I rule, 

specifically 78 FR 14198–14200 (March 5, 2013). 

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

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). 

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. 

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. 

Our previous analyses of 

hydrotreating processes have applied an 

energy allocation approach for RINgenerating 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. 

In the allocation approach, all the 

emissions from the hydrotreating 

process are allocated across all coproducts. 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 


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57See, ‘‘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. 

58See section VII.B of the November 2016 REGS 

proposed rule (81 FR 80900–01). 

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. 

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] 

Fuel Biodiesel, 

heating oil 

Renewable 

diesel, 

jet fuel 

Naphtha LPG 2005 Diesel 

baseline 

2005 Gasoline 

baseline 

Production process Transesterification 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 drymill 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

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 


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37744 Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Rules and Regulations 

59EPA 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. 

60EPA–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. 

61EPA–HQ–OAR–2016–0041–0243, 0246, 0260, 

0266, 0267, 0277 and 0286. 

62EPA–HQ–OAR–2017–0655–0034, 0039, 0028, 

0038. 

63EPA–HQ–OAR–2016–0041–0243, 0246, 0267 

and 0286. 

64EPA–HQ–OAR–2016–0041–0259, 0270, 0282, 

0300 and 0311. 

65EPA–HQ–OAR–2016–0041–0278, 0282, 0300 

and 0311. 

66EPA–HQ–OAR–2016–0041–0266 and 0277. 

67EPA–HQ–OAR–2016–0041–0260. 

68EPA–HQ–OAR–2016–0041–0282, 0300 and 

0311. 

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. 

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.’’ 

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. 

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 coproducts. 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 


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69See the Regulatory Impact Analysis for the 

March 2010 RFS rule, section 1.1.3.2 (Corn Oil 

Extracted During Ethanol Production). 

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. 

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 biomassbased 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 (Dcode 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, lowincome 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. 


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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 

■ 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 

■ 2. Section 80.1401 is amended by 

adding, in alphabetical order, 

definitions for ‘‘distillers corn oil’’ and 

‘‘distillers sorghum oil’’ to read as 

follows: 

§ 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. 

* * * * * 

■ 3. Section 80.1426 is amended in 

paragraph (f)(1), in Table 1 to § 80.1426, 

by revising entries ‘‘F’’, ‘‘H’’, and ‘‘I’’ to 

read as follows: 

§ 80.1426 How are RINs generated and 

assigned to batches of renewable fuel by 

renewable fuel producers or importers? 

* * * * * 

(f) * * * 

(1) * * * 

TABLE 1 TO § 80.1426—APPLICABLE D CODES FOR EACH FUEL PATHWAY FOR USE IN GENERATING RINS

Fuel type Feedstock Production process requirements D-code 

*******

F ..................... Biodiesel, renewable diesel, jet 

fuel and heating oil.

Soy bean oil; Oil from annual 

covercrops; Oil from algae 

grown photosynthetically; Biogenic waste oils/fats/greases; 

Camelina sativa oil; Distillers 

corn oil; Distillers sorghum oil; 

Commingled distillers corn oil 

and sorghum oil.

One of the following: TransEsterification Hydrotreating Excluding processes that co-process renewable biomass and petroleum.4 

*******

H ..................... Biodiesel, renewable diesel, jet 

fuel and heating oil.

Soy bean oil; Oil from annual 

covercrops; Oil from algae 

grown photosynthetically; Biogenic waste oils/fats/greases; 

Camelina sativa oil; Distillers 

corn oil; Distillers sorghum oil; 

Commingled distillers corn oil 

and sorghum oil.

One of the following: TransEsterification Hydrotreating Includes only processes that coprocess renewable biomass and 

petroleum.

5 

I ....................... Naphtha, LPG ................................ Camelina sativa oil; Distillers sorghum oil.Hydrotreating ................................. 5 

*******

* * * * * 

[FR Doc. 2018–16246 Filed 8–1–18; 8:45 am] 

BILLING CODE 6560–50–P 


daltland on DSKBBV9HB2PROD with RULES