[Federal Register Volume 70, Number 29 (Monday, February 14, 2005)]
[Proposed Rules]
[Pages 7442-7443]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-2779]


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DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

10 CFR Part 490

[Docket No. EE-RM-02-200]


Alternative Fuel Transportation Program; Fischer-Tropsch Diesel 
Fuels

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of 
Energy.

ACTION: Proposed rule; notice of availability of status review.

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SUMMARY: This document announces the availability of a Department of 
Energy (DOE) document concerning diesel fuel made from natural gas 
using the Fischer-Tropsch process which is being added to docket number 
EE-RM-02-200. The document is the DOE's status review of its evaluation 
of Fischer-Tropsch diesel (FTD) under the Energy Policy Act of 1992 
(EPAct), undertaken partly in response to three petitions received by 
DOE requesting rulemakings to designate FTD fuels as alternative fuels. 
For the reasons identified in the status review document, DOE currently 
is unable to make the necessary finding that FTD fuel meets the 
``yields substantial environmental benefits'' criterion under section 
301(2) and is not undertaking a rulemaking at this time. DOE will keep 
the rulemaking docket open indefinitely and will periodically review 
any new submissions received.

ADDRESSES: U.S. Department of Energy, Office of Energy Efficiency and 
Renewable Energy, Office of FreedomCAR and Vehicle Technologies, EE-2G, 
1000 Independence Avenue, SW., Washington, DC 20585-0121.
    The docket material has been filed under ``EE-RM-02-200.'' This 
docket will remain open indefinitely. Copies of the status review, 
workshop transcript, discussion paper, and related DOE laboratory 
analyses, petitions, and any public comments can be found at the Web 
site address http://www.eere.energy.gov/vehiclesandfuels/epact/petition/ftd_docket_index.shtml. You may also access this document 
using a computer in DOE's Freedom of Information (FOI) Reading Room, 
U.S. Department of Energy, Forrestal Building, Room 1E-190, 1000 
Independence Avenue, SW., Washington, DC 20585-0121, (202) 586-3142, 
between the hours of 9 a.m. and 4 p.m., Monday through Friday, except 
Federal holidays. To request a copy of any of these documents or to 
arrange on-site access to paper copies or other information in the 
docket at the Office of FreedomCAR and Vehicle Technologies, contact 
Linda Bluestein at the phone number or e-mail address below.

FOR FURTHER INFORMATION CONTACT: Linda Bluestein on (202) 586-9171 or 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Introduction

a. Statutory Authority

    Under titles III through V of the Energy Policy Act of 1992 (Pub. 
L. 102-486, 42 U.S.C. 13211 et seq.), DOE is authorized to implement 
alternative fuel fleet programs covering certain fleets. As part of 
this responsibility, the Department is also tasked with determining 
whether fuels may be added to the statutory list of alternative fuels 
for which vehicles may be acquired under these fleet programs. As it 
was enacted in 1992, EPAct defined ``alternative fuel'' as follows:

    [T]he term ``alternative fuel'' means methanol, denatured 
ethanol, and other alcohols; mixtures containing 85 percent or more 
(or such other percentage, but not less than 70 percent, as 
determined by the Secretary, by rule, to provide for requirements 
related to cold start, safety, or vehicle functions) by volume of 
methanol, denatured ethanol, and other alcohols with gasoline or 
other fuels; natural gas; liquefied petroleum gas; hydrogen; coal-
derived liquid fuels; fuels (other than alcohol) derived from 
biological materials; electricity (including electricity from solar 
energy); and any other fuel the Secretary determines, by rule, is 
substantially not petroleum, and would yield substantial energy 
security benefits and substantial environmental benefits. Pub. L. 
102-486, section 301(2), (emphasis added).

    The emphasized portion of that definition states the minimum 
procedural and substantive requirements for adding a new fuel to the 
list of fuels enumerated or implicitly covered by the provisions of 
section 301(2). Subsequently, (in Pub. L. 106-554), section 301(2) of 
EPAct was amended by inserting, ``including liquid fuels domestically 
produced from natural gas'' after ``natural gas.'' (Note: By rule, 
effective June 16, 1999, DOE added three specific blends of 
methyltetrahydrofuran, ethanol, and hydrocarbons known as ``P-series'' 
fuels to the regulatory definition of alternative fuel, 64 FR 26822, 
May 17, 1999. In addition, the Department had earlier specifically 
identified 100 percent (``neat'') biodiesel as qualifying under ``fuels 
(other than alcohol) derived from biological materials'' within the 
Alternative Fuel Transportation Program (Program), 61 FR 10621, March 
14, 1996.)

b. Previous Actions Concerning Designation of Fischer-Tropsch Diesel 
Fuel as an Alternative Fuel

    DOE has received three petitions, requesting a rulemaking to 
determine whether certain Fischer-Tropsch diesel (FTD) fuels should be 
considered alternative fuel under the program regulations (10 CFR part 
490). These petitions were submitted by Mossgas (PTY) Limited (now 
PetroSA), Syntroleum Corporation, and Rentech, Inc. FTD fuels are 
diesel fuels made from natural gas or other carbon-bearing

[[Page 7443]]

feedstocks using the Fischer-Tropsch process. The three petitioners 
proposed that their FTD fuels be designated as ``alternative fuels'' 
because the fuels conform to the EPAct requirement (in title III, 
section 301(2)) of being substantially not petroleum and yielding 
substantial energy security and environmental benefits. In September of 
2002, the Department announced a public workshop and opportunity for 
public comment on FTD fuels, 67 FR 57347, September 10, 2002.
    On October 16, 2002, the Department's Office of FreedomCAR and 
Vehicle Technologies Program held a public workshop to discuss the 
benefits and detriments of designating natural gas-based non-domestic 
FTD as an alternative fuel under the program. The Department made 
available an initial analytical paper for public comment on this topic. 
A transcript from the workshop is available in the docket. Four 
organizations presented prepared statements at the workshop, including 
the three petitioners. Eleven sets of written comments were also 
received from other organizations. All of the statements and comments 
can also be found in the docket.

II. Department of Energy's Determination

    After a technical review of relevant data and information, 
including data and information collected after and during the workshop, 
the Department prepared a status review of its evaluation of the issues 
surrounding designation of FTD as an alternative fuel. In today's 
document, the Department is announcing availability of that document. 
As stated in the status review document:

    ``After collecting and evaluating pertinent data and conducting 
a workshop, DOE is unable to make a finding at this time that FTD 
yields ``substantial environmental benefits'' within the meaning of 
section 301(2) of the Energy Policy Act. A finding that a candidate 
fuel offers ``substantial environmental benefits'' is a necessary 
finding to designate a fuel as an alternative fuel under section 
301(2). DOE will keep its FTD rulemaking docket active so that 
stakeholders desiring to submit new data and information relevant to 
FTD may do so. DOE will evaluate the data periodically to make 
future decisions with regard to FTD designation as an alternative 
fuel'' (footnote omitted).

    The Department believes that FTD offers a combination of 
potential environmental benefits and detriments. Data are currently 
unavailable or inadequate on a number of FTD-related environmental 
issues. For example, the Department's analysis shows that FTD would 
most likely increase greenhouse gas emissions, but is unclear as to 
how much the likely increase would be. On the other hand, DOE 
continues to believe that FTD is likely to reduce emissions of 
particulate matter and nitrous oxides in pre-model year 2007 
engines, particularly in pre-model year 1998 engines, but the 
existing data do not provide for reliable quantification of those 
emission reductions. With respect to fuels that result in any 
significant potential environmental detriment, it is very difficult 
to make designations based on judgments that other environmental 
benefits outweigh the significant potential detriments. At the 
current time, the Department is unable to find that FTD is likely to 
yield net environmental benefits, and does not plan to initiate a 
rulemaking concerning whether FTD fuels should be considered 
``alternative fuels'' under EPAct section 301(2). Any interested 
party, however, is invited to submit comments, data or information 
to DOE on this issue and, if warranted at some future time, DOE may 
take further action on this issue.

    Issued in Washington, DC, on January 28, 2005.
David K. Garman,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. 05-2779 Filed 2-11-05; 8:45 am]
BILLING CODE 6450-01-U