What is meant by "grandfathered" fuel?
Under the RFS2 regulations, renewable fuel produced from facilities that commenced construction before December 19, 2007 and which completed construction within 36 months without an 18 month hiatus in construction and thereby exempt from the minimum 20% GHG reduction requirement that applies to general renewable fuel. Ethanol from facilities that commenced construction after December 19, 2007, but prior to December 31, 2009, qualify for the same exemption if they complete construction within 36 months without an 18 months hiatus in construction and are fired with natural gas, biomass, or any combination thereof. For convenience, we refer to the facilities that qualify for these exemptions, as well as the fuel produced by them as "grandfathered." It is important to note, however, that these facilities and fuels are only exempt from a single RFS2 requirement (the minimum 20% GHG reduction for general renewable fuel), and are otherwise fully subject to RFS2 requirements. For example, fuel produced by grandfathered facilities does not qualify as renewable fuel under RFS2 unless it is produced from renewable biomass. Also, fuel from grandfathered facilities cannot qualify as advanced biofuel, cellulosic biofuel, or biomass-based diesel unless it is produced through a pathway that EPA has determined will result in an appropriate level of GHG reduction (50% or 60%).
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