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From: "Kathleen Spilman, P.E." <kspilman@keitu.com>
To: "Snow Melk @AIC" <smelk@aicenergycorp.com>,
	<directory@aicenergycorp.com>,
	"'John Melk'" <jmelk06@yahoo.com>
Cc: <kkeller@keitu.com>
References: <3A662963-5F57-AC48-A002-A14C0845E14A@hxcore.ol> <000001d8bc7d$846e3aa0$8d4aafe0$@keitu.com>
In-Reply-To: <000001d8bc7d$846e3aa0$8d4aafe0$@keitu.com>
Subject: Answers to Snow's Questions - Canola Pathway
Date: Tue, 30 Aug 2022 09:44:56 -0500
Organization: Keitu Engineers & Consultants, Inc.
Message-ID: <001601d8bc7f$13e71750$3bb545f0$@keitu.com>
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Short Version

=20

*	Canola likely is =E2=80=93 but no evidence on internet because no one =
has apparently applied for it.  Would take a phone call to California =
agency to confirm either way.
*	Canola will almost certainly be granted federal credits.  But still in =
the process but we will know in a couple of months
*	Soybean pathway is for sure. We need to officially say soybean oil for =
now.  Especially if the USDA is asking the question as that is what the =
IDU data is on.

=20

Long Version:

=20

Currently, the use of canola as a feedstock as an approved and =
recognized pathway for SAF via the hydrotreating process depends on the =
government entity being asked about.  It would appear the California Air =
Resource Board (CARB) has approved a canola pathway for alternative jet =
fuel production to generate low carbon fuel standard (LCFS) credits.  =
CARB has a temporary pathway for alternative jet fuel which allows for =
=E2=80=9Cany feedstock derived from plant oils (excluding palm oil and =
palm derivatives).=E2=80=9D  To date, only plants using tallow as a =
feedstock have submitted to and received approval from CARB an =
application for the ability to generate LCFS credits with the production =
of alternative jet fuel.  Phillips 66 has submitted and received =
approval from CARB to use canola oil as a feedstock for the production =
of renewable diesel.

=20

On the federal side, the US Environmental Protection Agency (EPA) has =
not finalized a ruling to give canola oil an approved and recognized =
pathway for renewable diesel or SAF via the hydrotreating process to =
generate Renewable Identification Number (RIN) credits.  However, the =
EPA issued for public comment on April 18th a pathway for canola to =
produce RINs for renewable diesel, renewable jet fuel, renewable =
naphtha, and renewable LPG.  The public comment has closed and a final =
ruling is expected sometime in the month of September according to the =
US Canola Association.

=20

The use of soybean oil as a feedstock for the production of renewable =
diesel and renewable jet fuel using the hydrotreating process has an =
approved pathway to generate RIN credits and an apparent approved =
pathway to generate LCFS credits.  The SAFuels X facility would use =
soybean oil as its feedstock until canola oil is approved to generate =
RIN credits.

=20

Sincerely,

Phillip Stack

=20

From: Snow Melk <smelk@aicenergycorp.com =
<mailto:smelk@aicenergycorp.com> >=20
Sent: Monday, August 29, 2022 5:08 PM
To: Kathleen Spilman P.E. <kspilman@keitu.com =
<mailto:kspilman@keitu.com> >
Cc: 'Kristopher Keller' <kkeller@keitu.com <mailto:kkeller@keitu.com> >; =
pstack@keitu.com <mailto:pstack@keitu.com>=20
Subject: Need to answer=20

=20

Kathy=20

Can you help us answer it ?

=20


  <blob:outlook-mobile-compose:///7ffc562c-3cc6-466c-a683-7e47e8017d95>=20

=20

=20

  <blob:outlook-mobile-compose:///c625c06d-58f6-4b4b-a954-c2ca21f6f518>=20

Renee L. Melk
VP / Chief Operation Officer

=20

Phone: 702.685.1118 =20

Direct:  702.508.1908

Email: smelk@aicenergycorp.com <mailto:smelk@aicenergycorp.com>=20

=20

2840 S. Jones Blvd. Ste 1

Las Vegas, NV 89146

=20

 <http://www.aicenergycorp.com/> www.aicenergycorp.com=20

=20


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</o:shapelayout></xml><![endif]--></head><body lang=3DEN-US link=3Dblue =
vlink=3Dpurple style=3D'word-wrap:break-word'><div =
class=3DWordSection1><p class=3DMsoNormal>Short Version<o:p></o:p></p><p =
class=3DMsoNormal><o:p>&nbsp;</o:p></p><ul style=3D'margin-top:0in' =
type=3Ddisc><li class=3DMsoListParagraph =
style=3D'margin-left:0in;mso-list:l0 level1 lfo1'>Canola likely is =
=E2=80=93 but no evidence on internet because no one has apparently =
applied for it.=C2=A0 Would take a phone call to California agency to =
confirm either way.<o:p></o:p></li><li class=3DMsoListParagraph =
style=3D'margin-left:0in;mso-list:l0 level1 lfo1'>Canola will almost =
certainly be granted federal credits.=C2=A0 But still in the process but =
we will know in a couple of months<o:p></o:p></li><li =
class=3DMsoListParagraph style=3D'margin-left:0in;mso-list:l0 level1 =
lfo1'>Soybean pathway is for sure. We need to officially say soybean oil =
for now.=C2=A0 Especially if the USDA is asking the question as that is =
what the IDU data is on.<o:p></o:p></li></ul><p =
class=3DMsoNormal><o:p>&nbsp;</o:p></p><p class=3DMsoNormal>Long =
Version:<o:p></o:p></p><p class=3DMsoNormal><o:p>&nbsp;</o:p></p><p =
class=3DMsoNormal style=3D'margin-left:.5in'>Currently, the use of =
canola as a feedstock as an approved and recognized pathway for SAF via =
the hydrotreating process depends on the government entity being asked =
about.&nbsp; It would appear the California Air Resource Board (CARB) =
has approved a canola pathway for alternative jet fuel production to =
generate low carbon fuel standard (LCFS) credits.&nbsp; CARB has a =
temporary pathway for alternative jet fuel which allows for =E2=80=9Cany =
feedstock derived from plant oils (excluding palm oil and palm =
derivatives).=E2=80=9D&nbsp; To date, only plants using tallow as a =
feedstock have submitted to and received approval from CARB an =
application for the ability to generate LCFS credits with the production =
of alternative jet fuel.&nbsp; Phillips 66 has submitted and received =
approval from CARB to use canola oil as a feedstock for the production =
of renewable diesel.<o:p></o:p></p><p class=3DMsoNormal =
style=3D'margin-left:.5in'><o:p>&nbsp;</o:p></p><p class=3DMsoNormal =
style=3D'margin-left:.5in'>On the federal side, the US Environmental =
Protection Agency (EPA) has not finalized a ruling to give canola oil an =
approved and recognized pathway for renewable diesel or SAF via the =
hydrotreating process to generate Renewable Identification Number (RIN) =
credits.&nbsp; However, the EPA issued for public comment on April =
18<sup>th</sup> a pathway for canola to produce RINs for renewable =
diesel, renewable jet fuel, renewable naphtha, and renewable LPG.&nbsp; =
The public comment has closed and a final ruling is expected sometime in =
the month of September according to the US Canola =
Association.<o:p></o:p></p><p class=3DMsoNormal =
style=3D'margin-left:.5in'><o:p>&nbsp;</o:p></p><p class=3DMsoNormal =
style=3D'margin-left:.5in'>The use of soybean oil as a feedstock for the =
production of renewable diesel and renewable jet fuel using the =
hydrotreating process has an approved pathway to generate RIN credits =
and an apparent approved pathway to generate LCFS credits.&nbsp; The =
SAFuels X facility would use soybean oil as its feedstock until canola =
oil is approved to generate RIN credits.<o:p></o:p></p><p =
class=3DMsoNormal><o:p>&nbsp;</o:p></p><p =
class=3DMsoNormal>Sincerely,<o:p></o:p></p><p class=3DMsoNormal>Phillip =
Stack<o:p></o:p></p><p class=3DMsoNormal><o:p>&nbsp;</o:p></p><div><div =
style=3D'border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in =
0in 0in'><p class=3DMsoNormal><b>From:</b> Snow Melk &lt;<a =
href=3D"mailto:smelk@aicenergycorp.com">smelk@aicenergycorp.com</a>&gt; =
<br><b>Sent:</b> Monday, August 29, 2022 5:08 PM<br><b>To:</b> Kathleen =
Spilman P.E. &lt;<a =
href=3D"mailto:kspilman@keitu.com">kspilman@keitu.com</a>&gt;<br><b>Cc:</=
b> 'Kristopher Keller' &lt;<a =
href=3D"mailto:kkeller@keitu.com">kkeller@keitu.com</a>&gt;; <a =
href=3D"mailto:pstack@keitu.com">pstack@keitu.com</a><br><b>Subject:</b> =
Need to answer <o:p></o:p></p></div></div><p =
class=3DMsoNormal><o:p>&nbsp;</o:p></p><div><div><div><p =
class=3DMsoNormal>Kathy&nbsp;<o:p></o:p></p></div><div><p =
class=3DMsoNormal>Can you help us answer it ?<o:p></o:p></p></div><div =
id=3Dms-outlook-mobile-signature><div><p =
class=3DMsoNormal><o:p>&nbsp;</o:p></p></div><table =
class=3DMsoNormalTable border=3D0 cellspacing=3D0 cellpadding=3D0 =
width=3D384 =
style=3D'width:4.0in;border-collapse:collapse;border-spacing:0px;caret-co=
lor:rgb(33, 33, 33)'><tr style=3D'height:63.4pt'><td width=3D195 =
style=3D'width:146.0pt;border:none;border-right:solid windowtext =
1.0pt;padding:0in 5.4pt 0in 5.4pt;height:63.4pt'><p =
style=3D'margin:0in'><span style=3D'font-size:9.0pt'><img border=3D0 =
width=3D155 height=3D64 style=3D'width:1.6145in;height:.6666in' =
id=3D"_x0000_i1026" =
src=3D"blob:outlook-mobile-compose:///7ffc562c-3cc6-466c-a683-7e47e8017d9=
5" alt=3DImage></span><o:p></o:p></p><p style=3D'margin:0in'><span =
style=3D'font-size:9.0pt'>&nbsp;</span><o:p></o:p></p><p =
style=3D'margin:0in'><span =
style=3D'font-size:9.0pt'>&nbsp;</span><o:p></o:p></p><p =
style=3D'margin:0in'><span style=3D'font-size:12.0pt'><img border=3D0 =
width=3D171 height=3D44 style=3D'width:1.7812in;height:.4583in' =
id=3D"_x0000_i1025" =
src=3D"blob:outlook-mobile-compose:///c625c06d-58f6-4b4b-a954-c2ca21f6f51=
8" alt=3D"Logo&lt;br&gt;&lt;br&gt;Description automatically =
generated"></span><o:p></o:p></p></td><td width=3D189 =
style=3D'width:142.0pt;padding:0in 5.4pt 0in 5.4pt;height:63.4pt'><p =
class=3DMsoNormal><b><span =
style=3D'font-family:"Arial",sans-serif;color:#2F5496'>Renee L. =
Melk</span></b><span =
style=3D'font-family:"HelveticaNeue",serif'><br></span><span =
style=3D'font-size:7.5pt;font-family:"Arial",sans-serif'>VP / Chief =
Operation Officer</span><span =
style=3D'font-family:"HelveticaNeue",serif'><o:p></o:p></span></p><p =
style=3D'margin:0in'><span =
style=3D'font-size:4.0pt;font-family:"Arial",sans-serif'>&nbsp;</span><o:=
p></o:p></p><p style=3D'margin:0in'><b><span lang=3DFR =
style=3D'font-size:8.0pt;font-family:"Arial",sans-serif;color:#2F5496'>Ph=
one</span></b><span lang=3DFR =
style=3D'font-size:8.0pt;font-family:"Arial",sans-serif;color:#2F5496'>:&=
nbsp;</span><span lang=3DFR =
style=3D'font-size:8.0pt;font-family:"Arial",sans-serif'>702.685.1118&nbs=
p;&nbsp;</span><o:p></o:p></p><p style=3D'margin:0in'><b><span lang=3DFR =
style=3D'font-size:8.0pt;font-family:"Arial",sans-serif;color:#2F5496'>Di=
rect:&nbsp;&nbsp;</span></b><span lang=3DFR =
style=3D'font-size:8.0pt;font-family:"Arial",sans-serif'>702.508.1908</sp=
an><o:p></o:p></p><p style=3D'margin:0in'><b><span lang=3DFR =
style=3D'font-size:8.0pt;font-family:"Arial",sans-serif;color:#2F5496'>Em=
ail</span></b><span lang=3DFR =
style=3D'font-size:8.0pt;font-family:"Arial",sans-serif;color:#2F5496'>:&=
nbsp;<a =
href=3D"mailto:smelk@aicenergycorp.com">smelk@aicenergycorp.com</a></span=
><o:p></o:p></p><p style=3D'margin:0in'><b><span lang=3DFR =
style=3D'font-size:4.0pt;font-family:"Arial",sans-serif;color:#5B9BD5'>&n=
bsp;</span></b><o:p></o:p></p><p style=3D'margin:0in'><span =
style=3D'font-size:8.0pt;font-family:"Arial",sans-serif;color:#2F5496'>28=
40 S. Jones Blvd. Ste 1</span><o:p></o:p></p><p =
style=3D'margin:0in'><span =
style=3D'font-size:8.0pt;font-family:"Arial",sans-serif;color:#2F5496'>La=
s Vegas, NV 89146</span><o:p></o:p></p><p style=3D'margin:0in'><b><span =
style=3D'font-size:4.0pt;font-family:"Arial",sans-serif;color:#2F5496'>&n=
bsp;</span></b><o:p></o:p></p><p style=3D'margin:0in'><b><span =
style=3D'font-size:8.0pt;font-family:"Arial",sans-serif;color:#2F5496'><a=
 href=3D"http://www.aicenergycorp.com/"><span =
style=3D'color:#0563C1'>www.aicenergycorp.com</span></a></span></b><span =
style=3D'font-size:4.0pt'>&nbsp;</span><o:p></o:p></p></td></tr></table><=
p =
class=3DMsoNormal><o:p>&nbsp;</o:p></p></div></div></div></div></body></h=
tml>
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