National Academies Press: OpenBook

Tracking Alternative Jet Fuel (2016)

Chapter: Chapter 2 - Current and Potential Tracking Mechanisms

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Suggested Citation:"Chapter 2 - Current and Potential Tracking Mechanisms." National Academies of Sciences, Engineering, and Medicine. 2016. Tracking Alternative Jet Fuel. Washington, DC: The National Academies Press. doi: 10.17226/23696.
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Suggested Citation:"Chapter 2 - Current and Potential Tracking Mechanisms." National Academies of Sciences, Engineering, and Medicine. 2016. Tracking Alternative Jet Fuel. Washington, DC: The National Academies Press. doi: 10.17226/23696.
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Suggested Citation:"Chapter 2 - Current and Potential Tracking Mechanisms." National Academies of Sciences, Engineering, and Medicine. 2016. Tracking Alternative Jet Fuel. Washington, DC: The National Academies Press. doi: 10.17226/23696.
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Suggested Citation:"Chapter 2 - Current and Potential Tracking Mechanisms." National Academies of Sciences, Engineering, and Medicine. 2016. Tracking Alternative Jet Fuel. Washington, DC: The National Academies Press. doi: 10.17226/23696.
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Suggested Citation:"Chapter 2 - Current and Potential Tracking Mechanisms." National Academies of Sciences, Engineering, and Medicine. 2016. Tracking Alternative Jet Fuel. Washington, DC: The National Academies Press. doi: 10.17226/23696.
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Suggested Citation:"Chapter 2 - Current and Potential Tracking Mechanisms." National Academies of Sciences, Engineering, and Medicine. 2016. Tracking Alternative Jet Fuel. Washington, DC: The National Academies Press. doi: 10.17226/23696.
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Suggested Citation:"Chapter 2 - Current and Potential Tracking Mechanisms." National Academies of Sciences, Engineering, and Medicine. 2016. Tracking Alternative Jet Fuel. Washington, DC: The National Academies Press. doi: 10.17226/23696.
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Suggested Citation:"Chapter 2 - Current and Potential Tracking Mechanisms." National Academies of Sciences, Engineering, and Medicine. 2016. Tracking Alternative Jet Fuel. Washington, DC: The National Academies Press. doi: 10.17226/23696.
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Suggested Citation:"Chapter 2 - Current and Potential Tracking Mechanisms." National Academies of Sciences, Engineering, and Medicine. 2016. Tracking Alternative Jet Fuel. Washington, DC: The National Academies Press. doi: 10.17226/23696.
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Suggested Citation:"Chapter 2 - Current and Potential Tracking Mechanisms." National Academies of Sciences, Engineering, and Medicine. 2016. Tracking Alternative Jet Fuel. Washington, DC: The National Academies Press. doi: 10.17226/23696.
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Suggested Citation:"Chapter 2 - Current and Potential Tracking Mechanisms." National Academies of Sciences, Engineering, and Medicine. 2016. Tracking Alternative Jet Fuel. Washington, DC: The National Academies Press. doi: 10.17226/23696.
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Suggested Citation:"Chapter 2 - Current and Potential Tracking Mechanisms." National Academies of Sciences, Engineering, and Medicine. 2016. Tracking Alternative Jet Fuel. Washington, DC: The National Academies Press. doi: 10.17226/23696.
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6C h a p t e r 2 2.1 Introduction to Jet Fuel Logistics and Procurement It is critical to understand three key elements needed to properly develop mechanisms for alternative jet fuel tracking: 1. Physical supply of jet fuel to the wing of the aircraft, 2. Jet fuel purchasing mechanisms and associated documentation, and 3. Inventory tracking at the airport fuel farm. These three elements are discussed in more detail in this section. 2.1.1 Physical Supply of Jet Fuel to the Wing of the Aircraft Physical supply of jet fuel to an airport occurs in stages, as shown in Figure 1. Here the process has been simplified to (1) production, (2) transportation from the refinery to the airport storage (fuel farm), (3) airport storage, and (4) loading into the aircraft (into-plane). Production Conventional jet fuel production takes place at crude oil refineries, which produce a variety of petroleum-based products, including lubricants, chemicals, and an array of gaseous and liquid fuels. All crude oil refineries work by separating hydrocarbon molecules of differing lengths out of the crude oil, yielding component products, including jet fuel. There are a number of different ways to produce and manufacture alternative jet fuels, depend- ing on raw material, conversion technology, and other circumstances. A full description of the dif- ferent pathways is outside the scope of this work, but interested readers are encouraged to consult recent ACRP publications on the topic,11,12 the FAA’s website on Sustainable Alternative Jet Fuels,13 or the Department of Energy’s website for the Office of Energy Efficiency and Renewable Energy.14 A key step in the production process is certifying that the jet fuel (conventional or alternative) meets the relevant specifications for use in commercial aircraft. ASTM D1655, Standard Specifica- tion for Aviation Turbine Fuels, and United Kingdom’s Def Stan 91-91, Turbine Fuel, Aviation Kerosine Type, Jet A1, are the primary standards used around the world to certify conventional jet fuel. Within the United States, ASTM standards are used for all commercial aviation fuels. The Def Stan standards are used in other countries but are often used as a reference in the United States. The ASTM D1655 specification not only sets standards that the fuel must meet to be certified but also identifies appropriate methods that can be used to test the fuel. ASTM D7566, Standard Specification for Aviation Turbine Fuel Containing Synthesized Hydrocarbons, is the specification that applies to alternative jet fuel blends containing no more Current and Potential Tracking Mechanisms

Current and potential tracking Mechanisms 7 than 50% neat alternative fuel, although the blend requirement may not continue in the future. D7566 contains two types of specifications—one that applies to the neat alternative fuel after production and one that applies to the blend of alternative and conventional fuel. Once the blend of alternative and conventional fuel has met the requirements of D7566, it is then redesig- nated as D1655 fuel and may be treated as such throughout the remainder of the supply chain. When a batch of fuel leaves the refinery after being certified relative to the requirements of D1655 or D7566, a Refinery Certificate of Quality (RCQ) must be issued that identifies the batch number of the fuel, the manufacturing refinery, the specification the fuel was manufactured to, and details of any additives used in the manufacture of the fuel. Downstream of the point of manufacture, one or multiple Certificates of Analysis (COAs) are issued after the completion of full conformity testing. A COA is generally issued each time a new party becomes responsible for a particular batch of fuel, so by the time a batch reaches the airport, there are usually multiple COAs associated with it. All COAs must include the batch number, the manufacturing refinery, and the tested properties required in D1655 or D7566.15 These quality documents are the building blocks of the safety tracking mechanisms for jet fuel used in the industry today. These documents accompany the fuel from its point of origination all the way to the point of final consumption. Thus, they are key sources of information for tracking alternative jet fuels. However, it must be noted that there is no standard method of collection or database that currently consolidates these data in a centralized location. Therefore, while the data exist, it is not yet clear how accessible they might be for use in a tracking system. Transportation (Refinery to Airport Storage) The most common methods of transporting jet fuel to the airport are shipping by pipeline, rail, barge/vessel, or truck. However, depending on the local circumstances unique to each airport, some of these options might not be available. In general, large airports are supplied by pipeline or multiple pipelines, while smaller airports tend to be supplied by trucks and, when available, pipelines. While there are cases where fuel is delivered directly from a refinery to airport storage (via a series of filters and fuel/water separators), the majority of large airports use a system where fuel leaves the refinery via pipeline and passes through a clay filter and fuel/water separator prior to deposition into a supply terminal. This supply terminal is generally off-airport and can serve multiple airports. As fuel is transported from the refinery to the airport, there are multiple opportunities for contamination to occur. Since the receiving party is responsible for fuel quality after it accepts a delivery, strong quality control practices are necessary at each transfer point. Airport Storage For larger airports, onsite fuel storage consists of an array of different tanks that are used for specific purposes. Airports that produce a high turnover of fuel generally have three or more storage tanks. One tank is used to receive and accept a load of fuel and is designated as the Figure 1. Schematic of jet fuel logistics.

8 tracking alternative Jet Fuel receiving tank. A second tank is used for holding the fuel and allowing time for sediment and moisture to settle to the bottom of the fuel. Once the recommended settling time (dependent on fuel type and volume) has been met, fuel is either pumped into a third tank that is used as the actual dispensing tank, or the settling tank is redesignated as a dispensing tank and the fuel is dispensed directly from there. Smaller airports that have only one or two tanks for jet fuel deal with fuel delivery differently. For example, these airports must carefully plan their fuel deliveries to ensure that fuel will have enough time to settle prior to its use. In the case of an airport with two fuel tanks, one tank is used for both receiving and settling, and the second is used for dispensing. In the case of an airport with only one fuel tank, fuel must be allowed to settle prior to dispensing and use—necessitating good fuel management practices by the FBO or airport fuel operator. Aircraft Loading Once a batch of fuel has reached airport storage and the fuel quality has been verified, the fuel is prepared for delivery to the aircraft in one of the following ways: • Hydrant fueling system: The fuel is piped to an underground hydrant system with a pit at each gate. • Vehicular refueling: The fuel is loaded into refueling trucks or dispensers. • Central dispensing system: The fuel is piped to a central dispensing pump. A hydrant fueling system can be either a fuel pit system or a hydrant pit system. A fuel pit system consists of a hose, reel, filter, and air eliminator connected to an underground fuel line. These are positioned at each aircraft parking position and in most cases do not require any addi- tional infrastructure. A hydrant pit system has a smaller footprint and does not include a hose assembly. Instead, a hydrant service cart or hydrant truck is used to connect the ground fueling point to the aircraft. Fuel pit systems and hydrant pit systems are the predominant fueling meth- ods in use at large- and medium-sized airports around the world today. Smaller airports that do not have an underground hydrant system installed generally use a fleet of refueling trucks for aircraft refueling. These trucks have self-contained pumps, filters, and metering systems and can have a capacity of up to 17,500 gallons of jet fuel. This amount is enough to fully fuel a Boeing 757 for a transcontinental flight. Generally, airports with a flight portfolio that includes flights exceeding this range or aircraft size have hydrant systems. Since the fuel flow rates of trucks are lower than those of large hydrant systems, fueling large aircraft can take significantly longer when using this method. Other small airports, especially those that do not service large aircraft on a regular basis, use a stationary fuel dispensing system for refueling. With a stationary system, aircraft must taxi up to a remote fueling point that connects to a storage tank, which can be either aboveground or underground, depending on the system design. This type of fueling system is generally seen at airports that primarily serve general aviation traffic, and the system itself is primarily associated with self-service fueling. 2.1.2 Jet Fuel Purchasing Mechanisms Airlines have different ways to purchase fuel that are described based on where they take pos- session of the fuel. Understanding where and when airlines take title to the fuel is important with respect to tracking mechanisms for alternative jet fuel because it determines what documenta- tion may be available at different steps of the supply chain and which parties may have access to that documentation.

Current and potential tracking Mechanisms 9 Three common jet fuel purchasing mechanisms are illustrated in the lower portion of Fig- ure 2. The bars indicate the point in the supply chain at which the airline takes and retains title to the fuel. These common jet fuel purchasing mechanisms are further described in the following. Into-Pipe/Self-Supply The airline takes title to the product from the fuel company at a pipeline or truck terminal and then ships it to the airport. The airline has access to all the documentation from the point the fuel leaves the pipeline or truck terminal all the way to the wing of the aircraft. Into-Storage The fuel company ships the product to the airport, and the airline takes title to the fuel into- storage at the fuel farm. The airline would have access to the invoice and quality documents as the fuel enters the fuel farm. For information related to the fuel upstream of the fuel farm, the airline would need to request it from the producer or third-party vendor handling the logistics. Depending on the supply chain, this may involve more than one entity. Into-Wing The fuel company and possibly third-party providers are responsible for shipping the product to the airport and loading it into the aircraft, at which point the airline takes title to the fuel. The airline would need to request additional documentation from the fuel provider to understand where the fuel originated. 2.1.3 Inventory Tracking at the Fuel Farm It is important to understand inventory processes at the fuel farm in order to integrate with and fully take advantage of those processes when developing tracking mechanisms for alterna- tive jet fuel. Fuel farm operators play a key role with respect to keeping track of inventories for different users of the facility. This is especially true at airports with commingled storage, such as those managed by airport consortiums. At these locations, the fuel farm operator receives fuel on behalf of the airline(s) and, after completing all the proper testing and paperwork, puts it into shared storage. At the same time, the fuel farm operator works with the into-plane service providers to keep track of how much fuel they are loading into which aircraft. This is done via fuel tickets (paper or electronic), which provide information such as amount of fuel loaded, date, airline, aircraft tail number, and gate. Figure 2. Diagram of jet fuel supply logistics and common purchasing mechanisms.

10 tracking alternative Jet Fuel Once the fuel enters commingled storage, physical tracking is not possible, and the fuel farm operator must rely on its accounting system to determine inventory levels for each of the parties storing fuel at the farm. The fuel farm operator uses delivery receipts and fuel tickets to keep track of fuel inventories for different customers. This is illustrated in Figure 3. Airlines for America (A4A), an industry trade group formerly known as the Air Transport Asso- ciation, has developed guidance materials to help fuel farm operators with fuel inventory practices. These guidelines are known as Spec 123: Procedures for the Accounting of Jet Fuel Inventory,16 and while they are not mandatory, they are widely used at many airports in the United States. Spec 123 consists of a short handbook and two spreadsheets to assist with inventory tracking. At a very high level, the inventory tracking spreadsheet has entries for fuel receipts and fuel disbursements. In addi- tion, the spreadsheet automatically helps to account for gains/losses and to explain variances in fuel inventory due to truck/pipeline receipts and changes in temperature. This kind of template has been considered by the researchers for this project as the basis for a tracking tool for alternative jet fuel. Fuel consortiums are common at larger airports, and the situation explained here is fairly common across many airports. Arrangements and infrastructure are different from one airport to the next; therefore, the tracking system will need sufficient flexibility for the variations across airports. At smaller airports, inventory tracking may be simpler, especially if there is only one FBO providing fuel services, and all airlines purchase the fuel into-wing. 2.2 Introduction to Alternative Fuel Tracking Mechanisms Tracking mechanisms for alternative fuels for use in road transportation have traditionally been developed to ensure the accurate communication of the sustainability attributes associated with those fuels from their point of manufacture to their point of consumption. Sustainability attributes vary depending on the specific framework being used and include information such as feedstock type, feedstock origin, production location and process, other inputs into the produc- tion process, and emissions and other discharges into the environment. It is critical to under- stand these tracking mechanisms for the purposes of this project because they are the foundation upon which to develop a tracking mechanism for alternative jet fuel. Tracking requirements vary according to the specific sustainability certification program and framework being used and are explored in more detail in the following. Figure 3. Schematic of fuel inventory tracking at airports with commingled storage.

Current and potential tracking Mechanisms 11 2.2.1 Overview of Sustainability Certification Frameworks for Alternative Jet Fuel While no sustainability framework has been formally established for alternative jet fuels, numerous frameworks exist that potentially could be used to create mechanisms to evaluate and certify the sustainability attributes of alternative jet fuels.17,18,19 These frameworks can be divided into two broad categories: regulatory and voluntary. Regulatory frameworks are mandatory in nature and tend to apply only in those jurisdictions where the legislation exists. Examples of regu- latory frameworks are the Renewable Fuel Standard (RFS) in the United States and the European Union Renewable Energy Directive (EU RED) in Europe. Voluntary frameworks are not man- datory; they exist to provide businesses and other private entities a means by which to certify the sustainability attributes of their alternative fuels even when a regulatory framework does not exist (or in addition to one). Examples of voluntary frameworks are the Roundtable for Sustainable Biomaterials (RSB) and the International Sustainability and Carbon Certification (ISCC) system. A more complete list and descriptions of regulatory and voluntary frameworks are presented in Appendix A. While there are differences among all these frameworks, a common feature is the existence of a chain of custody (CoC). CoC refers to the chronological, physical, or electronic documentation of the acceptance/purchase, custody, control, transfer, and disposition of a product or its associ- ated characteristics.20 CoC is a key requirement in many alternative fuel voluntary certification and regulatory frameworks to ensure that the feedstocks and processes used in the production of the alternative fuel conform to said frameworks. Therefore, if applied to alternative jet fuels, CoC establishes a set of requirements on the mechanism for tracking alternative jet fuel that must be fulfilled in order for that fuel to comply with the appropriate framework and receive sustainability certification. 2.2.2 Chain-of-Custody Approaches for Alternative Fuels In the case of alternative fuels for aviation or other uses, common CoC categories are (1) physi- cal segregation, (2) mass-balance, and (3) book-and-claim. These categories are further described in the following. Physical Segregation In this CoC approach, the alternative fuel that has been certified21 for sustainability remains physically separated from noncertified fuel beginning at the alternative jet fuel production facil- ity (see Figure 4). Once the certified alternative fuel is produced, it remains physically segregated from noncertified fuel all the way to the airport and possibly into the aircraft wing. At no point in the supply chain is the fuel or any intermediate product mixed with noncertified equiva- lents, except when it is blended with conventional Jet A to meet ASTM quality certification requirements. Figure 4. Schematic of a physical segregation CoC approach.

12 tracking alternative Jet Fuel Factors that make physical segregation feasible include a short supply chain with fewer actors involved and physical proximity to the airport. Therefore, physical segregation is easier to imple- ment for aviation fuel if the alternative fuel production facility is located on or near airport prop- erty. Airports with excess fuel storage capacity and tanker truck (not hydrant) fueling systems can more readily implement physical segregation. The main attributes of physical segregation are: • It allows for the long-term study of a particular fuel’s use in engines for performance and emissions monitoring; • It allows clear-cut marketing claims without caveats or excessive customer education (e.g., this plane runs on 50% renewable fuel); • It can assist with compliance with more stringent local airshed emissions requirements in National Ambient Air Quality Standards (NAAQS) nonattainment areas;22 • The location for blending with 50% (or greater) petroleum Jet A to meet ASTM standards is irrelevant so long as the batches of blended fuel with alternative content remain in separate storage from the 100% petroleum fuel; and • It is easier to avoid double counting than in other CoC mechanisms.23 Mass-Balance Here, the amount of certified24 alternative fuel is tracked at each step of the supply chain (see Figure 5). Commingling with noncertified fuel is allowed, but the quantity of certified fuel is tracked as the fuel moves along the supply chain. Quantity tracking ensures that only the origi- nal amount of certified fuel is credited once the fuel reaches its final destination. For example, assume that 100,000 gallons of certified alternative fuel are produced and shipped via pipeline to a given airport. If 300,000 gallons of petroleum-based Jet A were mixed with the 100,000 gallons of alternative fuel, the delivery documentation would show a 25% mass-balance of alternative fuel in the shipment [100,000/(300,000 + 100,000)]. The recipient of the certified fuel is thereby informed that it can only take credit for 100,000 gallons of the certified fuel. While the alterna- tive fuel is physically commingled with conventional fuel for transport and storage, it remains separate administratively through accounting procedures. The mass-balance CoC mechanism tracks the proportion of certified alternative fuel molecules in the fuel supply from production to storage or delivery of alternative fuels. The mass-balance approach does not require additional physical infrastructure so long as common carrier trans- port providers and fuel service companies participate in tracking mass-balance information. Figure 5. Schematic of a mass-balance CoC approach.

Current and potential tracking Mechanisms 13 The main attributes of mass-balance are: • It allows for traceability at each stage of the supply chain; • It may allow airports where alternative jet fuel is dispensed to claim reductions in air pollut- ants such as particulate matter (PM) and sulfur oxides; and • It is easier to avoid double counting than in book-and-claim.25 Book-and-Claim In book-and-claim, sustainability information related to the alternative fuel is decoupled from the physical product at some point along the supply chain. As shown in Figure 6, once the fuel is produced according to the requirements in the certification scheme, the certificate is separated from the fuel prior to transporting it to the airport. This means that the buyer can claim credits associated with the alternative fuel even though there is no requirement that the buyer consume the fuel. For example, a fuel is produced in Nevada and inserted into the conventional fuel supply chain, but the credits for that fuel’s sustainability attributes are sold to an airport or airline in California. The generation of Renewable Identification Numbers (RINs) under the U.S. Environmental Protection Agency’s (U.S. EPA) RFS is an example of a book-and-claim system. In this system, fuel producers book one RIN for each gallon of fuel produced. RINs associated with volumes of fuel sold may be conveyed to the buyer of the fuel or claimed separately by an RIN buyer. This system allows parties with surplus RINs to sell them to parties in deficit with respect to their renewable volume obligations (RVOs) without having to physically transfer a corresponding vol- ume of fuel. Obligated parties use this market-based mechanism to achieve compliance with their RVOs assigned by the EPA under the Renewable Fuel Standard 2 (RFS2). The RSB is developing a book-and-claim CoC method that may be used with alternative jet fuel. As with mass-balance, book-and-claim does not require additional infrastructure for han- dling alternative jet fuel, but a robust accounting system between the producers and the final users is necessary to guard against duplication, double counting, mistakes, or fraud. (As men- tioned earlier, end-to-end auditing in book-and-claim is no longer possible after alternative fuel molecules are introduced into the fuel supply system.) When considering book-and-claim for sustainability information, if quality information by fuel batch is already being tracked down to the airport level, then the additional burden of including sustainability information that allows traceability and auditability back to the fuel producer should be small. The main attributes of book-and-claim are: • There is no new transportation or storage infrastructure or equipment required from refinery to aircraft wing; and • It can be used as a platform to introduce the trading of emissions credits between the different sellers and buyers of alternative fuels. Figure 6. Schematic of a book-and-claim CoC approach.

14 tracking alternative Jet Fuel Hybrid Chain of Custody In practice, some situations might suggest shifting the CoC approach at defined points between raw feedstock and aircraft wing. A hybrid CoC approach may be used in order to simplify CoC tracking and meet several voluntary standards and alternative fuel requirements of multiple juris- dictions all at once. How the CoC method for a product may be hybridized depends on customer expectations, obligations for compliance by supply chain operators, limitations of physical infra- structure, testing capabilities, current accounting practices, and affordability. One hybrid approach used in the road transportation sector combines mass-balance and book-and-claim.26 It uses mass-balance from fuel production up to a defined control point. Beyond that control point, book-and-claim is used to track the progression of the alternative fuel and its sustainability attributes along the supply chain. 2.2.3 Chain-of-Custody Examples CoC is now common in industries where products with different sustainability attributes exist in the same marketplace and where products with superior sustainability performance can demand a price premium. [While this is true for many products, it remains to be seen whether jet fuel (a commodity product) would be able to generate such a premium.] Supply chain man- agement for sustainability of alternative jet fuel might benefit from evaluating the benefits and impacts of the attributes of CoC programs implemented in other economic sectors. Organic Food Industry Uses Physical Segregation Organic farm products are currently a good example of the physical segregation CoC method. In response to consumer demands for food that is produced with fewer chemicals and the use of agricultural practices that are less harmful to land and water resources, the U.S. Department of Agriculture established uniform standards for organic products that claim environmental benefits when compared to conventional ones. To qualify as organic, the produce must be kept physically segregated from conventional produce beginning at the farm and through every link in the supply chain. Certified organic products may not be mixed with noncertified products at any stage of the supply chain, from farm field to grocery store shelf.27 Forest Products Industry Uses Mass-Balance A mass-balance CoC method is used to meet the requirements of the nongovernmental Forest Stewardship Council (FSC). The FSC certification applies to forest products, such as lumber, saw- dust, woodchips, and pulp for paper. Beginning with their harvest in certified forests, sustainably produced forest products are tracked along the supply chain from woodlot to mill and beyond to the distribution networks that supply retail hardware stores and the printing industry. Certified CoC controls ensure that FSC-compliant wood and fiber are marked in accordance with the FSC standard. FSC allows for the mixing of FSC-certified products and non–FSC-certified products under certain circumstances, making it a mass-balance CoC system.28 FSC has rules for what types of noncertified products the certified products may be mixed with. FSC exercises strict control over the use of its trademarks so that only wood and paper products that use fiber derived from FSC-managed forests can bear the FSC mark. FSC certification of forests is widespread in North America and Europe (each with more than 60 million hectares of certified forests). Renewable Electricity Industry Uses Book-and-Claim Power produced from renewable sources like solar or wind is indistinguishable to the electri- cal grid operator from power produced from coal or natural gas. As such, Renewable Energy Certificates (RECs)29 are generated by administratively separating the environmental attributes

Current and potential tracking Mechanisms 15 of electricity produced from renewable sources. RECs can be used for compliance with state- level statutes, referred to as renewable portfolio standards (RPSs), or are sold for use in voluntary GHG and sustainability programs. RECs are created, bought, sold, and accounted for in a book- and-claim CoC framework. The impossibility of tracking electrons produced from renewable sources makes mass-balance and physical segregation infeasible for renewable electricity. RPSs and the RECs associated with them exist in 29 states and the District of Columbia. States with RPSs accounted for 55% of total U.S. retail electricity sales in 2012.30 2.3 Tying It All Together The three logistics elements listed previously (physical supply, purchasing, and inventory tracking) are critical for determining how much fuel (conventional or alternative) has been delivered and consumed at a given airport (see Figure 7). They reflect the mechanisms in place today to track conventional jet fuel use. CoC is an additional mechanism that could work in conjunction with the certification of alternative fuel operators throughout the supply chain. It might enable tracking of sustainability attributes of alternative fuels from production to fuel blending and delivery by defining methods for data collection and transmission. The main elements needed to implement mechanisms for tracking alternative jet fuel based on existing logistics, infrastructure, and sustainability certification practices are summarized in Table 2. The elements identified in the table can be described as follows: 1. Fuel delivery mechanism: There are different ways to deliver jet fuel to an airport, including by pipeline, barge, rail, or truck. The type of delivery mechanism will greatly influence the ability to implement a certain fuel tracking approach. For example, for physical segregation, the need to keep the fuel segregated at all times favors fuel deliveries by truck, rail, and, to some extent, barge. Pipeline delivery of segregated fuel would be more difficult to achieve unless there were dedicated pipeline access to the airport from a refinery or terminal and the ability to physically ship and keep batches of alternative jet fuel separated. Figure 7. Key elements for the development of a tracking system for alternative jet fuel.

16 tracking alternative Jet Fuel 2. Fuel logistics at the airport: Similar to the previous element, fuel farm storage and into-plane operations can have a great influence on fuel tracking mechanisms. For example, if most of the storage at the airport is commingled and the primary means for into-plane refueling is via hydrant, physical segregation becomes difficult to implement unless dedicated storage and refueling trucks can be made available. 3. Blending location: The point at which alternative jet fuel is blended with conventional fuel is of critical importance for fuel tracking mechanisms. The neat, unblended alternative jet fuel cannot enter the conventional jet fuel supply chain until it has been blended and the blend has been certified to ASTM standards. Thus, up to the blending location, the alternative jet fuel has to be kept segregated, which facilitates any of the tracking mechanisms, including physical segregation. Once the alternative jet fuel blend has been certified, it can enter the conventional jet fuel supply chain. At this moment, depending on how the fuel is transported to the airport and handled at the airport, different tracking mechanisms may be easier or more difficult to implement, as discussed previously. 4. Data aggregation and management: A main component of tracking mechanisms is to iden- tify, aggregate, and manage the relevant product volume, quality, and sustainability infor- mation associated with alternative jet fuel. Implementation of this element will be different depending on the selected tracking mechanism. For example, for physical segregation, since the fuel molecules and the sustainability information travel together, it is easier to track both as they move through the system. In contrast, in a book-and-claim or hybrid approach, the fuel molecules and the sustainability information are separated at some point in the supply chain, and this needs to be taken into account when designing the system. This may require a centralized third party to collect and manage all the data. 5. Auditing: A critical element for any mechanism for tracking alternative jet fuel is the ability to audit and verify the integrity of the data. This is particularly important to approaches such as book-and-claim that rely on data management to establish the connection between fuel molecules and their sustainability attributes. Having a robust and auditable collection and documentation system that also prevents double counting of credits such as GHG emissions reductions is important for stakeholders interested in environmental or other credits associ- ated with alternative jet fuel use. A summary of documents and data associated with each of these key elements is presented in Table 3. While not exhaustive, this list reflects the main information that may need to be avail- able according to current practices along the supply chain. These options address the needs of airports and other supply chain stakeholders identified in the previous section. Element Conventional Jet Fuel Alternative Jet Fuel Physical Segregation Mass- Balance Book-and- Claim Hybrid Fuel delivery mechanism to the airport Fuel logistics at the airport Blending location Data aggregation and management Auditing Legend: – applies – strongly applies. Table 2. Main elements needed to implement jet fuel tracking mechanisms.

Current and potential tracking Mechanisms 17 Table 3. Summary of data items and documents associated with the key elements for development of a tracking system for alternative jet fuel. Data Items Generated Document(s) Information 1) Physical supply - RCQ/COA - Bill of lading - Fuel specification, specification test results, manufacturing facility, manufacture date, batch number, volume - Product specification, seller, buyer, point of origin/destination, volume, batch number, date 2) Purchasing - Invoice - Product specification, seller, buyer, point of uplift/transfer of title, volume, price, batch number, date 3) Airport inventory - Fuel ticket - Volume, airline name, flight number, aircraft tail number, date 4) CoC information - Proof of sustainability - From feedstock supplier/processor: sustainability certification of feedstock (archived by producer), feedstock mass (archived by producer) - From fuel producer: life-cycle CO2 estimate,1 pathway identifier (ID),2 sustainability certification of fuel3 - From fuel handlers (including FBOs, fuel farm, and into-plane operators): blend proportion Notes: (1) This is found by utilizing life-cycle assessment tools using data supplied to the fuel producer by the feedstock producer, the fuel producer’s own process inputs, and estimates of downstream processes. In RFS2 and RSB, for example, the GHG estimate is computed by the fuel producer and then verified by the regulator or a third party. (2) Pathway ID describes the feedstock, fuel production process, and the fuel type. In the RFS2, pathways must receive prior approval from the U.S. EPA in order to qualify for RINs. For more information, see http://www.epa.gov/otaq/fuels/renewablefuels/new-pathways/what-is-a-fuel-pathway.htm. (3) Certified fuel must be made from certified feedstock in a certified conversion process. Requirements for certification of feedstock and certification of fuel vary by regulation and voluntary standard. Receiving certification requires many data elements, but certification simplifies the need for data element tracking on behalf of the end user.

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TRB’s Airport Cooperative Research Program (ACRP) Research Report 165: Tracking Alternative Jet Fuel provides guidance to airports on ways to track alternative jet fuels. As alternative jet fuels start to enter the supply chain, there may be a need to keep track of such fuel for technical, regulatory, and commercial reasons. In addition to the guidance, a greenhouse gas calculator and an alternative fuels inventory tracking spreadsheet compare different types of tracking mechanisms and evaluate their advantages and disadvantages, impediments to implementation, and potential impacts.

Spreadsheet disclaimer: This software is offered as is, without warranty or promise of support of any kind either expressed or implied. Under no circumstance will the National Academy of Sciences, Engineering, and Medicine or the Transportation Research Board (collectively "TRB") be liable for any loss or damage caused by the installation or operation of this product. TRB makes no representation or warranty of any kind, expressed or implied, in fact or in law, including without limitation, the warranty of merchantability or the warranty of fitness for a particular purpose, and shall not in any case be liable for any consequential or special damages.

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