Renewable fuels and green chemicals producers pursue emissions allowances as cap-and-trade legislation looms

In New York, a report from Reuters covers efforts by BIO among other organizations to persuade Congress to extend pollution permits to makers of biofuels, renewable chemicals and plastics. Under the legislation passed by the House, 2 percent of emissions allowances went to the oil industry, but none to biofuels or renewable chemicals.

“No offense to refiners, but they’re taking carbon that’s been buried in the ground for millions of years and releasing it into the atmosphere,” BIO’s Brent Erickson said. “And we’re taking carbon that’s in the atmosphere and recycling it through plants, and it ought to be treated differently.” The House bill gives away 85 percent of the emission allowances and auctions the remaining 15 percent. The Senate is expected to vote on the legislation as soon as October. The renewable fuels and chemicals industry has proposed receiving between 1 and 5 percent of emissions allowances.

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