Today in Biofuels Opinion: Reaction to Obama Administration on new biofuels policies, EPA, USDA rules

Nathanael Greene, NRDC’s director of renewable energy policy

“The final rule confirms that some biofuels reduce global warming and some pollute more than gasoline and diesel.  This proves how important it is to put policies in place to make sure public dollars go to support real renewable energy instead of going after options that do not work and could actually do more harm than good.

“With the tools that EPA has developed, we can finally start to hold biofuel corporations accountable.

“The only way to invest into biofuel programs correctly is to make sure the public gets real environmental protection for our climate, our water, our wildlife and our health.

“This rule will help us move beyond corn ethanol but it will not do it alone. Reforming the bio tax credits, focusing on government incentives for American innovation and jobs so we get the first billion gallons of the best biofuels into the market, and ultimately evolving to a Low Carbon Fuel Standard like the one adopted in California are the best next steps.”

Bob Dineen, CEO of the Renewable Fuels Association

“This plan combines an appropriate appreciation for the importance of the existing biofuels industry with an understandable excitement for new technologies near fruition. A more coordinated effort from federal agencies together with the continuation of sound biofuels policies, such as extending existing incentives, will go a long way toward meeting and exceeding America’s renewable fuel potential.

“Current technologies continue to provide the necessary base from which new and promising technologies are emerging. It is critical that all these technologies – including those closest to fruition and those years from commercialization – have every opportunity to succeed. It would be premature to abandon near commercial technologies, such as cellulosic ethanol, in favor of “drop in” fuels that are still years away. One renewable fuel technology need not be cannibalized for other technologies to succeed.??”We are pleased to see this plan address some of the concerns raised by cellulosic and next generation ethanol technology companies concerning federal loan guarantee programs. These loan guarantees must be made to work for cellulosic ethanol producers if this plan and the President’s stated goals are to be realized.

“As this report rightly notes, the potential of domestic renewable fuel production to create jobs and put America in control of its energy future are substantial. As it has done before, America’s ethanol industry is eager to meet the challenges this report puts forth and welcomes the opportunity to more closely partner with the Federal government to meet our mutual goals.”

Joe Jobe, CEO of the National Biodiesel Board

“The U.S. biodiesel industry is pleased that the EPA has issued the final RFS2 rule. There are significant job creation, energy security and environmental benefits associated with expanded biodiesel use.  Today’s rulemaking – in particular implementation of the Biomass-based Diesel program – will allow America to reap these benefits.”

Riggs Eckelberry, CEO, Origin Oil

“This is welcome news but I fear the recommendations of the Working Group won’t get far in the current Washington climate. Above all, we need to stay focused on R&D support and push for a level playing field for the new drop-in technologies, which will inject renewables on a fully-transparent basis into our fuel distribution system. I believe the Administration can implement most of that within its existing mandate.

Jim Greenwood, CEO of BIO

“The Obama administration clearly recognizes that large-scale production of advanced biofuels can be a driver of green job creation, energy security and greenhouse gas reductions. This new initiative will send a message to the industry and potential investors that the federal government is strongly committed to achieving advanced biofuels production and use targets. BIO has previously called for better federal coordination of programs to help integrate the complete biofuel supply chain, from crop production to fuel production and marketing. This coordination will help stimulate the private investment needed to build new biorefineries. On behalf of our member companies we thank the Obama administration for its leadership on this issue. Directing federal resources and funding in a coordinated framework to the development of new feedstocks, transportation and distribution networks, and vehicles can help create a robust value chain for the bioeconomy. The administration and Congress should also direct funding and incentives to production of biobased products and renewable chemicals as part of that value chain.”

Tom Buis, CEO, Growth Energy

“This is great news for our country, because what Administrator Jackson is saying is that ethanol has a significant opportunity to make our nation more energy independent, invigorate our economy and clean our skies. As Administrator Jackson said herself, the best science proves that corn ethanol is a low-carbon fuel. She is to be commended with her conclusion in the Renewable Fuels Standard that ethanol plays an important role in securing our nation’s energy future and creating jobs.”

Buis singled out Jackson’s public comment on a conference call with reporters that full implementation of RFS would mean an additional $13 billion in farm income by 2022.

“I also want to commend Agriculture Secretary Tom Vilsack for his leadership in helping to write the newly-expanded rule. We have no greater opportunity to invigorate the economy of rural America than with renewable fuels like ethanol.”

“There are several improvements to the rule from when EPA first proposed the expanded RFS last year. First, we’re pleased with the decision to make volume levels of domestic ethanol retroactive to the first of the year – this is a significant step toward reducing dependence on foreign oil, creating U.S. jobs, and improving the environment.

“Further, we’re pleased that EPA recognizes grain ethanol as a low-carbon fuel, and changed its indirect land use change penalty from its original proposal last year. However, while we appreciate that EPA recognizes the uncertainty of ILUC, the fact remains that ILUC is still in the rule. This puts the cart before the horse, and our position is that ILUC should not be applied in regulation until we have a thorough, long-term study of the issue.

“Further, by using skewed ILUC calculations, the RFS gives Brazilian sugarcane ethanol preferred status as an advanced biofuel. I don’t think that was the intent of Congress when it passed the Energy Independence and Security Act. It won’t make the U.S. any more energy independent by switching our addiction from foreign oil to foreign ethanol.”

The Union of Concerned Scientists

The Environmental Protection Agency’s (EPA) new rules for the Renewable Fuel Standard, the nation’s primary biofuels program, got a favorable review from the Union of Concerned Scientists (UCS). The science group praised the agency for a transparent process that produced accurate lifecycle heat-trapping emissions accounting for biofuels by including so-called “indirect land use emissions.” The new rules demonstrate that advanced and cellulosic biofuels deliver substantially greater pollution reductions than today’s biofuels, such as corn ethanol.  ??“We now have a yardstick to measure the global warming pollution from different biofuels,” said Jeremy Martin, a senior scientist in UCS’s Clean Vehicles Program. “EPA should be congratulated for having an open process on this rule that involved scientists, farmers and the ethanol industry.”??Despite intense pressure from the corn ethanol industry to exclude emissions from indirect land use change the EPA found that such emissions are a major source of heat-trapping pollution from food-based biofuels such as corn ethanol. This finding affirms the view of 200 scientists and economists with relevant expertise who sent a letter to the EPA in September 2009 arguing that, “grappling with the technical uncertainty and developing a regulation based on the best available science is preferable to ignoring a major source of emissions.” EPA also issued an analysis examining the scientific uncertainty involved in calculating emission from indirect land use change. The agency plans to ask the National Academy of Sciences to report on the science of indirect land use change.
Joel Velasco, Chief Representative in Washington for the Brazilian Sugarcane Industry Association (UNICA).

“The EPA’s decision underscores the many environmental benefits of sugarcane ethanol and reaffirms how this low carbon, advanced renewable fuel can help the world mitigate against climate change while diversifying America’s energy resources.”

Brooke Coleman, Executive Director, New Fuels Alliance

“Regulatory certainty is the catalyst for moving forward with the continued evolution of the U.S. biofuels sector. We now know that RFS-2 will apply this year, and that a large suite of both conventional and advanced biofuels meet the stringent greenhouse gas (GHG) requirements of the new program. It is now clear that conventional biofuels made from corn and soybeans reduce GHG emissions, and are a step in the right direction in terms of reducing the carbon footprint of the U.S. transportation fuel sector. It is also clear that we need to focus more energy on commercializing second generation biofuels made from a larger suite of feedstocks and using the most advanced technologies. The Obama Administration’s Biofuels Plan reinvigorates that process.”

Andrew Schuyler, Regional Director, New Fuels Alliance

“While we do not support the selective enforcement of indirect effects, in the form of indirect land use change, U.S. EPA has adopted a program that recognizes the uncertainty in today’s land use science and commits to ongoing analysis. All fuels have indirect effects, and the most immediate concern should be taking into account the market-mediated effects of petroleum and crediting biofuels for the avoidance of the dirtiest types of oil production, including gasoline and diesel fuel made from tar and oil sands. The idea that only biofuels cause indirect, market-mediated carbon emissions is not scientifically defensible. However today’s overall action is a good start.”

Craig Cox, Environmental Working Group Senior Vice-President

“The EPA is right for sticking with the scientifically sound approach to life-cycle assessment of biofuels and the impact federal mandates to produce biofuels will have on forests and grasslands here in the United States and in the developing world. A comprehensive assessment of the life-cycle greenhouse gas emissions of biofuels is a key component of the upfront assessment of economic, environmental and social impacts recommended by President Obama’s Biofuels Working Group, an idea the working group supports in their report.

Unfortunately, the RFS rule takes no action to limit the cynical and politically-driven exemptions in the 2007 energy bill for corn-ethanol plants from meeting any greenhouse gas reduction standards, let alone the other economic, environmental, or social considerations recommended by the working group.

Further, the 2007 law and the new EPA rule in effect ensures a 12 billion gallon flood of corn-ethanol in 2010 in return for a weak trickle of 100 million gallons of advanced cellulosic ethanol in 2010.”

Jeff Broin, CEO of POET

“We welcome the commitment of the President to continue growing the domestic ethanol industry. He correctly noted that producing home-grown ethanol creates jobs in America at a time America most needs them,” POET CEO Jeff Broin said. “However we are concerned that some pieces of the rules put out by EPA today run contrary to that stated effort. Although the international indirect land use change penalty has been lessened somewhat, EPA still relied on the disproven theory when all of the data shows that ethanol production continues to improve and isn’t requiring new land.”

Mary Rosenthal, Executive Director of the Algal Biomass Organization

“We are thrilled with the Obama administration’s strong showing of support for the biofuels industry. Most important, however, was the finding by the EPA that algae-based biodiesel and renewable diesel meet or exceed the 50 percent lifecycle greenhouse gas emissions requirements, which validates the significant environmental benefits of algae-based fuels.”

Rick Wilson, CEO, Cobalt Technologies

“This is a much needed step toward building America’s clean energy economy, especially with the emphasis on advanced biofuels and direct substitute fuels like biobutanol that can leverage the existing liquid fuels infrastructure. Biobutanol is versatile and can be used as a drop-in fuel that is compatible with today’s automobile engines. We encourage the Administration to expand its initiatives to renewable chemicals, where biobutanol, used both directly and as an intermediary for plastics and other products, can make a major contribution to reducing the use of imported oil and cutting greenhouse gas emissions.”

Hunt Ramsbottom, CEO, Rentech

“Rentech is pleased that the new rules implementing the RFS2 establish a regulatory framework through which the market can properly value fuels produced using the Rentech Process. By rewarding fuels based on carbon intensity, we believe the EPA standard will allow Rentech’s fuels to be judged very favorably in comparison to both first generation and advanced biofuels.” – Hunt Ramsbottom, President and CEO, Rentech, Inc.

Steen Riisgaard, CEO of Novozymes

“The new commitment made by President Obama will significantly help grow and advance development of biofuels in the US and at the same time create thousands of new green jobs. The new RFS2 is a strong framework and by moving to E15 and increased accessibility of E85, the biofuel industry can create more long-lasting, high earning jobs that will help transform the way the U.S. and world use and consume fuel. And at the same time lessen US dependence on foreign oil. We commend the EPA for their significant work on this challenging issue. At the same time it is important to recognize that indirect land use change modeling is still in its infancy and lacks consensus in the scientific community. Moving forward, the U.S. government should act thoughtfully and deliberately and continue to study this issue.”

John Plaza, CEO, Imperium Renewables

“We applaud the Obama administration for its strong show of support for the U.S. biofuels industry today, and are obviously pleased that the EPA has finally issued its rule on the Renewable Fuel Standard (RFS2), and used a common-sense approach to enforcing the standards passed by Congress in 2007. It’s a critical step towards achieving our nation’s goals of economic recovery, national security and leadership in addressing climate change.

We are pleased to see that even with the consideration of Indirect Land Use Criteria, EPA has found that biodiesel reduces Green House Gas emissions by at least 57 percent, and as much as 85 percent compared to petroleum diesel fuel.

With RFS2 now in effect, we are confident that demand for biodiesel will begin to increase, helping to create and sustain more than 23,000 family wage jobs across the country. In addition, our industry will displace the importation of nearly 1 billion gallons of imported diesel and reduce associated CO2 emissions by nearly 60 percent.

While we’re pleased with the President’s commitment to RFS2, we remain deeply concerned about last year’s expiration of the biodiesel tax credit, which enable our fuel to be price competitive with petroleum fuel.  With RFS now in place, the Senate must immediately act to re-authorize this credit to further accelerate the adoption of biodiesel in the US. It is imperative that Congress address expiration of this effective tax incentive in the first appropriate legislative vehicle.

In addition, to provide critical certainty and promote the creation of domestic green jobs, legislation is needed expeditiously to provide a multiple year extension of a biodiesel tax incentive that is structured in a manner that promotes the domestic production and use of this clean-burning diesel replacement fuel.

Imperium Renewables will gladly rise to the challenge of continuing to produce the highest quality biodiesel from renewable resources, reducing emissions and putting people back to work.”

Vincent Chornet, CEO, Enerkem

“The publication of the biofuels task force report and the RFS2 demonstrate the continued support of the Administration and the Congress for the biofuels industry. We echo the Administration’s statement that our industry has the potential to create many jobs and economic benefit for the US, in addition to the environmental and national security benefits. This is a step in the right direction to drive commercialization and incent private and public investment in the advanced biofuels industry.”

Byron Elton, CEO, Carbon Sciences

“President Obama is touting biofuels as a way to reduce the amount of CO2 being released into the atmosphere by the burning of fossil fuels in order to gain GOP support for his legislation to reduce greenhouse gas emissions.  While the goal is compelling, the bottom line is biofuels are only part of the answer because  (a) there’s concerns about growing enough feedstock to make a big enough impact; (b) it takes too long to produce; and (c) we can’t utilize the existing supply chain with bio-based fuels.  The only viable, scalable solution to conquer the world’s CO2 problem and meet global energy demand is to recycle large quantities of CO2 directly into gasoline for use in the existing transportation infrastructure. If the administration is going to invest in an energy system that has true disruptive potential, they must understand that CO2 isn’t the villain, it’s the solution.”

Randy Olson, Iowa Biodiesel Board executive director

“We commended the EPA on this decision, which will ensure a national market for biodiesel made from multiple agricultural resources, including soybean oil.  However, our state must now be vigilant to maintain a leadership position in that market.  To meet the federal requirements, biodiesel will be blended in two places.  One is where it is most cost-effective to the oil companies. The second is in states that have strong policies in place to create demand for biodiesel. Iowa can’t afford to be left behind.”

Jeff Stroburg, CEO, Renewable Energy Group

“The implementation of final RFS2 rules is a long-awaited victory for our clean biodiesel energy industry and our nation’s energy independence. In addition, we urge our leaders to extend the biodiesel blenders tax credit to ensure short-term success of this clean energy industry and help keep our clean energy workers, working.”

John McCarthy, CEO of Qteros

“RFS2 strongly confirms the administration’s continuing support for the broad biofuels industry, and the cellulosic ethanol industry in particular. Despite the refinement of the 2010 cellulosic mandate from 100 MGY to 6.5 MGY to better approximate commercially-available product supply this year, RFS2 reconfirms a total required cellulosic blend of 16 BGY into the US fuel stock by 2022. Moreover, this week’s announcement by Shell and Cosan to form a multi-billion dollar sugar-based ethanol joint venture in Brazil further supports the importance and growth potential of the worldwide ethanol industry.”

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