The Biobased and Renewable Products Advocacy Group (BRAG) helps members develop and bring to market their innovative biobased and renewable chemical products through insightful policy and regulatory advocacy. BRAG is managed by B&C® Consortia Management, L.L.C., an affiliate of Bergeson & Campbell, P.C.
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On October 30, 2013, the Conference Committee selected to merge the House and Senate versions of the next five-year Farm Bill met to begin formal negotiations. This Farm Bill Conference Committee is comprised of 41 bi-partisan Members of the U.S. House and Senate.


Though Farm Bill Conference Committee negotiations are expected to be difficult, pressure is on Members of Congress to pass a final version of the next five-year bill by the end of this year. If it fails to do so, farm policy will be governed by an outdated supply-side permanent law from 1949. In that situation, milk prices would be expected to increase sharply, among other things. In addition, the old law includes nothing to cover or help promote renewable energy, including biofuels and renewable chemicals.


Earlier this year, the U.S. Senate passed its version of the next five-year Farm Bill, S. 954, including funding for farm, nutrition, and energy programs. Importantly, the Senate bill continues and provides mandatory funding for existing Farm Bill energy programs and extends eligibility to renewable chemicals. It includes $4 billion in cuts to nutrition programs. After failing to pass a combined bill, the U.S. House of Representatives passed a "farm-only" bill this summer and then a separate "nutrition-only" bill cutting $40 billion in food stamps. The House farm-only Farm Bill contains an energy title without mandatory funding that will instead be subject to annual appropriations, and it does not extend the energy programs to renewable chemicals.


The biofuels and renewable chemicals industries continue efforts to gain support for an energy title that would support their development and include mandatory funding in the final version of the next Farm Bill.
 


 
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As stakeholders eagerly await the impending official release of the U.S. Environmental Protection Agency's (EPA) proposed 2014 Renewable Fuel Standard (RFS) rule, strong advocacy from all sides continues on the issue in Washington. The Office of Management and Budget (OMB) has been reviewing the proposed rule since August 30, 2013. Recently, a draft of it was leaked (the leaked draft proposal). In the leaked draft proposal, for the first time, EPA would lower the RFS target volumes not only for cellulosic biofuels, but for conventional ethanol and advanced biofuels as well.


On October 23, 2014, biofuels advocates, including representatives from the Biotechnology Industry Organization (BIO), Advanced Ethanol Council (AEC), DuPont, Novozymes, and Abengoa, met with officials from OMB and the White House. Reportedly, they urged the Administration to reconsider the leaked draft proposal. They argued that the oil and gas industry's concerns about the blendwall -- the point at which no additional E10 may be blended into the fuel supply -- are unfounded and result not from the inability to blend greater amounts of ethanol into the fuel supply, but instead from the industry's refusal to do so. On October 29, 2013, BIO and AEC sent a letter signed by over 30 biofuels companies to President Obama again urging the Administration to reconsider the leaked draft proposal and stressing the importance of consistent RFS implementation to promoting investment in biofuels, including next generation biofuels.


This week, AAA and Sportsmen have come out in support of the oil and gas industry's position that EPA should lower the RFS volume requirements for ethanol to no more than 9.7 percent of the U.S. fuel supply. AAA echoes the industry's argument that such reduction is needed due to the E10 blend wall and concern that E15 could damage car engines. The Congressional Sportsmen's Foundation held a briefing this week during which it suggested that the ethanol volume requirements under the RFS have caused hunting and fishing areas to be converted to cropland, and have degraded water quality in the Mississippi River watershed, among other changes.
 


 
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Citing concerns over livestock in their states, Senators Dianne Feinstein (D-CA) and Tom Coburn (R-OK) have announced plans to introduce legislation to eliminate the corn ethanol volume requirements under the federal RFS. The bill would leave the advanced biofuels requirements in place. Certain stakeholders in the biofuels industry have already come out against the bill. For instance, it is reported that Renewable Fuels Association President and CEO Bob Dinneen has stressed the importance of maintaining the conventional biofuel volume requirements to the continued development of the advanced biofuels industry. Dinneen argues that the growth of the conventional biofuels industry has built up the infrastructure necessary to support advanced biofuels.

Tags: RFS, biofuels, RFA

 
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On October 30, 2013, the U.S. Court of Appeals for the District of Columbia approved the request by Monroe Energy to expedite review of the current RFS litigation challenging EPA's final rule setting the 2013 renewable volume obligations under the federal RFS (the 2013 RFS rule). In October 2013, Monroe, the American Petroleum Institute (API), and the American Fuel and Petrochemical Manufacturers (AFPM) filed individual cases before the court challenging the 2013 RFS rule. These cases have been consolidated.


In response to Monroe's petition for expedited review, the court issued an order encouraging all parties to work together and propose a mutually agreed upon expedited schedule. The parties, including EPA, submitted a proposed expedited briefing schedule on October 24 and the court approved it on October 30. Under the schedule, all briefs will be submitted by the end of February 2014.


Also on October 24, 2013, the National Biodiesel Board (NBB) filed a petition with the court to intervene in the case on behalf of EPA. NBB asserts that its member companies would be harmed if the 2013 RFS rule were to be changed or weakened.
 

Tags: biofuels, RFS, API, AFPM, NBB

 
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On October 29, 2013, hundreds of parents and children participated in a "stroller brigade" on Capitol Hill during which they lobbied Senate offices to provide greater protections against harmful chemicals during reform of the Toxic Substances Control Act (TSCA). The stroller brigade also joined actress Jennifer Beals at a press conference on TSCA reform sponsored by the Safer Chemicals, Healthy Families Coalition.


Following the July 31, 2013, Senate Environment and Public Works hearing on TSCA reform, Committee Members reportedly continue negotiations on S. 1009, the bi-partisan TSCA reform bill sponsored by Senator David Vitter (R-LA) and the late Senator Frank Lautenberg (D-NJ). The Biobased and Renewable Products Advocacy Group's (BRAG™) previous report on the bill and hearing is available online.


Also on October 29, 2013, the Center for Progressive Reform released a report critical of TSCA and the two current Senate bills designed to reform it, S. 1009 and S. 696, which is sponsored by the late Senator Frank Lautenberg (D-NJ). The report, "TSCA Reform: Preserving Tort and Regulatory Approaches," makes several specific recommendations for reform, including making it easier for EPA to obtain toxicity data from chemical manufacturers. A copy of the report is available online.
 


 
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On October 28, 2013, DuPont announced the start of the second phase of its China Research and Development Center. The Center will focus on the development of biobased materials, among other things. A copy of DuPont's press release on the announcement is available online.


 
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The number of Significant New Use Rules (SNUR) issued by EPA has greatly increased in recent months, causing long and costly delays for companies trying to market biobased chemicals and products. The Biobased and Renewable Products Advocacy Group (BRAG™) is holding a workshop to help companies avoid these delays by explaining how, when, and to which entity or entities in the value chain the Toxic Substances Control Act (TSCA) applies, and what a renewable chemical innovator must do to comply with TSCA's requirements.


Getting to Yes: A Focused Workshop Addressing Key Policy, Legislative, and Regulatory Issues in Commercializing Biobased Products

Presented by the Biobased and Renewable Products Advocacy Group in conjunction with the Society for the Commercial Development of Industrial Biotechnology


2:30-5:30 p.m., November 11, 2013, at the Chemical Heritage Foundation Center in Philadelphia, PA


Innovation is great, but commercializing innovations is even better. BRAG's Washington, D.C.-based team of government affairs experts, scientists, lawyers, and public policy managers will present a workshop to identify and discuss critical policy, legislative, and regulatory issues impacting the commercialization of renewable chemicals. Attendees will engage in focused discussions on current regulatory issues impacting the market, as well as a robust dialogue on expectations for the evolution of policy considerations from varied players, including those from academia, environmental groups, Capitol Hill, and EPA.


Join us at the beautiful Chemical Heritage Foundation's Library, Museum, and Conference Center in Philadelphia's historic district for this essential workshop prior to the 2nd International SCD-iBIO Commercializing Global Green Forum. For more information and to register click here.
 


 
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On October 21, 2013, the U.S. Department of Agriculture (USDA) issued a press release announcing the availability of $181 million in funding under the Biorefinery Assistance Program (BAP) to support the development of commercial-scale biorefineries or the retrofitting of existing biorefineries to produce advanced biofuels from non-food sources. The BAP was created under the Food, Conservation and Energy Act of 2008 (the 2008 Farm Bill) and is administered by USDA Rural Development. It provides loan guarantees to viable commercial-scale facilities to develop new and emerging technologies for advanced biofuels. To date, the program has provided approximately $684 million to support biofuels projects in eight states. USDA's press release is available online.


Applications for funding are due to USDA by January 30, 2014. Additional information on how to apply may be found online.


This announcement comes at a time when the 2008 Farm Bill was allowed to expire on September 30, and a House and Senate conference committee recently initiated work to develop a final Farm Bill that may be voted on by Congress and signed into law by President Obama. Upon the end of the government shutdown last week, President Obama publicly stressed the importance of passing a new Farm Bill this year.
 


 
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On October 21, 2013, the U.S. Department of Agriculture (USDA) issued a press release announcing the availability of $181 million in funding under the Biorefinery Assistance Program (BAP) to support the development of commercial-scale biorefineries or the retrofitting of existing biorefineries to produce advanced biofuels from non-food sources. The BAP was created under the Food, Conservation and Energy Act of 2008 (the 2008 Farm Bill) and is administered by USDA Rural Development. It provides loan guarantees to viable commercial-scale facilities to develop new and emerging technologies for advanced biofuels. To date, the program has provided approximately $684 million to support biofuels projects in eight states. USDA's press release is available online.


Applications for funding are due to USDA by January 30, 2014. Additional information on how to apply may be found online.


This announcement comes at a time when the 2008 Farm Bill was allowed to expire on September 30, and a House and Senate conference committee recently initiated work to develop a final Farm Bill that may be voted on by Congress and signed into law by President Obama. Upon the end of the government shutdown last week, President Obama publicly stressed the importance of passing a new Farm Bill this year.
 


 
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On October 22, 2013, the U.S. Environmental Protection Agency (EPA) issued a final rule modifying the federal Renewable Fuel Standard (RFS) program. The rule is effective December 23, 2013.


According to the notice: "EPA is amending the definition of 'heating oil' in the regulations for the Renewable Fuel Standard (RFS) program under section 211(o) of the Clean Air Act. This amendment expands the scope of renewable fuels that can be used to show compliance with the RFS renewable fuel volume obligations by adding an additional category of compliant renewable fuel referred to as 'fuel oils,' produced from qualifying renewable biomass and used to generate heat to warm buildings or other facilities where people live, work, recreate, or conduct other activities. Producers or importers of fuel oil that meets the amended definition of heating oil will be allowed to generate Renewable Identification Numbers (RINs), provided that the fuel oil meets all other requirements specified in the RFS regulations. Fuel oils used to generate process heat, power, or other functions are not included in this additional category of heating oil. All fuels previously included in the definition of heating oil continue to be included as heating oil for purposes of the RFS program." In addition, EPA is also "finalizing specific registration, reporting, product transfer document, and recordkeeping requirements applicable specifically to these fuel oils, necessary to demonstrate that the fuel oil volume for which RINs were generated was or will be used to heat buildings for climate control for human comfort prior to generating RINs."


A copy of the final rule published in the Federal Register may be found online.
 

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Biofuels supporters and opponents remain heavily engaged in RFS policy issues. Last week, we reported on a news report that one advanced biofuels trade association, the Advanced Biofuels Association (ABFA), may be working with the American Petroleum Institute (API) on potential legislative language that would provide additional RIN credit for advanced biofuels under the federal RFS program. Since then, ABFA and API have both denied the accuracy of the story. In addition, DuPont announced that it has relinquished its membership in the ABFA and reaffirmed its commitment to advocating that the RFS is working as intended to promote the investment in and development of biofuels and should not be altered in any way through legislation at this point in time.


James C. Greenwood, current President and CEO of the Biotechnology Industry Organization (BIO) and former Member of Congress, sent a letter to the leaders of the House Committee on Energy and Commerce and the Senate Committee on Environment and Public Works asserting that the broad consensus among the biofuels industry, including the advanced biofuels industry, is that now is not the time to legislate on the RFS.


API has continued its opposition to the RFS by announcing that it plans to sue EPA if it fails to issue the final rule setting the 2014 RFS renewable volume obligations (RVO) by November 30, 2013. While the law mandates that EPA issue in final the following year's RVOs by November 30, EPA has consistently missed that deadline. This is the first time API has threatened to sue the Agency if it does not meet the November 30 deadline.
 

Tags: RFS, biofuels, ABFA, API, BIO, RVO

 
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Elevance Renewable Sciences, Inc., a high-growth specialty chemicals company headquartered in Woodridge, Illinois, has announced the authorization of the next stage of its second world-scale biorefinery in Nachez, Mississippi. The Company also has a joint venture biorefinery with Wilmar International Limited located in Gresik, Indonesia.


Both commercial scale biorefineries are based on Elevance's proprietary metathesis technology. According to the Company's press release, the Nachez biorefinery will produce novel specialty chemicals, including multifunctional esters such as 9-decenoic methyl ester; a unique distribution of biobased alpha and internal olefins, including decene; and a premium mixture of oleochemicals. It will have a capacity of 280,000 MT (approximately 617 million pounds).


The high-value performance specialty chemicals, olefins and oleochemicals, produced at the Company's biorefineries will be used in personal care products, detergents and cleaners, lubricants and additives, engineered polymers, and other specialty chemicals markets.


The biorefineries produce Inherent™ renewable building blocks, including renewable C10+ olefins and high-value, di-functional specialty chemicals with superior functional attributes, that were previously unavailable commercially until now. These molecules combine the functional attributes of an olefin, typical of petrochemicals, and a mono-functional ester or acid, typical of biobased oleochemicals, into a single molecule. According to the press release, Inherent™ specialty chemicals enable detergents to be more concentrated and clean better in cold water; improved solvency for better hard surface cleaners; lubricant base oils with improved stability and fuel economy; and unique monomers for biobased polymers and engineered plastics, including long chain polyamides, polyurethanes, and polyesters.


For more information, a copy of the Company's press release is available online.
 


 
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Obligated parties and the organizations that represent them continue efforts to challenge and weaken the federal Renewable Fuel Standard (RFS). Several lawsuits have been filed recently in the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit Court) challenging the final rule issued by the U.S. Environmental Protection Agency (EPA) setting the 2013 RFS requirements. Monroe Energy, a subsidiary of Delta Airlines, the American Fuel and Petrochemical Manufacturers (AFPM), and the American Petroleum Institute (API) have each filed challenges to the EPA's final 2013 RFS rule and its renewable and cellulosic volume requirements.


On October 10, 2013, Monroe Energy filed an emergency motion for expedited consideration of its case challenging EPA's final 2013 RFS rule. The company argues that expedited review is necessary given the June 2014 deadline for compliance with the rule that would require Monroe to spend millions on the purchase of Renewable Identification Numbers (RIN).


On Friday, October 11, 2013, API petitioned EPA to reconsider the renewable volume obligations (RVO) set in the final 2013 RFS rule. Under the RFS, EPA is directed to set the following year's RVOs by November 30. EPA did not finalize the 2013 RVOs until August 2013, nine months after the deadline. API argues that EPA improperly used updated Energy Information Administration (EIA) production estimates and that the cellulosic RVO is too high.
 

Tags: RFS, biofuels, RVOs,

 
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Last week, part of EPA's much anticipated 2014 proposed RFS rule, or at least a draft of the rule, was leaked and widely disseminated. If the text of the leaked proposed rule is representative of the actual proposed rule, the oil and gas industry would likely view it more favorably than would the biofuels industry. In the leaked version of the proposal, EPA would use its authority under the RFS to adjust downward the cellulosic, advanced, and overall renewable fuel volume requirements for 2014. It would require obligated parties to blend or use 15.21 billion gallons of renewable fuel in 2014, as opposed to the 18.15 which is required under the 2007 statute.


In the past few months, AFPM and API filed a joint petition, and Valero Energy Corporation filed a petition, requesting that EPA grant a partial waiver of the 2014 statutory RFS requirements. Generally, AFPM and API argued that because the 2014 RFS requirements would require obligated parties to blend more E10 than they are permitted to under the law, they would necessarily restrict the U.S. fuel supply, which would harm consumers. To avoid this harm, AFPM and API requested that EPA waive the 2014 RFS requirements to no more than 9.7 percent of the U.S. fuel supply. Valero's letter pointed out that due to the blend wall, RIN prices are higher than they should be, which reportedly is causing economic harm to affected parties, including consumers.


The Renewable Fuels Association (RFA) and the Biotechnology Industry Organization (BIO) sent separate letters to EPA urging EPA to deny the AFPM and API joint petition. They both assert that there are several options obligated parties have to meet their 2014 RFS requirements, including the greater use of E85, E15, and drop-in fuels.


Both U.S. Department of Agriculture (USDA) Secretary Tom Vilsack and EPA Administrator Gina McCarthy have issued statements denouncing the leak and reiterating that the final version of the 2014 RFS proposed rule is still being deliberated.
 


 
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It is being reported that API and the Advanced Biofuels Association (ABFA) are working together on potential legislative language to increase the value of RINs associated with advanced biofuels and to allow them to help make up conventional RINs due to blend wall constraints under the federal RFS. According to news reports, the two groups are working to present this potential language to members of the House Energy and Commerce Committee who are working on developing legislation to modify the RFS.


Several of API's largest members, including Shell and BP, are working on projects to produce advanced biofuels. Reportedly, API and ABFA contend that increasing the value of advanced biofuel RINs and allowing them to help make up conventional RINs due to blend wall constraints would help spur investment in and development of advanced biofuels to help meet the RFS. All other major biofuels trade associations are advocating against any legislative change to the RFS. They argue that, however well-intentioned, opening the RFS up to amendment would make the law vulnerable to repeal, for which the oil industry is heavily lobbying.


In addition, several biofuels groups argue that there are sufficient RFS compliance options and solutions to the blend wall, which they say has been intentionally created by the oil industry that has chosen not to take steps to address it. For instance, these groups argue the oil industry could encourage greater investment in E85 and its distribution. While API is still advocating for RFS repeal, it is reported that the group recognizes that outcome is unlikely in this Congress. Reportedly, this is the reason the group is working with ABFA on the advanced RINs amendment.
 


 
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