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.

Intuitively, entities in the "biobased" space may think the "naturally occurring" substance exemption under the Toxic Substances Control Act (TSCA), the law that governs chemical products in the U.S., applies to their "biobased" materials. The scope of the exemption is limited, however, and complications arise when companies mistakenly assume a material is naturally occurring and therefore exempt from TSCA.


Learn more about this important issue online.
 


 

LignoTech Developments Ltd. subsidiary Xylemer BioProducts of New Zealand will soon open a new facility in Kearney, Nebraska. The facility will produce biomass-based resins. Distillers grains will be the first feedstocks used, likely followed by sugar beet pulp and rice hulls.


 

On December 19, 2013, Cortec Corporation headquartered in St. Paul, Minnesota, announced its Patent Pending BioPad® product. The company states that BioPad® "is a unique flexible corrosion inhibiting device constructed from 100% biobased non-woven material, containing 66% biobased content. BioPad® provides an eco-friendly sustainable packaging option for corrosion inhibition and has been awarded USDA BioPreferredSM designation. It is specially designed with Vapor phase Corrosion Inhibitors (VpCI®) impregnated throughout the substrate." A copy of Cortec's press release is available online.


 

On December 31, 2013, Ironridge Global Partners, LLC, an institutional investor based in Los Angeles, California, announced that it has launched a green initiative designed to fund sustainable businesses, including emerging growth companies focused on environmental sustainability and environmentally-friendly products and services. As part of the initiative, Ironridge has provided over $6 million to Cereplast, Inc., a leading manufacturer of proprietary biobased, compostable and sustainable bioplastics, and its creditors. A copy of the press release is available online.


 

On December 18, 2013, Senate Finance Committee Chair Max Baucus (D-MT) unveiled a detailed summary of staff discussion draft legislation designed to reform current energy incentives under the U.S. Tax Code. In sum, the proposal would consolidate nearly all 42 existing energy incentives under two categories of incentives: technology-neutral tax incentives for domestic production of (1) clean electricity and (2) clean fuels. The detailed summary of the discussion draft acknowledges and requests comment on the fact that the energy tax reform proposal would not provide incentives for other sectors of the energy economy, which includes renewable chemicals and products. Comments are due by January 31, 2014, via e-mail at .(JavaScript must be enabled to view this email address). A copy of the eight-page detailed summary of the discussion draft is available online. A copy of the one-page summary is available online and a copy of Chair Baucus' press release on the proposal is available online.


Currently, there are two nearly identical proposals before Congress to provide a business related tax credit for the production of renewable chemicals. S. 1267, the Qualifying Renewable Chemical Tax Production Act of 2013, was introduced on June 27, 2013, by Senator Debbie Stabenow (D-MI). The bill has one co-sponsor, Senator Al Franken (D-MN). H.R. 3084, a bill by the same name, was introduced on September 12, 2013. It currently has five bi-partisan co-sponsors, including Representatives Richard Neal (D-MA), Scott Peters (D-CA), Linda Sanchez (D-CA), Allyson Schwartz (D-PA), and Steve Stockman (R-TX). A copy of S. 1267 is available online. A copy of H.R. 3084 is available online.
 


 

This week, three Members of the U.S. Senate Committee on Environment and Public Works (EPW), Senators David Vitter (R-LA), Mike Crapo (R-ID), and James Inhofe (R-OK), introduced the General Duty Clarification Act of 2013. The bill would direct the U.S. Environmental Protection Agency (EPA) to clarify standards for the Clean Air Act's General Duty Clause. EPA has used the ambiguity contained in the clause to regulate chemical plants. A copy of the bill is available online.


 

Renewable fuel and chemical company Virent and cellulosic sugar producer Renmatix have announced plans to collaborate to convert cellulosic sugars to renewable chemicals and biobased packaging materials. According to Virent's press release on the effort, "Renmatix's Plantrose™ platform will be evaluated and potentially optimized to provide an affordable sugar stream for Virent's Bioforming® process for the large-scale production of bio-based paraxylene. Paraxylene is a basic raw material used in the manufacture of purified terephthalic acid (PTA), an important chemical in the production of plastic bottles and fibers made from polyethylene terephthalate (PET). Integrating local feedstock processing with on-site commercial production will lower costs and increase the viability of using renewable chemicals in bio-based packaging and plastics for industrial and consumer goods." Virent's press release is available online.


 

This week, Evonik Industries and LanzaTech announced that they have entered into a three year research agreement under which Evonik will "combin[e] its existing biotechnology platforms with LanzaTech's synthetic biology and gas fermentation expertise for the development of a route to bio-processed precursors for specialty plastics from waste derived synthesis gas. In this route, microorganisms placed in fermenters are used to turn synthesis gas into chemical products." A copy of Evonik's press release is available online.


 

On November 25, 2013, the U.S. Department of Agriculture (USDA) published a notice inviting applications for nearly $10.5 million in USDA value-added producer grants (VAPG), which help agricultural producers enter into value-added activities related to the processing and/or marketing of biobased value-added products. A copy of the USDA press release on the announcement is available online, and a copy of the Federal Register notice is available online. The funding notice encourages "applications from eligible entities supporting value-added activities related to bio-based products…Bio-based products are defined as commercial or industrial products composed of biological products or renewable domestic agricultural materials or forestry materials, including construction materials, fibers, papers, compost, fertilizer, lubricants, plastics and paint (see online for more information)." Applications are due by February 24, 2014.


 

EPA has requested a report from the National Academies Committee (the Committee) on options that governments, manufacturers, and retailers can use to compare the safety of various chemicals as they analyze potential substitutes for those chemicals. The report is expected early in 2014. During the initial meeting of the Committee last month, a representative from the Organization for Economic Cooperation and Development (OECD) reported that an OECD committee has identified more than 80 methods for selecting safer chemicals. OECD also intends to release a report identifying them early next year.


 
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