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.

By Lynn L. Bergeson

On October 8, 2020, Secretary of Agriculture, Sonny Perdue, announced that the U.S. Department of Agriculture (USDA) has made $22 million available in grants to increase sales of ethanol and biodiesel. The funds are coming out of the $100 million in grants available through the Higher Blends Infrastructure Incentive Program (HBIIP) and have been disbursed to 14 states. USDA predicts that the investments will increase ethanol demand by approximately 150 million gallons annually.

HBIIP aims to assist biodiesel distribution facilities and transportation fueling facilities with the conversion to higher ethanol and biodiesel blends by sharing costs related to installing fuel pumps and related equipment and infrastructure. Eligible grant applicants are vehicle fueling facilities, including, but not limited to:

  • Local fueling stations and locations;
  • Vehicle fueling facilities;
  • Hypermarket fueling stations;
  • Convenience stores;
  • Fuel terminal operations;
  • Fleet facilities;
  • Midstream partners; and
  • Distribution facilities.

Higher fuel blends mean fuels that contain ethanol over ten percent by volume and/or fuels containing biodiesel blends higher than five percent by volume. More information on USDA’s HBIIP can be found here.

Tags: USDA, Biofuel

 

By Lynn L. Bergeson

On October 19, 2020, the U.S. Energy Information Administration (EIA) announced that, in 2019, renewable energy consumption levels in the United States increased for the fourth year in a row, reaching a record 11 percent of total energy consumption. Wood and waste energy, wood pellets, and biomass waste from landfills accounted for approximately 24 percent of U.S. renewable energy use. According to EIA, industrial, commercial, and electric power facilities use wood and waste as fuel to generate electricity, manufacture goods, and produce heat. Biofuels, which includes fuel ethanol, biodiesel, and other renewable fuels, accounted for approximately 20 percent of U.S. renewable energy consumption in 2019. A detailed chart prepared by EIA further outlines the breakdown, including percentages for hydropower, solar, and wind energy consumption in 2019.


 

By Lynn L. Bergeson

The government of Manitoba, Canada, is currently working to amend three regulations under the Biofuels Act. The amendments will update Manitoba’s clean fuel standards by increasing the ethanol and renewable fuel content in gasoline. The proposed amendments include:

  • “Ethanol General Regulation is amended to:
     
    • Include the latest fuel standards for ethanol blended gasoline;
       
    • Remove the quarterly reporting requirements of obligated entities; and
       
    • Increase ethanol content from 8.5% to 10%.
       
  • Biodiesel Mandate for Diesel Fuel Regulation is amended to:
     
    • Increase renewable fuel content of diesel from 2% to 5%;
       
    • Adjust the compliance formula to reflect the 5% blending requirement; and
       
    • Adjust the shortfall calculation to reflect the 5% blending requirement, and to increase the penalty amount from $0.45 to $1.50 per litre.
       
  • Biodiesel (General) Regulation is amended to:
     
    • Repeal the definition of “non-commercial licence;
       
    • Include the latest fuel standards for biodiesel and renewable diesel sold or offered for sale in Manitoba;
       
    • Include the latest fuel standards for biodiesel blends eligible under the Biodiesel Mandate;
       
    • Remove the non-commercial biodiesel manufacturing licence class;
       
    • Clarify the conditions required to hold a commercial biodiesel manufacturing licence; and
       
    • Remove references to the non-commercial licence class.”
       

The primary public policy objective of Manitoba’s government is to reduce greenhouse gas (GHG) emissions while increasing renewable fuels use. The regulatory amendments will come into force on January 1, 2021.


 

By Lynn L. Bergeson

On October 8, 2020, the European Commission (EC), under the European Union (EU) State aid rules, approved the prolongation of tax exemptions for biofuels in Sweden. Having exemptions for liquid biofuels from energy and carbon emissions taxation since 2002, Sweden’s scheme aims to increase biofuels use while reducing the fossil fuels use in transport. With EC’s decision, the tax exemption has now been prolonged by one year from January 1, 2021, until December 31, 2021. EC stated that the tax exemptions are not only appropriate, but necessary for stimulating the production and consumption of domestic and imported biofuels in Sweden. In addition, EC found that the Swedish scheme will contribute to the delivery of the EU’s goals in the Paris Agreement and EU’s move towards its 2030 renewables and carbon emissions targets.


 

By Lynn L. Bergeson

On September 29, 2020, EPA announced that it has submitted for review and approval an information collection request (ICR) on Anaerobic Digestion Facilities Processing Wasted Food to Support EPA’s Sustainable Materials Management Program and Sustainable Management of Food Efforts to the Office of Management and Budget (OMB). EPA’s Federal Register notice proposes the renewal of a previous ICR, which is currently approved through September 30, 2020. EPA had previously requested comments on this ICR in June and is now extending the comment period by an additional 30 days. Public comments are due on or prior to October 29, 2020.

Tags: Biofuel, EPA

 

By Lynn L. Bergeson

On September 23, 2020, the U.S. House of Representatives agreed by a record vote of 229-187 to the passing of a bill titled “Clean Economy Jobs and Innovation Act.” The bill aims to increase energy efficiency and renewable energy to address climate change. The Clean Economy Jobs and Innovation Act creates R&D programs to reduce fossil fuel production through various energy sources. It also incentivizes innovation through grant programs in energy efficiency, clean transportation, grid modernization, and workforce development.


 

By Lynn L. Bergeson

On September 21, 2020, the U.S. Department of Agriculture (USDA) Rural Business-Cooperative Service announced that it is soliciting applications for funds available under the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program (the Program) to provide guaranteed loans to fund the construction, development, and retrofitting of commercial-scale biorefineries and of biobased product manufacturing facilities. Biorefineries applying must use eligible technology, and biobased product manufacturing facilities must use technologically new commercial-scale processing and manufacturing equipment to convert renewable chemicals and other biobased outputs of biorefineries into end-user products on a commercial scale.

USDA will accept applications during two separate cycles, which have application closing dates of 4:30 p.m. (EDT) October 1, 2020, and 4:30 p.m. (EDT) April 1, 2021. Applications and forms can be obtained from:

  • USDA, Rural Business-Cooperative Service, Program Processing Division, Attention: Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program, 1400 Independence Avenue SW, Room 5801-S, Washington, DC 20250-3225.

Of particular interest to USDA are applications that support recommendations made in the Rural Prosperity Task Force report to help improve life in rural America. Applicants are encouraged by USDA to provide measurable results in rural communities’ assistance to build sustainable and robust economies through: strategic investments in infrastructure, partnerships, and innovation. Key strategies outlined by USDA include:

  • Achieving e-connectivity for rural America;
  • Developing the rural economy;
  • Harnessing technological innovation;
  • Improving quality of life; and
  • Supporting a rural workforce.

 

By Lynn L. Bergeson and Ligia Duarte Botelho, M.A.

On August 12, 2020, DOE issued an RFI to obtain industry, academia, and research community input on DOE’s hydrogen and fuel cells R&D and demonstration activities and strategies, including its H2@Scale initiative. DOE hopes that feedback received will help its Hydrogen and Fuel Cell Technologies Office’s (HFTO) research priorities and goals to ensure that they address current and future needs of the hydrogen and fuel cells industry. The information will also help HFTO to guide the work being conducted through National Laboratory consortia launched to focus on challenges specific to electrolyzers and heavy-duty fuel cell applications. RFI topics include: H2@Scale; R&D priorities; near-, medium-, and long-term strategy; and approaches to foster collaboration. Responses must be submitted by 5:00 p.m. (EDT) on September 15, 2020.


 

By Lynn L. Bergeson and Ligia Duarte Botelho, M.A.

The University of Minnesota Extension (UME) recently published a report titled “Economic Contribution of the Biobased Industrial Products Industry in Minnesota: 2019.” The report accounts for the economic impacts from the Minnesota Bioincentive Program enacted in 2015. Some of the key findings outlined by UME include but are not limited to the ones outlined below:

  • In 2019, companies claiming the Minnesota Bioincentive received $1.5 million in incentives. For every tax dollar invested in incentives, $407.10 is generated in the economy. In addition, for every dollar of incentive, approximately $8.90 is collected in taxes.
  • Construction activities of Minnesota biobased industrial product companies generated an estimated $1.2 billion of economic activity in the state, including $540.6 million in labor income. These activities also supported employment for more than 8,000 workers and generated approximately $46.5 million in tax collections.
  • Operations of Minnesota’s biobased industrial product companies generated an estimated $610.7 million of economic activity resulting from their operations, including $127 million in labor income. It also supported employment for more than 2,000 workers in the state and generated an estimated $13.3 million in tax collections.

According to the report, these impacts are annual and will continue to grow as long as companies do. A full copy of the report is available here.


 

By Lynn L. Bergeson 

On September 18, 2020, ELI will host a webinar titled “Advanced Biofuels: Fuel for the Future?” from 12:00 p.m. to 1:30 p.m. (EDT). The webinar, as implied by its title, will focus on the practical and policy challenges and opportunities facing advanced biofuels and the impacts of the coronavirus on biofuel production and research. Panelists may include:

  • Lauren Helen Leyden, Partner, Akin Gump Strauss Hauer & Feld, L.L.P. (invited);
  • Lynn McKay, Assistant General Counsel, Volkswagen Group of America (invited);
  • Shailesh Sahay, Senior Regulatory Counsel, POET, Inc.;
  • Luke Tonachel, Director, Clean Vehicles and Fuels Group, Climate & Clean Energy Program, Natural Resources Defense Council (NRDC); and
  • Stephanie Wettstein, Ph.D., Associate Professor, Montana State University (invited).

The webinar will be open to the public; registration, however, is required. Click here to register.


 
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