By Kathleen M. Roberts
The U.S. Environmental Protection Agency (EPA) will hold a public hearing on the Renewable Fuel Standard [RFS] Program: Standards for 2018 and Biomass-Based Diesel Volume for 2019 proposed rule. The hearing will take place at 9:00 a.m. on August 1, 2017, and will provide an opportunity for EPA to gather data, views, and arguments on the proposed rulemaking from interested stakeholders. While EPA does not plan to respond to presentations, the Agency may ask clarifying questions. EPA intends to use the information to inform a future rulemaking to reset the statutory volumes for cellulosic, advanced, and total biofuels pursuant to the Clean Air Act. In resetting the mandatory biofuel production requirements under the RFS program, EPA will need to review the implementation of the program during previous years and coordinate with the Secretary of Energy and the Secretary of Agriculture. Factors that EPA must consider in its analysis include:
- The impact of renewable fuels on the environment;
- The impact of the fuels on energy security;
- Production rates of fuels;
- Economic impacts of fuels; and
- The impact of renewable fuel on U.S. infrastructure.
By Lauren M. Graham, Ph.D.
On July 11, 2017, the Energy Information Administration (EIA) issued its June Short-Term Energy Outlook (STEO). EIA considered EPA’s recent rulemakings on the 2017 RFS volume requirements and proposed 2018 RFS volume requirements when developing its STEO for 2017 and 2018.
Biodiesel production averaged 101,000 barrels per day (b/d) in 2016, and, according to EIA, is expected to increase to an average of 105,000 b/d in 2017 and to 109,000 b/d in 2018. Biomass-based diesel imports are expected to fall from 54,000 b/d in 2016 to 53,000 b/d in 2017 but rise to 59,000 b/d in 2018.
Ethanol production averaged 1.0 million b/d in 2016 and is expected to average slightly above 1.0 million b/d in 2017, which would be a record, but will likely decline slightly in 2018. Ethanol consumption averaged about 940,000 b/d in 2016 and is forecast to increase slightly in 2017 and 2018. As a result, the ethanol share of the total gasoline pool will increase to nearly 10.1% in both 2017 and 2018. Only marginal increases in higher-level ethanol blends are assumed to occur during the STEO forecast period.
By Kathleen M. Roberts
On July 5, 2017, the U.S. Environmental Protection Agency (EPA) issued proposed volume requirements under the Renewable Fuel Standard (RFS) program for cellulosic biofuel, advanced biofuel, and total renewable fuel for 2018, as well as biomass-based diesel for 2019. The proposal lowers the blending requirement for all renewable fuel with the exception of biomass-based diesel, which maintains the 2017 blending requirement. The proposed volume requirements are:
Cellulosic biofuel, from 311 million gallons in 2017 to 238 million gallons in 2018;
Advanced biofuel, from 4.28 billion gallons in 2017 to 4.24 billion gallons in 2018;
Renewable fuel, from 19.28 billion gallons in 2017 to 19.24 billion gallons in 2018; and
Biomass-based diesel, 2.1 billion gallons in 2018 and 2019.
These volumes would set the percentage standards at 0.131 percent for cellulosic biofuel, 2.34 percent for advanced biofuel, 10.62 percent for renewable fuel, and 1.74 percent for biomass-based diesel. The proposed rule will be open for comment for 45 days following the official publication in the Federal Register.
By Lynn L. Bergeson and Margaret R. Graham
On June 30, 3017, the National Academies of Sciences, Engineering, and Medicine (NAS) released its final version of its report Preparing for Future Products of Biotechnology, which it states “analyzes the future landscape of biotechnology products and seeks to inform forthcoming policy making [and] … identifies potential new risks and frameworks for risk assessment and areas in which the risks or lack of risks relating to the products of biotechnology are well understood.” This report is a collaboration among a committee of experts including the Committee on Future Biotechnology Products and Opportunities to Enhance Capabilities of the Biotechnology Regulatory System (Committee), the Board on Life Sciences, the Board on Agriculture and Natural Resources, the Board on Chemical Sciences and Technology, and the Division on Earth and Life Studies and sponsored by the U.S. Environmental Protection Agency (EPA), the U.S. Department of Agriculture (USDA), and the U.S. Food and Drug Administration (FDA). Lynn L. Bergeson was an external contributor to the Committee’s deliberations and presented before the Committee on the subject of the biotechnology regulatory system.
The report includes sections on emerging trends and products of biotechnology; the current biotechnology regulatory system; understanding risks related to future biotechnology products; opportunities to enhance the capabilities of the biotechnology regulatory system; and an index on congressionally defined product categories that FDA regulates; as well as conclusions and recommendations that were included in our blog item on the prepublication version.
More information on the regulatory issues of biotechnology products is available on our biobased products blog under key word biotechnology, as well as the Bergeson & Campbell, P.C. (B&C®) regulatory developments website under key phrase biobased products, biotechnology.
By Richard E. Engler, Ph.D.
On June 12, 2017, the U.S. Environmental Protection Agency (EPA) awarded the 2017 Green Chemistry Challenge Award winners at a ceremony in Washington, D.C. in conjunction with the 21st Annual Green Chemistry and Engineering Conference. The award recognizes landmark green chemistry technologies developed by industrial pioneers and leading scientists that turn potential environmental issues into business opportunities, spurring innovation and economic development. The American Chemical Society (ACS) Green Chemistry Institute convened an independent panel of technical experts to judge the 2017 submissions and make recommendations to EPA regarding the winners.
This year's winners and technologies are:
Over the course of the Green Chemistry Challenge’s 22 year history, EPA estimates that winning technologies are responsible for annually reducing the use or generation of more than 826 million pounds of hazardous chemicals, saving 21 billion gallons of water, and eliminating 7.8 billion pounds of carbon dioxide equivalent releases to air. While we are saddened that this very successful voluntary program is slated to be defunded in the President's FY2018 budget, we applaud this year’s winners. Those who value the green chemistry program should consider contacting their Senators and Representatives to encourage continued support of this program. It has had outsized benefits for such a modestly funded program.
On June 9, 2017, the U.S. Environmental Protection Agency (EPA) announced the winners of the 2017 Green Chemistry Challenge Award (GCCA). We applaud this year’s winners. This is EPA’s 22nd year of using the GCCA to honor green chemistry technologies that spur economic growth, reduce costs, and decrease waste. We are saddened that this very successful voluntary program is slated to be defunded in the President's Fiscal Year (FY) 2018 budget, which, of course, must be approved by Congress and is unlikely to be in its current form. Those who value the green chemistry program may wish to consider contacting their Senators and Representatives to encourage continued support of this highly successful and important program. It has had outsized benefits for such a modestly funded program.
This year's winners and technologies are:
- Merck & Co., Inc. in Greener Synthetic Pathways - Letermovir: A Case Study in State-of-the-Art Approaches to Sustainable Commercial Manufacturing Processes in the Pharmaceutical Industry
Merck’s approach was to design an efficient synthesis as early as possible in the drug Letermovir’s process development. Using “high-throughput” techniques, Merck was able to find a low-cost, stable, and easily recyclable catalyst along with other process improvements that increase the yield, and reduce the raw material costs by 93 percent, the water usage by 90 percent, and the carbon footprint by 89 percent.
- Amgen Inc. and Bachem in Greener Reaction Conditions - Green Process for Commercial Manufacture of Etelcalcetide Enabled by Improved Technology for Solid Phase Peptide Synthesis
Amgen Inc. worked with Bachem to improve the manufacturing process for the active ingredient in ParsabivTM, a drug that treats secondary hyperparathyroidism in adult patients with chronic kidney disease. By redesigning the peptide manufacturing process to use four optimized stages rather than the original five stages, Amgen and Bachem were able to achieve a 500 percent increase in manufacturing capacity while reducing chemical solvent use by 71 percent, manufacturing operating time by 56 percent, and manufacturing cost by 76 percent.
- The Dow Chemical Company and Papierfabrik August Koehler SE in Designing Greener Chemicals - Breakthrough Sustainable Imaging Technology for Thermal Paper
While there is still not a definitive answer as to whether the use of bisphenol A (BPA) in thermal paper may present risk, Dow and Koehler sought an innovative alternative that not only avoids the need for BPA (or analogs that have similar toxicological properties), but also eliminates some of the drawbacks of thermal paper, notably that exposure to sunlight or other heat sources often destroys the image. Together they developed a three-layer paper. The top layer is an opaque, light-color.When heat is applied in the printing head, the hollow particles that make up that opaque layer collapse and become transparent, showing an underlying dark layer only at those points. The paper is designed to work in existing equipment, so there is no need for retailers to replace equipment.
- UniEnergy Technologies LLC in Small Business - The UniSystemTM: An Advanced Vanadium Redox Flow Battery for Grid-Scale Energy Storage
UniEnergy Technologies, LLC (UET) and the Pacific Northwest National Laboratory (PNNL) developed and commercialized an advanced vanadium redox flow battery that allows cities and businesses more access to stored energy. The vanadium electrolyte has double the energy density of prior chemistries, and a much broader operating temperature, allowing for a longer lasting battery that can be deployed in nearly any ambient environment on earth. Additionally, the electrolyte, with a chloride-based chemistry complex, is more stable than traditional sulfate-based chemistries, and because it is water-based and does not degrade, the batteries are non-flammable and recyclable.
- Professor Eric J. Schelter of the University of Pennsylvania in Academic - Simple and Efficient Recycling of Rare Earth Elements from Consumer Materials Using Tailored Metal Complexes
Professor Eric Schelter developed a simple, fast, and low-cost technology to help recycle mixtures of rare earth elements (La-Lu, Sc, and Y). These elements are integral to modern technologies, but have a highly energy intensive and waste generating mining, refining, and purification process. Currently, only one percent of these materials are recycled, but Professor Schelter’s group has developed tailored organic compounds that can simply and effectively separate mixtures of these metals. A recent U.S. Department of Energy (DOE) grant will support further development of this technology to turn these into industrial viable recycling processes.
The GCCA winners were honored on June 12, 2017, at a ceremony in Washington, D.C. in conjunction with the 21st Annual Green Chemistry & Engineering Conference.
By Lauren M. Graham, Ph.D.
On May 23, 2017, President Trump released the Administration’s proposed budget for fiscal year (FY) 2018, which includes significant cuts to the U.S. Department of Energy (DOE), U.S. Environmental Protection Agency (EPA), and U.S. Department of Agriculture (USDA) budgets. According to the proposed budget, funding for DOE would be cut by 5.6 percent to $28 billion, with $636 million allotted for the Office of Energy Efficiency and Renewable Energy (EERE) and $56.6 million for the Bioenergy Technologies Office (BETO). The proposed DOE budget aims to eliminate the Advanced Research Projects Agency – Energy (ARPA-E), which advances high-potential, high-impact energy technologies that are too early for private-sector investment.
The proposed EPA budget of $5.7 billion would cut funding by 31 percent when compared to estimated 2017 appropriations. Funding for the Clean Power Plan and climate change research and partnership programs, such as the Energy Star program, would be eliminated. Also included in the cuts would be a $17 million reduction in funding for the Federal Vehicle and Fuels Standards and Certifications program, which oversees the Renewable Fuel Standard (RFS) program. According to EPA, it will continue to implement, maintain oversight of, and evaluate compliance with the RFS program in 2018.
Under the proposed budget, funding for mandatory USDA programs would decrease from $123 billion in FY 2017 to $116 billion in FY 2018 and funding for discretionary programs would decrease from $26 billion to $21 billion. The Biomass Crop Assistance Program and the Rural Energy for America Program are among the programs targeted for elimination.
More information on the proposed agency budgets is available at the DOE, EPA, and USDA websites.
By Lauren M. Graham, Ph.D.
On May 10, 2017, the U.S. Environmental Protection Agency (EPA) released Renewable Identification Numbers (RIN) generation data for April 2017, reporting that nearly 1.5 billion RINs were generated during the month.
Nearly 17.3 million D3 cellulosic biofuel RINs were generated in April, bringing the total for 2017 to 49.9 million, including 1.3 million D3 RINs generated for ethanol, 17.9 million generated for renewable liquefied natural gas, and 30.7 million generated for renewable compressed natural gas. Of the 49.9 million RINs, 44.7 million were generated by domestic producers, and 5.2 million were generated by importers.
More than 279.6 million D4 biomass-based diesel RINs were generated in April, resulting in a total of 973.3 million for 2017. The majority of RINs, 736.5 million, were generated for biodiesel, with 235.9 million for non-ester renewable diesel, and 937,219 for renewable jet fuel. Nearly 694.9 million RINs were generated by domestic producers, with 168.5 million generated by importers and nearly 109.9 million generated by foreign entities.
For D5 advanced biofuel, 7.0 million RINs were generated in April, which brought the total for 2017 to nearly 22.7 million. Naphtha accounted for the majority of RINs generated, 10.9 million, with 8.1 million generated for ethanol, 890,603 generated for heating oil, and 2.7 million generated for non-ester renewable diesel. In 2017, all D5 advanced biofuel RINs were generated by domestic producers.
Nearly 1.2 billion RINs were generated for D6 renewable fuel in April, resulting in a total of nearly 4.9 billion for 2017. The majority of RINs were generated for ethanol, nearly 4.8 billion, with nearly 84.8 million generated for non-ester renewable diesel. Nearly 4.8 billion RINs were generated by domestic producers, with 3.8 million generated by importers and nearly 84.8 million generated by foreign entities.
The data indicates that no D7 cellulosic RINs have been generated in 2017.