Bergeson & Campbell, P.C. (B&C®) is a Washington, D.C., law firm providing biobased and renewable chemical product stakeholders unparalleled experience, judgment, and excellence in bringing innovative products to market.

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

On December 19, 2020, the Government of Canada’s Department of the Environment published a proposed rule titled Clean Fuel Regulations. The proposed rule addresses Canada’s concerns in achieving its net-zero emissions by 2050 under the Paris Agreement. In an effort to reduce the largest sources of greenhouse gases (GHG), the Clean Fuel Regulations would require liquid fossil fuel primary suppliers to reduce the carbon intensity (CI) of the liquid fossil fuels they produce in and import into Canada from 2016 CI levels by 2.4 g of CO2/megajoule (MJ) in 2022, increasing to 12 g of CO2/MJ in 2030. The proposed rule would also establish a credit market whereby the annual CI reduction requirement could be met via three main categories of credit-creating actions:

  • Actions that reduce the CI of the fossil fuel throughout its life cycle;
  • Supplying low-carbon fuels; and
  • Specified end-use fuel switching in transportation.

The Clean Fuels Regulations would also retain the minimum volumetric requirements of at least five percent low CI fuel content in gasoline and two percent low CI fuel content in diesel fuel and light fuel oil that are currently set out in the federal Renewable Fuels Regulation (RFR). The RFR would be repealed, and parties that are not primary fossil fuel suppliers would be able to participate in the credit market as voluntary credit creators by completing certain actions. Further details are available here.


 

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

The Ministry of Industry and Trade of the Russian Federation formally announced that the May 1, 2020, deadline to submit substances and mixtures to its chemical inventory is extended to August 1, 2020.

Entities exporting products to the Russian Federation should nominate their substances and mixtures to the Russian chemical inventory to ensure continued access to the Russian market. New substance registration is required for substances or mixtures not on the inventory after the nomination process closes.

A company without a legal entity in Russia can appoint an Authorized Representative (AR) to submit information on its behalf and cover importation by its customers in the region. The appointment of an AR and timely submission allow a non-Russian company to maintain an uninterrupted supply chain into the region and support its Russian customers.

More information is available in The Acta Group’s (Acta®) April 2, 2020, memorandum, “Russian Federation Accepting Nominations to New Chemical Inventory,” as well as Acta’s website. Acta’s “Eurasia REACH: Achieving Timely Compliance with New Chemicals Requirements” webinar on May 27, 2020, will provide an overview of the Eurasian Economic Union (EAEU) Technical Regulation (TR) EAEU 041/2017 (Eurasia REACH) and its implementation status, including insights into the Eurasian regional political dynamics and impacts to implementation, and cover the requirements for submitting substances and mixtures to the Russian chemical inventory. Registration for the webinar is still open. Acta assists clients with AR appointment and provides broad-based, hands-on support in the Russian Federation to support its clients’ regulatory compliance and business success.


 

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

On April 10, 2020, the European Commission (EC) announced the launch of its new online service that connects crop and food producers with biorefineries. This European Union (EU) project aims to address food waste by enabling crop producers, food processors, and agricultural cooperatives to sell their waste as feedstock for use by two biorefineries in Spain and Italy. The multi-feedstock biorefineries, designed by Agrimax, convert farming and food processing byproducts into compounds that can be used in biobased food packaging as well as in the biobased chemical and agricultural sectors. Agrimax is an EU-funded project focused on the development and demonstration of high-value products from crop and food-processing waste. Its work develops economically competitive routes to the commercialization of the products. The project is expected to end in September 2020; developers hope to make a positive impact in growth of the biobased and agricultural sectors.


 

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

On April 9, 2020, the U.S. Department of Agriculture (USDA) published a report titled “Agricultural Biotechnology Annual,” which argues that under any scenario, the United Kingdom’s (U.K.) separation from the EU (Brexit) is unlikely to change policy or trade in genetically engineered (GE) industries. According to the report prepared by USDA’s Jennifer Wilson, given the fact that the EU is the U.K.’s trading partner and has been for many years, the U.K. will retain much of the EU’s food laws in the short to medium term. Although Brexit could potentially change the agricultural biotechnology policy arena, it is not clear yet whether the U.K. will deviate from the European Court of Justice ruling on New Plant Breeding Techniques. Overall, according to Wilson’s summary, it seems that senior U.K. politicians favor simple genome editing techniques. In addition, it would be unlikely that large multinational seed technology companies would invest in commercialization of a GE crop that could only be marketed in the U.K., which is part of the reason that the current landscape for the cultivation and importation of GE products is not expected to change.

Tags: USDA, GE, Brexit

 

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

On February 26, 2020, the city of Helsinki announced the opening of applications for the Helsinki Energy Challenge (HEC), which aims to address challenges associated with urban heating produced with coal. According to its press release, Helsinki is one of the leading cities in the transition toward a sustainable future. Its aim is to achieve carbon neutrality by 2035. Currently, however, Helsinki needs solutions to meet its heat demand. Given Finland’s coal ban starting in 2029, Helsinki is seeking heating solutions that go beyond coal and beyond burning biomass. Helsinki Mayor, Jan Vapaavuori, stated that “[s]olving the urban heating challenge is crucial to reach global climate goals. Cities have a key role to play in the transition to a low carbon economy, and Helsinki is now taking an initiative to lead the way.” The city is inviting innovators from around the world to use Helsinki as a test bed to develop fossil-free and sustainable solutions in the fight against global warming.

Proposed solutions will be evaluated based on:

  • Climate impact;
  • Impact on natural resources;
  • Implementation schedule and feasibility;
  • Reliability and security of supply; and
  • Capacity.

HEC is open globally to consortiums, start-ups, established companies, research institutions, universities, research groups, and individual experts. Applications will be accepted until May 31, 2020. Finalists will be invited to a co-creation phase in early July 2020, which will include a 3-day boot camp, where they will be provided support to develop their proposals. After the boot camp, finalists will present their proposals to an international jury of experts, who will name the winner or winners. To be presented in November 2020, the winning solution will be awarded one million euros.


 

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

The international standards organization, ASTM International, is seeking additional task group members to further develop the current terminology standard in industrial biotechnology (E3072-19). ASTM International develops and publishes voluntary consensus technical standards for a wide range of materials, products, systems, and services. Its sub-committee, E62.91 for Terminology in Industrial Biotechnology, is responsible for suggesting new terms and definitions to be added to the current standard and for revising existing terms and definitions as needed. The meanings and explanations of the technical terms have been written for both non-expert and expert users and is updated annually to include editorially any terms approved in the committees of technical standards. This standard, however, does not purport to address all of the safety concerns, if any, associated with the use of biotechnology products, materials, systems, or services. Interested parties should contact the sub-committee chair, .(JavaScript must be enabled to view this email address), or the E62 staff manager, .(JavaScript must be enabled to view this email address), directly.


 

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

On February 19, 2020, the University of Oulu, Finland, announced that scientists from its Research Unit of Sustainable Chemistry have developed a new synthetic bioplastic that provides protection from ultraviolet (UV) radiation. In addition to its UV-light blocking capacity, the transparent bioplastic made from a biomass-based copolymer with bisfuran structure, the new bioplastic also has airtightness capabilities three to four times higher than polyethylene terephthalate (PET) plastic. The raw materials used in the production of this entirely biomass-based plastic are hydroxymethylfurfural (HMF) and furfural, which are biorefinery products derived from cellulose and hemicellulose. University of Oulu researchers chemically linked the two chemicals to create copolymer parts with bisfuran and furan-like structures. The research results have been published, and a patent application for the bioplastic has been filed for the new method developed.


 

By Lynn L. Bergeson

The European Commission (EC) will host a webinar on biobased products developed from fast pyrolysis oil, where four companies will present their work. A technology that can convert a wide range of biomass into clean and uniform bio-oil that is easy to transport and store, fast pyrolysis has mostly focused, thus far, on the use of pyrolysis oil for energy purposes. According to EC, the Horizon 2020 project called Bio4Products, however, has recently developed a technology to divide pyrolysis oil into multiple fractions that could be used for material applications. In its webinar, EC will showcase some of the latest results from companies using this technology. Part of a series of webinars called From Biomass to Biobased Products, the webinar will be on February 20, 2020, at 5:00 a.m. (EST). Interested parties may register for the webinar here.


 
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