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 Lauren M. Graham, Ph.D.

On August 3, 2017, Minnesota Governor Mark Dayton announced that the state will implement a new biodiesel standard in May 2018 that will increase the biodiesel blend mandate from 10 percent (B10) to 20 percent (B20) between April and September each year.  Currently under the state’s biodiesel program, diesel fuel sold in Minnesota must contain at least 10 percent biodiesel during the summer months, with the blend lowering to 5 percent from October to March.  While the new mandate doubles the blend requirement during the summer months, the mandate will revert back to 5 percent over the winter months unless state officials and technical experts determine that accepted federal standards deem certain higher blends as suitable for year-round use in Minnesota.
 
Since a large portion of Minnesota’s biodiesel is made from homegrown soybeans, the new standard is expected to add an average of 63 cents to the market price of a bushel of soybeans for Minnesota farmers, and reduce carbon dioxide emissions by approximately 1 million tons next year.  Minnesota’s biodiesel industry is estimated to contribute more than $1.7 billion annually to the economy, with the state’s three biodiesel plants producing a combined 74 million gallons of biodiesel annually.


 

By Kathleen M. Roberts

On July 25, 2017, the National Biodiesel Board (NBB) announced that the California Air Resource Board (CARB) certified a biodiesel additive that will make California B20 blends the cleanest diesel fuel with the lowest emissions profile available in the U.S.  The additive known as Branded VESTA™1000 reduces every measurable regulated emission, including nitrogen oxides (NOx), when blended with CARB diesel fuel, California’s unique clean-burning biodiesel formulation.  A 20 percent blend of biodiesel with the additive reduced NOx by 1.9 percent and particulate matter by 18 percent compared to CARB diesel.  The certified additive ensures compliance with CARB’s Alternative Diesel Fuel Regulation, which goes into effect on January 1, 2018.  NBB led the initial research and development of the additive.


 

 

By Kathleen M. Roberts

On May 12, 2017, the Iowa Biodiesel Board (IBB) praised Governor Terry Branstad for signing into law the Rebuild Iowa Infrastructure Fund bill (HF 643), which provides $3 million in funding for the Renewable Fuels Infrastructure Program.  IBB stated that it, along with industry partners, worked closely with legislature to ensure the funding language was included in Iowa’s budget, and acknowledged Branstad for being a steadfast supporter of funding renewable fuels and the infrastructure program, which is designed to encourage fuel retailers to offer biofuels.  Grant Kimberley, the IBB Executive Director, stated that proactive state policies played a key role in expanding Iowa’s biodiesel production and maintaining Iowa as the leading national producer.  According to the Iowa Department of Revenue, 471 on-road Iowa retailers carried biodiesel blends in 2016 compared to 304 in 2011.

Tags: IBB, Iowa, Biofuel

 

 

By Lauren M. Graham, Ph.D.

On May 2, 2017, the Maine Senate approved a bill to support Maine’s emerging biobased products industry.  An Act to Improve the Ability of Maine Companies to Manufacture and Market Bioplastics (LD 656) would provide the Maine Technology Institute with a $1.5 million grant to provide competitive grants for the development, production, and marketing of bioplastics.  The bill was introduced by Senator Jim Dill (D-Old Town) and endorsed by Senator Dana Dow (R-Waldoboro), Senator Tom Saviello (R-Wilton), and 17 Democratic Senators.  Following approval by the Senate, the bill will be introduced to the Maine House of Representatives for an initial vote.


 

By Kathleen M. Roberts

On April 13, 2017, the Iowa Renewable Fuels Association (IRFA) released a statement regarding the passage of a bill, HSB 187, by the Iowa House Appropriations Committee that would cut the value of the Iowa biofuels tax credits and complicate the mechanism for receiving the credit.  According to the bill, the value of the tax credits would be determined based on annual sales, and the amount of the credits would be capped on an annual, statewide basis.  The purpose of the biofuels tax credits was to incentivize consumers to purchase higher blends of ethanol and biodiesel, such as E15, E85, and B11, by offering a tax credit to fuel retailers.  IRFA states, however, that the amendments to HSB 187 undercut the entire purpose of the tax credits since fuel retailers cannot pass the price reduction to the consumer if they do not know what the credit is at the time the fuel is sold.


 

By Lauren M. Graham, Ph.D.

On April 4, 2017, the Iowa Biodiesel Board (IBB) announced that the Iowa Department of Revenue’s 2016 Retailers Fuel Gallons Annual Report demonstrated that more than half of Iowa’s fuel retailers carried biodiesel blends in 2016.  In 2016, 344.8 million gallons of on-road biodiesel blends were sold, which accounts for 54.7 percent of total on-road diesel fuel sales.  The report also showed that twice as many gallons of 11 - 20 percent biodiesel (B11-B20) were sold compared to lower blends.  IBB credits the growth in the use of higher biodiesel blends to Iowa’s proactive state policies, which are working as intended to increase production and consumption.  Due to the instability at the federal level, Grant Kimberley, the IBB executive director, stated that Iowa’s biofuel producers need state tax credits to stay in place now more than ever to remain competitive.


 

By Kathleen M. Roberts

On April 4, 2017, the Hawaii State Senate Committee on Ways and Means passed HB 1580, which sets a goal of having all ground transportation in Hawaii run on renewable fuel by 2045.  The bill, which does not contain an enforcement mechanism, provides a benchmark framework for achieving the ambitious target and establishes an intermediate target to reduce the sale of imported fuels by five percent in 2025.  The Senate Committee introduced amendments that clarify the bill does not create a mandate to move to 100 percent clean ground transportation, but it outlines a path to achieve such a goal.  According to the bill, clean ground transportation includes all transportation that avoids the consumption of fossil fuels.


 

By Lauren M. Graham, Ph.D.

On March 23, 2017, the California Environmental Protection Agency’s Air Resources Board (ARB) announced the release of new carbon intensity pathways for fuels certified under the low carbon fuel standard (LCFS) using the CA-GREET 2.0 model.  Of the 18 pathways approved in March, eight are first generation biodiesel carbon intensity pathways and four are second generation renewable diesel carbon intensity pathways.  A pathway for biodiesel produced from used cooking oil has been provisionally certified, as well.  The approved pathways can be used for credit reporting purposes beginning with reports for Q1 2017.  The LCFS regulation aims to reduce the carbon intensity of fuels sold in California by 10 percent by 2020 in line with the California Health and Safety Code mandate to reduce greenhouse gases in California.


 
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