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.

On March 2, 2017, Congressman Bob Goodlatte (R-VA) reintroduced the Renewable Fuel Standard (RFS) Reform Act, which aims to guide the debate and reform of the ethanol mandate.  According to Goodlatte, the RFS program failed to lower prices at the pump and resulted in unintended and profound effects on consumers, energy producers, livestock producers, retailers, and the environment.  The RFS Reform Act, which had 42 bipartisan cosponsors, would eliminate corn-based ethanol requirements, place a ten percent cap on the amount of ethanol that can be blended into conventional gasoline, require EPA to set cellulosic biofuels targets at levels produced by the industry, and decrease the total volume of renewable fuel content in gasoline sold or introduced into commerce from 2017 through 2022.


 

On March 7, 2017, the Governors’ Biofuels Coalition sent a letter to President Trump requesting the Administration’s support for changes to various federal policies to strengthen biofuels production and expand markets for ethanol and other biofuels.  The letter, which was signed by Nebraska Governor Pete Ricketts and Iowa Governor Terry Branstad, specifically highlights the need for the Trump Administration to change the fuel volatility limitations placed on E15, to update corn ethanol’s lifecycle carbon emissions profile to reflect advances in ethanol production technology, and to update the 2014 motor vehicle emission simulator model to prohibit spurious comparisons of high- and low-ethanol emissions factors.  The governors commended Trump on his support of the biofuels industry over the past year and stated that expanding biofuels production is one of the best ways to meet the nation’s energy needs.


 

On February 22, 2016, the Renewable Fuels Association (RFA) published the results of a study on the impact of the ethanol industry on the U.S. economy.  The study, which was commissioned by ABF Economics, found that the U.S. ethanol industry contributed over $42 billion to the nation’s gross domestic product (GDP) and supported 340,000 jobs in 2016.  Additionally, the report states that the ethanol industry provided significant contributions in terms of displacing imported crude oil and petroleum products, and generating tax revenue. 

According to the report, the U.S. produced 15.2 billion gallons of ethanol in 2016, which resulted in:

■  Nearly $14.5 billion to the U.S. economy from manufacturing;
 
■   More than $22.5 billion in income for American households;
 
■  An estimated $4.9 billion in federal tax revenue and $3.6 billion in revenue to state and local governments; and
 
■  The displacement of 510 million barrels of imported oil.

 
■  Fuels America, “America’s Biofuel Advocates Reject Effort to Derail Renewable Fuel Standard
 
■   The Hill, “House GOP to Prioritize Ethanol, Pipeline Legislation
 
Premier Jay Wetherill, “State Government to Support Legalisation of Industrial Hemp
 
Oil Price, Biofuels May be the Future of the Aviation Industry
 
Princeton University, Schmidt Fund Awards Go to Projects with Transformative Potential
 
Phys.org, “Biofuel Produced by Microalgae
 
■  VietNamNet, “Challenges in Switch to E5 Biofuel

 

On January 25, 2017, the Urban Air Initiative (UAI), along with the Energy Future Coalition and the states of Kansas and Nebraska, filed a request for correction of information petitioning EPA to correct its models on motor vehicle fuel emissions that limit the use of higher blends of ethanol.  In the petition, UAI claims that EPA continues to publish inaccurate data regarding ethanol emissions that originated with its fuel effects study and vehicular emissions computer model, MOVES2014, and describes the fundamental flaws in the design of the study.  UAI relied on peer reviewed scientific studies to refute EPA’s ethanol emissions estimates, and called on EPA to respond to the request within 90 days.


 

On January 12, 2017, USDA released a report on the lifecycle greenhouse gas (GHG) balance of corn ethanol, titled “A Life-Cycle Analysis of the Greenhouse Gas Emissions of Corn-Based Ethanol.”  The study reviewed industry and farm sector performance over the past decade and found that in the United States corn-based ethanol generates 43 percent less GHG emissions than gasoline.  Compared to previous studies, the lifecycle GHG benefits were greater due to improvements in corn production efficiency, conservation practices, and ethanol production technologies.  The report also presented two projected GHG emissions profiles for corn ethanol in 2022, with one assuming a continuation of observable trends and the other analyzing additional improvements that could further reduce the GHG emissions.


 

On August 29, 2016, the Energy Regulatory Commission of Mexico (CRE) published fuel regulation NOM-016-CRE-2016 in the Mexican Federal Register. This fuel standard allows for the blending and sale of up to 5.8 percent ethanol in the nation's fuel supply outside of Mexico City, Guadalajara, and Monterrey. These new regulations will go into effect 60 days after publication of the bill, marking the first ethanol mandate to impact rural areas of Mexico. Guadalajara currently has a 2 percent ethanol blend mandate that is eventually expected to expand to Mexico City and Monterrey.


 

On August, 24, 2016, the U.S. Department of Agriculture (USDA) Foreign Agricultural Service released an annual report on the Philippines' biofuel industry and ethanol imports. In January 2007, The Biofuels Act or Republic Act (RA 9367) was signed, creating biofuels legislation in the Philippines that now mandate a ten percent ethanol blend and a two percent biodiesel blend. While the Biofuels Act gives priority to local ethanol, supply issues with local ethanol production have resulted in the ethanol blend mandate historically being met with imports. The USDA report expects local ethanol production to increase through 2017, reducing the need for imports from 311 million liters (MLi) in 2015, to 281 MLi in 2016, and 278 MLi in 2017.


 

On August 24, 2016, Brazil's government announced that it would not be extending a tax break on ethanol sales that is due to expire in December 2016. During the 2015 Paris Climate Accord, Brazil pledged to increase cane-based ethanol and biodiesel to nearly 18 percent of its total energy mix by 2030, requiring an increase in annual ethanol production from 30 billion liters in 2015/2016 to 50 billion liters in 2030. The loss of the ethanol tax break prevents biofuel from being cost competitive with gasoline, and will severely impede the ability of ethanol and biodiesel to make up a larger percentage of Brazil's energy mix. Elizabeth Farina, head of the cane industry association Unica, stated that this change will push cane mills to switch from biofuel to sugar production. Two days after the announcement that Brazil would not be renewing the ethanol tax break, Brokers INTL FCStone predicted that the top cane growing region of Brazil would produce 4.7 percent less ethanol in the 2016/2017 crop than it did in 2015/2016.


 

 
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