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.

As explained in the notice issued by Neste, a member of the Biobased and Renewable Products Advocacy Group (BRAG®), with President Trump’s signing of the Bipartisan Budget Act of 2018 (H.R. 1892), the blenders tax credit was extended retroactively for 2017.  Qualified biofuel blenders are eligible for a tax credit of $1.00 per gallon of biodiesel or renewable diesel used in the blending process in 2017.  The blenders tax credit was one of several biofuel-related tax incentives that were extended retroactively.  The incentives, which also include tax credits for second-generation biofuel production and alternative fuel vehicle refueling property, and a special allowance for second generation biofuel plant property, were not extended through 2018.


 

 

By Lauren M. Graham, Ph.D.

On February 1, 2018, the U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation (CCC) announced in the Federal Register that it has withdrawn support for the Farm-to-Fleet Biofuel Production Incentive (BPI) program.   CCC determined that, due to limited available funds, the BPI program is no longer a priority.  USDA and the U.S. Department of Navy (Navy) launched the Farm-to-Fleet program in 2013 to provide incentive funds to companies refining biofuel in the United States from certain domestically grown feedstocks converted to drop-in biofuel for delivery to the Navy.  As reported in the Biobased and Renewable Products Advocacy (BRAG®) blog post, USDA Issues A Notice of Available Funds For The Farm-To-Fleet Biofuel Production Incentive, in December 2016, CCC announced the availability of up to $50 million in funding to support the BPI payments through 2018.  The current notice states that CCC is cancelling funding for BPI payments to companies for deliveries not yet solicited or procured, and withdrawing support for biofuel blends solicited by the Navy.  BPI payments required under the existing commitments will continue to be made.


 

By Lauren M. Graham, Ph.D.

On February 5, 2018, Neste, a member of BRAG, announced that the use of its renewable fuels in place of fossil fuels resulted in a reduction of 8.3 million metric tons of greenhouse gas (GHG) emissions.  The significant emission reduction is primarily attributed to Neste’s MY Renewable Diesel and Neste's increased production volumes at its three renewables-producing refineries.  The reduction was calculated by comparing the lifecycle GHG emissions of the renewable fuels Neste produced in 2017 to that of conventional diesel.  Neste states that use of its renewable diesel also improves local air quality by reducing exhaust emissions of nitrogen oxides, particulates, and carbon monoxide.

Tags: Neste, GHG, Biofuel

 

 

 

By Kathleen M. Roberts

On January 10, 2018, the U.S. National Aeronautics and Space Administration (NASA) announced the next phase of its international collaboration to study the impact of biofuels on jet engine performance, emissions, and contrail formation.  In February, NASA’s DC-8 Airborne Science Laboratory will sample and analyze gases and particles present in the wake of the German Aerospace Center’s (DLR) Advanced Technology Research Aircraft (ATRA) A320 aircraft as it burns alternative biofuels.  Eight joint DC-8/A320 flights are planned to sample three different fuels at a variety of altitudes and airspeeds under contrail forming and non-contrail forming conditions.  The objective of the project is to assess the effects of alternative fuels on aircraft engine performance and emissions, particularly regarding the impact of soot from those emissions on the size, concentration, and lifetime of contrail ice particles. 
 
The research is a continuation of NASA’s investigation on the impact of biofuels on jet engine pollution, as previously reported in the Biobased and Renewable Products Advocacy Group (BRAG®) blog post NASA Confirms Biofuels Reduce Jet Engine Pollution.  Compared to previous experiments, NASA will be flying where contrails form and persist, which will provide more opportunities for gathering data, and will be analyzing data using a much more extensive instrument.

Tags: NASA, Biofuel

 

By Lauren M. Graham, Ph.D.

On January 17, 2018, the European Parliament (EP) adopted the revision of the Renewable Energy Directive (REDII), which includes draft measures to raise the share of renewable energy to 35 percent by 2030.  Additionally, the lawmakers voted to exclude biofuels produced from palm oil from consideration of European Union (EU) Renewable Energy targets and to cap other crop-based fuels at their current levels.  The exclusion of palm oil-derived biofuels would not ban or limit the production of such biofuels in the EU.  The EP vote does not represent a final decision, but rather sets the EP position for negotiations with the Council of Ministers and the European Commission (EC).

Tags: REDII, EP, EU, Biofuels

 

By Lauren M. Graham, Ph.D.

According to Brazil’s Agriculture Minister Blairo Maggi, Brazil is considering lifting the 20 percent tariff on ethanol imports from the U.S..  Demand for ethanol in Brazil has increased due to record-high gasoline prices.  As indicated in the BRAG blog post Grain, Ethanol Industry Send Letter To U.S. Trade Representative On Brazil Ethanol Tariff, U.S. ethanol producers would welcome the removal of the tariff and renewed access to Brazil, which is the largest destination for U.S. biofuel exports.  Minister Maggi indicated that the decision to remove the tariff would depend on the U.S. lifting the ban on fresh beef exports from Brazil.  In 2017, the U.S. banned fresh beef from Brazil following a food safety scandal and Brazil imposed a tax on ethanol from the U.S. following an increase in imports.  While speaking to reporters on January 16, 2018, Minister Maggi stated that “[t]here is, on the part of the United States, a big demand to withdraw [the ethanol tariff] and we also have this problem with beef. . . . Obviously one thing influences and contaminates the other.”  According to Minister Maggi, Brazil has addressed all U.S. requirements regarding the safety of its fresh beef and is awaiting the U.S.’s decision.


 

 
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