By Lynn L. Bergeson
On May 25, 2021, U.S. Senators Deb Fischer (R-NE) and Tammy Duckworth (D-IL) introduced the bipartisan Renewable Fuel Standard (RFS) Integrity Act of 2021. Aiming to provide more certainty to rural America, this legislation would require that small refineries petition for RFS hardship exemptions by June 1 of each year. According to Senator Fischer, the RFS Integrity Act of 2021 would ensure that the U.S. Environmental Protection Agency (EPA) properly accounts for exempted gallons in the annual Renewable Fuel Obligations (RVO) it sets every November. The legislation would also require that EPA publish the name of the refinery and volume that is exempted at the same time that the refiner receives the exemption.
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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.
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On November 18, 2020, U.S. Representatives Cheri Bustos (D-IL) and Jim Hagedorn (R-MN) introduced a bipartisan, bicameral legislation that aims to lower greenhouse gas (GHG) emissions and encourage low-carbon fuel production. Titled “The Streamlining Advanced Biofuels Registration Act,” this bill would eliminate existing barriers for biofuels plants to increase production of cellulosic biomass into renewable fuels. Representative Bustos criticized the lack of timely response from the U.S. Environmental Protection Agency (EPA), adding that through this bill, “we can encourage the use of cellulosic biomass in low-carbon, renewable fuel production and continue to create cleaner, more environmentally-friendly fuels.” The legislation would ensure that EPA acts on outstanding applications under the Renewable Fuel Standard (RFS) and compel EPA to accept applications if the fuel could participate in at least one state’s clean transportation program. Biofuels industry stakeholders have demonstrated support for the bill. 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. On September 18, 2020, ELI will host a webinar titled “Advanced Biofuels: Fuel for the Future?” from 12:00 p.m. to 1:30 p.m. (EDT). The webinar, as implied by its title, will focus on the practical and policy challenges and opportunities facing advanced biofuels and the impacts of the coronavirus on biofuel production and research. Panelists may include:
The webinar will be open to the public; registration, however, is required. Click here to register. By Lynn L. Bergeson and Ligia Duarte Botelho, M.A. On October 2, 2019, the Governor of Minnesota, Tim Walz, announced that applications are now open for all 15 seats on the Governor’s Biofuels Council. Established in September 2019 by Governor Walz, the Governor’s Biofuels Council advises the Governor and cabinet on how best to support Minnesota’s biofuels industry. Council members will include representatives of agriculture, biofuels, and transportation industries and environmental and conservation groups. The Governor’s Biofuels Council is tasked with creating a report to advise the Governor and cabinet on the best methods to expand the use of biofuels, increase the carbon efficiency of biofuels, and implement biofuels as part of Minnesota’s larger goal to reduce greenhouse gas (GHG) production in the transportation sector. Under Governor Walz’s September 16, 2019, Executive Order, the Governor’s Biofuels Council must complete the report by November 2020. Thus far, 30 individuals have applied, and Governor Walz encourages “Minnesotans in every corner of the state to apply and share their expertise on this critical issue.” Interested parties can access the application here. On March 13, 2019, the European Commission (EC) published a fact sheet on the sustainability for biofuels specified. EC adopted a delegated act that sets out the criteria for determining high low indirect land-use change (ILUC) risk feedstock for biofuels and the criteria for certifying ILUC-risk biofuels, bioliquids, and biomass fuels. ILUC-risk fuels consist of fuels produced from food and feed crops that significantly expand globally into land with high carbon stock (high ILUC-risk fuels). The consequences of creating high ILUC-risk fuels relate to the release of greenhouse gas (GHG) emissions, which negates the emissions savings from the use of biofuels rather than fossil fuels. ILUC is addressed in the delegated act through two measures: one measure sets national limits for the total contribution towards the renewable energy targets for biofuels, bioliquids, and biomass fuels from food or feed crops; and the other measure sets national limits as Member States’ 2019 level for the period 2021-2023. On February 7, 2019, the U.S. Department of Energy (DOE) Energy Efficiency and Renewable Energy’s (EERE) Bioenergy Technologies Office (BETO) announced the development of spatial models, from a BETO-funded project, to determine how forest management can produce biofuels, restore at-risk salmonids, and reduce the risk of wildfires. Conducted by scientists at Pacific Northwest National Laboratory (PNNL), Oak Ridge National Laboratory (ORNL), and the U.S. Forest Service (USFS), the study assessed the impacts of thinning forests on habitats, which include benefits to the environment and the economy. While PNNL researchers are focused on using a model to relate forest treatments to streamflow and temperature and ORNL researchers are focused on models linking streamflow and temperature, USFS is using a model to evaluate synergies among thinning effects, which includes biofuel feedstock production. For further details on how the study supports the biomass industry, click here.
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).
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