Obama Administration reorganizes US biofuels policy, leadership, rules in sweeping change

In Washington, the Obama Administration issued a sweeping new set of rules and directives regarding US biofuels policy, including the release of the revised Renewable Fuel Standard from EPA, and a new set of “Lead Agency” assignments to support first-generation biofuels while driving the development and commercialization of advanced fuels, with a forces on drop-in fuels for aviation and ground transportation.

The announcement followed 14-page report from the Biofuels Policy Working Group – chaired by Agriculture Secretary Vilsack, Energy Secretary Chu, and EPA Administrator Jackson – that found that US biofuels targets for 2022 will not be met – as the 2010 cellulosic ethanol targets will not be met – unless the US government undertakes to re-organize its development effort.

Here are the highlights from the announcements:

RFS2 – the Renewable Fuel Standard.
The EPA has recalibrated the targets and categories originally established by Congress in 2007 in the Energy Independence and Security Act. The overall target of 36 billion gallons of biofuels by 2022 has been affirmed, along with a goal of 15 billion gallons from first-generation fuels and 21 billion gallons from advanced biofuels, but annual targets have been revised.

What qualifies under RFS2?
After a disastrously received first draft on indirect land use change which provisionally wiped out biodiesel and modern corn ethanol as qualifying fuels last year, the EPA has found in its revised models that modern corn ethanol and biodiesel – as well as all advanced biofuels made from biomass – will qualify under RFS. The EPA recalibrated its models with updated inputs on crop productivity and yield improvement, and broadened its indirect land use change model to include 160 countries, from the original 40. The result?  A substantially improved the outlook for corn ethanol.

Lead Agencies

The Administration announced a “Lead Agency” strategy on biofuels aimed at clearing logjams and confusion over responsibilities for science, feedstock, workforce development, commercialization, finance, supply chain development and sustainability reporting. Lead agencies are:

Discovery Science: DOE (Office of Science).
Pilot-scale Conversion and Biorefinery facilities: DOE EERE
Financing for innovative first time commercial technologies: DOE

Feedstock Production Systems led by USDA
Feedstock Development: USDA (Research, Economics and Education (REE) and Forest Service)
Feedstock Supply Chain Workforce Development: USDA
Dissemination of Best Practices and Technical Assistance: USDA/State/Local Extension Offices and partners.
Continuing financing for 1st generation and scaling of advanced biofuels: USDA

Sustainability and Regulatory compliance: EPA and USDA
Full-scale and Widespread Deployment of Commercial Facilities: USDA (Rural Development and Forest Service) and DOE

The Departments of Labor, Commerce, Defense, Transportation to support

RFS2 – GHGs by the numbers

Modern Corn Ethanol

21% GHG reduction with international ILUC emissions
52% GHG reduction without international ILUC change emissions

Cellulosic Ethanol

Ethanol from switchgrass reduces GHG emissions by 110% via the biochemical conversion process

72% via the thermo-chemical process

Ethanol from corn stover reduces GHG emissions 130% (biochemical) and 93% (thermo-chemical)

Brazilian Sugarcane Ethanol

Ethanol from sugarcane reduces GHG emissions by 61% relative to gasoline

Biodiesel

57% GHG reduction with international ILUC emissions

Other Commitments

– Science and technology deliverables defined by timelines, with coordination among the USDA and DOE Offices of Science, and EERE
– Create an overall project management structure through the Biomass Board
– Develop five USDA regional feedstock research and demonstration centers

Jim Lane
Editor, Biofuels Digest
Biofuels Digest

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