Advanced BioFuels USA

by Jim Lane (Biofuels Digest)  Who are the key bioeconomy players in the new Biden Administration? What recent moves by the outgoing Trump Administration and Congress will set their budget and regulatory framework for 2021. What will the new Administration do, right away and this year?  READ MORE

1. New faces

Here are the key bioeconomy players, as nominated and as-yet unconfirmed, for the incoming Biden Administration.

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2. Climate and the Paris Agreement

Here are 7 key elements of Joe Biden’s plan for a Clean Energy Revolution and Environmental Justice, as detailed here and here and here.

1. Day 1 of the Biden Administration is going to be very busy! To immediately make progress on his climate agenda, Biden will take actions including requiring aggressive methane pollution limits for new and existing oil and gas operations; developing rigorous new fuel economy standards aimed at ensuring 100% of new sales for light- and medium-duty vehicles will be zero emissions and annual improvements for heavy duty vehicles; protecting the Arctic National Wildlife Refuge.

2. Work with Congress to enact in 2021, President Biden’s first year in office, legislation that, by the end of his first term, puts us on an irreversible path to achieve economy-wide net-zero emissions no later than 2050.

3. On Day 1, Biden will rejoin the Paris Climate Agreement. But we must go further. In his first 100 days in office, Biden will convene a climate world summit to directly engage the leaders of the major greenhouse gas-emitting nations of the world to persuade them to join the United States in making more ambitious national pledges, above and beyond the commitments they have already made.

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6. Biden will make it a priority for all federal agencies — and hold them accountable for results — to engage in community-driven approaches to develop solutions for environmental injustices affecting communities of color, low-income communities, and indigenous communities.

7. On Day 1, Biden will require public companies to disclose climate-related financial risks and the greenhouse gas emissions in their operations and supply chains.

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3. Rural Development

Here are key elements of Joe Biden’s Rural Plan as detailed here.

1. Make a historic $400 billion procurement investment that together with his clean energy and infrastructure plan will power new demand for American products, materials, and services.

2. Provide capital for small-medium manufacturers so they can modernize and compete.

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3. Grow the bioeconomy and bio-based manufacturing to bring cutting-edge manufacturing jobs back to rural America

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5. Promote ethanol and the next generation of biofuels. Biden believes renewable fuels are vital to the future of rural America – and the climate. As part of his R&D investment, Biden will invest in developing the next generation of biofuels. Biden will invest in research to develop cellulosic biofuels in a manner that protects our soil and water and addresses the challenge of climate change, while turning grass, crop residues, and other biomass into fuel. From day one, President Biden will use every tool at his disposal, including the federal fleet and the federal government’s purchasing power, to promote and advance renewable energy, ethanol, and other biofuels.

6. Biden will bolster funding for the Sustainable Agriculture Research and Education Program and the National Institute of Food and Agriculture. Our farmers need new technologies to compete in world markets while protecting our soil and water. These new technologies – and the next new seeds – should be developed and owned by the American people, not private companies who can use patents to expand profits.

7. Create jobs building sustainable infrastructure and a clean energy future

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4. Domestic Manufacturing

Here are key elements of Joe Biden’s Manufacturing Plan as detailed here.

1. Create A “Made in America” Tax Policy with a New Biden Offshoring Tax Penalty and a new Biden Made in America Tax Credit.

2. Impose an New Offshoring Tax Penalty.

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3. Biden Will Establish a New “Made in America” Tax Credit to Save and Create Manufacturing Jobs.

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4. In his first week in office, Biden will sign executive actions to strengthen Buy American — Use authorities under the Defense Production Act and the Federal Property and Administrative Services Act of 1949 Act to enforce Buy American rules.

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5. Infrastructure

Here are key elements of Joe Biden’s Manufacturing Plan as detailed here.

TRANSPORTATION

Highways, Roads, & Bridges

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Invest in historically marginalized communities and bring everyone to the table for transportation planning. Pair new infrastructure investments with new training programs. Stabilize the Highway Trust Fund.

Speed the Transition to Low- and No-Carbon Vehicles. Launch a new generation of low-carbon trucking, shipping, and aviation technologies. Long-haul trucking, oceanic shipping, and global aviation also contribute heavily to transit emissions. As part of Biden’s plan to invest $400 billion over 10 years in clean energy research and innovation, his administration will develop a federal research program focused on further reducing the cost of biofuels; increasing their energy density; and developing more efficient engines that can power long-haul trucks, planes, and ships, to keep global commerce moving while reaching net-zero emissions by 2050. In addition, the Biden Administration will work with the International Civil Aviation Organization and the International Maritime Organization to share those technologies with other nations.

Rail

Across the Midwest and the Great West, he will begin the construction of an end-to-end high speed rail system that will connect the coasts, unlocking new, affordable access for every American. 

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Smart Cities

As president, Biden will build on the U.S. Department of Transportation’s Smart City Challenge by launching a yearly $1 billion competitive grant program to help five cities pilot new planning strategies and smart-city technologies that can serve as models for the country. Biden will also direct the Department to work with labor unions to develop a plan to help workers impacted by this automation find high-paying, quality jobs.

Aviation

As president, Biden will double funding for airports through the Federal Aviation Administration’s (FAA) Airport Improvement Program, and launch a new competitive grant program for major airport renovation projects.

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Freight

Biden will roughly double funding for key competitive grant programs ….

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WATER

Biden will double federal investments in clean drinking water and water infrastructure, and focus new funding on low income rural, suburban, and urban areas that are struggling to replace pipes and treatment facilities – and especially on communities at high risk of lead or other kinds of contamination. In addition, Biden will reduce the matching funds required of local governments that don’t have the taxbase to be able to afford borrowing to repair their water systems.

BROADBAND

As president, Biden will invest $20 billion in rural broadband infrastructure; and triple funding to expand broadband access in rural areas, and to ensure that the work of installing broadband provides high-paying jobs with benefits.

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Finally, Biden will work with Congress to pass the Digital Equity Act, to help communities tackle the digital divide.

SCHOOLS

President Biden will invest $100 billion in improving public school buildings.

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6. The DOE Loan Guarantee Program re-invented, re-programmed, re-vived

If you were counting, there has not been a new closing for a novel project using the DOE Loan Guarantee Program since 2014, we’re told. Despite a stellar less-than-3-percent default rate that any small business lender would kill for. And, despite more than $25 billion in the kitty.

We predict that this is the year that the DOE Loan Program will roar to life.

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7. Energy Policy Act

Here are key elements of the new Energy Policy recently passed by Congress as part of the year-end package, as summarized from a more detailed analysis provided to members of the Advanced Biofuels Association:

Title IV – Carbon Management

Section 4002 directs the Secretary of Energy to conduct RDD&CA activities for carbon capture technologies. It also authorizes and encourages support for large-scale pilot projects. 

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Title V – Carbon Removal

Section 5001. Carbon removal. establishes an RD&D program to examine the methods, technologies, and strategies to remove carbon dioxide from the atmosphere at a large scale. It also requires the Secretary of Energy to award prizes to pre-commercial and commercial direct air capture projects for qualified facilities that capture carbon dioxide directly from the ambient air.

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Title VI – Industrial and Manufacturing Technologies

Section 6001 outlines the purposes of the title, which are to encourage the development and evaluation of technologies that increase the technological and economic competitiveness of U.S. industry and manufacturing and decrease the emissions of non-power industrial sectors.

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Title IX – Department of Energy Innovation

Section 9001 establishes an Office of Technology Transitions, the mission of which is to improve the commercial impact of the research investments of DOE and to focus on commercializing technologies that advance the missions of DOE, including reducing greenhouse gas emissions and other pollutants. It requires the Secretary of Energy to appoint a Chief Commercialization Officer

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8. The Budget, Tax Credits and COVID relief in the Year-End appropriations package

Here are key elements of the year-end package passed by Congress as summarized from a more detailed analysis provided to members of the Advanced Biofuels Association.

Tax Extensions through 2021 for:

• Alternative fuels/mixture credit.
• Second generation biofuels credit.
• Alt fuel vehicle refueling property credit.

Repeal of Second generation biofuels property depreciation.

COVID Relief

Makes biofuel producers eligible for direct payments from USDA to recoup losses due to COVID; top-line funding for the direct aid account is $11.1875 billion. There is no specific spend required for biofuel producers, USDA has wide discretion on how to use these funds.

Appropriations

EPA

• Directs EPA to finalize a rule permitting the production, transfer, and use of biointermediates within 90 days. EPA is also required to brief Congress on its plans for action within 60 days.
• Directs EPA to report to Congress within 180 days on agency and stakeholder engagement to create markets for low-grade and low-value wood (i.e. slash and precommercial thinnings) as a feedstock for alternative fuels.
• Directs EPA to process applications for eRINs within 90 days. Notes the backlog of pathway applications at EPA.
• Reminds EPA that it is able to grant additional SRE relief regardless of the recommendations from the Department of Energy (holdover language from last year championed by Senate EPW Chairman Barrasso)

DOE

• Approximately flat funding for the Bioenergy Technologies Office
• Specific carveouts for feedstock technologies, algal systems, and RNG
• Encourages DOE to focus on sustainable aviation fuel cost reduction…considering relevant global supply chains and coordinating with Federal agencies, national labs, universities, and the aviation industry.
• Directs DOE to conduct a study evaluating pathways to reducing emissions from home heating using advanced biofuels and biofuel blends within 1 year.
• Provides $5 million for research on direct injection, engine technology, and the use of dimethyl ether as a fuel. Encourages R&D in advanced combustion and vehicle engine technology efficiency in propane engines for light and medium-duty applications.

DOT

• Supports sustainable aviation fuels through existing programs, including $31 million for the NextGen Environmental Research Aircraft Technologies and Fuels program, of which $3 million is designated for the CLEEN program and $15 million is for the center of excellence.
• Directs FAA to certify fuels for safe use in commercial aviation and for inclusion under CORSIA, encourages utilization of the aviation sustainability center (ASCENT) researchers to address the entire sustainable aviation fuels supply chain to identify and enable industry to overcome key barriers to entry such as fuel costs.

9. The Electrify Everything Movement Gains More Traction

With the election of Joe Biden to the U.S. Presidency, look for a coalition of auto makers, environmental groups and utilities to press for a series of measures to accelerate the conversion of transportation from Internal Combustion Engines (ICE engines) to electric motors. There are good energy efficiency reasons to quickly electrify transport, and good energy storage and “greening the grid” reasons to go slow. So, there will be pushback from oil & gas interests and those who don’t like the prospect of the $7500 per vehicle tax incentives being given to millions of new car owners.

The President’s Plan says:

Speed the transition to electric vehicles.

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Renewable fuels have a dilemma — they are low-carbon technologies often greener than electric mobility options, and they offer lower upfront conversion costs, support for rural economies and can be carbon-negative sky-cleaners, too. They have a good story, but renewable fuels are uniquely tied to oil & gas because they are usually (not always) blended with fossil fuels, and some important voices view renewable fuels as a means of perpetuating fossil fuel dominance. Under a Biden administration, the forces petitioning government have the size (automakers, utilities) to gain a hearing and (automakers, environmentalists) they have deep experience in influencing government policy, and (automakers, utilities, environmental groups) have built-in platforms and budgets for messaging consumers.

10. TAC reform – last minute EPA new regs last minute

Last week, the US federal government formed the Fuels of the Future Advisory Board, which will have three subcommittees on biofuels, hydrogen and methane hydrates. At the same time, the government terminated the Biomass Research and Development Technical Advisory Committee (BR&D TAC); Methane Hydrate Advisory Committee (MHAC); and Hydrogen and Fuel Cell Technical Advisory Committee (HTAC).

The FoFAB will provide advice and recommendations to the Secretary of Energy concerning the development of alternative fuels throughout the Department of Energy. Activities of the FoFAB will include advice and recommendations to the Secretary of Energy concerning the development of alternative fuels and related programmatic issues. Activities include, but are not limited to, developing recommendations on broad programmatic priorities for various alternative fuel research and development programs throughout the Department. The board has been selected but the composition of the board has not yet been announced.

FoFAB is expected to be continuing in nature. FoFAB members were selected to achieve a balanced board of community representatives and technical experts in fields relevant to the Department of Energy and the development of alternative fuels.

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The Digest’s take on TAC reform

This is abolishment of a twenty-year old advisory committee set up by biomass r&d act of 2000 and its re-birth as a subcommittee under a new advisory board that also incorporates former H2 and methane hydrate committees. For one, it appears that the old dual leadership structure of USDA & DOE has been abolished in favor of just DOE control. Ostensibly this is being done to save money, per an executive order from President Trump — but also as you can see fromKurt Heckman’s comments, this is also about breaking down silos and looking for overlaps between bioenergy, hydrogen and methane. The Trump Administration has been working on this for a couple of years, we’re told.

The other really big change here apparently is that DOE is dropping the TAC’s legislated focus on biobased products to look solely at biofuels.

Next step, issuing operational details in the handful of working days left before Biden takes office. Also, will the new Administration let it stand? How will the Agriculture sector react to cutting out USDA? It’s awfully late in the Trump Administration to be making sweeping changes — how much will stand? It’ll be up to the new Administration.  READ MORE

Biden to sign flurry of executive actions in first hours of presidency (The Hill)

Biden’s First Round of Executive Orders Protect Environment (Our Daily Planet)

Biden’s EPA pick talks WOTUS, biofuels, environmental justice, importance of ag, and more (Agri-Pulse)

DOT GOES GREEN: (Politico’s Morning Energy)

Biden EPA asks DOJ to hit pause on defense of Trump-era rules (The Hill)

GROWTH ENERGY READY FOR ‘NEW ERA OF BIOFUELS’ (Brownfield Ag News)

Carbon Capture Coalition submits recommendations to Biden (Biomass Magazine)

A Framework for Just Transitions (Just Transition Initiative)

Carbon Capture Coalition Submits Key Carbon Capture Priorities to President Biden’s Climate Team (Carbon Capture Coalition)

EPA plans to integrate EJ Screen tool in rulemakings (Inside EPA)

Excerpt from Politico’s Morning Energy: DOT GOES GREEN: The Biden administration has named several prominent climate experts to senior positions at the Transportation Department, in the latest sign he intends to follow through with his campaign promise to tackle climate change across his administration, Pro’s Sam Mintz, Zack Colman and Stephanie Beasley report.

Thursday’s elevation of three climate hawks comes as the administration confronts the vexing question of how to fundamentally transform transportation, the highest-emitting sector of the U.S. economy. The appointees include Steve Cliff, deputy executive director at the California Air Resources Board, who will serve as deputy administrator at NHTSA and Ann Carlson, a highly regarded climate expert and UCLA environmental law professor, to be NHTSA’s general counsel. Annie Petsonk, a lawyer at the Environmental Defense Fund, has been tapped to be principal deputy assistant secretary for aviation and international affairs.

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Meanwhile, Transportation Secretary-designate Pete Buttigieg repeatedly discussed the role infrastructure can play in combating climate change during his nomination hearing before the Senate Commerce Committee on Thursday, including building out electric vehicle charging capabilities and setting strong fuel economy standards. But after Buttigieg said that “all options” were on the table for funding infrastructure during his hearing, a spokesperson for the former mayor backpedaled, noting Buttigieg does not support increasing the federal gas tax, Sam reports.

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INSIDE YELLEN’S WRITTEN RESPONSES: The Senate Finance Committee is expected to vote on Janet Yellen’s nomination for Treasury secretary today after a hearing earlier this week where she pledged to create a team to focus on climate change. Yellen’s written responses to members of the Senate Finance Committee were released Thursday, spanning 114 pages. In the document, she notes the climate crisis can’t be solved without effective carbon pricing. “The President supports an enforcement mechanism that requires polluters to bear the full cost of the carbon pollution they are emitting,” she wrote.

Asked about the 45Q tax credit under the Biden administration, she wrote that “using the tax code to set incentives for businesses and individuals to adopt climate-friendly policies is a critical tool,” while noting that Biden has been supportive of carbon capture, utilization and storage and of tax incentives “to increase its availability and affordability.” She also wrote that “stranded assets are a possible result when new forms of clean energy, transportation, and production displace those that have contributed to climate change.” READ MORE