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Exclusive: Plotting Future, U.S. Biofuel Industry Seeks Federal Clean Fuel Program From Biden

NEW YORK: America’s largest biofuel firms plan to ask President-elect Joe Biden to impose a nationwide commonplace to scale back carbon emissions from transport fuels, in keeping with 5 sources aware of the matter, and hope to protect a job for merchandise like ethanol amid the battle towards local weather change.

The deliberate push from the biofuel business displays its growing concern concerning the future as Biden prepares measures to slash emissions that would upend conventional vitality markets, and because the federal regulation that has underpinned progress within the biofuel marketplace for greater than a decade – the Renewable Fuel Standard – nears expiry in its present kind.

Officials from biofuel firms and commerce teams like POET LLC, Pacific Ethanol, and the Renewable Fuels Association teamed up with representatives from the agriculture, autos, and electrical energy industries to draft a letter to Biden urging a nationwide “clean fuel standard,” the sources stated.

It was not clear which teams had signed the ultimate letter.

Such a rule would require reductions within the quantity of greenhouse gasoline emissions emitted by means of the manufacturing, transport and combustion of fuels, however would permit for flexibility for a way these targets are achieved – together with by means of the acquisition of carbon credit generated by firms like electrical car producers.

“A federal clean fuels policy is crucial to provide a durable price signal for clean fuels deployment, including electricity, hydrogen, biofuels, and others, across the country,” the letter, seen by Reuters, stated. The group deliberate to ship the letter quickly, the sources stated.

Biofuel producers declare the carbon depth of their fuels is low, primarily as a result of they’re produced from renewable crops like corn and different natural supplies.

Transportation is the most important supply of greenhouse gasoline emissions within the United States, forward of the facility business, and might be a goal for Biden as he seeks to ship on a marketing campaign promise to deliver the nation to net-zero emissions by 2050.

California already has a Low Carbon Fuel Standard, and the pinnacle of the state’s environmental physique overseeing this system, Mary Nichols, is on Biden’s brief listing to run the U.S. Environmental Protection Agency.

“There is growing consensus among the biofuel community that there is a lot of promise for ethanol and other renewable fuels in a national LCFS (Low Carbon Fuel Standard) program that is truly tech- and fuel-neutral,” one supply aware of the business’s deliberations stated.


The draft letter exhibits the business, for the primary time, charting a probably totally different future than the one which has been laid out by the Renewable Fuel Standard, a George W. Bush-era regulation that requires refiners mix growing quantities of biofuels into the gasoline pool.

While the RFS has created a multibillion-gallon annual marketplace for ethanol and different biofuels, the regulation will reset in 2022. At that time, the authority to set new annual quantity targets strikes to the discretion of the EPA, elevating uncertainty over future demand for biofuels.

Biden’s yet-to-be outlined local weather coverage provides to that uncertainty as a result of it may drastically scale back demand for liquid fuels if it’s not versatile.

The working group that drafted the letter first started conversations greater than a 12 months in the past, properly earlier than the presidential election, to seek out widespread floor between the industries. Once Biden received the election, they finalized the memo, in keeping with one of many sources.

President Donald Trump had downplayed considerations about international warming and had been undoing environmental regulation to unfetter drillers, miners and producers.

The working group has mentioned whether or not a nationwide low-carbon gasoline program could be utilized on prime of the RFS after 2022, or would merely exchange it, although no consensus has been reached, in keeping with the sources.

“We have a well-established mechanism – already in statute – that gives the administration a powerful lever to shift the market toward clean, renewable energy,” stated Brooke Coleman of the Advanced Biofuels Business Council.

Disclaimer: This put up has been auto-published from an company feed with none modifications to the textual content and has not been reviewed by an editor

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