EPA Attempting Ethanol Balancing Act

05/06/2009
SustainableBusiness.com News

The U.S. Environmental Protection Agency issued a draft rule on Tuesday that aims to cut greenhouse gasses emitted by biofuels, while reasserting productions for targets of corn-based and cellulosic ethanol.

The proposed rule is something of a high-wire act, as the administration attempts to balance the interests of the nation's corn growers with the claims of environmentalists and science.

The new rule confirms the schedule of the 2007 Renewable Fuels Standard, which calls for the blending of 36 billion gallons per year of biofuels into gasoline by 2022 and a maximum blending of 15 billion gallons of corn and grain-based ethanol by 2015.

However, the EPA said its preliminary assessment of ethanol made from corn shows that it does not meet the requirements set by Congress in 2007. Those requirements state that corn-based ethanol must emit 20% less greenhouse gas than gasoline.

Taking into account changes in land use--a contentious model for determining greenhouse gas emissions--the EPA determined that corn ethanol produces only 16% less greenhouse gas emissions than gasoline. And in a separate scenario, using a shorter time frame, the EPA analysis found that the biofuel produced 5% more greenhouse gas than gasoline. 

The administration said it will seek additional peer-reviewed, scientfific feedback before implementing a rule. It also has opened a period of public comment on the ruling.

"Corn-based ethanol is a bridge to the next generation of biofuels," EPA Administrator Lisa Jackson said in a teleconference about the draft rule.

By encouraging farmers to shift away from the use of fossil fuels, the administration believes corn ethanol can meet the 20% standard. 

Biofuel Assistance

In announcing an interagency working group for the development of advanced biofuels, the administration also outlined initiatives to speed the development of so-called second-generation fuels and reduce the carbon footprint of first-generation, grain-based fuels.

President Obama directed Agriculture Secretary Tom Vilsack to expedite and increase production of and investment in biofuel development efforts by refinancing existing investments in renewable fuels to preserve jobs in ethanol and biodiesel plants.

The Department of Agriculture will also make renewable energy financing opportunities available within 30 days under the Food, Conservation and Energy Act of 2008. These opportunities include:

• Loan guarantees for the development, construction, and retrofitting of commercial scale biorefineries and grants to help pay for the development and construction costs of demonstration-scale biorefineries
• Expedited funding to encourage biorefineries to replace the use of fossil fuels in plant operations by installing new biomass energy systems or producing new energy from renewable biomass
• Expedited funding to biofuels producers to encourage production of next-generation biofuels from biomass and other non-corn feedstocks
• Expansion of Renewable Energy Systems and Energy Efficiency Improvements Program, which has been renamed the Rural Energy for America Program, to include hydroelectric source technologies, energy audits, and higher loan guarantee limits
• Guidance and support for collection, harvest, storage, and transportation assistance for eligible materials for use in biomass conversion facilities

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Website: www.msnbc.msn.com/id/30579857/

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