How to Get to a Biofuels Future

How to Get to a Biofuels Future Fueling our Future – Biomass 2008 Governors’ Ethanol Coalition Governors’ April 2008 Ethanol From Biomass: How to Get to a Biofuels Future Governors’ Ethanol Coalition Governors’ Governors of 35 States, as well as international representatives from Australia, Brazil, Canada, Mexico, Sweden, and Thailand. Goal is to increase the production and use of biofuels, decrease the nation’s nation’ dependence on imported energy, improve the environment, and stimulate stimulate the national economy. Focus is developing and implementing national policies to advance the advance cost-effective production and use of biofuels derived from a range of costprocesses using grain, cellulosic, and other biomass sources, while meeting while environmental and economic performance standards. 1 Ethanol From Biomass: How to Get to a Biofuels Future The Economic Context of Biofuels The U.S. is on track to spend about $1 trillion on imported oil this year at an average price of $100 a barrel, that’s up that’ from an estimated $500 billion last year, and $251 billion in 2005. – There is no silver bullet, but imagine the consequences if the contribution that ethanol and biodiesel production already make to our transportation fuel supplies were unavailable? – Continued biofuel production expansion combined with dramatically improved vehicle efficiency technologies and fuel shifting (e.g., electricity for plug-in hybrids) will make a plugdifference. Ethanol From Biomass: How to Get to a Biofuels Future Coalition’s Previous Policy Recommendations and Status Coalition’ Called for Creation of a National Renewable Fuels Standard in 2000 – 2000 Achieved in 2005 Called for Worked to Achieve Substantial Federal Funding of Advanced Advanced Biofuels RD&D in 2004 – Achieved in FY’06, FY’07, FY’08 FY’ FY’ FY’ Called for an Expanded Renewable Fuels Standard With an Emphasis on Advanced Biofuels and Environmental Performance Standards in 2006 – 2006 Achieved in 2007 Called for a New Approach to Biofuel Market Development that Includes: Includes: –Rapid Research and Testing of Intermediate Blends (e.g., 14%) –Expanded Support for National Corridor Efforts (e.g., NEVC, Clean Cities) Clean –Immediate Launch of a City-to-Region Challenge that Concentrates State, Federal, City- toand Private Market Development Resources in Key Midwest Cities 2 Ethanol From Biomass: How to Get to a Biofuels Future Examples of State Biofuel Investments •Iowa – $100 million Iowa Power Fund includes a particular focus on biofuels. In biofuels. addition, the state provides $325,000 annually for retail biofuel infrastructure market biofuel development. •Oklahoma’s Governor and State Legislature initiated funding of $40 million over Oklahoma’ million four years to support biofuels research at the Oklahoma Bioenergy Center. Bioenergy •Georgia provided $6 million in co-funding for the Range Fuels cellulosic codemonstration. The funds are being added to $76 million from DOE, and $100 DOE, million from private financing raised from a variety of sources (e.g., CalPERS). •New York provided $20 million for two cellulosic ethanol demonstration plants. demonstration •Tennessee’s Governor and State Legislature provided $70 million for a research Tennessee’ research scale biorefinery utilizing switchgrass. Ethanol From Biomass: How to Get to a Biofuels Future State Biofuel Policy Examples Oregon – Income tax credit for the production or collection of biomass used to used produce biofuels. South Carolina – Income tax credit for expenditures to develop feedstocks and processes for cellulosic ethanol and for algae-derived biodiesel. algaeMinnesota – 2005 legislation – increases the ethanol mandate from 10 to 20 percent by 2013 pending analysis, testing, etc. Many states have blend mandates ranging to 10% – Of note, California’s move California’ to allow 10% blends and Florida’s pending energy legislation to do the same Florida’ will have a significant market impact. 3 Ethanol From Biomass: How to Get to a Biofuels Future Emerging State Biofuel Policy Trends State-Regional Biofuels Promotion StateIowa, Indiana, Kansas, Michigan, Minnesota, Ohio, South Dakota, and Wisconsin adopted the Energy Security and Climate Stewardship Platform Platform Plan, establishing biofuels goals for the region: – Produce commercially available cellulosic ethanol and other low-carbon lowfuels in the region by 2012; – Increase E85 availability at retail fueling stations in the region to 15% of region stations by 2015, 20% by 2020, and 33% of all fueling stations in the in region by 2025; – Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025; – By 2025, at least 50% of all transportation fuels consumed by the Midwest the will be from regionally produced biofuels and other low-carbon lowtransportation fuels. Ethanol From Biomass: How to Get to a Biofuels Future Emerging State Policies Impacting all Transportation Fuels California Governor Executive Order establishing a Low Carbon Fuel Standard (LCFS): – Reduces carbon intensity of California’s vehicle fuels 10 % by 2020 using market-based mechanisms such as Carbon Trading. The states highlighted in blue may follow California’s LCFS model QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. 4 Ethanol From Biomass: How to Get to a Biofuels Future Coalition's 2008 Policy Analysis and Related Activities: Launch LCFS Economic Impact Study: – NREL to assess the economic impacts of a national LCFS Initiate stakeholder input meetings – with support from DOE – on infrastructure expansion. Expand education and communications efforts. Prepare briefing reports on such key ethanol issues as: food and fuel and facts and overcoming entrenched energy objections to biofuels. biofuels. Continue appropriations strategy in support for DOE’s Biomass DOE’ Program, DOE’s Genomes to Life, and infrastructure development. ’ DOE Support RFS expansion rulemaking process with Governor input and analytical material. Expand international cooperation with international representatives. representatives. Ethanol From Biomass: How to Get to a Biofuels Future Governors’ 2008 Renewable Fuels Security Roundtable Governors’ Coalition will assemble a working group of State, Federal, Congressional, and private experts on biofuel, agriculture and environmental issues with the charge of aiding in the development of development national biofuel policy recommendations for the Governors’ Governors’ consideration. Once adopted by the Governors, the Coalition will pursue implementation of these recommendations. Analytical work to prepare for the Roundtable is underway. Issues for consideration include, but are not limited to, biofuel biofuel education, carbon and land use studies, application of federal incentives, greater support for the increasing range of co-products and coadvanced biofuels, feedstock research and production incentives. 5 Ethanol From Biomass: How to Get to a Biofuels Future More Information: David Terry Governors’ Ethanol Coalition Governors’ Washington, DC Phone: 703-395-1076 703- 395Email: DTerry@StatelineEnergy.org 6