Press release:

RFS program not working needs overhaul

Bill Bush | 202.682.8114 | bushw@api.orgShareThis

WASHINGTON, August 8, 2012 – API Downstream Group Director Robert Greco told reporters this morning that the nation’s renewable fuel standard program isn’t working and needs to be revamped and better managed to ensure its long term viability:

    “The RFS program has been the most important mechanism for bringing biofuels into the nation’s energy mix. But it is being undermined by impractical requirements and bad agency decisions.

    “The biofuels volume requirements established by Congress will soon push concentrations above the safe E10 level. Volumes will grow from more than 13 billion gallons this year to 36 billion gallons in 2022.

If the RFS is fully implemented, it would raise the per gallon ethanol concentration in gasoline to an average exceeding 20 percent.

    “To increase the amount of biofuels blended in gasoline, EPA has approved the sale of E15 for a portion of the nation’s vehicle fleet. It approved E15, even though it knew or should have known of the existence of compatibility problems and even though it knew engine testing was ongoing.

    “EPA also has still not resolved the problem of fraudulent renewable fuel credits purchased by some refiners. EPA told refiners the bad credits were the companies’ problem and they’d have to purchase more RINs, potentially adding more costs to making gasoline. This is a problem the agency could have, and should have, fixed by now. Instead, the situation has introduced uncertainty in the RINs market and hurt some smaller biofuels producers.

    “Finally, EPA continues the bizarre requirement that refiners blend cellulosic ethanol into gasoline, even though no one is producing any for commercial use. Nevertheless, EPA has ruled that refiners must purchase credits for this non-existent fuel. Requiring refiners to pay for a fuel that doesn’t exist is regulatory absurdity. It drives up costs and does nothing to increase use of biofuels. It may even undermine public confidence in the RFS program itself.”

API represents more than 500 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America’s energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.

Press release:

Unworkable RFS law needs overhaul, API tells Congress

Bill Bush | 202.682.8114 | bushw@api.orgShareThis

WASHINGTON, July 10, 2012 – API President and CEO Jack Gerard told a congressional subcommittee today that while America’s Renewable Fuels Standard law had increased use of ethanol and other biofuels, implementation of the law’s requirements was becoming increasingly difficult and could hurt consumers. The volume requirements in the law could soon require concentrations of ethanol in gasoline above levels known to be safe.

    “This would present an unacceptable risk to American car owners, who have invested billions of dollars in vehicles that were designed, built, and warranted to operate on a maximum 10 percent ethanol blend,” Gerard said in testimony delivered to the House Subcommittee on Energy and Power. “It also would put at risk billions of dollars of gasoline station equipment in thousands of retail outlets across America, most owned by small independent businesses.

    “Biofuels are now in almost all gasoline. While API supports the continued, appropriate use of ethanol and other renewable fuels, the Renewable Fuels Standard law has become increasingly unrealistic, unworkable, and a threat to consumers. It needs an overhaul.”

    Almost 15 billion gallons of biofuels will be blended in transportation fuels this year, and that number must double by 2020 under the law’s requirements.

    Gerard said he also was concerned that EPA had insisted the industry pay penalty fees to the agency for failing to blend cellulosic ethanol in gasoline, even though no cellulosic ethanol is commercially manufactured. “Mandating the use of fuels that do not exist is absurd on its face and inexcusably bad public policy,” Gerard said. He also called on EPA to resolve the problem of fraudulent renewable fuel credits, which have been sold to refiners under a program created by EPA.

    API represents more than 500 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America's energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.

Executive Summary; Algal Biofuels Roadmap

On December 9 and 10, 2008, the National Algal Biofuels Workshop was held in College Park, Maryland.  In May, 2010, a report based upon the workshop called National Algal Biofuels Technology Roadmap was published.  Below is the Executive Summary of the Roadmap.



"Developing the next generation of biofuels is key to our effort to end our dependence on foreign oil and address the climate crisis – while creating millions of new jobs that can’t be outsourced
— Secretary of Energy Steven Chu at the White Houseceremony on May 5, 2009, announcing $800 million in new biofuel research activities"

In recent years, biomass-derived fuels have received increasing attention as one solution to our nation’s continued and growing dependence on imported oil, which exposes the country to the risk of critical disruptions in fuel supply, creates economic and social uncertainties for businesses and individuals, and impacts our national security. The Energy Independence and Security Act of 2007 (EISA) established a mandatory Renewable Fuel Standard (RFS) requiring transportation fuel sold in the U.S. to contain a minimum of 36 billion gallons of renewable fuels, including advanced and cellulosic biofuels and biomass-based diesel, by 2022. While cellulosic ethanol is expected to play a large role in meeting the EISA goals, a number of next generation biofuels show significant promise in helping to achieve the goal. Of these candidates, biofuels derived from algae have the potential to help the U.S. meet the new RFS while at the same time moving the nation ever closer to energy independence. To accelerate the deployment of advanced biofuels, President Obama and Secretary of Energy Steven Chu announced the investment of $800M in new research on biofuels in the American Recovery and Renewal Act. This announcement included funds for the Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy’s (EERE) Biomass Program to invest in the research, development, and deployment of commercial algae-to-biofuel processes. Additional funding is being directed to algae-to-biofuel research both in EERE and other government agencies and programs.

The term algae can refer to microalgae, cyanobacteria (the so called “blue-green algae”), and macroalgae (or seaweed). Under certain conditions, some microalgae have the potential to accumulate significant amounts of lipids (more than 50% of their ash-free cell dry weight). These characteristics give great potential for an immediate pathway to high energy density, fungible fuels. These fuels can also be produced using other algae feedstocks and intermediates, including starches and sugars from cyanobacteria and macroalgae. In addition to fungible biofuels, a variety of different biofuels and products can be generated using algae precursors.

There are several aspects of algal biofuel production that have combined to capture the interest of researchers and entrepreneurs around the world. These include:

1) high per-acre productivity, 2) non-food based feedstock resources, 3) use of otherwise non-productive, non-arable land, 4) utilization of a wide variety of water sources (fresh, brackish, saline, marine, produced, and wastewater), 5) production of both biofuels and valuable co-products, and 6) potential recycling of CO2 and other nutrient waste streams.

The DOE-supported Aquatic Species Program, an effort undertaken from 1978 to 1996, illustrated the potential of algae as a biofuel feedstock. Much has changed since the end of the program. Rising petroleum prices and a national mandate to reduce U.S. dependence on foreign oil, provide environmental benefits, and create economic opportunities across the nation have renewed interest in developing algal feedstocks for biofuels production.

While the basic concept of using algae as an alternative and renewable source of biomass feedstock for biofuels has been explored previously, a scalable, sustainable and commercially viable system has yet to emerge. The National Algal Biofuels Technology Roadmap Workshop, held December 9-10, 2008, was convened by DOE-EERE’s Biomass Program. The two-day event brought together more than 200 scientists, engineers, research managers, industry representatives, lawyers, financiers, and regulators from across the country to discuss and identify the critical challenges currently hindering the economical production of algal biofuels at commercial scale.

This document represents the output from the Workshop, supporting scientific literature, and comments received during a public comment period. The Roadmap document is intended to provide a comprehensive state of technology summary for fuels and co-products from algal feedstocks and to document the feasibility and techno-economic challenges associated with scaling up of processes. This document also seeks to explore the economic and environmental impacts of deploying algal biomass production systems at commercial scale. By documenting the challenges across the algal biomass supply chain and highlighting research and coordination needs and gaps, this document will serve to guide researchers and engineers, policymakers, federal agencies, and the private sector in implementing national research, development, and deployment efforts.

In summary, the Roadmap Workshop effort suggests that many years of both basic and applied science and engineering will likely be needed to achieve affordable, scalable, and sustainable algal-based fuels. The ability to quickly test and implement new and innovative technologies in an integrated process will be a key component to accelerating progress.