Renewable Fuel Standard Rules Demonstrate Need for Continued Commitment to Growth of Domestic Advanced Biofuels
WASHINGTON, D.C. (Tuesday, November 30, 2010) - Rules for the 2011 Renewable Fuel Standard (RFS) maintain the overall market for advanced biofuels, even while lowering the cellulosic biofuel portion, revealing the ongoing need to increase investment in domestic production. The Biotechnology Industry Organization (BIO) today thanked the U.S. Environmental Protection Agency (EPA) for issuing final rules for the 2011 Renewable Fuel Standard that provides certainty for biofuel producers and obligated parties.
Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, released the following statement:
“The EPA’s final rules for the Renewable Fuel Standard express optimism for the continued growth of the advanced biofuels industry, including cellulosic biofuels. Although their estimate of cellulosic biofuel production remains virtually unchanged from 2010, EPA recognizes that advanced biofuels will meet the overall required volumes. Setting the cost of the cellulosic biofuel waiver credit at $1.13 ensures that obligated parties can easily comply with the standard and begin to provide consumers with access to cellulosic biofuels at the lowest possible cost.
“Advanced biofuel producers have faced enormous barriers to raising the capital needed to build commercial-scale biorefineries, due to the economic recession and tightening of credit markets. National policies to encourage the flow of capital have not worked as intended, because of the national economic downturn, but some minor adjustments to these policies could jumpstart the process. Congress should extend the cellulosic biofuel production tax credit now to provide the long-term stability that investors look for, it should make available to biofuel producers an optional investment tax credit similar to that available for other renewable energy producers, and it should make emerging advanced biofuels such as algae eligible for these credits.
“Further, Congress should clarify the rules for the DOE Loan Guarantee Program to help build the first cellulosic and advanced biofuel biorefineries. Demonstrated success with these first-of-a-kind biorefineries should provide confidence to institutional investors to back additional projects.”
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BIO represents more than 1,100 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world. BIO produces BIOtech Now, an online portal and monthly newsletter chronicling “innovations transforming our world.” Subscribe to BIOtech Now.
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