How to Get to a Biofuels Future. Governors Ethanol Coalition Chicago, Illinois April 2008

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1 How to Get to a Biofuels Future Governors Ethanol Coalition Chicago, Illinois April 2008

2 Coalition s Previous Policy Recommendations and Status Called for the Creation of a National Renewable Fuels Standard in 2000 Achieved in 2005 Called for and Worked to Achieve Substantial Federal Funding of Advanced Biofuels RD&D in 2004 Achieved in FY 06, FY 07, FY 08 Called for an Expanded Renewable Fuels Standard With an Emphasis on Advanced Biofuels and Environmental Performance Standards in 2006 Achieved in 2007 Called for a New Approach to Biofuel Market Development that Includes: Rapid Research and Testing of Intermediate Blends (e.g., 14%, 20%) Expanded Support for National E85 Efforts (e.g., NEVC, Clean Cities) Immediate Launch of a City-to-Region Challenge that concentrates State, Federal, and Private Market Development Resources in Key Midwest Cities

3 Changing Realities and Perceptions About 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 from an estimated $500 billion last year, and $250 billion in 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., plug-in hybrids) will make a difference. Commodity inflation and unrelated food supply issues are adding to doubts about the value of biofuels. Sophisticated education efforts are needed to clarify the economic benefits of biofuels.

4 Changing Realities and Perceptions About the Environmental Context of Biofuels: California s Low Carbon Fuel Standard (LCFS): Reduces carbon intensity of California s vehicle fuels 10 % by Major concerns 1) life cycle GHG calculations; 2) integration with RFS; 3) Six or more states considering LCFS policies; 4) various federal LCFS proposals. Shift in views among many in the environmental community about the contribution of all biofuels to reducing greenhouse gas emissions. Improvements in conventional ethanol production efficiency and rapidly evolving advanced biofuels development mean GHG modeling is increasingly complex and variable. Research and education effort needed to communicate generally agreed upon facts about the environmental benefits of biofuels.

5 Coalition's 2008 Activities: Continue appropriations strategy in support of DOE s Biomass Program, DOE s Genomes to Life, and infrastructure development. Support RFS expansion rulemaking process with governor input and analytical material. Expand international cooperation with international representatives. Prepare briefing reports on such key ethanol issues as: food and fuel facts and overcoming entrenched energy objections to biofuels. Expand education and communications efforts in coordination with states, biofuel groups, and federal partners.

6 Coalition's 2008 Policy Analysis and Recommendations Activities: Analysis of NREL LCFS Economic Impact Study and pending state and federal actions. Initiate stakeholder input meetings with support from DOE and States on infrastructure and market development. Prepare transition policy recommendations for new Administration.

7 Governors 2008 Renewable Fuels Security Roundtable 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 national biofuel policy recommendations for the Governors consideration. Once adopted by the Governors, the Coalition will pursue implementation of these recommendations. Analytical work to prepare for the Roundtable is underway (e.g., tax incentive analysis, LCFS). Issues for consideration include, but are not limited to, biofuel education, carbon and land use studies, application of federal incentives, greater support for the increasing range of co-products and advanced biofuels, feedstock research and production incentives.

8 More Information: David Terry Governors Ethanol Coalition Washington, DC Phone:

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