Future of Biofuel Use in the United States: An Examination of the Renewable Fuel Standard

Transcription

1 Future of Biofuel Use in the United States: An Examination of the Renewable Fuel Standard Emily Beagle WISE Intern - American Society of Mechanical Engineers University of Wyoming Summer 2013

2 Introduction Transportation energy in the United States In 2011, 28% of energy consumption 1 93% derived from petroleum sources 1 On average, over 50% of petroleum imported 2 Motivation for increased biofuel use in the United States Reduce petroleum use in the transportation sector Reduce imports of petroleum from foreign countries Reduce greenhouse gas emissions Expand fuel sources in transportation sector 1. U.S. Energy Information Administration. Annual Energy Review Review. Energy Information Administration. Washington DC: U.S. Government Printing Office, pg Brown, Robert C. Biofuels. Ed. Frank Kreith and D Yogi Goswami. Boca Raton: Taylor & Francis Group, LLC, pg

3 Background Renewable Fuel Standard 3 (RFS) Initiated - Energy Policy Act of 2005 Expanded - Energy Independence and Security Act of 2007 Encourages biofuel use through mandated minimum volumes each year Four categories of biofuels Total Renewable Fuels Cellulosic Biofuels Advanced Biofuels Biomass Based Diesel 3. Schnepf, Randy and Brent D Yacobucci. Renewable Fuel Standard (RFS): Overview and Issues. CRS Report for Congress. Congressional Research Service. Washington D.C.: U.S. Government Printing Office, th Congress. Energy Independence and Security Act of Public Law. Washington DC: U.S. Goverment Printing Office,

4 Background Biofuel Classification 5 Feedstock Type Emission Reduction Renewable Fuel Any biomass feedstock --- Bio-Diesel Any biomass feedstock 50% Advanced Biofuels any non-corn feedstock 50% Cellulosic Biofuels Cellulose, hemicellulose or lignin 60% Emission reductions based on baseline of 2005 gasoline equivalent th Congress. Energy Independence and Security Act of Public Law. Washington DC: U.S. Goverment Printing Office,

5 Background Minimum Volumetric Requirements under EISA 6 billion gallons Total Renewable Fuel Billion Gallons Advanced Biofuels Year Billions of Gallons Cellulosic Biofuels Year Year th Congress. Energy Independence and Security Act of Public Law. Washington DC: U.S. Goverment Printing Office,

6 Background Nested volumetric mandates 2022 example 7 7. Drevna, Charles. Overview of the Renewable Fuel Standard: Stakeholder Perspectives U.S. House of Representatives Committee on Energy and Commerce IF/IF03/ /101184/HHRG-113-IF03-Wstate-DrevnaC pdf 6

7 Background Environmental Protection Agency authority 7 Collect Renewable Identification Numbers (RINs) to ensure requirements are met RINs are created for each gallon of biofuel that is produced or imported EPA collects RINs from obligated parties (refiners and importers) each year RINs act as permits for oil and gas companies to sell gasoline in the United States Determine annual volumetric requirements each year Issue waivers if requirements cannot be met 7. Schnepf, Randy and Brent D Yacobucci. Renewable Fuel Standard (RFS): Overview and Issues. CRS Report for Congress. Congressional Research Service. Washington D.C.: U.S. Government Printing Office,

8 Key Conflicts and Concerns 1.6E+10 Actual Fuel Production by RFS Category and Fuel Type 8 Volume (gallons) 1.4E E+10 1E+10 8E+09 6E+09 Non-Ester Renewable Diesel (EV 1.7) Non-Ester Renewable Diesel (EV 1.6) Heating Oil Non-ester Renewable Diesel (EV 1.5) Biodiesel 4E+09 2E+09 Biogas Ethanol 0 Cellulosic BioDiesel Advanced Biofuel Renewable Fuel Cellulosic BioDiesel Advanced Biofuel Renewable Fuel Cellulosic BioDiesel Advanced Biofuel Data from EPA RFS2 EMTS Informational Data Renewable Fuel 8

9 Key Conflicts and Concerns Ethanol Blend Wall 9 Current maximum blending allowed E10 Limit at which ethanol can be safely blended into gasoline Auto warranties Lack of infrastructure Volumetric Requirements based on 2007 projections Actual fuel consumption decreasing Image from Schnepf and Yacobucci, Renewable Fuel Standard Assessment White Paper - Blend Wall/Fuel Compatibility Issues. Committee White Paper. United States House of Representatives. Washington D.C.: U.S. Goverment Publishing Office,

10 Key Conflicts and Concerns Advanced and Cellulosic Biofuels Importing of Brazilian sugar cane ethanol EPA issued waivers for lack of commercial cellulosic production 10 No commercial production in 2010 and 2011 Limited commercial production in 2012 Not a fast enough increase in commercial production to meet mandated volume requirements 10. Schnepf, Randy and Brent D Yacobucci. Renewable Fuel Standard (RFS): Overview and Issues. CRS Report 10 for Congress. Congressional Research Service. Washington D.C.: U.S. Government Printing Office, pg 11

11 Key Conflicts: Summary Gasoline market cannot absorb increased ethanol volumes Cellulosic biofuels not available on a commercial scale Renewable Fuel Standard in its current form cannot be effectively implemented 11

12 Recommendations For the EPA Release the 2013 annual volumetric requirements as soon as possible Release the 2014 annual volumetric requirements by the November 30 th deadline Use waiver and volumetric requirements authority to address blend wall and lack of commercial cellulosic production Provide waivers for cellulosic biofuels until commercial production is in place Reduce volumetric requirements to reflect current gasoline consumption 12

13 Recommendations For the Congress Modify RFS to reflect current gasoline use Percentage of total consumption in place of volumetric levels Maintain or increase current funding levels for advanced and cellulosic biofuel research and development S Energy and Water Appropriations Bill $2,280,985,000 DOE for Energy Efficiency and Renewable Energy programs 11 Implement a new policy to encourage greater use of non-ethanol biofuels %20water%20appropriations%20bill%

14 Recommendations For Industry Increase investments in advanced, cellulosic and drop-in biofuel technologies drop-in biofuels 12 substantially similar to gasoline, diesel and jet fuel Meet existing specifications for petroleum based fuels Can be dropped into current infrastructure

15 Recommendations Map of Members of the Advanced Biofuels Association

16 Conclusions Increased biofuel use in the United States is important RFS has not been successful in its current form Ethanol use Slow commercialization of cellulosic Complete repeal of the RFS would undermine investments in advanced biofuel technologies Future of biofuels lies in advanced, cellulosic and drop-in biofuel technologies 16

17 WISE program Acknowledgements American Society of Mechanical Engineers Dr. Gail Marcus Dr. Noel Bakhtian Melissa Carl Everyone who took their time to meet with me individually for interviews as well as with the whole WISE group 17