New Energy for America Plan - Biofuels Policy Alert
By: TODD A. TAYLOR
November 7, 2008
President-elect Barack Obama’s stance on biofuels, including ethanol and biodiesel, has consistently been favorable and his campaign has advanced a number of biofuels related initiatives that may soon see action. Obama says his “overarching goal” for his energy policy is ending U.S. reliance on Middle East and Venezuelan crude. Obama indicated an energy plan (New Energy for America Plan) would be unveiled after an economic stimulus package, which would likely include the middle class tax cut issues. It is possible that this energy plan maybe unveiled within the first 100 days of his administration.
According to previously announced policy initiatives, Obama’s New Energy for America Plan will:
- Next Generation of Sustainable Biofuels and Infrastructure – Advance in biofuels, including cellulosic ethanol, biobutanol and other new technologies that produce synthetic petroleum from sustainable feedstocks offer tremendous potential to break our addiction to oil. Ensure that these clean alternative fuels are developed and incorporated into our national supply as soon as possible. Invest federal resources, including tax incentives and government contracts into developing the most promising technologies and building the infrastructure to support them.
- Renewable Fuels Standard – Require at least 60 billion gallons of advanced biofuels by 2030. Continue the current Renewable Fuels Standard and require all additional growth in biofuels use beyond the current Renewable Fuels Standard would have to be from non-food based feedstocks.
- National Low Carbon Fuel Standard – Establish a national Low Carbon Fuel Standard (LCFS) to speed the introduction of low-carbon non-petroleum fuels. The standard requires fuels suppliers in 2010 to begin to reduce the carbon of their fuel by 5 percent within 5 years and 10 percent within 10 years. Incentivize private sector investment in advanced low-carbon fuels and ensure that increased biofuels production does not come at the expense of environmental conservation. The LCFS is an important mechanism in ensuring that our efforts to reduce our oil dependence also reduce carbon emissions.
- New Flexible Fuel Vehicles Mandate – Sustainably-produced biofuels can create jobs, protect the environment and help end oil addiction - but only if Americans drive cars that will take such fuels. Require that all new vehicles have FFV capability by the end of his first term in office.
- Commercialization of Plug-in Hybrids –The plan will invest $150 billion over 10 years to advance the next generation of biofuels and fuel infrastructure, accelerate the commercialization of plug-in hybrids, promote development of commercial scale renewable energy, encourage energy efficiency, invest in low emissions coal plants, advance, and begin transition to a new digital electricity grid.
- Federal Workforce Training Programs – The plan will increase funding for federal workforce training programs and direct these programs to incorporate green technologies training, such as advanced manufacturing and weatherization training, into their efforts to help Americans find and retain stable, high-paying jobs. Create an energy-focused youth jobs program to invest in disconnected and disadvantaged youth. This program will provide youth participants with energy efficiency and environmental service opportunities to improve the energy efficiency of homes and buildings in their communities, while also providing them with practical skills and experience in important career fields of expected high-growth employment. Participants will be able to use their training to find jobs, and also build skills that will help them move up the career ladder over time.
The Renewable Energy Practice Group at Fredrikson & Byron has years of experience with biofuels projects, ranging from project development, financing, construction, governance, technology development and intellectual property protection and licensing, real estate and regulatory compliance. Clients of Fredrikson & Byron also benefit from our deep knowledge of the industry and have access to our wide network of industry professionals.
Please contact Todd Taylor if you are interested in learning more about how the Renewable Energy Group at Fredrikson & Byron can help you.