Bioeconomy & transportation advisory group


Related Policies/Programs in Place



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Related Policies/Programs in Place


  • All Midwest Procurement has committee looking at product conversion technology

  • USDA’s Biopreferred Program19

  • The USDA’s Biopreferred Program contains a catalog of biobased products which would also be an excellent reference for further developing the list of biobased products from the Midwest region.20

  • North Central Bioeconomy Consortium21

  • Biomass Research and Development program, reauthorized in the 2008 Farm Bill to direct Secretaries of Agriculture and Energy to coordinate policies promoting biobased industrial products. Funds competitive grants for research, development and demonstration projects for biofuels and biobased chemicals. Provides $20 million in funds in FY 2009; $28 million in FY 2010; $30 million in FY 2011 and $40 million in FY 2012.

Type(s) of GHG Reductions


This policy options is qualitative only and will not be quantified.

Estimated GHG Reductions and Net Costs or Cost Savings


This policy options is qualitative only and will not be quantified.

Key Uncertainties


It is important that this policy coordinate with other efforts taking place at the federal, regional, and state level to ensure that efforts are not being duplicated, and more importantly that efforts are not competing with one another.

Additional Benefits and Costs


1. Further development of the Midwest Bioeconomy

2. The development of more sustainable products with less use of chemical and less greenhouse gas emissions.

3. Health benefits associated with less pollution and less use of chemicals.

Feasibility Issues


None Cited

Status of Group Approval


Pending

Level of Group Support


TBD

Barriers to Consensus


TBD

BT- 4.2: Regional Infrastructure for Biobased Product Manufacturing

Policy Description


According to the 2007 Midwestern Governors Association Energy Security and Climate Stewardship Platform:

“A key to the advanced bioenergy complex will be the profitability of the manufacturing of biobased materials that are co-products of biobased fuels. This materials industry is in its infancy. Support research determining how the biomaterials supply chain can mature in conjunction with the biofuels sector and how new products can achieve economic viability.”



Policy Description:

A key to the success of any product is the efficient movement of product to market. The existing regional infrastructure must be enhanced, further developed, and/or utilized as efficiently as possible to support integration of biobased products into the region’s system of moving goods. The entire supply chain, from the raw material stage through manufacturing, distribution, and on to the retailers, must be re-examined, options for improvements developed, and a plan for implementation be designed and executed.


Policy Design


Goal:

    The efficiency of the regional infrastructure will be improved to support the development of the region’s biobased products industry.

Timing:

This policy should be implemented as soon as approved. For infrastructure options deemed feasible a separate implementation plan should be developed based upon the priority of improvement and available funding.



Parties Involved:

All parties throughout the biobased product supply chain within the Midwest should be involved in this policy option to identify current transportation policies, future transportation needs, and how to more efficiently distribute their products. Additionally, state departments of transportation should be directly involved, along with the Federal Highway Administration, Federal Railroad Administration, and the Federal Maritime Commission.


This policy should be initiated by the state departments of transportation, focused on brining companies throughout the bioproducts supply chain together to begin the discussion on how best to streamline and enhance the transportation of biobased products throughout the Midwest region and to market.

Implementation Mechanisms


  1. Formalized regional coordination. Develop a comprehensive listing of key players in the regional bioproducts supply chain, including suppliers, manufacturers, distributors, and retailers. The formal establishment of a midwestern Agbioscience Technology Center dedicated to bio-based products and associated bio-based energy activities at a regional level would assist in this effort through several functions, including:

  • Facilitating the coordination and interaction of industry, academia, and the public sectors to foster knowledge, research, and the commercialization of technologies to advance the industry cluster;

    • Coordinating pilot development, capital investment and matching technology with industry capabilities; and

    • Attracting technologies and companies to the region.

  1. Bring together parties from the entire supply chain of biobased products to determine transportation modes, routes, and timing and begin the discussion on the manners through which the transportation of their goods can be conducted more efficiently.

  2. Initiate a regional study to determine where the supply chain is losing efficiency (bottlenecks, inefficient routes, inadequate infrastructure, inefficient modal utilization) and determine what the primary problems are with connecting suppliers, manufacturers, distributors, and retailers.

  3. Assist the industry in identifying regional opportunities. Conduct a material flow analysis of the basic chemicals, specialty chemicals, polymers, and additives currently being used by the region’s polymer and manufacturing industry. Based upon the emerging opportunities identified by this regional material flow analysis, conduct a follow-on techno/economic analysis of potential biobased materials to better inform the industry about opportunities to develop new materials.

  1. Study how the supply chain could be made to operate more efficiently, including additional infrastructure enhancements, developments, and utilization of more closely located suppliers, manufacturers, distributors, and retailers. A list of potential infrastructure enhancements and/or developments to the supply chain would be developed identifying how each enhancement and/or development will improve the overall efficiency of the supply chain. For policy option details see BT 2.

  2. Conduct a feasibility study on proposed enhancements/developments to the supply chain. The feasibility study should take into consideration:

    • Transportation time (gained or lost);

    • Cost of implementation;

    • Fuel savings or increases;

    • GHG emission reductions or increases; and

    • Any other relevant factors to be considered as part of the implementation of the proposed transportation improvements.

  1. Develop, submit and carry out an implementation plan consisting of identified feasible options.

  2. Expand the Midwest’s agbiorefining capacity in order to meet the need for innovators to make large samples of new materials for pilot and pre-production scale runs of candidate agbiobased products. Consideration should be given to the strategic utilization of both existing and additional infrastructure assets in the region.




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