Bioeconomy & transportation advisory group
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- Policy Design
Policy DescriptionRecent studies (Sperling and Farrell, 2004 and 2007, and Sperling and Yeh, 2009) have compared the relative effectiveness of “winner-picking” policies that drive new technologies (volumetric use-mandates for fuels, etc.) and technology-neutral policies like a low carbon fuel standard (LCFS). It is clear that the policies designed to develop particular technologies have succeeded in the development and commercialization of those technologies; it is also clear that they have failed to develop products designed to conform to a set of performance criteria (namely GHG reduction) or that respond to rapid marketplace changes. What is unclear is what is to be done about either of these problems—either the adoption of performance-based standards like a LCFS or creating incentives for specific technologies that include both performance criteria and a sunset provision for any technologies that don’t meet the criteria are both possible means to the desired end. Because infrastructure needs to be developed for specific technologies, tying funding and other support for technologies to the production and sale of advanced fuels and vehicles seems like a logical way to combine market pull with infrastructure development. A fuel-neutral technology-driving policy is the LCFS, covered under BT 1.2. The criteria should include any fuels that meet at least a 20% reduction in GHG emissions relative to gasoline and any vehicles that use at least 20% less gasoline than the current vehicle fleet. This policy supports the implementation of the 2007 Midwestern Governors Association Energy Security and Climate Stewardship Platform Tier 2 Biobased Products and Transportation policy option 1: “Provide market pull and the distribution infrastructure for biofuels, advanced transportation fuels, and lower GHG vehicles by:
The above referenced document uses these terms in reference to targeted fuels:
For the sake of clarity and continuity with existing terms and definitions of fuels provided in the 2007 federal RFS, this policy option operates under these definitions: “Biofuels” means fuels made from renewable biomass, as defined in the 2007 RFS which provide a 20% reduction in GHG. “Advanced transportation fuels” and “lower carbon advanced biofuels” include fuels in either of these three categories included in the 2007 RFS language:
“E85” is an ethanol blend that contains 85% ethanol. Depending on the feedstock used to generate the ethanol, it can be a renewable biofuel, cellulosic advanced, or non-cellulosic advanced. Mid and high level ethanol blends range from any amount of ethanol over the base blend limit approved by the EPA (currently E10). A range of blends will offer consumers choice and value at the pump regardless of ethanol and petroleum supply and demand factors. Future use of mid and high level ethanol blends must be approved by EPA and vehicles running on these blends meet emission requirements. The document uses these terms in reference to targeted vehicle technologies:
Policy DesignThe following criteria are recommended for developing policy to accomplish platform goals. Incentives should have the following characteristics:
Goals: By 2012: Advanced low-carbon transportation fuels should be commercially produced in the region and be available at 1% of retail filling stations throughout the region. All new fuels systems being installed throughout the region should be Underwriters Laboratory (UL) certified in order to legally dispense higher blends from both conventional and advanced feedstocks, including E85 and other low carbon fuels. This enables pump infrastructure to stay in place while blend ratios increase, meeting renewable supply gains. By 2015: A mixture of biofuels and other advanced transportation fuels, including E85 and other higher blends from both conventional and advanced feedstocks, will be offered at 15% of retail filling stations or around 4,400 stations, approximately a five-fold increase. Currently these blends are available at 3% of filling stations regionally. By 2020: A mixture of biofuels and other advanced transportation fuels, including E85 from both conventional and advanced feedstocks, will be offered at 20% of retail fillings stations, or around 5,900 stations, approximately a six-fold increase. By 2025: A mixture of biofuels and other advanced transportation fuels, including E85 from both conventional and advanced feedstocks, will be offered at 33% of retail filling stations, or around 9,700 stations, approximately a 10 –fold increase. Average fossil fuel inputs in the production of conventional biofuels in the region will be reduced by at least 50%. At least 50% of all transportation energy consumed in the region will be supplied by regionally produced biofuels and other low-carbon advanced transportation fuels, with the expectation that a significant and additional portion of the region’s biofuel production will help the U.S. meet a national 25x’25 goal. Utilize deployment of lower carbon vehicles, including HEVs, PHEVs, FCVs, and FFVs to be available in 25% of regional vehicle market to help achieve this goal. A blend of 30% biofuels will be included in every gallon of gas by 2025. An increase in biofuels blends must receive approval by EPA and vehicles running on these blends must meet emission requirements. An anticipated increase in the biofuels blend will allow autos and small engine manufactures to design engines for a specific blend and optimize engines. Download 359.93 Kb. Share with your friends:
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