Bioeconomy & transportation advisory group

Type(s) of GHG Reductions

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Type(s) of GHG Reductions

This policy option is qualitative only and GHG emissions resulting from this policy option will not be quantified.

Estimated GHG Reductions and Net Costs or Cost Savings

This policy option is qualitative only and GHG emissions resulting from this policy option will not be quantified.

Note: While this policy option is not quantified, it is anticipated that the implementation of this policy option will result in a reduction in GHG emissions through the collaboration of research between universities, state government, and private industry.

Key Uncertainties

The greatest obstacle to successfully implementing this policy option is to not overlap, duplicate efforts, or compete with other policies and programs which are already in place, focusing on regional collaboration of research and technology. This can be overcome by getting active participation by key members of the midwestern bioeconomy.

Additional Benefits and Costs

It is anticipated that the technological advancements shared throughout the region will result in the more efficient operation of alternative fuel plants and the extended availability of lower carbon fuels for use in the transportation sector, resulting in a net decrease in GHG emissions.
Lower GHG emissions have been linked to less air pollution and therefore health benefits.
Increasing research collaboration throughout the region will create new employment opportunities and economic benefits resulting from both increased efficiency and the further development of a burgeoning industry.
Challenging universities, government, and private industry to develop the best available technology for improving the efficiencies at commercial plants should spur development and create partnerships and opportunities for all parties that extend beyond this policy option.

Feasibility Issues

The feasibility of this policy option will be largely dependent upon the willingness of member of these groups to openly collaborate with one another. Incentives, mutual benefits, and other ways in which to foster a collaborative environment may be necessary to achieve full and open collaboration.

Moving beyond the intellectual property rights associated with technological development and allowing it to be shared throughout the region by universities, government, and private industry, while keeping this development within the region will present a difficult challenge.

Status of Group Approval

Pending

Level of Group Support

TBD

Barriers to Consensus

TBD

BT-4.1: Develop Midwestern Biobased Products

Policy Description

The Federal Government has established the USDA Biopreferred Program. Some states have initiated similar programs at the state level but this development has been scattered across the region. Given the top notch research institutions in the Midwest and the need for industry development, it is imperative that policies be developed that foster and grow the Midwest biobased products industry.

Policy Design

Goals:

The goal of this policy is to promote the sale, distribution, and use of biobased products which are manufactured in the Midwest region. This can be done by developing biobased product procurement rules at the state level, participating in a regional biobased product procurement program with a common list of products, and expanding the program further by creating a regional certification program and promoting it through education and incentives for business participation as a means to foster biobased product development.

Timing:

The policy should be implemented immediately upon approval.

The education and incentive programs should continue until biobased products have achieved relative parity with competing products which are not biobased.

Parties Involved:

State universities and departments of agriculture as well as suppliers, manufacturers, transporters, distributors, and retailers of biobased products should all be involved to ensure that this policy is widely understood, accepted, and followed.

The Midwest Consortium for Biobased Products and Bioenergy^¹⁷ will be a great source for input on developing this list of regionally manufactured biobased products. This group currently consists of the universities of Purdue, Illinois, Iowa State, and Michigan, and the government laboratories of the United States Department of Agriculture (USDA) National Center of Agricultural Research Utilization, Ames Laboratory, and Argonne Laboratory. Other regional laboratories and universities should examine the possibility of joining the consortium.

This policy will be aimed at the retail markets for consumers, businesses, and government. The biobased products being promoted through this policy will be very wide ranging from fuels and biomass, to standard household cleaning products, fertilizers, and building materials to name just a few of the markets that are anticipated to be accessed through this policy.

Implementation Mechanisms

Develop a common list of all regionally manufactured biobased products. This list would include all manufacturers, suppliers, distributors, and retailers of regionally developed and manufactured biobased products. This list would be made publicly available through a website, other published materials, and advertising to promote these companies and make the public and other businesses, which are a part of the biobased product supply chain, aware of the biobased products offered throughout the region and where these products are available.

Develop a regional certification program to put forth criteria that manufacturers, suppliers, distributors, and retailers would have to meet to become certified. This could mimic what has been done at the federal level by the USDA’s Biopreferred Program:^¹⁸

Develop criteria for certification based on environmental, economic, and social factors, and incorporate life cycle methods for comparative evaluation of biobased vs non-biobased products for given uses;
Develop a logo as part of this certification program and use logo to identify, manufacturers, suppliers, distributors, and retailers that have become certified; and
Inform and educate consumers about bioproducts, and test for consumer acceptance of certified products.

Conduct analysis of State purchasing data from the Midwestern states to identify those products that the states purchase that should be most readily be targeted for bioproduct substitution. Specifically, those “low hanging fruit” product categories that will be first evaluated include plastics, ink, toner, oils, and lubricants.

Develop an education and incentives program to promote the procurement of regional biobased products

Education: Develop marketing materials and a marketing program which could help to inform both the public as well as other businesses interested in participating in the program, what the certification program is about, what the logo means, identify the criteria that a business must meet to receive this logo, and identify the steps a business must take to be a part of this program. This could include the development of a website, on-line advertising, advertising through state sites, through businesses that have been certified, as well as through informational booths to be set up at conferences, summits, government events or other appropriate venues.

Businesses Incentives:

Market these additional benefits to eligible businesses to incentivize participation in the program:

Participate in regional educational and marketing program.
Create process to place a certification logo upon products, identifying product as a biobased product manufactured in the region.
Access to the programs associated with the Biobased Products and Transportation policies being developed as part of the Midwest Governor’s Platform. Including, but not limited to:

Access to the materials and technologies developed as part of the regional research collaboration;
Provide technological assistance in the initial commercialization of their product;
Continue technological assistance in further enhancing the efficiency of their processes;
Continue technological assistance to ensure sustainable practices are utilized in the manufacture of the biobased product;
Identify primary barriers, through a survey of firms, to participation in the program (in both production and use of bioproducts); and
Consider offering tax credits which would incent manufacturers to transition to biobased products.

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