Lentis/Politics of Biofuels

Introduction Biofuels, liquid fuels made from biomass (living matter), have long been considered a renewable energy source. They are often used in transportation to reduce pollution via blending with traditional fuels or in some cases they can act as a complete replacement. In fact, most gasoline in the U.S. contains 10% ethanol, a common biofuel made from fermenting corn or sugarcane. Biodiesel, another biofuel, is made from animal fats and vegetable oils and is blended with traditional diesel. These traditional fuel alternatives are usually associated with reduced greenhouse gas emissions, increased engine performance, and increased prosperity for farmers. Although the term biofuel can refer to solid biofuels like wood and charcoal, this chapter is focused predominantly on liquid biofuels. History Biofuels have existed long before their use in transportation. The process of fermenting plant mass to create ethanol to make drinks can be dated back to 4000 BC. Similarly, the vegetable oils and fats used to make biodiesel were used in oil lamps in the late 1700s.Guo, M., Song, W., & Buhain, J. (2014). Bioenergy and biofuels: History, status, and perspective. Renewable and Sustainable Energy Reviews, 42, 712–725. https://doi.org/10.1016/j.rser.2014.10.013 ‌ However, ethanol fuel blends were used early on in some combustion engines in the 1800s in the U.S. Despite this, kerosene and oil grew as a major fuel source in the U.S. due to an alcohol tax imposed in 1864 to raise funds for the Civil War. Originally intended to affect drinking alcohol, it also affected the consumption of ethanol for fuel purposes.Carolan, M. S. (2009). A Sociological Look at Biofuels: Ethanol in the Early Decades of the Twentieth Century and Lessons for Today. Rural Sociology, 74(1), 86–112. https://doi.org/10.1526/003601109787524034 Notably, Henry Wallace, the secretary of agriculture in the 1930s, argued that if a law required 10 percent of fuels burned to be made of alcohol derived from corn, then the American corn market would flourish, especially if petroleum became a scarce resource. Midwest legislatures passed some requirements to mix ethanol into gasoline (called agrol), however, a federal version of these laws was defeated with many citing the oil industry's lobby. As of today, biofuels like ethanol are used in consumer transportation fuels and their rise can be attributed to politics and government activity around this industry, namely in the form of tax credits/incentives, biofuel development funding, and mandates. Relevant Legislation The rise of biofuels in the U.S. is linked to the passage of several pieces of legislation. Energy Tax Act of 1978 The Energy Tax Act of 1978 Energy Tax Act was passed in response to the energy crisis of 1973 in which the U.S. had an oil embargo placed against it. Dependence on the importation of oil for energy was revealed and the U.S. hoped to become less dependent on oil through fuel efficiency and renewable energy. To promote the use of domestic biofuels like ethanol, this act created a federal excise tax exemption of $0.04 per gallon of fuel containing at least 10% alcohol (ethanol).Guan, Z., & Oh, J. (2018). United States Biofuel Policies: Overview and Discussion. EDIS, 2016(2), 4–4. https://doi.org/10.32473/edis-fe974-2015 Energy Policy Act of 2005 The Energy Policy Act of 2005 Energy Policy Act of 2005 notably increased the amount of ethanol mixed in gasoline and set targets for biofuel consumption up to 2012. This established the Renewable Fuel Standard which required fuels to have a minimum volume of renewable fuels. It further increased tax reductions for renewable electricity production and alternative fuels which includes biofuels. This was passed to increase energy production and significantly increased the production of biofuels. Energy Independence and Security Act of 2007 The Energy Independence and Security Act of 2007 Energy Independence and Security Act of 2007 aimed to make the U.S. more energy independent through increased production of renewable fuels. It extended the Renewable Fuel Standard (RFS) biofuel production targets up through 2022. Additionally, it enabled the research of advanced biofuels using algae and biodiesel. Issues Around Biofuels Biofuels, though renewable, are not without environmental and economic concerns. Food Many of the crops used for biofuels, such as corn and soybeans, are also used for food products. As such, biofuels rely on siphoning material away from food production, leading to price increases for nearly all grown food products, as even non-fuel crops must compete for farm space. The global food market depends on the production of a few "breadbasket" regions, and the worldwide price of food can be heavily affected by poor conditions, such as droughts. In 2007, a combination of poor weather in many regions alongside an initiative for increasing biofuel production led to global food prices rising by 83%.Tenenbaum David J. 2008-06 Food vs. Fuel: Diversion of Crops Could Cause More Hunger https://ehp.niehs.nih.gov/doi/10.1289/ehp.116-a254 Environmental Health Perspectives en 116 6 10.1289/ehp.116-a254 0091-6765 PMC2430252 18560500 Land Use Large amounts of land are needed for farm space, and farming is one of the leading causes of deforestation. While difficult to quantify, the subsequent increase in greenhouse gas emissions from deforestation may serve to act against biofuels' lower emissions compared to alternatives. Cost & Environmental/Carbon Analysis Biofuels such as ethanol and biodiesel tend to be more expensive to produce than their alternatives.Biofuel and fossil-based transport fuel production cost comparison, 2017 – Charts – Data & Statistics https://www.iea.org/data-and-statistics/charts/biofuel-and-fossil-based-transport-fuel-production-cost-comparison-2017 2024-12-08 IEA en-GB Pesticides and fertilizers used in farming can lead to pollution, and biofuel production is not necessarily a clean process, as most biofuel producers still use fossil fuels for combustion.Biofuels and the environment - U.S. Energy Information Administration (EIA) https://www.eia.gov/energyexplained/biofuels/biofuels-and-the-environment.php 2024-12-08 www.eia.gov Despite typically burning cleaner, ethanol's evaporative emissions tend to be higher than gasoline out of fuel tanks. While biofuels can theoretically be "carbon-neutral", depending on the crop, the CO2 emissions from the production and burning of biofuels is not offset by the CO2 absorbed during plant growth, especially if forests were cleared in the process of production.Jeswani Harish K. Chilvers Andrew Azapagic Adisa 2020-11-25 Environmental sustainability of biofuels: a review https://royalsocietypublishing.org/doi/10.1098/rspa.2020.0351 Proceedings of the Royal Society A: Mathematical, Physical and Engineering Sciences 476 2243 20200351 10.1098/rspa.2020.0351 PMC7735313 33363439 Participants There are numerous participants involved in the politics of biofuels, whether they be departments, agencies, or offices within governments or organizations not affiliated with the government. Participant Groups within Governments One participant tied to the U.S. government is the Department of Energy (DOE), and the Bioenergy Technologies Office (BETO) within this department supports research and development that enables biofuel technology development.2022-09-23 Bioenergy Technologies Office https://www.energy.gov/eere/bioenergy/bioenergy-technologies-office 2024-12-10 Energy.gov en The U.S. Department of Agriculture (USDA) also contributes through the Farm Service Agency (FSA) providing financial assistance through the Biomass Crop Assistance Program (BCAP) to owners of agricultural and non-industrial private forest land for the production of biomass feedstocks.Biomass Crop Assistance Program https://sandbox.fsa.usda.gov/programs-and-services/energy-programs/BCAP/ 2024-12-10 U.S. Department of Agriculture Additionally, the RFS Program is administered by the U.S. Environmental Protection Agency (EPA).US EPA ORD 2021-01-14 Biofuels and the Environment https://www.epa.gov/risk/biofuels-and-environment 2024-12-10 www.epa.gov en In 2023, the U.S. had the highest production of biofuel (1,795.1 PJ) than any other country, with Brazil having the second-highest (1,015.6 PJ) and Indonesia having the third-highest (433 PJ).Global biofuel production by country 2023 https://www.statista.com/statistics/274168/biofuel-production-in-leading-countries-in-oil-equivalent/ 2024-12-10 Statista en In Brazil, this is overseen by the Brazilian National Agency for Petroleum, Natural Gas and Biofuels (ANP)What is ANP https://www.gov.br/anp/en/access-information/what-is-anp/what-is-anp 2024-12-10 gov.br, and in Indonesia, this is overseen by the Ministry of Energy and Mineral Resources.Indonesia Sustainable Biofuels-Jakarta- Event Conference Summit https://www.cmtevents.com/aboutevent.aspx?ev=241028& 2024-12-10 www.cmtevents.com Despite producing the greatest amount of biofuel in 2023, the U.S. was not among the top ten in regards to the amount of biofuel exported internationally. The top biofuel exporter in 2023 was Canada ($3.17 billion), with the United Kingdom as the second-highest ($409.94 million) and the European Union as the third-highest ($366.48 million).2024-12-08 Biofuels USDA Foreign Agricultural Service https://fas.usda.gov/data/commodities/biofuels 2024-12-10 fas.usda.gov en The statistics on U.S. biofuel production and export amounts indicate that the U.S. has a focus on using biofuels domestically. Other groups that affect laws concerning biofuels are politicians and the voters who support them. However, the support or opposition of biofuels or biomass energy is not strongly tied to Democrat and Republican views: when taking the percentage of those with a favorable view of the energy source subtracted by the percentage of those who have an unfavorable view of it in 2022, biofuel is 24% for Democrats and 28% for Republicans; biomass energy is 23% for Democrats and 35% for Republicans. Comparatively, wind power is 72% for Democrats and 17% for Republicans, and oil is -27% for Democrats and 56% for Republicans.How Democrats and Republicans view energy sources differently YouGov https://today.yougov.com/politics/articles/44892-how-democrats-and-republicans-view-energy-sources 2024-12-10 today.yougov.com en-us Other Participant Groups There are many non-governmental participant groups as well. One such group is conservationists; as noted above, there are detrimental environmental impacts that would increase with an increase in biofuel production. For instance, Friends of the Earth is an international (across 73 countries) environmental organization that opposes increased biofuel production under the RFS due to its rising impacts on the environment. In the U.S., this group has been responsible for many petitions as well as letters to key groups and individuals within the Legislative Branch.Fox Audrey 2012-03-18 Joint advocacy efforts on biofuels policy https://foe.org/blog/biofuels-coalition-work/ 2024-12-10 Friends of the Earth en-US Some support biofuel production in the same vein of being environmentally friendly. A major player in this is POET, the world’s largest biofuel producer, founded in 1987 in South Dakota.About - POET https://poet.com/about 2024-12-10 poet.com en Other groups with this same motivation are organizations such as the National Corn Growers Association (NCGA), a non-profit organization that lobbies in the U.S.Association National Corn Growers Ethanol NCGA https://ncga.com/key-issues/current-priorities/ethanol 2024-12-10 National Corn Growers Association en-US In 2024, the NCGA had a total lobbying expenditure amount of $250,000 (across 17 lobbyists), and their highest-spending year from 1998-2024 was in 2015 with an amount of $770,000 (across 12 lobbyists).National Corn Growers Assn Lobbying Profile https://www.opensecrets.org/federal-lobbying/clients/summary?id=D000027833 2024-12-10 OpenSecrets en Organizations that support landowners share the same goal, such as the Forest Landowners Association, which advocates for federal policies such as ones that affect market access and regulations.Policy Priorities – Forest Landowners https://forestlandowners.com/policy-priorities/ 2024-12-10 forestlandowners.com Conclusion Biofuels provide renewable, low-carbon energy primarily used in transportation in the U.S. The passage of laws and mandates, namely the Renewable Fuel Standard, have stimulated the growth and development of biofuels. However, issues around the food and land requirements for biofuel created debate over its efficacy. Environmentally, the process to create and use ethanol and biofuels can also have consequences. Within the U.S. many groups have vested interests in promoting or opposing biofuels. References