B&C® Biobased and Sustainable Chemicals Blog

On January 22, 2014, there were reports of two explosions at the JNS Biodiesel LCC biodiesel plant in northern Mississippi. No one was injured. The plant is designed to use poultry fat as the feedstock to produce eight million gallons of biodiesel each year. The news comes as the biodiesel industry is advocating its potential production beyond EPA's proposed 2014 and 2015 requirements.

It is reported that Research and Development non-profit Battelle, headquartered in Columbus, Ohio, has a pilot project in which an 18-wheel tractor trailer would be used to convert biomass onsite using a catalytic pyrolysis into oil that could be used to produce renewable chemicals or biofuels. This model could be used throughout the country to help facilitate the conversion of myriad types of biomass into oils for renewable chemicals and biofuels production in a cost effective manner. It would...

On January 22, 2014, the largest U.S. biodiesel producer, the Renewable Energy Group, Inc.® (REG), headquartered in Ames, Iowa, announced that it has acquired renewable chemical producer LS9, Inc. for over $61 million. LS9 will be renamed REG Life Sciences LLC and will produce renewable chemicals and products. A copy of REG's press release is available online.

On January 23, 2014, EPA issued letters to the American Petroleum Institute (API) and the American Fuel and Petrochemical Manufacturers (AFPM) partially answering their October 2013 petitions for consideration of the final rulemaking, "Regulation of Fuels and Fuel Additives: 2013 Renewable Fuel Standards; Final Rule," published in the Federal Register on August 15, 2013. In its letters, EPA explains that it is granting the petitions by AFPM and API for reconsideration of the 2013...

On January 16, 2014, the U.S. Department of Justice (DOJ) announced that it has indicted two individuals in biodiesel fraud schemes worth more than $37 million. A copy of DOJ's press release is available online. James Jariv and Nathan Stoliar have been charged with 57 counts of conspiracy, wire fraud, false statements made under the Clean Air Act, obstruction of justice, and conspiracy to engage in money laundering. In one scheme, the two allegedly generated more than $7 million in...

On January 9, 2014, 7,500 gallons of a coal processing chemical, 4-methylcyclohexane methanol, stored in an above-ground tank owned by Freedom Industries leaked into the Elk River just upstream from the local water utility's intake pipe serving Charleston, West Virginia. Regulators banned residents' use of the water for five days. Since the release, concerns have been expressed about the adequacy of information regarding the chemical's safety and health risks, an issue that has been...

In an article appearing in the January/February 2014 issue of The Environmental Forum, a publication of the Environmental Law Institute, the Biobased and Renewable Products Advocacy Group's (BRAG™) Lynn L. Bergeson and Kathleen M. Roberts discuss the latest developments in the U.S. Environmental Protection Agency's (EPA) approach under the Toxic Substances Control Act (TSCA) to biobased chemicals, and offer strategies on how biobased chemical manufacturers can best navigate current...

On December 23, 2013, the U.S. Department of Energy (DOE) announced that it was ending its funding of BlueFire Renewable's cellulosic production facility project in Fulton, Mississippi. DOE took this action because the company reportedly failed to meet deadlines related to financing the project. This news comes as the cellulosic industry continues to be under attack for failing to live up to expectations under the federal RFS.

On December 31, 2013, Ironridge Global Partners, LLC, an institutional investor based in Los Angeles, California, announced that it has launched a green initiative designed to fund sustainable businesses, including emerging growth companies focused on environmental sustainability and environmentally-friendly products and services. As part of the initiative, Ironridge has provided over $6 million to Cereplast, Inc., a leading manufacturer of proprietary biobased, compostable and sustainable...

On December 19, 2013, Cortec Corporation headquartered in St. Paul, Minnesota, announced its Patent Pending BioPad® product. The company states that BioPad® "is a unique flexible corrosion inhibiting device constructed from 100% biobased non-woven material, containing 66% biobased content. BioPad® provides an eco-friendly sustainable packaging option for corrosion inhibition and has been awarded USDA BioPreferredSM designation. It is specially designed with Vapor phase Corrosion...

LignoTech Developments Ltd. subsidiary Xylemer BioProducts of New Zealand will soon open a new facility in Kearney, Nebraska. The facility will produce biomass-based resins. Distillers grains will be the first feedstocks used, likely followed by sugar beet pulp and rice hulls.

There have been several efforts in the last few weeks to convince the Obama Administration to reconsider its proposal to reduce the 2014 Renewable Fuel Standard (RFS) statutory renewable volume obligations (RVO) for advanced and total renewable (corn ethanol) biofuels, and to maintain in 2014 and 2015 the status quo for biodiesel. Senators David Vitter (R-LA) and Benjamin Cardin (D-MD) are expected to introduce a bill in the coming weeks, which would amend the RFS and reduce its corn ethanol...

On December 19, 2013, President Obama announced his intent to nominate Janet McCabe to lead the U.S. Environmental Protection Agency's (EPA) Office of Air and Radiation. She has been serving as Acting Assistant Administrator of the Air and Radiation Office since July when Gina McCarthy left to become EPA Administrator. McCabe is generally well-liked and respected, and she is expected to be confirmed without much opposition. McCabe is expected to face tough questions during her nomination...

On December 18, 2013, President Obama announced that he will nominate Senator Max Baucus (D-MT) to be the next Ambassador to China. The nomination is expected to pass quickly and without much opposition. Senator Baucus serves as the Chair of the Senate Committee on Finance, the tax writing Committee. When he leaves the Senate, current Senate Committee on Energy and Natural Resources Chair Ron Wyden (D-OR) is expected to assume the chairmanship. These moves will impact the fate of incentives for...

Several incentives designed to encourage renewable energy development and production, including the $1 per gallon tax credit for biodiesel producers and the $1.01 per gallon credit for cellulosic ethanol production, expired on December 31, 2013. Should extenders be considered, it is likely these two credits will be extended and likely retroactively. Although given election year politics and ongoing budget battles, if and when this happens is tougher to predict. In the short term, one legislative...

As the new year begins, there are several predictions on the path for reform of TSCA. The vehicle for reform is expected to be S. 1009, the Chemical Safety Improvement Act (CSIA), bi-partisan legislation introduced last year by Senator David Vitter (R-LA), Ranking Member of the Senate Committee on Environment and Public Works (EPW), and the late Senator Frank Lautenberg (D-NJ). Senator Vitter and Senator Tom Udall (D-NM) are now working to move CSIA forward through the legislative process. A...

The 5th Annual Next Generation Bio-Based and Sustainable Chemicals Summit takes place Tuesday through Friday, February 4-7, 2014, in sunny San Diego, California. The premier biobased and sustainable chemicals information and networking event for biobased start-ups, global chemical majors, brand owners, feedstock providers, venture capitalists, and academics will feature a Keynote address by Kaj Johnson, Green Chef and Senior Director of Product Development from Method, who will speak about...

On December 11, 2013, EPA gave a Green Chemistry award to Professor Richard Wool of the University of Delaware for his work to develop biobased products such as adhesives, composites, and foams from renewable feedstocks, including vegetable oils, chicken feathers, and flax. The EPA grants Green Chemistry Awards each year to recognize "landmark green chemistry technologies developed by industrial pioneers and leading scientists that are contributing to the use of chemicals and products that...

EPA has awarded Dow a Presidential Green Chemistry Challenge Award for its EVOQUETM Pre-Composite Polymer. Among other attributes, according to EPA, EVOQUETM is expected to improve titanium dioxide (TiO2)-based paints. "Dow's EVOQUETM technology uses a polymer coating that, when applied to TiO2, improves dispersion of the pigment, decreasing the amount of the chemical needed and allowing it to work better. This technology will significantly reduce energy usage, water consumption, NOx...

On December 12, 2013, Senators Dianne Feinstein (D-CA) and Tom Coburn (R-OK) introduced the Corn Ethanol Mandate Elimination Act of 2013, which would eliminate the corn ethanol gallon requirements under the federal RFS, while leaving in place those under the law for cellulosic and advanced biofuels and biodiesel. The sponsors have argued that the RFS corn ethanol mandate, which increases to 15 billion gallons per year by 2022, should be removed to combat the recent increase in corn prices. The...

Iowa Governor Terry Branstad (R), Lieutenant Governor Kim Reynolds, and State Secretary of Agriculture and Land Stewardship Bill Northey led an effort to send a letter to EPA requesting it to convene a field hearing in Iowa on the Agency's proposed 2014 RFS rule. The letter was signed by the entire Congressional delegation from Iowa. A copy of the letter is available online. EPA's proposed 2014 RFS rule would reduce the 2014 statutory gallon requirements for cellulosic biofuels, advanced...

On December 18, 2013, Senate Finance Committee Chair Max Baucus (D-MT) unveiled a detailed summary of staff discussion draft legislation designed to reform current energy incentives under the U.S. Tax Code. In sum, the proposal would consolidate nearly all 42 existing energy incentives under two categories of incentives: technology-neutral tax incentives for domestic production of (1) clean electricity and (2) clean fuels. The detailed summary of the discussion draft acknowledges and requests...

On December 12, 2013, Representative Scott Peters (D-CA), Chair of the House Algae Caucus, introduced H.R. 3758, a bill to extend the $1.01/gallon second generation biofuel producer credit and the special allowance for second generation biofuel plant property. These incentives are among several currently set to expire at the end of the year. Members of the House and Senate have sent letters to the Chairs and Ranking Members of their respective tax writing Committees -- the House Ways and Means...

It has been reported that the U.S. House of Representatives Energy and Commerce Committee's Subcommittee on Energy and Power Chair John Shimkus (R-IL) has listed reform of the 1976 Toxic Substances Control Act (TSCA) among his top priorities for 2014. Chair Shimkus has stated publicly that the House is still determining how best to draft and move TSCA reform legislation, but he expects a House TSCA reform bill to be introduced by the spring, with action on it likely next summer. Chair...

Just before adjourning for its winter recess, the U.S. House of Representatives approved on December 13, 2013, by voice vote an extension of the 2008 Farm Bill through January 31, 2014. The vote is considered symbolic because Senate Majority Leader Harry Reid (D-NV) has asserted that the Senate will not consider an extension. Senator Debbie Stabenow (D-MI) and Representative Colin Peterson (D-MN), two of the principals leading Farm Bill negotiations, have reportedly stated that an extension is...

This week, Evonik Industries and LanzaTech announced that they have entered into a three year research agreement under which Evonik will "combin[e] its existing biotechnology platforms with LanzaTech's synthetic biology and gas fermentation expertise for the development of a route to bio-processed precursors for specialty plastics from waste derived synthesis gas. In this route, microorganisms placed in fermenters are used to turn synthesis gas into chemical products." A copy of...

Renewable fuel and chemical company Virent and cellulosic sugar producer Renmatix have announced plans to collaborate to convert cellulosic sugars to renewable chemicals and biobased packaging materials. According to Virent's press release on the effort, "Renmatix's Plantrose™ platform will be evaluated and potentially optimized to provide an affordable sugar stream for Virent's Bioforming® process for the large-scale production of bio-based paraxylene. Paraxylene is a...

Renewable energy company Sapphire Energy, Inc. and Phillips 66 have entered into a joint development agreement designed to promote and facilitate the commercial production of Sapphire's algae-based crude oil, which will be made into fuels. According to Sapphire's press release describing the agreement, "the companies will work together to collect and analyze data from co-processing of algae and conventional crude oil into fuels. The goal is to complete fuel certifications to ready...

This week, the Biobased and Renewable Products Advocacy Group (BRAG™) participated in the Biotechnology Industry Organization's Pacific Rim Summit on Biotechnology and Bioenergy in San Diego, California. The Summit included over 400 attendees with broad interest and involvement in biofuels and renewable chemicals. During the Summit, BRAG Executive Director Kathleen M. Roberts gave a presentation titled "The Here and Now of TSCA," in which she emphasized the criticality of...

On December 9, 2013, 60 companies sent a letter to the leaders of the U.S. House Ways and Means Committee and U.S. Senate Committee on Finance urging them to extend various biofuels incentives. These incentives, including the $1.00 per gallon credit for biodiesel, are scheduled to expire at the end of the year. While industry was able to secure extension of these incentives last year in legislation to prevent the "fiscal cliff," the prognosis for similar success is diminished in light...

On December 11, 2013, the U.S. Departments of Agriculture (USDA) and Navy announced that as part of their joint "Farm-to-Fleet" initiative, the acquisition of biofuel blends will be included into regular Department of Defense domestic solicitations for jet engine and marine diesel fuels. The Navy will seek to purchase JP-5 and F-76 advanced drop-in biofuels blended from 10 to 50 percent with conventional fuels. Funds from USDA's Commodity Credit Corporation will assist the effort....

All sides of the federal Renewable Fuel Standard (RFS) debate had another chance to air their views on Wednesday at the Senate EPW Committee "Oversight Hearing on Domestic Renewable Fuels." Hearing details are available online. Witnesses included representatives from EPA, DOE, industry, and major trade associations representing the oil and gas and biofuels industries. Their testimony was consistent with their previous actions and statements. For instance, EPA testified in support of...

This week, three Members of the U.S. Senate Committee on Environment and Public Works (EPW), Senators David Vitter (R-LA), Mike Crapo (R-ID), and James Inhofe (R-OK), introduced the General Duty Clarification Act of 2013. The bill would direct the U.S. Environmental Protection Agency (EPA) to clarify standards for the Clean Air Act's General Duty Clause. EPA has used the ambiguity contained in the clause to regulate chemical plants. A copy of the bill is available online.

It has been reported this week that the new Director of the Department of Energy's (DOE) Loan Program Office has stated DOE's intent to restart its renewable energy loan guarantee program in 2014. DOE is expected to issue a new round of $3 billion in loan guarantees for renewable energy projects. Although DOE still has billions in loan guarantee authority for renewable energy, it halted the program a couple of years ago in the wake of heavy criticism following the failure of Solyndra, a...

Representative Frank Lucas (R-OK), Chair of the U.S. House Committee on Agriculture, filed a bill this week to extend for one month, the 2008 Farm Bill to pave way for the completion of the five-year reauthorization bill when Congress returns from its winter break in January. The House of Representatives is scheduled to recess this Friday, on December 13, 2013, while the U.S. Senate is not scheduled to recess until next Friday, December 20, 2013. Members of the Farm Bill Conference Committee,...

On November 29, 2013, EPA published its proposed rule on "2014 Standards for the Renewable Fuel Standard Program" and a "Notice of Receipt of Petitions for a Waiver of the Renewable Fuel Standard." Copies of the proposed rule and notice published in the Federal Register are available online, and online. Comments on both are due by January 28, 2014. BRAG's coverage of the pre-published versions of the proposed rule and notice is available online. On December 5, 2013, EPA...

EPA has requested a report from the National Academies Committee (the Committee) on options that governments, manufacturers, and retailers can use to compare the safety of various chemicals as they analyze potential substitutes for those chemicals. The report is expected early in 2014. During the initial meeting of the Committee last month, a representative from the Organization for Economic Cooperation and Development (OECD) reported that an OECD committee has identified more than 80 methods...

On November 26, 2013, the Obama Administration released its biannual regulatory agenda for all federal agencies. A copy of the agenda is available online. EPA listed several top regulatory priorities, including "taking actions on toxics and chemical safety." The Agency states that it intends to take actions to protect chemical facility safety and security and that it "plans to take a range of identified regulatory actions for certain chemicals and assess other chemicals to...

On December 4, 2013, EPA published a final rule requiring the electronic submission of certain documents under the Toxic Substances Control Act (TSCA). EPA is promulgating amendments to reporting requirements under TSCA Section 4 (including test rules and Enforceable Consent Agreements (ECA)), TSCA Section 5, TSCA Section 8(a) Preliminary Analysis Information Rule (PAIR) at 40 C.F.R. Part 712, and TSCA Section 8(d) Health and Safety Data Reporting Rules at 40 C.F.R. Part 716. A copy of the rule,...

On November 27, 2013, the U.S. Environmental Protection Agency (EPA) published in the Federal Register a notice on "Draft Guidelines; Product Environmental Performance Standards and Ecolabels for Voluntary Use in Federal Procurement; Notice of Availability and Request for Comments." A copy of the notice is available online. Comments are due by February 25, 2014. According to EPA, the Agency intends for the guidelines to "provide a transparent, fair, and consistent approach to...

Reportedly, the four principals leading the effort to merge the House and Senate versions of the next five-year Farm Bill into a final bill have reached a preliminary agreement on the two major sticking points: food stamps and crop subsidies. The leaders are working feverishly to reach agreement and pass the final version of the Farm Bill by the end of this year when the current Farm Bill expires. Previous Biobased and Renewable Advocacy Group (BRAG™) coverage of the Farm Bill debate and...

On November 25, 2013, the U.S. Department of Agriculture (USDA) published a notice inviting applications for nearly $10.5 million in USDA value-added producer grants (VAPG), which help agricultural producers enter into value-added activities related to the processing and/or marketing of biobased value-added products. A copy of the USDA press release on the announcement is available online, and a copy of the Federal Register notice is available online. The funding notice encourages...

On November 20, 2013, the United States Environmental Protection Agency (EPA) announced its intent to release for comment proposed Draft Guidelines for Product Environmental Performance Standards and Ecolabels for Voluntary Use in Federal Procurement (Draft Guidelines). EPA states the Draft Guidelines -- developed by EPA, the General Services Administration (GSA), and other federal agencies following several "listening sessions" with a wide range of stakeholders -- are intended to help...

On November 19, 2013, Nestlé announced that it is joining the Bioplastics Feedstocks Alliance (BFA), along with the World Wildlife Fund (WWF) and seven consumer firms, to promote the sustainable development of biomass used to make bioplastics. Other members of the BFA include: The Coca-Cola Company, Danone, Ford, H.J. Heinz Company, Nike, P&G, and Unilever. A copy of Nestlé's press release is available online.

This week, Ford Motor Company and The Coca-Cola Company announced their efforts to use PlantBottle Technology™ from The Coca-Cola Company for the first time beyond PET packaging as part of the interior fabric of a Ford Fusion Energi plug-in hybrid research vehicle. The fabric used for seat cushions and other parts of the car is made from PlantBottle Technology and consists of up to 30 percent plant-based materials. Ford's press release on the development states that it demonstrates...

On November 18, 2013, Novozymes announced that it will "supply enzyme technology to the world's first biomass to glycols bio-refinery to be constructed by M&G Chemicals in China." The biorefinery is expected to begin operations in 2015. A copy of Novozymes' press release is available online.

On November 14, 2013, renewable chemical company, Avantium, announced that it has demonstrated that polyethylene furanoate (PEF) can be used to make fibers, and that these PEF fibers from recycled PEF bottles have been processed into 100% biobased T-shirts. In Avantium's press release, the Company's CEO described the significance of this development: "These first PEF T-shirts are yet another important step in the development and commercialization of PEF as a 100% biobased and...

On November 19, 2013, EPA's request for comment on its Draft FY 2014-2018 Strategic Plan was published in the Federal Register. In addition, according to the notice, EPA is proposing new FY 2014-2015 Agency Priority Goals. Comments are due by January 3, 2014. A copy of the notice is available online. As described in the notice, "The Strategic Plan provides the Agency's long-term direction and strategies for advancing human health and the environment." In addition, EPA has made...

This week, the non-partisan Joint Committee on Taxation released its score of S. 795, the Master Limited Partnerships Parity Act, a bi-partisan bill introduced by Senator Chris Coons (D-DE) earlier this year. The Committee estimated that the bill would cost $1.3 billion over ten years. Reportedly, Senator Coons welcomed the score and has committed to trying to find an offset or spending cut to pay for it. The Chair of the Senate Finance Committee's Subcommittee on Energy, Natural Resources...

The U.S. Department of Agriculture (USDA) has announced its Commodity Credit Corporation's (CCC) third sale of sugar this year for use as a feedstock for bioenergy production under the Food, Conservation and Energy Act of 2008 (the 2008 Farm Bill) Feedstock Flexibility Program (FFP). The minimum FFP bid has been increased to 50,000 short tons (100 million pounds) to provide the opportunity for commercial-scale sugar use in bioenergy production. The opportunity to purchase sugar under this...