U.S. policy instability chills funding for biofuels: BIO
By Cindy Macdonald
The new methodology used by the U.S. Environmental Protection Agency for setting annual Renewable Fuel Standards continues to chill investment in advanced biofuels, the Biotechnology Innovation Organization (BIO) finds in a new analysis. The organization says investment patterns clearly demonstrate that EPA is sending a sustained market signal that disincentivizes advanced biofuels, causing a $22.4 billion shortfall in necessary investment.
Brent Erickson, executive vice-president of BIO’s Industrial & Environmental Section, states:
“EPA recognizes that its delays in rulemaking from 2013 to 2015 undercut investment in advanced biofuels. The agency fails to recognize, however, that its methodology – including in the newly proposed 2017 rule – also undercuts investment in advanced biofuels. Data on investment in the biofuel sector bears out that EPA’s methodology has forced producers to consolidate investment in conventional biofuel production capacity and distribution infrastructure, while sacrificing investment in advanced.”
Erickson continues: “Following yet another year of policy instability, BIO now estimates that EPA’s rulemaking delays, unwarranted expansion of its waiver authorities, and methodology for setting annual RVOs has caused a $22.4 billion shortfall in investment in advanced biofuels.”
The report is available for download here.
BIO is a trade association representing biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations.