Biomass Provisions in the Energy Policy Act of 2005
On August 8, 2005 President Bush signed into law the Energy Policy Act of 2005 (EPAct). Included in this Act, along with numerous incentives for the energy industry, are authorizations of activities specifically aimed at improving biomass technologies and increasing the amount of biopower, biofuels, and bioproducts used in the U.S. EPAct 2005 calls for a number of research and demonstration programs, as well as analyses and promotion activities to support biomass technologies. Responsible agencies include the Environmental Protection Agency (EPA), U.S. Department of Agriculture (USDA), U.S. Department of Energy (DOE), National Science Foundation and others. This article briefly reviews EPAct 2005 as it relates to biomass.
National Biomass Initiative Through EPAct 2005, Congress made significant changes to the Biomass R&D Act of 2000. It provides specific guidance on awards made under the Initiative. The technical areas are now focused on advanced feedstock production and harvesting, overcoming recalcitrance of cellulosic biomass, the diversification of biobased products from a biorefinery, and analysis that provides strategic guidance for biomass technologies. EPAct has increased the authorization of funding from $54 million to $200 million and includes guidance for the distribution of projects funded through the Initiative. Additionally, the Secretary of Energy is required to update the Vision and Roadmap documents.
Research & Development EPAct requires DOE to carry out projects relating to hydrogen, renewable energy, and bioenergy. Under an R&D program for the production of hydrogen, EPAct calls for projects which address the production of hydrogen from biomass and biofuels. In the area of renewable energy research, DOE shall conduct projects which look at the renewable energy technologies that help to foster cogeneration of hydrogen and electricity. Through DOE's Office of Science, EPAct calls for integrated bioenergy research and development which is required to be coordinated with the National Science Foundation. More broadly, a program for bioenergy is to be conducted. One area of research includes biorefineries for which proposals for integrated biorefinery demonstration projects should be solicited in six months or less.
Grants EPAct calls for a number of grant programs to be initiated by USDA, EPA, and DOE for bioproduct marketing, demonstrations, clean school buses, and the production of ethanol. Through USDA, grants should be made available to promote the growth and development of the bioeconomy, demonstration of pre-processing of feedstocks and efficient harvesting techniques, and for the marketing and certification of biobased products. In an RFG State with low ethanol production, grants from EPA can be used for renewable fuel production technologies. Also through EPA, grants can be awarded for programs which replace or retrofit school buses to use ethanol and biodiesel. Through DOE, a number of grant programs are to be available for:
- Rural and remote communities using biomass, landfill gas, and livestock methane,
- Facilities producing electricity, heat, or fuels from forest thinnings,
- Acquisition of alternative fuels vehicles for use at public airports,
- Creating valuable products from local, renewable biomass resources, and
- Producers of cellulosic biomass ethanol.
Demonstrations & Outreach One of the main themes of EPAct is the call for biomass technology demonstrations. At EPA, an "Advanced Biofuel Technologies Program" is to be established to demonstrate advanced technologies for the production of alternative fuels. DOE is required to establish programs which demonstrate renewable technologies in buildings, hydrogen reformed from agricultural fuels, and distributed generation using renewable sources. Additionally, DOE will fund projects which identify the optimum technology among alternative technologies and test biodiesel in advanced diesel engines. Along with the demonstration projects, USDA is to establish a program of education and outreach on biobased fuels and biobased products.
Assessments, Surveys, and Reports A number of assessments and reports are required to be submitted to Congress in the upcoming years, including:
- A yearly report from EPA on the market shares of gasoline containing ethanol.
- A report from DOE on the potential for biodiesel to be a major, sustainable alternative fuel.
- Reports on the economic potential of biomass in the U.S. and economic indicators of the biobased economy, from USDA.
- A DOE assessment of renewable energy resources.
- A yearly report from DOE detailing costs to develop renewable resources, transmission barriers of renewable references, and renewable resource assessments.
- A report detailing the effects on public health and feasibility of using substitutes for MTBE.
Incentives EPAct calls for many incentives programs, including multiple changes to the Internal Revenue Service Tax Code. To reach the goal of producing the first one billion gallons of annual cellulosic biofuels production by 2015, an incentive program will be established at DOE for the production of cellulosic biofuels. Additionally, DOE may provide loan guarantees to carry out demonstration projects for cellulosic biomass, the construction of facilities for converting municipal solid waste (MSW) into ethanol and other byproducts, demonstration projects for ethanol derived from sugarcane and bagasse, and rebates for a renewable energy system connected to a house or small business. EPAct calls for credits for vehicles capable of operating on a renewable fuel, alternative refueling stations, and investments in gasification projects converting product from biomass.
Purchasing & Production Requirements One of the most lauded sections of the EPAct contains a requirement that gasoline in the U.S. contain 4.0 billion gallons of renewable fuel in 2006 and 8.0 billion gallons of renewable fuel in 2012. Other requirements include:
- The amount of electricity the Federal Government consumes must contain 3 percent renewable energy in 2007 and shall increase to 7.5 percent in 2013.
- Dual fueled vehicles in Federal fleets shall operate on alternative fuels.
- The Capitol Complex shall procure biobased products.
Through the availability of projects to demonstrate bioenergy production, grants for increased biomass use, Federal R&D programs to work toward developing the technology to make biomass processes feasible, and requirements for the use of biobased fuels, power, and products, the signing of the Energy Policy Act of 2005 should help to increase the use of biomass technologies across the U.S.
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