Legislative Update – Advanced Renewable Fuels
The Congress is developing new proposals for alternative fuels that should lead to a breakthrough for waste-to-alternative fuel process. On the Senate side there is S.1419, the Renewable Fuels, Consumer Protection and Energy Efficiency Act of 2007. In Title I, Biofuels For Energy Security and Transportation, there is a new Renewable Fuels Standard (mandates refinery purchases) proposed that has significant meaning for us. One indication is the realization that the cornstarch ethanol process has a maximum possible U. S. capacity in the 5 million bushel range with a production maximum of 15 billion gallons of ethanol, recognizing an absolute limit of corn based ethanol. With the corn-based plants in operation and those realistically planned for construction, the U. S. capacity is almost reached, even today. The second indication is the new definition of “Advanced Renewable Fuel” that is established as derived from renewables other than cornstarch and includes waste materials. Included in this category is “diesel equivalent fuel.” The Senate version mandates building Advanced Renewable Fuels to 21 billion gallons annual production.
It is clear there is significant motivation in both the Senate and House to promote GTL process of producing alternative fuels.
