Expanding Biofuel Production and the Transition to Advanced Biofuels Lessons for Sustainability from the Upper Midwest: Summary of a Workshop (2010) / Chapter Skim
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Appendix D: Brief Survey of State Biofuel Policies in the Upper Midwest
Appendix D: Brief Survey of State Biofuel Policies in the Upper Midwest
Pages 101-116
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From page 101... ...
New policies will likely be necessary to ad dress emerging questions about the economic, environmental, and social impacts of current biofuels and to support a transition to more sustainable advanced biofuels.
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From page 102... ...
But the transition to large scale commercial advanced biofuels production is still some years away. 2 POLICY IMPLICATIONS OF BIOFUELS Policies to promote the use of biofuels have lowered the cost to producers of entering the market and encouraged increased consumption of biofuels as an 1 Fuel Ethanol and Biodiesel Overview, 1981-2007.
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From page 103... ...
BIOFUELS DEPLOYMENT IN IOWA, MINNESOTA, AND WISCONSIN The Upper Midwest has emerged as the largest source of ethanol production in the country. Three states in particular have embraced the potential benefits of biofuels and deliberately bolstered support of biofuel production over the past 30 years.
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From page 104... ...
7 Iowa has mandated that vehicles sold in-state be operable on gasoline blended with at least 10 percent ethanol or more since 1993 and recently passed a RFS mandat ing 10 percent renewable blends in all gasoline starting in 2009 increasing to 25 percent in 2020.8 STATE BIOFUELS POLICY: DRIVERS AND TOOLS Originally, biofuels policies like the Minnesota blending requirement were introduced by state legislators who saw significant direct benefits to their local constituents or customers. More recently, governors of these states have played a bigger role by proposing renewable fuel mandates like Minnesota's biodiesel blending mandate of B2 (2 percent biodiesel in diesel fuel)
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From page 105... ...
f State- Low to 0 percent interest loans backed Low-interest state loans from the Minnesota backed Loan by up to 50 percent public funding to Investment Fund (MN OLA 2009) g Programs renewable energy production facilities up to max of $250,000 (Koplow 2006)
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From page 106... ...
2009. "Iowa's Tax Incentive Programs Used by Biofuel Producers Tax Credits Program Evaluation Study." Iowa Department of Revenue.
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From page 107... ...
Iowa and Minnesota both established renewable fuels standards requiring increasing percentages of ethanol and biodiesel contained in the states' transportation fuels. Wisconsin has used a combination of a very successful producer payment program with other diverse tax credits and renewable energy loan programs to cultivate its biofuel economy.
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From page 108... ...
The governor has also used Executive Order numbers 141 and 192 to promote the use of renewable fuels in state fleet vehicles and to require the use of 25 percent renewably sourced energy for power and transportation by the year 2025. One loan program, called the Freight Railroad Infrastructure Im provement Program is intended to expand freight capacity for biofuels and other products, has distributed $13.5 million for ethanol plants.
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From page 109... ...
The EISA 2007 mandates the use of 950 million gallons of biomass-based fuel in the United States in 2010.18 Some advanced biofuels policies have been proposed or passed at the state level, but at substantially lower levels of support. In 2007, Minnesota began creating a program called Reinvest in Minnesota -- Clean Energy that proposed using land easements to support the conversion of agricultural land into dedicated cellulosic energy crops.
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From page 110... ...
If policy makers decide that achieving improvements on these impacts is important, the environmental, economic and social impacts must be considered in crafting appropriate advanced biofuels policies. ANNEX D STATE POLICIES AND PROGRAMS INFLUENCING BIOFUELS DEVELOPMENT Minnesota Tax Credits A
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From page 111... ...
26 B Investment Tax Credit Iowa has a few general business development investment tax credit programs that are used significantly by biofuel production facilities.
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From page 112... ...
2009. "Iowa's Tax Incentive Programs Used by Biofuel Producers Tax Credits Program Evaluation Study." Iowa Department of Revenue.
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From page 113... ...
Equivalent of 25 percent of all gasoline sales must come from renewable sources [either 10 percent or 85 percent ethanol blends (E10, E85) , or biofuel that is 1 percent biodiesel by volume (B1)
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Energy Independence Fund Renewable energy grants and loans for up to 50 percent of project costs. $7.5 million awarded in 2008 totaling 22 projects.
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From page 115... ...
Extensive advanced biofuels legislation introduced in the Assembly providing financial assistance to the use of bioenergy feedstocks, biore fineries, and biomass energy, and providing some tax credits for the use of renewable fuels. AB-408/SB-27940 (Office of Energy Independence 2009, personal communication)
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