Regulatory Approval Slows Biofuel Innovation

According to new law professors, regulatory hurdles are preventing the commercialization of emerging liquid biofuels. University of Illinois law professor Jay P. Kesan and Timothy A. Slating, a regulatory associate with the University of Illinois Energy Biosciences Institute, argue that regulatory innovations are needed to keep pace with technological innovations in the biofuels industry. Both authored a paper that focussed on biobutanol, an emerging biofuel with the potential to be a viable alternative to petroleum-based fuels. According to Kesan, it’s not clear that the U.S. can meet all the renewable fuel mandates required under the Renewable Fuel Standard.

“Congress has all these mandates on the billions of gallons that need to be made available for sale,” he said. “For example, by 2022, we have a mandate for 21 billion gallons of advanced biofuel. By definition, advanced biofuel excludes corn ethanol, so we have to come up with other fuels to close the gap. Biobutanol might be the way to do that.”

Kesan and Slating note that under existing regulations, biobutanol can lawfully be blended with gasoline in a concentration of roughly 11.5 to 12.5 percent by volume, depending on the density of the finished fuel. Regulations also provide a mechanism whereby fuel manufacturers can seek a fuel waiver from the U.S. Environmental Protection Agency to allow higher blending limits than current regulations allow. But according to the authors, this is currently a very onerous process. While it might be legal to blend 16 to 17 percent biobutanol with ordinary gasoline based on pre-existing waivers granted in the 1980s, there is a great deal of uncertainty as to whether the EPA would allow this. A fast-track review process should also be created for new fuel waivers relating to emerging biofuels that have been designated as compliant with the Renewable Fuel Standard, the authors argue. Check out the paper for more info; the research will be published in a forthcoming issue of the Wisconsin Law Review.