Passage of the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007 (EISA) established and subsequently expanded the country's national commitment to renewable fuels through the creation of a volume-based renewable fuel mandate — the Renewable Fuel Standard (RFS). In addition to increasing the volumes utilized under RFS, EISA requires a life-cycle analysis on the different classifications of renewable fuels for eligibility. As the U.S. Environmental Protection Agency (EPA) continues to implement the RFS, questions are being raised over its effectiveness in driving technology commercialization, the transportation sector's ability to utilize the volumes of ethanol being produced and liability concerns surrounding the introduction of new fuel blends, as well as the secondary impacts on the industries that rely on crops being diverted to biofuel production.
The industry also faces uncertainty as Congress continues to struggle with long-term extensions of the federal tax incentives aimed at advancing the development of more efficiency and cleaner fuels. While Congress allowed the corn ethanol tax incentives to expire, supporters are actively pursuing a number of other tax policies, such as master limited partnerships. The uncertainty of this current environment poses significant threats and opportunities to those operating in or entering into this industry.
In addition to the ongoing debate on biofuels, numerous other technologies are competing for increased roles in the transportation fuel sector. Electrification, natural gas, methanol, hydrogen and fuel cells all present unique opportunities and challenges, and their supporters and detractors are active in Washington debating their place in our transportation future. How these issues are decided will have lasting impacts not only on the transportation sector, but on our environment, national security and the economy as well.
FaegreBD Consulting's energy and environment practice has extensive experience with the issues surrounding renewable and alternative fuels. Whether the issue revolves around federal tax incentives, regulatory issues or trade implications, our team's experience in working with key decision-makers in Congress, federal agencies and industry trade associations has given us a comprehensive understanding of the policy issues.
Recent examples of our experience include: