Biofuels: A Good Fuel from the Bad & the Low-Carbon

Biofuels: The Good, the Bad & the Low-Carbon


Jump-Starting Michigan's Biofuels Industry

By Charles Griffith

Last summer, the Michigan Renewable Fuels Commission (RFC), appointed by Gov. Jennifer Granholm, issued a broad set of recommendations intended to help jump-start the next-generation fuels industry within the state.

As a member of that Commission, I believe there are three key recommendations that deserve highlighting from an environmental perspective. These include: 1) the development of a low-carbon fuel strategy for renewable fuels; 2) the establishment of a next-generation renewable fuels feedstock program; and 3) the creation of a "Green Retailers" program for encouraging retail renewable fuel sales.



A Low Carbon Fuel Standard, such as the one now being developed in California, is a good way to approach biofuels. The policy requires that fuels contain decreasing amounts of carbon based on their lifecycle greenhouse gas emissions. The lifecycle approach looks at the greenhouse gas emissions of the fuel from production to delivery, which includes direct land use changes resulting from fuel crop planting and protections for sensitive lands. A low-carbon standard avoids preference of one fuel over another, and allows the market to choose the most efficient combination of fuels and technologies that will meet a declining standard for the permitted carbon content. This performance-based approach would create a strong market for Michigan-based, cellulosic fuels and could even provide a boost to plug-in hybrid vehicles being developed by General Motors and others.



A complementary policy to speed up the production of new feedstocks for low carbon fuels in the state would provide farmers, the forestry industry, and others with incentives to transition to growing next-generation energy crops. A comprehensive incentive package recommended by the Commission includes payments to landowners who produce dedicated energy crops sustainably; tax incentives or loan guarantees for the purchase of new equipment; and research and technical assistance. By ensuring that biofuels are grown sustainably, and used to rebuild soil in marginal agricultural areas or to provide a sustainably harvested wood crop, Michigan could set a leadership path that other states would want to follow.



Finally, a "Green Retailers" program would ensure a growing market for renewable fuels in the state by helping to establish a fuel infrastructure for E85 and biodiesel that is currently lacking. The program would work by rewarding retail and wholesale outlets that sell a certain percentage of renewable fuels with a tax rebate. Ideally, such a program would be funded through a small tax increase on conventional petroleum fuels, thus providing further incentives for low-carbon fuels grown here in Michigan.



Lansing policymakers are now beginning to consider legislation to address the Renewable Fuels Commission's recommendations. Given the current interest and debate about the future of biofuels (see "Biofuels Boom Hits Bump in the Road"), the Michigan Legislature has a golden opportunity and a leadership moment.



Our political leaders can and should make a strong push to position our agricultural and auto industries to capture the market for low-carbon, environmentally sustainable fuels of the future. Michigan will have to move fast, however, since other states are already considering many of the policies outlined here.



Visit the Sustainable Biofuels section of the Clean Car Campaign on the Ecology Center web site.