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Regulatory hurdles hinder biofuels market
CHAMPAIGN, Ill. energy security, reducing greenhouse gas emissions and serving as a driver for rural economic development, according to new research at the University of Illinois.
In the study, U. of I. 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.
Getting regulatory approval for new biofuels is currently a timeconsuming and costly process, said Kesan, who is also the program leader of the Biofuel Law and Regulation Program at the Energy Biosciences Institute. By removing some of the uncertainty and some of the expense without compromising on the regulatory concerns, you are also removing some of the disincentives to entering the biofuel market, where we need more competition.
In the paper, Kesan and Slating focus on biobutanol, an emerging biofuel with the potential to be a viable alternative to petroleumbased fuels.
The good news for drivers: Biobutanol has a higher energy content than ethanol, meaning a car fueled with biobutanol could drive roughly 30 percent farther than if fueled with the same amount of ethanol.
Other research has shown that biobutanol is compatible with existing vehicle engines, as well as with existing fuel distribution infrastructure.
Biobutanol is a really promising biofuel, and has the potential to further the policy decisions that have already been made by Congress, Kesan said. This is not a hypothetical situation. We have companies currently building the capacity to produce biobutanol.
Kesan and Slatings study not only describes and elaborates on the effects of the federal Renewable Fuel Standard, but also on the Clean Air Acts regulatory framework for the commercialization of new fuels and fuel additives.
Since biobutanol can help us meet the Renewable Fuel Standards mandates much more quickly and effectively, it makes good economic and policy sense to line up our regulatory processes to facilitate its commercialization, said Kesan, who also holds appointments in the College of Business, the Institute of Genomic Biology, the department of electrical and computer engineering and the department of agricultural and consumer economics at Illinois. 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. Environmental Protection Agency to allow higher blending limits than current regulations allow. While it might be legal to blend 16 to 17 percent biobutanol with ordinary gasoline based on preexisting waivers granted in the 1980s, there is a great deal of uncertainty as to whether the EPA would allow this.
One of the things were suggesting is to remove this uncertainty by updating the regulations to allow higher blending limits for biobutanol, Slating said. The interesting thing here is that the EPA could actually do this on their own. The regulation that effectively sets the default blending limit for biobutanol is simply an agency interpretation of an undefined phrase enacted by Congress. Specifically, the Clean Air Act says that no fuel manufacturer can commercialize a new fuel that is not substantially similar to the fuel that the EPA uses in its emissions certification process. As Congress opted to not specify what constitutes a substantially similar fuel, the task is left to the EPAs discretion.
The permissible blending limits for alcoholbased biofuels are closely tied to the oxygen content of the finished fuel, Kesan said. In the past, the EPA has agreed that fuels containing up to a certain oxygencontent have no negative effects on engine emissions. Well, if thats the case, then lets simplify the regulations and allow all fuels to contain this level of oxygen.
If the RFS is going to achieve its goal of incentivizing the deployment of secondgeneration biofuels, then manufacturers need to be assured that there will be no unnecessary delay in the fuel waiver process, Slating said.
Since the biomass feedstocks needed to produce liquid biofuels are cultivated in rural areas, an expansion in the use of biofuels will increase demand for these biomass feedstocks and act as a driver for rural economic development, Kesan said. The facilities needed to convert these biomass feedstocks into biofuels will also likely be sited in rural areas for logistical reasons, and this too will be a boon for rural economies.