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Sugarcane Ethanol Industry Eager to Implement U.S. Renewable Fuel Standard

May 5, 2009

WASHINGTON, May 5 /PRNewswire/ — The Brazilian Sugarcane Industry
Association (UNICA) welcomed today’s White House announcement that the
Environmental Protection Agency (EPA) will finally publish proposed rules to
implement the Renewable Fuel Standard (RFS). UNICA confirmed that it would
submit formal, detailed comments to the EPA in coming weeks.

UNICA President & CEO Marcos Jank said from Brazil that his organization
is pleased with the decision of the Obama Administration, after months of
deliberation, to let the EPA publish its draft rules to implement the 36
billion gallon biofuel standard. “Sugarcane ethanol has a verifiable reduction
in greenhouse gases of 90% compared to gasoline, which makes it an ‘Advanced
Biofuel’ under RFS guidelines,” adds Jank.

Last week, the White House completed its review of the EPA proposed rules
to implement the new RFS and allowed publication of the draft regulations for
public comment during a 60-day period. The RFS was originally created by the
U.S. Congress in 2005 but was expanded in December of 2007.

The new RFS, which the proposed EPA rules would implement, requires not
only greater volumes of renewable fuels (36 billion gallons by 2022) but also
that renewable fuels meet a minimum level of reduction in greenhouse gas
emissions, ranging from 20% to 60%. However, apparently without the knowledge
of many members of Congress, the 2007 legislation determined that new RFS
regulations must include so-called market-mediated effects of expanded
biofuels production.

“As evidenced by the recent debate over the Low Carbon Fuel Standard in
California, biofuels are greatly penalized by these preliminary calculations,”
said UNICA Chief Representative in Washington Joel Velasco, who was in
Sacramento for the final vote by the California Air Resources Board (CARB).
“We know sugarcane ethanol has the lowest carbon emissions of any liquid
biofuel produced today. California recognized as much in its Low Carbon Fuel
Standard. We are certain that when the EPA considers the best available data
and research, these indirect land use effects from sugarcane cultivation in
Brazil will be marginal at best,” Velasco concluded.

In the Notice of Proposed Rule released on the EPA’s website today, the
agency committed to conduct peer-reviews of key components of its analysis. In
addition, the EPA stated that, based on initial analysis of recent research,
even including indirect land use effects, sugarcane ethanol produced in Brazil
would produce a 64% lifecycle GHG emissions reduction compared to gasoline.

In comments submitted to CARB, the Brazilian Sugarcane Industry
Association pointed out that cane ethanol’s carbon intensity is even lower
than initially calculated by the state regulator. Though sugarcane ethanol was
found to be the lowest carbon intensity liquid fuel currently evaluated, UNICA
argued in a 25-page letter to CARB that any realistic evaluation of carbon
emissions from sugarcane biofuels in Brazil must reflect the strict policies
being implemented and action already taken to increase mechanical harvesting,
phase out sugarcane straw burning and expand cogeneration output.

UNICA continues to work with California and federal regulators to improve
the accuracy of calculations. The Low Carbon Fuel Standard will reduce by 10%
the carbon intensity of all transportation fuels in California by 2020. As a
candidate, President Obama supported the adoption of a federal Low Carbon Fuel
Standard.

-See page 414 in EPA’s “Draft Regulatory Impact Analysis: Changes to
Renewable Fuel Standard Program,” available online at:
http://www.epa.gov/otaq/renewablefuels/index.htm

-UNICA’s second letter to CARB can be downloaded from:
http://www.unica.com.br/download.asp?mmdCode=50F82F75-EA2D-4BB6-8832-
B81C15EFFD8E (due to the length of the link, please copy and paste the URL
into your browser).

ABOUT UNICA

The Brazilian Sugarcane Industry Association (UNICA) represents the top
producers of sugar and ethanol in the country’s South-Central region,
especially the state of Sao Paulo, which accounts for about 50% of the
country’s sugarcane harvest and 60% of total ethanol production. UNICA
develops position papers, statistics and specific research in support of
Brazil’s sugar, ethanol and bioelectricity sectors. In 2008, Brazil produced
an estimated 565 million metric tons of sugarcane, which yielded 31.3 million
tons of sugar and 25.7 billion liters (6.8 billion gallons) of ethanol.

    MORE INFORMATION:
    CDN Corporate Communications - Sao Paulo, Brazil
    Rosa Webster - (5511) 3643 2707 / rosa.webster@cdn.com.br
    Marli Romanini - (5511) 3643 2756 / marli@cdn.com.br
    Mariane dos Santos - (5511) 3643 2730 / mariane.santos@cdn.com.br

SOURCE Brazilian Sugarcane Industry Association (UNICA)


Source: newswire



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