On December 19, 2007, the Energy Independence and Security
Act (EIS) of 2007 was signed into law.

This comprehensive energy legislation amends the Renewable Fuels Standard (RFS) signed into law in 2005, growing the total renewable fuels standard to 36 billion gallons per year in 2022 including 16 billion gallons in cellulosic biofuel. The recent explosive growth of biorefineries in the U.S. is based primarily on corn to ethanol plants and is due in large part to the direct intervention of the Federal government. Fuel price subsidies, tax incentives and a mandate to remove MTBE as a gasoline additive have enabled the industry to add capacity at an impressive rate. However, with the price of corn increasing to over $4/bushel and the demand for ethanol stalling, the ability of the biofuel industry to sustain itself-even with the subsidies-is being questioned.

Under a contract valued at up to $6.2 million, R. W. Beck is leading a team that will review and oversee a select set of advanced cellulosic derived transportation fuel projects for the U.S. Department of Energy (DOE). Ceullulosic projects are being developed because, in contrast to corn, cellulosic material is a non-food source that is typically derived from agricultural or forest waste and is available at a lower price than conventional corn. The review will confirm that design, construction, and performance specifications have been met on the selected projects and that each remains on track to becoming an independently viable, subsidy-free facility - supporting long-term DOE goals for bioindustry development.

The contract was awarded on behalf of the DOE Office of Energy Efficiency and Renewable Energy's (EERE) Biomass Program by the Golden Field Office in Colorado. In cooperation with subcontractor firm Harris Group Inc., R. W. Beck will provide the DOE with independent engineering analysis including the oversight and review of these commercial and demonstration scale biorefinery projects.

"Having evaluated the technical and financial readiness of a full spectrum of biomass and energy facilities - as related to market, technology and financial risk - our project team is well prepared to assess the ability of these proposed facilities that will utilize leading edge technology and operate profitably" said Carol Babb, R. W. Beck Project Manager.

The Biomass Program is focused on developing biofuel, bioproduct and biopower technologies and supports key priorities of the EERE Strategic Plan, including the establishment of a domestic bioindustry. The signing of the Energy Independence and Security Act of 2007 is a significant step toward developing a successful biofuel industry. EIS includes $500 million in grant money available annually to help fund the development of celluosic technologies and other DOE projects through the year 2015.

For more information on this project and other R. W. Beck expertise, please contact:

Contact:
Keith Platte
Vice President Global Asset Consulting
PH 303.299.5268
email