How to Get to a Biofuels Future Governors’ Ethanol Coalition August 2007 Omaha, Nebraska

1. How to Get to a Biofuels FutureGovernors’ Ethanol CoalitionAugust 2007Omaha, Nebraska Ethanol From Biomass

2. Ethanol From Biomass: How to Get to a Biofuels Future Status of the the Coalition’s FY’08 Appropriations Work

3. Ethanol From Biomass: How to Get to a Biofuels Future • Last Year’s (FY’07) Appropriations Work Bears Fruit: • $385 million for six commercial scale cellulosic biorefineries: • MO, 11.4 million gallons of ethanol a year from corn stover and wheat straw. • FL, 13.9 million gallons of ethanol a year, as well as 6,255 kilowatts of electric power, 8.8 tons of hydrogen, and 50 tons of ammonia each day from food waste, and wood waste. • CA, 19 million gallons of ethanol a year from 700 tons a day of sorted green and wood waste from adjacent landfill. • IA, 30 million gallons of ethanol a year from combined cellulosic and corn starch ethanol plant (combined production of 125 million gallons a year). • ID, 18 million gallons of ethanol a year from 700 tons per day of wheat straw, barley straw, corn stover, switchgrass, and rice straw. • GA, 40 million gallons of ethanol and 9 million gallons of methanol a year from 1,200 tons a day of wood residue and wood based energy crops. • $200 million for ten small-scale cellulosic demonstrations to be selected this year. • $375 million for three genomics biofuel research centers established at Oak Ridge National Lab; University of Wisconsin; and Lawrence Berkeley National Lab.

4. Ethanol From Biomass: How to Get to a Biofuels Future Status of the Coalition’s Biofuel Policy Implementation Work RFS Implementation • On track, no significant implementation issues. Reverse Auction Cellulosic Production Incentive • Statute allows first auction after August 2008, $100 million authorized, not more than 25 percent of each auction for any one facility, multi-year awards unlikely, Administration request and Congressional support for $5 million in FY’08. • DOE held stakeholder input meeting on August 16, 2007; Coalition supported making existing and planned demonstrations eligible. Biofuels Trust Fund “royalty holiday” Concept • Growing Congressional support for use of certain oil royalty funds for ARPA-e, newly established federal energy commercialization entity. Consensus that ARPA-e will focus significant resources on breakthrough biofuels research.

5. Ethanol From Biomass: How to Get to a Biofuels Future Status of the the Coalition’s Biofuel Policy Implementation Work Infrastructure • No progress in obtaining specific appropriations for the City-to-Region Initiative. Need to build consensus of stakeholders later this year. • Significant progress in the House energy bill which contains a new ethanol infrastructure development program with the Coalition’s recommended elements. • Senate Infrastructure Hearing: Coalition testimony supported regional analysis and City-to-Region strategy; ongoing national infrastructure activities; and research and testing on intermediate blends.

6. Ethanol From Biomass: How to Get to a Biofuels Future Adoption of the Coalition’s 2007 Recommendations Recommendations and Status: • 1) Expanded RFS with cellulosic portion beginning in 2012; • Status. Included in Senate energy bill, House amendment withdrawn; definition and schedule refinement to occur in conference; probability of passage unclear. • 2) Cellulosic ethanol production tax credit • Status. Included in House energy bill tax provisions at $0.50 a gallon; probability of tax package moving in conference likely, but unclear. • 3) Higher-blend ethanol infrastructure development. • Status. Infrastructure development programs in both House and Senate energy bills; House bill provisions closer to Coalition recommendations, differences to be settled during conference.

7. Ethanol From Biomass: How to Get to a Biofuels Future Near-Term Implementation Actions: • Achieve inclusion and refinement of expanded RFS and cellulosic ethanol production tax credit in conference of House and Senate energy bills, as well as adoption of House infrastructure program elements. • Overcome issues that could lead to a potential Presidential veto of a final Energy Bill and FY’08 appropriations bill. • Continue to Advance Farm Bill recommendations.

8. Ethanol From Biomass: How to Get to a Biofuels Future New Policy Development and Implementation Actions: • Launch Low Carbon Fuel Study: • Assess and communicate results of study, • Consider low carbon fuel policy options • Initiate stakeholder input meetings on infrastructure expansion. • Prepare briefing reports on such key ethanol issues as: efficiency of water use in ethanol production; food and fuel facts; and overcoming entrenched energy objections to biofuels. • Initiate FY’09 appropriations strategy in support for DOE’s Biomass Program, DOE’s Genomes to Life, and Infrastructure development. • Improve coordination of state, federal, and industry activities to leverage resources and expedite delivery of biofuels. • Implement and Build on adopted Farm Bill recommendations. • Engage in establishing and supporting funding for ARPA-e biofuels work.

9. Ethanol From Biomass: How to Get to a Biofuels Future More Information: David Terry Governors’ Ethanol Coalition Washington, DC Phone: 703-395-1076 Email: DTerry@StatelineEnergy.org