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Future of Bioenergy: National Overview of Energy Initiatives for Agriculture and Forestry

Future of Bioenergy: National Overview of Energy Initiatives for Agriculture and Forestry. August 31, 2005 University of Georgia Stephen A. Smith, DVM Executive Director Southern Alliance for Clean Energy. Who We Are.

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Future of Bioenergy: National Overview of Energy Initiatives for Agriculture and Forestry

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  1. Future of Bioenergy: National Overview of Energy Initiatives for Agriculture and Forestry August 31, 2005 University of Georgia Stephen A. Smith, DVM Executive Director Southern Alliance for Clean Energy

  2. Who We Are Southern Alliance for Clean Energy (SACE) has been a leading voice for energy reform to protect the quality and beauty of our region's natural resources for more than 20 years. SACE is a 501 (c) (3) not-for-profit, non- partisan organization that has five offices throughout the region and promotes responsible energy choices that solve global warming problems and ensure clean, safe and healthy communities throughout the Southeast.

  3. Overview of Presentation • 2002 Farm Bill, Title IX: Energy • Energy Policy Act of 2005: Agriculture & Forestry Incentives • Path Forward/ Future Policy Initiatives • 2007 Farm Bill • Carbon/Climate Legislation • Renewable Fuel & Renewable Energy Standards

  4. 2002 Farm Bill, Title IX Energy Section 9006: Energy Systems & Energy Efficiency Improvements Program • Cornerstone of the Energy Title of the Farm Bill • Provides loans, loan guarantees, and grants to farmers, ranchers, and rural small businesses to: • support renewable energy and energy efficiency projects in rural America • help farmers, ranchers and rural small businesses reduce energy costs and consumption and help the nation meet its energy needs • stimulate rural economic development by helping create new sources of income, new jobs, and new uses for agricultural products and wastes

  5. Section 9006: Success Stories Congress provided $23 million to fund the program in each FY 2003, 2004 and 2005. In the first two years of the program, 278 grants were awarded to farmers and rural small businesses in 26 states to support innovative projects ranging from wind turbines and anaerobic digesters to energy efficiency investments in poultry houses.

  6. 2002 Farm Bill: Energy Title Additional (funded) sections that relate to biomass include: • Section 9002 - Federal Procurement of Biobased Products • Section 9008 - Biomass Research and Development • Section 9010 - Continuation of Bioenergy Program For more information on these programs, see http://www.rurdev.usda.gov/rbs/coops/vadg.htm.

  7. “Energy Policy Act of 2005” Agriculture/Forestry Provisions A number of grants, credits, loan guarantees, incentive payments and federal mandates comprise several portions of the Energy Bill that are relevant to the production of biopower, biofuels, and bioproducts.

  8. Biopower • Extension and modification of renewable electricity production credit (Sec. 1301) • Renewable energy production incentive (Sec. 202) • Federal purchases (Sec. 203) • Electricity from renewable energy resources on public lands (Sec. 211)

  9. Biofuels There are numerous provisions in the 2005 Energy Bill to increase use of biofuels, including biodiesel, that will: • Enhance our nation’s security by reducing dependency on foreign oil • Strengthen the Southeastern agricultural economy • Reduce the negative impact of diesel air emissions to public health • Help slow global warming

  10. Biofuels & Bioenergy Initiatives • Renewable diesel & small agri-biodiesel producer credit (Sec 1345 and Sec. 1346) • Renewable content of gasoline (Sec. 1501)

  11. Biofuels & Bioenergy Initiatives • Grants to improve the commercial value of forest biomass for electric energy, useful heat, transportation fuels, and other commercial purposes (Sec. 210) • Integrated biorefinery demonstration projects program and university biodiesel program (Sec. 932). • Amendments to the Biomass Research and Development Act of 2000 (Sec. 941) including regional bio-economy development grants (Sec. 945)

  12. Biofuels & Bioenergy Initiatives • Renewable fuel production research and development grants (Sec. 1511) • Cellulosic biomass ethanol conversion assistance grants • Conversion assistance for cellulosic biomass, waste-derived ethanol, and approved renewable fuels

  13. Biofuels & Bioenergy Initiatives • Commercial byproducts from municipal solid waste and cellulosic biomass loan guarantee program (Sec. 1510) • Cellulosic Biomass Ethanol and Municipal Solid Waste Loan Guarantee (Sec. 1511) • Loan Guarantees for Innovative Technologies (Sec. 1701-1704), including: • Renewable energy systems • Carbon capture and sequestration practices and technologies, including agricultural and forestry practices that store and sequester carbon

  14. Biofuels & Bioenergy Initiatives Loan Guarantees for Innovative Technologies (cont.) • includes technologies such as integrated gasification combined cycle (IGCC) projects fueled, in part, by biomass sources • allows for ‘fuel flexibility,’ which is something for agriculture and forestry interests to take advantage of (e.g. paying attention to electricity generating technologies that may be able to use biomass sources as a portion of their fuel supply, in contrast to nuclear power technologies--which is also listed as an ‘innovative technology’)

  15. Bioproducts/hydrogen/others • Education and outreach (Sec. 203) • Advanced biofuel technologies program (Sec. 1514) • Biodiesel Engine Testing Program

  16. The Path Forward • 2007 Farm Bill • Carbon/Climate Legislation • Renewable Fuel Standard • Renewable Energy Standard

  17. 2007 Farm Bill: What’s in store? Preliminary work has already started A series of Farm Bill forums have been held across the country and discussions will continue USDA will develop recommendations for the new farm bill and wants public input • developed a series of questions for concerned interests to comment on by December 30, 2005 • to comment, go to www.usda.gov

  18. “The 2007 Farm Bill will affect America’s entire agricultural community, so I believe our entire agricultural community should have a say in the process. I welcome input from across the nation about what is working and what we can do to improve farm policy.” -- Mike Johanns, Secretary of Agriculture

  19. Climate Legislation Farmers can store carbon in soils and plants, and produce fuels and electricity from wind, biomass, and animal waste to lessen fossil fuel use. Farm & forestry policies should encourage these practices.

  20. Carbon / Climate Legislation Climate Stewardship Act - McCain/Lieberman • CSA did not regulate agriculture and forestry, instead offering a voluntary ‘opt-in’ to the national carbon marketplace as sellers (up to 15% offsets limit). • Original CSA was altered and became the Climate Stewardship & “Innovation” Act (CSIA), which DID NOT PASS as an amendment to the national energy bill “Sense of the Senate” Resolution - PASSED • recognizes the reality of global warming • the need for action • the need for mandatory policies to address the problem

  21. Carbon / Climate Legislation Asia-Pacific Partnership on Clean Development: • Bush Administration announced formation of partnership in July 2005 • Includes the United States, Australia, China, India, Japan, and South Korea • To focus on “voluntary practical measures that will help each country meet nationally designed strategies for improving energy security, reducing pollution, and addressing the long-term challenge of climate change.”

  22. Carbon / Climate Legislation Carbon Sequestration Opportunities & Benefits • Measures to protect, restore, and sustainably manage forests offer significant climate change mitigation potential • Forest-based measures can be an effective complement to abatement options focused on fossil fuel emissions • Properly designed and implemented, forest and land-use measures to mitigate climate change can result in other social and environmental benefits • Promoting rural employment & economic development • Protecting biodiversity • Preserving or improving watersheds

  23. Establishing a Renewable Fuel Standard “The American Soybean Association (ASA) and National Biodiesel Board (NBB) applaud the Senate for passing an Energy Bill today containing important biodiesel provisions. The Senate Energy Bill extends the biodiesel tax incentive through 2010, which was the soybean and biodiesel industry's No. 1 legislative priority. It also creates a Renewable Fuels Standard (RFS) requiring the use of 8 billion gallons of renewable fuels, like biodiesel and ethanol, by 2012.” -- From June 28, 2005 Press Release of ASA & NBB

  24. Renewable Fuel Standard in Energy Bill • Renewable Fuel Standard (RFS) establishes a renewable fuel content requirement for the nation’s fuel pool • mandates 7.5 billion gallons of renewable fuels by 2012 • ethanol is the primary focus, but biodiesel is also defined as an eligible renewable fuel • RFS also establishes a compliance credit trading program • EPA Administrator is tasked with promulgating the implementing regulations, including appropriate credits for biodiesel

  25. Establishing a Renewable Energy Standard (RES) • Final Energy Bill did not include proposals for a Renewable Energy Standard that would have required 10% of America's energy to be produced by renewable sources by 2020 • However, 18 individual states have now passed very successful Renewable Energy Standards • Database of State Incentives for Renewable Energy (DSIRE) is a comprehensive source of information on state, local, utility, and selected federal incentives that promote renewable energy: http://www.dsireusa.org/

  26. Thank You! By working together to support energy legislation & energy policies that promote renewable energy supplies we can increase America’s energy security, save consumers money, promote economic development, and reduce pollution. Contact Information: Dr. Stephen Smith, DVM Executive Director, Southern Alliance for Clean Energy (865) 637-6055, x 12 www.cleanenergy.org

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