On DTN the reports are clearly in.... alternative energy using biomass is the next BIG bioeconomy stage.
Where are we in Canada?
Background:
USDA Plans Energy Push in 2011
Ag Secretary Wants to Boost Cellulosic, Biomass Production
Chris Clayton DTN Ag Policy Editor Dec 28
"The folks who were creating the omnibus bill thought they were limiting, not eliminating the programs," Vilsack said in an interview with DTN/The Progressive Farmer. "When they found out it was elimination they were calling for, they were rapidly scurrying back in a different direction."
BCAP has been a controversial program since USDA rolled it out in mid-2009, costing nearly $450 million in less than two years for a program originally expected to cost $70 million over five years in the 2008 farm bill. Yet, Vilsack defends the expansive scope of BCAP as a key element to ensuring every region of the country can develop renewable-energy industries.
BCAP pays farmers and forestry owners up to $45 a ton to deliver energy feedstocks to approved facilities. Further, the program also pays farmers to grow dedicated energy crops for cellulosic fuel or biomass facilities.
Vilsack acknowledged one problem right now is some frustration in Congress that second-generation biofuels haven't blossomed as lawmakers expected after they approved the 2007 energy bill that created an expanded Renewable Energy Standard pegged to a cellulosic ethanol industry. The Obama administration plans to offer another boost to the cellulosic industry early in 2011, Vilsack said.
"The goal now for us, and we're very close to making some announcements in the next month with the department, of facilities and plants we can invest in," he said. "Because right now all we have is a proof we need to get concrete, real-life plants up and running, and relationships develop between those plants and producers on the feedstocks to be able to demonstrate to Congress that this is an alternative that requires some degree of assistance and help as it grows. With oil prices going up, my sense is it will be an easier sell than it has otherwise been over the fact there is such a brouhaha over the extension of the ethanol credit and resumption of the biodiesel credit just means Big Oil and those that are attached to Big Oil have reasons to be concerned because it lessens the grip that Big Oil has on our economy."
USDA is working with the White House Office of Management and Budget to get more flexibility in USDA's rules for loan guarantees to develop cellulosic ethanol plants. Companies have lamented lately that one of the industry's biggest challenges is lack of credit.
"We are going to try to address that at the first of the year and get representative examples of potentially successful technologies in all parts of the country," Vilsack said. "Whether it's biofuels, or energy produced from biomass, we want to have examples all around the country."
A one-year extension of the current biodiesel production and ethanol blender credits gives the administration time to help work with the industry to fashion a longer-term strategy and commitment to energy incentives, he said.
"One area of focus in 2011 will be 'What do we do with this industry?' Is it time for us to shift from a reliance on a blenders' credit to a time where we might be rewarding those who put blender pumps in their gas stations or build a pipeline for infrastructure, or figuring out some way to incent Detroit and get them to stop trying to prevent EPA from increasing the fuel blend to building more of these cars that can use more ethanol."
USDA also has effectively two years to show Congress the department's energy programs are worth establishing baseline funding beyond 2012. Right now, practically none of the USDA energy programs have funding assurances after 2012. It would take about $1.9 billion over five years to extend the baseline for those programs.
Yet, USDA will also be under the gun of a Republican-led House that intends to question the science of climate change, as well as any administration program working on climate change. USDA has an office dedicated to environmental markets. Vilsack also often discusses the potential of renewable energy and carbon markets to not only reduce greenhouse-gas emissions but raise incomes in rural America.
http://www.fs.fed.us/…
Despite the perceived death of federally-approved cap-and-trade markets, Vilsack said if USDA can set up credible, verifiable market standards that will show a long impact, more markets will develop in which other industries will buy credits from farmers under state or regional programs.
"So from USDA's perspective, I don't think we necessarily need some grand plan to do very important work," he said.
Chris Clayton can be reached at chris.clayton@telventdtn.com
Where are we in Canada?
Background:
USDA Plans Energy Push in 2011
Ag Secretary Wants to Boost Cellulosic, Biomass Production
Chris Clayton DTN Ag Policy Editor Dec 28
"The folks who were creating the omnibus bill thought they were limiting, not eliminating the programs," Vilsack said in an interview with DTN/The Progressive Farmer. "When they found out it was elimination they were calling for, they were rapidly scurrying back in a different direction."
BCAP has been a controversial program since USDA rolled it out in mid-2009, costing nearly $450 million in less than two years for a program originally expected to cost $70 million over five years in the 2008 farm bill. Yet, Vilsack defends the expansive scope of BCAP as a key element to ensuring every region of the country can develop renewable-energy industries.
BCAP pays farmers and forestry owners up to $45 a ton to deliver energy feedstocks to approved facilities. Further, the program also pays farmers to grow dedicated energy crops for cellulosic fuel or biomass facilities.
Vilsack acknowledged one problem right now is some frustration in Congress that second-generation biofuels haven't blossomed as lawmakers expected after they approved the 2007 energy bill that created an expanded Renewable Energy Standard pegged to a cellulosic ethanol industry. The Obama administration plans to offer another boost to the cellulosic industry early in 2011, Vilsack said.
"The goal now for us, and we're very close to making some announcements in the next month with the department, of facilities and plants we can invest in," he said. "Because right now all we have is a proof we need to get concrete, real-life plants up and running, and relationships develop between those plants and producers on the feedstocks to be able to demonstrate to Congress that this is an alternative that requires some degree of assistance and help as it grows. With oil prices going up, my sense is it will be an easier sell than it has otherwise been over the fact there is such a brouhaha over the extension of the ethanol credit and resumption of the biodiesel credit just means Big Oil and those that are attached to Big Oil have reasons to be concerned because it lessens the grip that Big Oil has on our economy."
USDA is working with the White House Office of Management and Budget to get more flexibility in USDA's rules for loan guarantees to develop cellulosic ethanol plants. Companies have lamented lately that one of the industry's biggest challenges is lack of credit.
"We are going to try to address that at the first of the year and get representative examples of potentially successful technologies in all parts of the country," Vilsack said. "Whether it's biofuels, or energy produced from biomass, we want to have examples all around the country."
A one-year extension of the current biodiesel production and ethanol blender credits gives the administration time to help work with the industry to fashion a longer-term strategy and commitment to energy incentives, he said.
"One area of focus in 2011 will be 'What do we do with this industry?' Is it time for us to shift from a reliance on a blenders' credit to a time where we might be rewarding those who put blender pumps in their gas stations or build a pipeline for infrastructure, or figuring out some way to incent Detroit and get them to stop trying to prevent EPA from increasing the fuel blend to building more of these cars that can use more ethanol."
USDA also has effectively two years to show Congress the department's energy programs are worth establishing baseline funding beyond 2012. Right now, practically none of the USDA energy programs have funding assurances after 2012. It would take about $1.9 billion over five years to extend the baseline for those programs.
Yet, USDA will also be under the gun of a Republican-led House that intends to question the science of climate change, as well as any administration program working on climate change. USDA has an office dedicated to environmental markets. Vilsack also often discusses the potential of renewable energy and carbon markets to not only reduce greenhouse-gas emissions but raise incomes in rural America.
http://www.fs.fed.us/…
Despite the perceived death of federally-approved cap-and-trade markets, Vilsack said if USDA can set up credible, verifiable market standards that will show a long impact, more markets will develop in which other industries will buy credits from farmers under state or regional programs.
"So from USDA's perspective, I don't think we necessarily need some grand plan to do very important work," he said.
Chris Clayton can be reached at chris.clayton@telventdtn.com
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