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Rural America’s vital energy role
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06/15/09 01:39 PM ET
It is no secret that reducing our dependence on fossil fuels is a top priority of President Obama’s. But not everyone knows that he believes the road to energy independence runs through rural America.
President Obama and I share a common vision that our nation’s farmers, ranchers, forest owners and rural communities should lead the way in creating a new-energy economy and producing more of our nation’s power through renewable sources. Right now we have the unique opportunity to spur economic development, improve our environment, and create jobs domestically by replacing our dependence on fossil fuels with energy-efficient biofuels.
USDA is committed to ensuring that rural America leads this effort. In early May, President Obama issued a directive that we aggressively accelerate the investment in and production of biofuels. He set a deadline for the USDA to implement all the energy provisions of the 2008 Farm Bill, which target hundreds of millions of dollars toward developing this renewable energy source. I am proud to report that last week we met that ambitious goal.
These Farm Bill programs offer loan guarantees and grants for the development, construction, and retrofitting of commercial-scale biorefineries. They will make existing biofuel production more energy-efficient by offering funding to replace the use of fossil fuels in biorefinery plant operations with biomass energy systems. And they encourage production of next-generation biofuels from cellulose, farm waste, biomass and other non-corn feedstocks.
But these investments alone will not develop the required markets, secure transport, and distribution of biofuels that will be required to create a permanent industry. That is why the president formed the Biofuels Interagency Working Group as a partnership between USDA, the Department of Energy and the Environmental Protection Agency — an unprecedented, coordinated effort to increase America’s energy independence and spur rural economic development through biofuels market, technology and infrastructure improvements.
The Biofuels Interagency Working Group will also work to develop policies to increase flexible-fuel vehicle use and assist in retail marketing efforts while taking a broad view of how to strengthen rural communities.
USDA is also investing funds from the American Recovery and Reinvestment Act into renewable energy solutions. Last week USDA announced $57 million in Recovery Act funding for wood-to-energy and biomass utilization programs located in 14 states. These projects will promote the development of biofuels from wood and help private-sector businesses to establish renewable energy infrastructure and turn residues from forest restoration activities into marketable energy products.
It goes without saying that these are difficult times for the biofuels industry: Oil prices are well below their 2008 peak, input costs have soared unpredictably and the economic downturn has decreased consumption. However, it is critical that we maintain the renewable fuel capacity that we have already built as we support the transition to second- and third-generation biofuels. That is why the president also directed me to immediately begin restructuring existing investments in renewable fuels to preserve jobs in ethanol and biodiesel plants, renewable electricity generation plants, and supporting industries.
When I was the governor of Iowa I worked to make the state a leader in renewable energy production through smart incentives, investments and the creation of a financial and regulatory climate where a new energy sources could thrive. Today, wind energy makes up 5.5 percent of the state’s generation and the state is the largest producer of biofuels in the nation with capacity of more than 3.1 billion gallons annually. With this coordinated national approach, I know that we can do even better in communities and states across America.
Here at USDA we understand that our dependence on foreign oil is both a national security and climate change issue. Our nation cannot continue to ignore these challenges and kick the can down the road for the next generation. But more importantly, we must use this moment to set our nation on a new course and to embrace biofuels as an opportunity. As USDA and the Obama administration work to create a clean energy industry here at home we will protect our national security interests, improve our environment, and foster economic opportunities to strengthen our rural communities.
President Obama and I share a common vision that our nation’s farmers, ranchers, forest owners and rural communities should lead the way in creating a new-energy economy and producing more of our nation’s power through renewable sources. Right now we have the unique opportunity to spur economic development, improve our environment, and create jobs domestically by replacing our dependence on fossil fuels with energy-efficient biofuels.
USDA is committed to ensuring that rural America leads this effort. In early May, President Obama issued a directive that we aggressively accelerate the investment in and production of biofuels. He set a deadline for the USDA to implement all the energy provisions of the 2008 Farm Bill, which target hundreds of millions of dollars toward developing this renewable energy source. I am proud to report that last week we met that ambitious goal.
These Farm Bill programs offer loan guarantees and grants for the development, construction, and retrofitting of commercial-scale biorefineries. They will make existing biofuel production more energy-efficient by offering funding to replace the use of fossil fuels in biorefinery plant operations with biomass energy systems. And they encourage production of next-generation biofuels from cellulose, farm waste, biomass and other non-corn feedstocks.
But these investments alone will not develop the required markets, secure transport, and distribution of biofuels that will be required to create a permanent industry. That is why the president formed the Biofuels Interagency Working Group as a partnership between USDA, the Department of Energy and the Environmental Protection Agency — an unprecedented, coordinated effort to increase America’s energy independence and spur rural economic development through biofuels market, technology and infrastructure improvements.
The Biofuels Interagency Working Group will also work to develop policies to increase flexible-fuel vehicle use and assist in retail marketing efforts while taking a broad view of how to strengthen rural communities.
USDA is also investing funds from the American Recovery and Reinvestment Act into renewable energy solutions. Last week USDA announced $57 million in Recovery Act funding for wood-to-energy and biomass utilization programs located in 14 states. These projects will promote the development of biofuels from wood and help private-sector businesses to establish renewable energy infrastructure and turn residues from forest restoration activities into marketable energy products.
It goes without saying that these are difficult times for the biofuels industry: Oil prices are well below their 2008 peak, input costs have soared unpredictably and the economic downturn has decreased consumption. However, it is critical that we maintain the renewable fuel capacity that we have already built as we support the transition to second- and third-generation biofuels. That is why the president also directed me to immediately begin restructuring existing investments in renewable fuels to preserve jobs in ethanol and biodiesel plants, renewable electricity generation plants, and supporting industries.
When I was the governor of Iowa I worked to make the state a leader in renewable energy production through smart incentives, investments and the creation of a financial and regulatory climate where a new energy sources could thrive. Today, wind energy makes up 5.5 percent of the state’s generation and the state is the largest producer of biofuels in the nation with capacity of more than 3.1 billion gallons annually. With this coordinated national approach, I know that we can do even better in communities and states across America.
Here at USDA we understand that our dependence on foreign oil is both a national security and climate change issue. Our nation cannot continue to ignore these challenges and kick the can down the road for the next generation. But more importantly, we must use this moment to set our nation on a new course and to embrace biofuels as an opportunity. As USDA and the Obama administration work to create a clean energy industry here at home we will protect our national security interests, improve our environment, and foster economic opportunities to strengthen our rural communities.
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