By MEGGIE I. FOSTER
Assistant Editor WEST LAFAYETTE, Ind. — USDA Secretary Mike Johanns visited Purdue University March 21 to discuss specific bioenergy proposals in the upcoming 2007 farm bill.
“We heard during our Farm Bill Forums real excitement about renewable energy, and our proposals reflect that enthusiasm by providing $1.6 billion in new funding for renewable energy research, development and production – targeted to cellulosic ethanol, which creates fuel from switchgrass, wood chips and other biomass,” said Johanns.
“The cellulosic research being conducted is very exciting, and I’m confident we are on the right path to meet President Bush’s goal to reduce gasoline consumption by 20 percent in 10 years. Our proposals will help our nation to expand beyond corn ethanol toward cellulosic ethanol, which could be produced in virtually every state.”
The administration’s proposals recommend more than a $1.6 billion increase in renewable energy related to funding. This includes $2.1 billion in loan guarantees, a $500 million bioenergy and bio-products research program, $500 million for alternative energy and energy efficiency grants and other initiatives. For specifics, visit www.usda.gov/farmbill
Help for farmers
Johanns also announced the availability of nearly $176.5 million in loan guarantees and $11.4 million in grants, to support investments in renewable energy and energy efficiency improvements by agricultural producers and small businesses.
The Renewable Energy and Energy Efficiency loan and grant program provides loan guarantees and grants to agricultural producers and rural small businesses for the purchase and installation of renewable energy systems or for energy efficiency improvements.
Loan guarantees cover up to 50 percent of a project’s cost, not to exceed $10 million. Grants are available for up to 25 percent of a project’s cost, not to exceed $250,000 for energy efficiency improvements and $500,000 for renewable energy systems.
These loans and grants are expected to reduce greenhouse gas emissions by 0.97 metric tons, replace 821 million barrels of foreign oil and generate almost 2 million kilowatt hours of electricity annually. USDA has funded more than 800 loans and grants since the renewable energy program began in 2003.
Additionally, Johanns announced a new tool designed to serve as an easy-to-use, navigational engine to search the USDA website for energy topics. The Energy Matrix is a collection of information from all USDA energy programs, research efforts, funding opportunities and technical assistance tools, at www.usda.gov/energy
“Renewable energy certainly encompasses a lot of challenges, but what great opportunities exist,” he said. “The economic and environmental benefits of renewable fuels are outstanding, and these new energies will have a tremendous impact on our future”
Johanns said through the use of biofuels, the United States will become less dependent on foreign oils and create a cleaner environment for future generations.
Although renewable energy took center stage for his presentation March 21, he also mentioned trade, conservation and rural development.
As the room filled with Purdue students, Johanns made a clear point to identify recommendations for beginning farmers and ranchers. He proposed $250 million in direct payments that will be more accessible and flexible for the next generation of young farmers involved in production agriculture during the next 10 years.
He also briefly highlighted the importance and necessity of increased funding for trade and conservation. However, Johanns said increased funding does not come without consequence and that the administration is directing support wisely while exercising fiscal responsibility.
Purdue roundtable
Following Johanns’ presentation on the farm bill, he participated in a roundtable discussion on renewable fuels research, led by Purdue College of Agriculture Dean Randy Woodson, Professor of Agricultural and Biological Engineering Bernie Tao and Michael Ladisch, director of Purdue’s Laboratory of Renewable Resources Engineering.
Also speaking were Purdue President Martin Jischke, Indiana State Department of Agriculture Director Andy Miller and USDA Chief Economist Keith Collins. Bob Dinneen, president and CEO of the Renewable Fuels Assoc., did not attend but took part via teleconference.
“We are not even using the entire kernel of corn to produce an ethanol product, we are only using part of it,” said Dinneen, on using food for fuels. “It’s really not a food-versus-fuel debate.”
Ladisch indicated efficiency of production and processing is key in the conversion of any biomass to an energy form.
“All of these issues that we have discussed today require future research,” said Jischke. “We need to take a multi-disciplinary and inter-disciplinary approach in order to begin to understand and research questions that have been pursued in the past.
“What if we could replace half of the oil consumed in the United States – is this possible? If we could produce nearly 170 billion gallons of ethanol a year, think of the economic impact and social impact this would have on our country.
“This is an extraordinary opportunity for our country, and we’re beginning to see results from institutions such as Purdue.”
Johanns toured Purdue’s cellulosic ethanol research lab. Ladisch’s research focuses on bioprocess engineering, with an emphasis on making the ethanol production process more efficient.
“Purdue’s research in biofuels has gained national attention, and we welcome this opportunity to discuss future opportunities in renewable energy,” said Woodson. “The farm bill’s proposed bioenergy research funding will support agriculture and move our country forward in its goal of energy security.”
This farm news was published in the March 28, 2007 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee. |
