governors’ ethanol coalition recommendations: current status and next steps

Governors’ Ethanol Coalition Governors’ Ethanol Coalition Recommendations:Recommendations:

Current Status and Next StepsCurrent Status and Next Steps

Farm Bill 2007Farm Bill 2007

Establish a Sustainable Bioenergy Crop Production Establish a Sustainable Bioenergy Crop Production Program Program

Establish a Low Carbon Renewable Fuels Loan Establish a Low Carbon Renewable Fuels Loan Guarantee ProgramGuarantee Program

Undertake Risk Management Initiative to Support Undertake Risk Management Initiative to Support Bioenergy Crop ProductionBioenergy Crop Production

Initiate Transportation Studies to Improve Biofuels Initiate Transportation Studies to Improve Biofuels Access to Market Access to Market

Support Enhanced Soil Quality Modeling for Biomass Support Enhanced Soil Quality Modeling for Biomass RemovalRemoval

Governors’ Ethanol Coalition: New Policy RecommendationsGovernors’ Ethanol Coalition: New Policy Recommendations

Governors’ Ethanol Coalition: Appropriations RecommendationsGovernors’ Ethanol Coalition: Appropriations Recommendations

Provide Full Funding for the Biomass Research and Development Act

Provide Full Funding for Production Incentives for Cellulosic Biofuels

Increase Funding for the Renewable Energy Systems and Energy Efficiency Improvements Program

Increase Funding for the Conservation Security Program (CSP) and Environmental Quality Incentives Program (EQIP)

Increase Funding for the Biobased Products Procurement Program

Increase Funding for and Re-authorize the Sungrant Initiative

Farm Bill StatusFarm Bill Status

House passed 2007 Farm Bill on July 28, 2007House passed 2007 Farm Bill on July 28, 2007 Senate to mark-up 2007 Farm Bill in SeptemberSenate to mark-up 2007 Farm Bill in September

Establish a Sustainable Bioenergy Crop Establish a Sustainable Bioenergy Crop Production ProgramProduction Program

Action Taken in the House:Action Taken in the House:– Created a Biomass Energy Reserve Program to Created a Biomass Energy Reserve Program to

Develop the Next Generation of Feedstocks for Develop the Next Generation of Feedstocks for Renewable Energy with the Feedstock Flexibility Renewable Energy with the Feedstock Flexibility Program for Energy Producers (Section 9016) Program for Energy Producers (Section 9016)

Governors’ Ethanol Coalition: New Policy Recommendations:Governors’ Ethanol Coalition: New Policy Recommendations:Actions TakenActions Taken

Establish a Low Carbon Renewable Fuels Loan Establish a Low Carbon Renewable Fuels Loan Guarantee ProgramGuarantee Program

Action Taken in the House Action Taken in the House – Provided Loan Guarantees for Biorefineries and Provided Loan Guarantees for Biorefineries and

Biofuels Production Plants (Sec. 9003)Biofuels Production Plants (Sec. 9003)

– Mandatory funding of $800m over 5 yearsMandatory funding of $800m over 5 years

– Likely to need improvements to sustainability criteria Likely to need improvements to sustainability criteria


Undertake Risk Management Initiative to Undertake Risk Management Initiative to Support Bioenergy Crop ProductionSupport Bioenergy Crop Production

Action Taken in the House:Action Taken in the House:– No actionNo action


Initiate Transportation Studies to Improve Initiate Transportation Studies to Improve Biofuels Access to Market Biofuels Access to Market

Action Taken in the House:Action Taken in the House:– Included provision for Dedicated Ethanol Pipeline Included provision for Dedicated Ethanol Pipeline

Feasibility Studies (Section 9014).Feasibility Studies (Section 9014).


Support Enhanced Soil Quality Modeling for Biomass Support Enhanced Soil Quality Modeling for Biomass RemovalRemoval

Action Taken in the House:Action Taken in the House:– Created research initiatives for research related to bioenergy and Created research initiatives for research related to bioenergy and

biobased products through the Agricultural Bioenergy and biobased products through the Agricultural Bioenergy and Products Research Initiative (Section 7410) Products Research Initiative (Section 7410)

– Includes environmental assessment of biomass production on Includes environmental assessment of biomass production on Federal land, specifically impact on soil and water, in the Biomass Federal land, specifically impact on soil and water, in the Biomass Research and Development Act (Section 9006)Research and Development Act (Section 9006)

– Additional improvements would likely be helpful as the bill Additional improvements would likely be helpful as the bill moves forwardmoves forward


Governors’ Ethanol Coalition: Appropriations Recommendations: Governors’ Ethanol Coalition: Appropriations Recommendations: Actions TakenActions Taken

Provide Full Funding for the Biomass Research and Development Act

Action Taken in the House:Action Taken in the House:– Biomass Research and Development Act

authorized at $200,000,000 per year from 2006 through 2015. (Section 9006)

– Mandatory funding of $420m over 5 yrs


Provide Full Funding for Production Incentives for Cellulosic Biofuels

Action Taken in the House:Action Taken in the House:– Improves and Increases Funding for the CCC Improves and Increases Funding for the CCC

Bioenergy Program (Section 9007)Bioenergy Program (Section 9007)

– Mandatory funding of $1.4 billion over 5 years Mandatory funding of $1.4 billion over 5 years


Increase Funding for the Renewable Energy Systems and Energy Efficiency Improvements Program

Action Taken in the House:Action Taken in the House:– Increased Funding for the Renewable Energy Increased Funding for the Renewable Energy

& Energy Efficiency Improvements Program & Energy Efficiency Improvements Program and renamed program Rural Energy for and renamed program Rural Energy for America Program (REAP) (Section 9005)America Program (REAP) (Section 9005)

– Mandatory funding of $500m over 5 yearsMandatory funding of $500m over 5 years

– Loan guarantee levels expanded to $25mLoan guarantee levels expanded to $25m


Increase Funding for the Conservation Security Program (CSP)

Action Taken in the House:Action Taken in the House:– Significant decrease in funding for the

Conservation Security Program (CSP) (Section 2103)

– NOTE: The House knows the Senate is going to provide greater funding to CSP and appears to be positioning for the conference negotiations


Increase Funding for the Environmental Quality Incentives Program (EQIP)

Action Taken in the House:Action Taken in the House:– Significantly increases Funding for the Significantly increases Funding for the

Environmental Quality Incentives Program (EQIP) Environmental Quality Incentives Program (EQIP) (Section 2501)(Section 2501)


Increase Funding for the Biobased Products Procurement Program

Action Taken in the House:Action Taken in the House:– Increases funding for and makes other Increases funding for and makes other

improvements to the “Biopreferred” program improvements to the “Biopreferred” program (Section 9002)(Section 9002)


Increase Funding for and Re-authorize the Sungrant Initiative

Action Taken in the House:Action Taken in the House:– Reauthorized through 2012 (Section 9008)Reauthorized through 2012 (Section 9008)

– The House did not provide additional funding The House did not provide additional funding however however

Governors’ Ethanol Coalition: Senate, Conference and Beyond Governors’ Ethanol Coalition: Senate, Conference and Beyond

- Senate will have similar program initiatives but more of them, hopefully with more money overall

- Conference will take time but ultimately produce a significant energy package especially for cellulosic ethanol and low-carbon biofuels deployment

- President is quite likely to sign the bill despite objections over funding sources and other concerns

Governors’ Ethanol Coalition: Next StepsGovernors’ Ethanol Coalition: Next Steps

- Will seek funding to continue farm bill work over the course of the next year

- Focus on policy research, funding, and communications work building upon the previous recommendations

- Work will involve farm bill deliberations in the coming weeks and then, upon passage, shift to agency implementation

governors’ ethanol coalition recommendations: current status and next steps

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