USDA Initiatives to Realize America s Quest for Energy Independence

Transcription

1 U. S. DEPARTMENT OF AGRICULTURE Cooperative State Research, Education, and Extension Service USDA Initiatives to Realize America s Quest for Energy Independence Carmela A. Bailey cbailey@csrees.usda.gov SARE Conference August, 2006

2 NEW OPPORTUNITIES FOR AGRICULTURAL MATERIALS Overview Activities in CSREES Funding Opportunities 2002 Farm Bill, Title IX Energy 2005 Energy Policy Act

3 CSREES PROGRAMS Mission: To advance knowledge for agriculture, the environment, human health and well being, and communities Multifunctional linkage: RESEARCH EDUCATION EXTENSION CSREES is unique within the Federal government

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5 Programs National Research Initiative competitive Small Business Innovative Research Program competitive Agricultural Materials Program Formula Programs Special Research Grants-Earmarks Other Biodiesel Fuel Education Program

6 Scope of Programs Biomass Conversion to Energy/Chemicals crop residue pretreatment technologies biocatalysts gasification/fermentation New Industrial Crops castor lesquerella meadowfoam guayule hesperaloe New Uses soybeans for lubricants, greases, biodiesel, solvents adhesives, starches for packaging, chemicals, nylons

7 USDA AGENCIES Biobased Products Bioenergy Coordination Council Agricultural Research Service Forest Service Office of Energy Policy and New Uses Foreign Agricultural Service Office of the Assistant Secretary for Administration Rural Business - Cooperative Service Natural Resources Conservation Service Agricultural Marketing Service Cooperative State Research, Education, and Extension Service Rural Utilities Service Farm Service Agency Office of Budget and Program Analysis Office of the Under Secretary for Research, Education and Economics

8 FUNDING OPPORTUNITIES Cooperative State Research, Education, and Extension Service National Research Initiative Biobased Products and Bioenergy Production Research $5.4M available for development of biocatalysts Small Business Innovative Research Program Industrial Applications focus on bioenergy Animal Manure Phase I awards, Phase II awards Request for applications for 2007 open until Sept. 1 for Phase I

9 BUSINESS FUNDING OPPORTUNITIES Rural Business Cooperative Service Value-Added Producer Grants competitive grants to independent producers of value-added agricultural commodities and products strategies for ventures to create marketing opportunities up to $500,000/grant Agricultural Innovation Center Demonstration Program Technical and business development assistance to rural businesses, farmers, ranchers

10 BUSINESS FUNDING OPPORTUNITIES Rural Utilities Service renewable energy loans to electric cooperatives, public utility districts Agricultural Marketing Resource Center - virtual resource center providing latest information on value-added agricultural enterprise development - addresses marketing, processing, production issues

11 FARM SECURITY AND RURAL INVESTMENT ACT OF 2002 Title IX Energy Creative new set of programs New opportunities for biobased products, power, fuels Energy Policy Act of 2005 expands/changes some programs

12 Title IX Energy Section Federal Procurement of Biobased Products Section Biorefinery Grants Section Biodiesel Fuel Education Program Section Energy Audit and Renewable Energy Dev. Section Renewable Energy Systems, Energy Efficiency Section Hydrogen and Fuel Cell Technologies Section Biomass Research and Development Section Cooperative Research and Extension Projects Section Bioenergy Program Section Sun Grant Initiative

13 Title IX Energy Section Biodiesel Fuel Education Program Education on Benefits of Biodiesel Fuel Use $1M FY continuation grants made in September 03 to National Biodiesel Board and University of Idaho

14 Title IX Energy Section Renewable Energy and Energy Efficiency Loan guarantee and grant program Assist in purchasing renewable energy systems and efficiency improvements $23M annual funding, FY $11.4M in grants, $176.5M loan guarantees, FY 06 grants and loans for wind, anaerobic digesters, solar, ethanol, direct combustion, fuel pellet systems Lead agency: Rural Development

15 Title IX Energy Section Continuation of the Bioenergy Program Increase domestic consumption of ag commodities by expanding domestic markets Up to $150M per year (now closed) cash payments to bioenergy companies that increase purchase of corn, soybeans, other commodities, or a cellulosic commodity higher payments to small and new-to-market processors, including cooperatives Lead agency: Farm Service Agency

16 TITLE IX ENERGY Section Biomass Research and Development Implements Biomass R&D Act of 2000 Conversion of biomass into industrial products and bioenergy benefits the national interest: a) improved strategic security b) healthier rural economies c) improved environmental quality d) near-zero net greenhouse gas emissions e) technology export f) sustainable resource supply

17 TITLE IX ENERGY Section Biomass Research and Development Authorizes $14M per year FY 2003 through FY 2007 As amended by 2005 Energy Policy Act, authorizes $200M annually FY 2006 through FY 2012 USDA/DOE joint solicitation Rural Development will administer the program

18 TITLE IX ENERGY Section Sun Grant Initiative South Dakota State, Oregon State, Oklahoma State, University of Tennessee, Cornell R&D, implementation of biobased technologies develop biomass monographs, fellowships to DOE labs, curriculum development for distance education regional competitive projects

19 Title IX Energy Section Federal Procurement of Biobased Products The intent of this section is to stimulate the production of new biobased products and to energize emerging markets for those products Guidelines USDA will designate items Provide information about availability, price, performance, environmental and public health benefits, lifecycle costs, recommended biobased content Label USDA will develop criteria for a USDA Certified Biobased Product label Lead agency: Office of Energy Policy and New Uses, Cooperative Agreement with Iowa State University

20 Broad Categories BIOBASED PRODUCTS LIST Inks Sorbents Adhesives Construction Materials/Composites Fuel Additives Lubricants/Functional Fluids Fibers, Papers, Packaging Solvents, Cleaners Plastics Landscaping Materials, Composted Livestock and Crop Residue Paints, Coatings USDA will publish a list of designated items.

21 FIRST ITEMS TO BE DESIGNATED BIOBASED ITEM Minimum Biobased Content hydraulic fluids (mobile equipment) 44% penetrating lubricants 68% diesel fuel additives 90% urethane roof coatings 20% bedding, bed linens, and towels 12% water tank coatings 59% when designations are finalized, qualifying products must be given preference by all Federal agencies. Manufacturers can post their product info on website www. biobased.oce.usda.gov

22 Title IX Energy Section Federal Procurement of Biobased Products addresses obstacles to new products entering the marketplace: market acceptance/awareness list of products cost competitiveness - procurement preferences; economies of scale; LCC evaluations validated performance demos, standards

23 Energy Policy Act of 2005 Amends Biomass Research and Development Act authorizes additional $200M/year through 2007 Renewable fuels standard requires annual usage rate of 7.5B gallons of renewable fuel by 2012 Establishes minimum volume of biofuels derived from cellulosic biomass - 250M gallons starting 2013 Production incentives for cellulosic biofuels Regional Bioeconomy Development Grants Biomass Use Grant Program grants to improve commercial value of forest biomass for electricity, heat, transportation fuels

24 SUMMARY USDA supports the emerging biobased industry with a portfolio of R&D, demonstration,commercialization and purchasing programs Public investment in USDA programs has significant impacts: from a USDA perspective: new business opportunities, rural economic development, sustainable development, value-added products, diversification, new emphasis for agricultural R&D from a procurement perspective: performance advantages from a national perspective: reliable supply of raw materials for industry and defense supplied by the American farmer