The USDA announced plans to propose $1.6 billion in new funding for renewable energy, with a focus on cellulosic energy research and production, as part of the Administration’s 2007 farm bill proposals.
This funding would support President Bush’s goal of reducing gasoline usage by 20% in the next ten years and would compliment an array of renewable energy-related efforts underway at the U.S. Department of Agriculture.
In his State of the Union Address, President Bush announced $2 billion in cellulosic production loan guarantees. The proposal for a Alternative Fuels Standard contains a requirement for sources produced by American farmers and ranchers as well as an automatic “safety valve” to protect against unforeseen increases in the prices of alternative fuels or their feedstocks.
“It remains a priority across USDA to support the development of biofuels. We will continue to build on current programs and turn the corner on renewable energy,” said Johanns. “With biofuels coming to the forefront, American agriculture faces the greatest opportunity of a generation to lead a future in which we get our energy by the bushel and not by the barrel.”
Examples of USDA projects underway and accomplishments to date:
* issued a formal Request For Information to initiate discussion with private sector partners to establish a bio-fuels pumping station in Washington DC, which would serve the general public and more than 800 flex fuel vehicles in the federal fleet. http://www1.fbo.gov/spg/
* launched BioPreferred, a procurement program that serves to increase the procurement and use of biobased products by Federal agencies. USDA has developed an easy access online Designated Biobased Product Catalog www.usda.gov/biopreferred as a resource of identifying biobased products.
* In 2006, USDA made available more than $270 million in areas such as commercialization, research, infrastructure development, and technical support.