Renewable Energy and the 2002 Farm Bill: 
Status, Opportunities and Challenges

Earth Day, Thursday, April 22, 2004
10:00-11:30 a.m. , 2318 Rayburn House Office Building

The Environmental and Energy Study Institute (EESI) held a Congressional briefing on the implementation status of the Energy Title of the 2002 Farm Bill.  Signed into law May 2002, The Energy Title of The Farm Security and Rural Development Act of 2002 (H.R. 2646/P.L. 107-171), has received strong bipartisan support and is the federal government’s most significant attempt to spur the development of agriculture-based renewable energy production.  Among other things, the legislation encourages federal procurement of biobased products, provides grants and loans for renewable energy projects, and funds vital research and development in bioenergy.

This briefing provided an overview of the diverse provisions of the Energy Title and their intended impact on the field of ag-based renewable energy.  Panelists also spoke to the progress of USDA’s implementation of specific programs within the Title and crucial funding issues currently before the Congress that will impact its long-term viability.

Discussing these issues will be the following distinguished panel:

·         Rep. Jim Leach (R-IA)

·         Dr. Keith Collins, Chief Economist, US Department of Agriculture

·         Roger Szemraj, Chief of Staff, Rep. Marcy Kaptur (D-OH)

·         Brian Henderson, Director, Energy Efficiency Services, New York State Energy Research and Development Authority (NYSERDA)   (Presentation)

Enormous opportunities exist for developing rural America’s clean energy resources, including bioenergy (the production of electricity, usable heat, or liquid fuels from biomass), wind, solar, and energy efficiency.  Yet, as with many renewable energy technologies, ag-based renewable energy faces several challenges, ranging from technological to financial. The Energy Title was created to overcome those obstacles through education, federal procurement, targeted grants and loans, and increased money for research and development.  In brief, here are its provisions:

·         Establishes federal agency purchasing preference for biobased products (see notice below);

·         Creates a program to educate the public about the benefits of biodiesel (a renewable fuel made from plant/animal oils);

·         Provides financial and technical assistance to farmers, ranchers and rural small businesses for the purchase of renewable energy systems and to make on-farm energy efficiency improvements;

·         Extends and funds the Biomass Research and Development Act through 2006; and

·         Establishes new authorized programs to fund energy audits and renewable energy assessments and to establish biorefineries for the production of electricity, fuels, and biobased products.

Farmers across the country have responded to these programs enthusiastically.  For example, Sec. 9006, a renewable energy grant and loan program received 147 applications from over 24 states for fiscal year (FY) 2003, a remarkable amount given that this was the program’s first year and there was only a two month application period.  Sec. 6401, a Value-Add Producer Grant program (amended by the Farm Bill to include renewable energy) received over 800 applications this past year. 

The Farm Bill called for funding of $23 million/yr for Sec. 9006 and $40 million/yr for Sec. 6401, but the Administration’s FY05 budget request proposes cuts of $12 million (52 percent) and $25 million (60 percent) respectively.

For more information please contact Josh Alban at 202-662-1885 or jalban@eesi.org.

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