Support Rural Energy for America
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You can act today to advance
five year’s worth of national clean energy policy. The Farm Bill is passed once
every five years and this Farm Bill can spark widespread clean energy
development.
Farm Bill clean energy programs support advanced biofuels like cellulosic ethanol, commercializing sustainable energy crops, expanding farmer-owned energy wind and solar power, biomass energy and energy efficiency in agriculture. With so much renewable energy production based in rural areas, the Farm Bill is a natural place to focus our nation’s commitments.
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A broad coalition of farm, environmental and energy groups have asked Congress to commit at least $1 billion a year -- or $5 billion over the five year life of the Farm Bill -- for the Farm Bill’s Energy Title.
The House Farm Bill, passed in July 2007, commits a modest 1% percent of total Farm Bill spending, about $3.3 billion over five years, to Energy Title programs.
Budget rules require Congress to identify sources of funding for the new programs. The House Farm Bill funds Energy Title programs through an offset that fixes an oversight that has allowed some oil companies drilling under Gulf of Mexico waters to pump crude oil royalty-free when oil prices are high.
The Senate Agriculture Committee is still working on its draft Farm Bill and finding the required funding to pay for Energy Title programs. The Ag Committee will take up the bill in early September. Congress needs to pass a final Farm Bill by September 30.
Even with helpful House improvements, total energy spending is still a small fraction of total farm bill spending - still under 1% of the five year budget.
The Farm Bill Clean Energy Agenda
While $1 billion+ a year is a small fraction of total Farm Bill spending, it would significantly increase production of biofuels, wind and solar power, energy efficiency, and other clean energy sources from rural America.
One possible combination of programs could include the following:
The Rural Energy for America Program (REAP) - expands and improves the Farm Bill’s successful Renewable Energy/Energy Efficiency incentives for locally-owned wind power, biofuels, energy efficiency, solar energy and other clean energy projects.
Energy Technical Assistance and Education - allows farmers and rural businesses to make better informed decisions regarding energy investments. Modest investments would save billions of dollars in energy costs.
Biorefinery Expansion - critical to jumpstart advanced biofuels production.
Biomass Research and Development - new research investments for advanced crop-based fuel and power expansion.
Biopower Market Expansion Creating markets for energy crops at boilers.
Energy Crop Development (or “biomass energy reserve”) -- will catalyze sustainable development of low carbon energy crops for fuel and electricity.
Regional Biomass Development Programs (ex, Sun Grant initiatives).
Biodiesel Fuel Education - accelerating market acceptance of biodiesel.
Biobased Product Program - encourages federal and state governments to use environmentally sustainable bioproducts.
Why $1 Billion+ in Annual Funding for the Energy Title Is Necessary
More background information is provided below.
- Leveraged more than one billion dollars in private investments, even with the limited and uncertain funding over the last four years.
- Invested over $100 million in grants and loan guarantees for over 800 renewable energy and energy efficiency projects in 42 states.
- Program demand far outpaces funding by a 3 to 1 margin.
Projects, when completed, will yield:
- 330+ megawatts of wind power,
- 170 million gallons annually in biofuels production,
- millions of dollars in annual energy savings, and
- millions of tons of annual CO2 reductions.
Farm based clean energy is a win-win-win for our national security, economy and environment. With 21-million-barrel-per-day oil consumption, the United States exports billions of dollars from our economy to often unstable and hostile regimes.
Farm-based wind power, solar power and other renewable power generation fight global warming and offer local investment opportunities for farmers and rural businesses.
Energy efficiency improvements funded under REAP cut on-farm energy and production costs and lower prices for consumers.
Much
of America’s
renewable energy comes from rural areas, within Farm Bill jurisdiction. The
USDA, with Rural Development field staff and other experts, is well-positioned
within rural America
to promote clean energy investments.
Rural, suburban and urban Americans alike support Farm Bill clean energy investments.
Rural Americans identify renewable energy as the Farm Bill’s highest priority. (Poll by Center for Rural Strategies).
Support for renewable energy routinely exceeds 70% in state and national polls, transcending partisan and regional differences.
Energy program funding is largely immune from challenge in international trade cases brought by other countries.
Rural Energy for America
Program
(Section 9006 of Current Farm Bill)
REAP
spurs a diverse range of clean energy technologies: not only biofuels but also
wind, solar, biomass electricity, biogas and energy efficiency. REAP has
bipartisan support and directly aids farmers and other rural small businesses, unlike most energy programs.
Over 800 projects in 42 states have received grant awards from 2003-2006. Demand for Section 9006 far exceeds available funding by about a three to one margin.
Former Senators Bob Dole (R-KS) and Tom Daschle (D-SD) recommend $500 million a year for REAP as part of their recommendations for the 21st-Century Agriculture Project.
25x’25, a broad agriculture-led alliance, recommends $250 million a year for REAP.
Farmer-owned wind projects soared with Section 9006 under the 2002 Farm Bill and will grow with REAP. A Department of Energy study showed the Section 9006 program tripled the number of community wind projects built nationwide from 2003 to 2006.
>U.S. energy from manure projects (anaerobic digesters) quadrupled under Section 9006.
REAP projects are locally owned retaining more program benefits locally.
Energy Audit and Renewable Energy Development Program (Section 9005)
This program helps farmers and rural businesses identify and make well-informed energy investment decisions.
Even modest funding levels will generate billions in energy savings and benefits. Farmers and rural businesses would save at least $3.5 billion dollars over five years with just $15 million in average annual funding.
Most farmers and rural businesses lack access to credible energy technical guidance. Nearly 30 states have no energy technical support programs in the agricultural sector, and those that do have programs are limited in coverage.
Supported by 25x’25 and the Daschle-Dole 21st-Century Agriculture Project.