Building A Prosperous Future Where Agriculture Produces and Uses Energy Efficiently and Effectively

1
Building A Prosperous Future Where Agriculture
Produces and Uses Energy Efficiently and
Effectively
Presented to Southern Association of Agricultural
Experiment Station Directors and Association of
Southern Region Extension Directors
Presented by Dr. James R. Fischer Dr. Joseph A.
Dunn USDAsResearch, Education Economics
Mission Area March 28, 2007
2
HAPPY BIRTHDAY SHARON
3
Three Milepost on the Road to a Prosperous
Agricultural Energy Future
4

• Milepost 1 The Energy Situation
• Challenges how did we get here?

5
Has World Oil Production Peaked?
6
Changes in Atmospheric Concentration
CO2, CH4, and N20 A Thousand Year History
360 340 320 300 280 260
Atmospheric concentration CO2 (ppm)
310 290 270 250
1000 1200 1400
1600 1800 2000
Atmospheric concentration N2O (pbb)
1750 1500 1250 1000 750
Atmospheric concentration CH4 (ppb)
1000 1200 1400
1600 1800 2000
1000 1200 1400
1600 1800 2000
Source IPCC Third Assessment Report (2001)
7
World Population and Energy Use
12
World Population
10
8
Population (Billions)
World Energy Consumption
6
4
2
0
0
1950
1900
2000
2050
2100
Year
Energy Projections Global Energy Perspectives
ITASA / WEC Population Projections United
Nations Long-Range World Population Projections
Based on the 1998 Revision
8
Energy Consumption and Affluence are Linked
9
World Electricity Demand Growing
Source International Energy Outlook 2002,
Energy Information Administration, Table A-9, p.
188, and http//www.eia.doe.gov/pub/international/
iealf/table62.xls
10
The Energy Connection Challenges
Economy Economic growth and development Oil
imports cost and volatility
Environment Local Urban and Regional air quality
- particulates, acid rain, etc. Global warming
National Security Dependence on insecure supplies
of foreign oil, increasingly natural
gas. Dollars to undesirables. Economic
development/political stability
11

• Milepost 1 The Energy Situation
• Opportunities so what are we going to do?

12
The Future U.S. Energy Situation Renewable Energy?
Shell Sustained Growth Scenario
Source 1995 Shell, The Evolution of the
Worlds Energy Systems
13
The Up and Down Support For Biomass
14
Effect of Production Tax Credit (PTC) on the US
Market
Annual Megawatts Installed
Source AWEA Wind Power Outlook 2005
15
History of Federal Energy and Environmental
Policy

• 1978 Public Utility Regulatory Policies Act
  (PURPA)
• 1978 Energy Tax Act (ethanol blends .40/gallon
  tax exemption)
• 1992 Energy Policy Act (tax credit for
  renewable energy production)
• 1998 Energy Conservation Reauthorization Act 
  (included biodiesel credit)
• 1998 Alternative Motor Fuels Act (Encouraged
  cars fueled by alternative fuels)
• 2000 Biomass RD Act (DOE/USDA joint RD
  biobased industrial products)
• 2002 Farm Bill (First energy title in Farm Bill
  history)
• 2004 Job Bill (included biodiesel fuel tax
  credit)
• 2005 Energy Policy Act of 2005 (RFS, production
  tax incentive through 2007)
• 2006 State of the Union addicted to oil
• 2006 -- Advanced Energy Initiative
• 2007 State of the Union Twenty in Ten
• 2007 Biweekly Energy Briefings to USDA
  Secretary
• 2007 Farm Bill Increase Budgets for bioenergy
  RD  
• Federal Environmental Policies
• 1990 Clean Air Act (CAA) (first major
  environmental policy to have an impact on
  renewable energy).
• 2006 (EPA requires the use of ultra low sulfur
  diesel fuel (15 parts per million sulfur)
• 2010 Non-road diesel fuel regulations will take
  place

16
President George W. Bush 2006 State of the
Union Address

• Keeping America competitive requires affordable
  energy.  And here we have a serious problem
• "America is addicted to oil, which is often
  imported from unstable parts of the world."
• "The best way to break this addiction is through
  technology.
• . and we are on the threshold of incredible
  advances
• . replace more than 75 percent of our oil
  imports from the Middle East by 2025.

Capitol, Tuesday, Jan. 31, 2006 White House
photo by Eric Draper

• By applying the talent and technology of
  America, this country can
• dramatically improve our environment,
• move beyond a petroleum-based economy, and
• make our dependence on Middle Eastern oil a
  thing of the past.

17
Advanced Energy Initiative

• Change how we power our automobiles
• Advanced battery technologies plug-in hybrids
• Cellulosic ethanol costs
• Hydrogen fuel cells by 2020

• Change how we power our homes and offices
• Clean Coal
• Nuclear Energy
• Renewable Energy

18
Biofuels Initiative
The Biofuels Initiative objective is to foster
the production of biofuels to replace more
than 75 percent of our oil imports from the
Middle East by 2025 (53M)

• Achieving this ambitious goal will require
  looking at corn and other biomass resources to
  produce ethanol, including
• Agricultural crops residues
• Woody plants grasses

Biomass Program will initiate a major
solicitation in FY 2007 to validate near-term
ethanol biorefineries in collaboration with
industry (1st validation will occur in FY 2009)
Benefits (2030) Develop technologies to enable
US to displace 2.6 MMbbl/d oil equivalent,
keeping 44 billion in the US economy to create
jobs at home
From Lab...
...to Industry...
...to Consumers
19
Required Growth of Cellulosic Ethanol to Supply
30 of U.S. Gasoline Demand by 2030
http//www.nrel.gov/research_review/pdfs/2005/3866
8a.pdf
20
Conversion of Available Feedstocks

• Billion Ton study indicates that enough biomass
  is potentially available to displace gt 30 of
  current U.S. petroleum consumption, with no
  impacts to food, feed, or export demand
• But it requires variety of biomass types
• Agricultural lands
• Corn stover, wheat straw, soybean residue,
  manure, switchgrass, poplar/willow energy crops,
  etc.
• Forest lands
• Forest thinnings, fuelwoods, logging residues,
  wood processing and paper mill residues, urban
  wood wastes, etc.

21
Milepost 2 Energy and Agriculture
22
(No Transcript)
23
Total Energy Consumed in US Farms in 2002 Total
1.7 Quadrillion BTUs
Natural Gas
LP Gas
4
5
Fertilizers
Pesticides
6
28
Gasoline
9
Electricity
Diesel
Source Miranowski, John, Energy Consumption in
U.S. Agriculture, Proceedings Agriculture as a
Producer and Consumer of Energy Conference,
Arlington, VA, June 24-25, 2004. Sponsored by
Farm Foundation.
21
27

24
Energy intensity in U.S. agriculture has
declinedAgriculture Uses Energy Efficiently
Energy intensity is the ratio of total energy
used to total output
Energy use per unit of output (19961)
2.1
0.65
25
Milepost 2 USDA and Energy Opportunity or
Responsibility?
26
Desired Agricultural Energy Outcomes?

• Improve national security and the U.S. trade
  balance
• Help America transition to renewable sources of
  energy and other goods
• Realize important environmental benefits
• Realize significant, new, sustainable economic
  opportunities for rural America
• Realize secure sources of energy for rural
  America

27
USDAs Energy Council

• Purposes
• Oversight of implementation of Presidents
  National Energy Plan including EPAct of 2005.
• Coordination of USDA Energy Related Programs.
• Review and evaluation of key policy and program
  decisions on energy matters.
• Development of Initiatives to transform and
  generate alternative energy sources.
• Assist and oversee continued implementation of
  Title IX of 2002 Farm Bill.
• Chair Tom Dorr, RD
• Co-Vice Chairs Keith Collins, OCE Mark Rey,
  NRE
• Ex-Officio Members DOE, EPA, DOC, DOI, DOT
• Methods
• Coordinate Secretarys bi-weekly energy briefings
• Established four standing oversight committees
• Research and Development
• Commercialization
• Outreach/Marketing
• International Relations

28
Biomass Research and Development Board

• The Board is Co-Chaired by US Departments of
  Agriculture and Energy
• The Board is responsible for coordinating Federal
  activities for the purpose of promoting the use
  of biobased fuels and biobased products.
• The Board is a panel consisting of Senior Level
  representatives responsible for ensuring
  coordination among the following agencies
• U.S. Department of Agriculture (co-chair) Thomas
  Dorr, Under Secretary for Rural Development
• Department of Energy (co-chair) Alexander
  Karsner, Assistant Secretary of Energy
  Efficiency and Renewable Energy
• National Science Foundation Dr. Bruce Hamilton,
  Director, Bioengineering and Environmental
  Systems Division
• Environmental Protection Agency In transition
• Department of Interior Johnnie Burton, Acting
  Assistant Secretary, Land and Minerals
  Management
• Office of Science and Technology Policy Dr.
  Sharon Hays, Chief of Staff
• Office of the Federal Environmental Executive
  Dana Arnold, Chief of Staff
• Department of Transportation (new) Dr. Ashok G.
  Kaveeshwar, Administrator, Research and
  Innovative Technology Administration

29
The Biomass Research and Development Technical
Advisory Committee

• The Advisory Committee is responsible for
  providing guidance to the Biomass Research
  and Development Board on the technical focus of
  the Biomass Research and Development
  Initiative.
• Official functions of the Advisory Committee
  include the following
• Advise the Secretary of Energy, the Secretary of
  Agriculture, and the points of contact
  concerning
• the technical focus and direction of requests for
  proposals issued under the Initiative and
• procedures for reviewing and evaluating the
  proposals.
• Facilitate consultations and partnerships among
  Federal and State agencies, agricultural
  producers, industry, consumers, the research
  community, and other interested groups to carry
  out program activities relating to the
  Initiative and
• Evaluate and perform strategic planning on
  program activities relating to the Initiative.
• Meetings. The Advisory Committee holds
  quarterly, public meetings.
• Meetings are announced in the Federal Register.

30
Biobased Products and Bioenergy Coordination
Council (BBCC) Members
Under Secretary for Research, Education and
Economics- Chair Director of the Office of
Energy Policy and New Uses Vice Chair Working
Chair Bob Fireovid (ARS), Working Vice Chair
Bill Goldner (CSREES), Secretary Marion Buford
(FS)

• Natural Resources Conservation Service
• Office of Budget and Program Analysis  
• Office of Energy Policy and New Uses
• Office of the Assistant Secretary for
  Administration Office of the Under Secretary for
  Research, Education and Economics  
• Rural Business-Cooperative Service  
• Rural Utilities Service  

• Agricultural Marketing Service  
• Agricultural Research Service  
• Cooperative State Research, Education and
  Extension Service
• Farm Service Agency     
• Foreign Agricultural Service  
• Forest Service  
• Global Change Program Office 

http//www.ars.usda.gov/bbcc/
31
Biobased Products and Bioenergy Coordination
Council (BBCC)

• Coordination
• Representation and participation from all
  agencies and programs
• Develop 5-year plan and annual priorities
• Work with Energy Council Committees
• Utilize the different agency education and
  training programs
• Provide information about policy implications
  within USDA
• Integration
• Link basic/applied/developmental research and
  commercialization
• Fully develop and use demonstration and pilot
  opportunities
• Provide formal and informal education/training
  across mission programs
• Promote energy conservation and efficiency in
  other programs
• Program Scope
• Helping farmers and forest landowners to provide
  Food, Feed, Fiber, and Fuels
• Resolving technology and market barriers for
  biofuels and bioproducts
• Leading biobased products development and Federal
  procurement.
• Providing information and education to support
  the bioeconomy and energy efficeiency.
• Measures of Success
• Enhanced rural economic outputs
• Focused loans and grants

32
Agricultural Bioenergy Bioproducts Research
Education and Economics (ABBREE) Task Force

• Formed in October 2006 by Dr. Buchanan
• Advises the REE Under Secretary on matters
  relating to agricultural bioenergy and related
  bioproducts via bi-weekly meetings
• Comprised of individuals with bioenergy and
  bioproducts expertise from all REE Agencies
• Joseph Dunn (REE)
• Ghassem Asrar (ARS)
• Carmela Bailey (CSREES)
• Chavonda Jacobs-Young (CSREES)
• Neil Conklin (ERS)
• Mark Miller (NASS).
• Initiating various educational forums including a
  monthly seminar series focusing on USDA research
  in bioenergy and related bioproducts and
  Bioenergy Day
• Planning for a REE bioenergy and related
  bioproducts workshop for fall 2007

33
USDA Programs on Bioenergy Renewable Energy

• Research Programs
• Rural Development Programs
• Conservation Programs
• Biofuel Production Direct Financial Assistance
• Biodiesel and Bioproduct Marketing Support
• USDA Renewable Energy Use

34
USDA Approaches to Bioenergy

• Approach I
• Activities that Expand Market Impact of
  Technologies Already Deployed to (1) Ensure More
  Producer Control over Energy Costs in
  Agricultural and Forestry Operations and (2)
  Produce Biofuels and Biobased Products

• Approach II
• Activities that Enable Commercial Deployment of
  New Technologies which Significantly Expand
  Production of Ethanol and Co-Products

Approach III Activities that Enable the
Commercialization of New Biobased Feedstocks,
Fuels and Industrial Products
35
USDA RESEARCH EDUCATION AND ECONOMICS MISSION
AREA
ENERGY SCIENCE AND EDUCATION
36
Feedstock Research(Starch, Lipid, Cellulosic)
USDA-REE Energy Science and Education Programs
ARS

• Design, produce, harvest, characterize,
• enhance, deliver

National Plant Germplasm System
20 genebanks throughout U.S., 11,700
species 470,000 accessions-13,154 industrial
crops accessions
Conversion Research(Biological and
Thermochemical)

• On-farm, Local community, Biorefinery
• Processes, Organisms, Product separation,
• Efficiency

Co-products
Devise, Quality, Functionality, Uses
Biobased Products
Natural products Technologies and processes
37
Conversion Processes Biodiesel Ethanol Thermal Met
hane Citrus Waste Regional Research
Center Feedstocks On-Farm Systems
USDA-REE Energy Science and Education Programs
ARS Energy Research Locations
38
Regional Research Centers Biobased Products
Research
USDA-REE Energy Science and Education Programs
ARS Biobased Products Research Locations
39
USDA Research Programs on Bioenergy CSREES
USDA-REE Energy Science and Education Programs
CSREES

• The Cooperative State Research, Education and
  Extension Service supports renewable energy
  through formula funding and competitive grants
  under
• the National Research Initiative
• the Small Business Innovation Research Program
• the Sustainable Agricultural Research and
  Education Program
• Agricultural Materials
• Higher Education Challenge Grant Program
• This year the CSREES Water Quality Program has
  identified bioenergy as a priority topic.

40
Cooperative State Research, Education and
Extension Service
41
USDA-REE Energy Science and Education Programs
CSREES

• 45 energy projects funded through
• National Research Initiative
• Small Business Innovation Research Program
• Agricultural Materials Program
• The goals of the projects are
• Reduction in conversion costs
• Increased production of chemicals and materials
  from biomass
• Increase number of biobased products that replace
  petroleum based products
• Develop energy conversion technologies for
  agricultural and forestry residues
• Develop cost effective biocatalysts to convert
  lignocellulosic materials with low environmental
  impact
• Identify unique biomass feedstocks for
  sustainable production of energy and industrial
  products

42
USDA-REE Energy Science and Education Programs
ERS
Corn-based ethanol production projections exceed
renewable fuels program mandate
Billion gallons
2007 USDA Projections
2006 USDA Baseline
Renewable Fuels Program, Energy Policy Act of
2005
Crop year
43
USDA-REE Energy Science and Education Programs
ERS
USDA projections of corn use for ethanol have
risen dramatically
RFS Oil Prices 2007
RFS 2006
Pre-RFS 2005
44
USDA-REE Energy Science and Education Programs
National Agricultural Statistics Service (NASS)

• Production data and statistics on
• Livestock and animals
• Crops and plants
• Economics
• Demographics
• Environmental

http//www.nass.usda.gov
45
2007 Census of Agriculture
USDA-REE Energy Science and Education Programs
National Agricultural Statistics Service (NASS)

• Page 17, Section 25 Income From Farm-Related
  Sources 7. Other income which is closely related
  to the agricultural operation. Include renting
  and leasing farm machinery and trucks, renting
  and leasing of livestock, animal boarding,
  tobacco quota buyouts and settlements, state fuel
  tax refunds, farm-generated energy, etc. Specify
  below.
• Page 21, Section 32, Practices
• At any time during 2007, did this operation
  generate energy or electricity on the farm using
  wind or solar technology, methane digester, etc.?
  . . . . . .

46
2006 Agricultural Resource Management Survey
(ARMS) Phase III
USDA-REE Energy Science and Education Programs
(NASS)

• Was any land rented or leased to a business or
  other entity for the purpose of housing wind
  generating energy structures (ex. windmills,
  etc.)?
• Were biomass crops produced on this operation in
  2006 for energy purposes only?
• (biomass crops are herbaceous and woody crops,
  food and feed crops, and agricultural crop
  wastes.)
• Were actions taken in 2006 to help reduce fuel or
  fertilizer expenses for this operation? If YES,
  which of the following actions were taken to
  reduce fuel or fertilizer expenses

Adjusted plant population? Kept engines
serviced? Used precision technology for
fertilizer, pesticide or seeding application?
Used guidance or parallel swathing systems with
machine operations? Other, not listed?
Reduced quantities or inputs used Negotiated a
price discount with supplier If YES,
what was the percent discount? Changed
enterprise mix? Conducted soil test? Reduced
number of trips over a field?
47
NASS Data Utilized
USDA-REE Energy Science and Education Programs
(NASS)
48
Bioenergy Technology Transfer and Public-Private
Partnerships
USDA-REE Energy Science and Education Programs

• The main objectives of USDA technology transfer
  through public- private partnerships are
• Coordinate and align USDA Agency RD energy
  programs to complement  relevant public and
  private investments as appropriate
• Develop partnerships that enhance individual
  capabilities to meet national priorities and the
  USDA mission
• Develop technology transfer partnerships that
  facilitate the rapid adoption and
  commercialization of research outcomes
• Facilitate long-term public/private partnerships
  through licensing patented or otherwise
  protectable federal technologies
• Identify other Federal, State, or private sector
  capabilities/resources that can be integrated
  with USDA capabilities/resources to accelerate
  the commercialization of next generation
  biorefineries.

49
USDA Research Programs on Bioenergy Forest
Service

• Forest Service is increasing research and
  development efforts at the Forest Products
  Laboratory and at Research Stations to provide
  alternatives to fossil fuels from woody biomass.
• Research includes improved in-woods operations,
  transportation and handling, processing and new
  bio-based products.
• Activities include developing partnerships across
  woody biomass interests and
• FY 2007 Healthy Forest Initiative includes 5
  million to foster markets in biomass utilization

50
U.S. Forest Service
FOREST SERVICE RESEARCH INTERESTS ALSO INCLUDE

• Developing integrated systems for small-diameter
  trees, forest residues, and woody crops
• Reducing costs and improving utilization
• Developing innovations in new products,
  conversion processes, and commercialization

51
USDA's RuralDevelopment Programs

• USDA's Rural Development offers a range of
  renewable programs that may be used for renewable
  energy production
• loans to rural electric cooperative borrowers for
  producing and distributing renewable energy
• grants for planning and working capital, such as
  for ethanol and biodiesel plants, under Section
  6401 "Value Added Producer Grants" of the 2002
  Farm Bill
• grants and loans for renewable energy production
  and energy conservation under Section 9006 of the
  2002 Farm Bill
• the Renewable Energy Systems and Energy
  Efficiency Improvements Program
• loan guarantees for renewable energy
• competitive research and demonstration grants
  under Section 9008 of the 2002 Farm Bill, the
  Biomass Research and Development Act Initiative

52
Section 9006 Technology Grants for Energy
Efficiency and Renewable Energy
53
USDA Rural Development Emerging Issues

• In addition to existing grant, loan, and loan
  guarantee programs in support of renewable energy
  projects, 4 studies focused on the following
  issues have been launched
• Evaluating a variety of business models to see
  which best encourage local investment and
  ownership
• Analyzing different investment models to
  facilitate the aggregation of local capital (to
  reduce barriers to local ownership)
• Identifying logistical and regulatory questions
  affecting the rapid buildup of new energy
  industries, including but not limited to
  cellulosic ethanol
• Studying issues related to the integration of new
  technologies into the existing legacy system,
  e.g., distributed generation in existing power
  transmission system, impact of cellulosic
  ethanol on existing transportation infrastructure

54
USDA's Conservation Programs

• The Natural Resources Conservation Service helps
  producers farm sustainably through technical
  assistance and through financial assistance under
  the
• Environmental Quality Incentives Program and
• the Conservation Security Program (CSP).  
•  CSP provides financial assistance for specific
  energy production and conservation activities.
• Developed Energy Estimator

55
Biofuel Production DirectFinancial Assistance

• The Farm Service Agency operated the Bioenergy
  Program under Section 9010 of the 2002 Farm Bill
  until authority expired in 2006.
• The program directly subsidized biofuel
  production at 150 million in Fiscal Year 2006.

56
Biodiesel and BioproductMarketing Support

• The Office of Energy Policy and New Uses in the
  Office of the Chief Economist administers
• Section 9004 of the 2002 Farm Bill which is the
  National Biodiesel Education Program and
• Section 9002, Biopreferred, the Federal
  Biobased Product Preferred Procurement Program.

http//www.biobased.oce.usda.gov/fb4p/
57
USDA Renewable Energy Use

• USDAs Department Administration administers
  legislation and Executive Order 13149 directed at
  reducing USDA use of fossil fuels and increasing
  use of alternative fuels, including biofuels.

58
Milepost 3 Future Directions
59
Future Directions
Short Term Now
Long Term
Mid Term

• Hybrid or Clean Diesel Vehicles
• Clean Coal Efficiency
• Energy Efficiency Standards
• Renewable Fuel Standards
• Nuclear Plant Relicensing
• Enhanced Oil Recover
• Biological Sequestration
• Methane to Markets
• Federal Facility Management Plan
• Fuel Economy Standards
• Wind, Solar Tax Incentives
• Climate Leaders
• Climate VISION
• SmartWay Transportation

• Hybrid/Clean Diesel Vehicles
• Clean Coal Gasification
• Renewable/Efficiency Partnership
• Cellulosic Biomass
• Advanced Nuclear
• Geological Sequestration

• Hydrogen
• FutureGen
• Zero Energy Homes Buildings
• Bio-Energy Systems
• GenIV Nuclear/Fusion

Denotes International Partnership
Source June 30, 2005 White House Press Release
on G-8 Summit
60
http//www.technologyforums.com/6EN/
61
Future Direction MUCH INTEREST - - - - MANY
GOALS
62
Sun Grant Initiative
Future Directions

• Enhance America's national energy security
  through development, distribution and
  implementation of biobased energy technologies.
• Promote diversification and environmental
  sustainability of America's agriculture
• Promote opportunities for biobased economic
  diversification in America's rural communities.

63
SGI Regions
Future Directions
64
DOE Regional Feedstocks
Future Directions

• Biomass Resource Assessment
• Regional Supply Curves and GIS
• Biomass Resource Development
• Field trials of dedicated feedstocks
• Impact of residue removal on yields
• Crop Development
• Genetic evaluation of energy crops
• Education and Outreach
• BioWeb

65
DOT Funding
Future Directions

• Regional Competitive Grants
• Priorities
• Biofuels feedstock development (Leveraging)
• Biofuels conversion processes
• Biofuel system analysis
• Economics, marketing and policy
• Environmental impacts

66
Future Directions?
67
Future Directions?
68
Future Directions?
69
Future Directions -DOEs Response to AEI
Funding Three Molecular Bioenergy Centers 250
Million each.
Cellulosic Cost Share Funding
70
Future Directions -

• During his 2007 State of the Union Address,
  President Bush announced the goal of reducing
  U.S. gasoline usage by 20 Percent In The Next Ten
  Years Twenty In Ten. Goals include
• Increasing the supply of renewable and
  alternative fuels by setting a mandatory fuels
  standard to require 35 billion gallons of
  renewable and alternative fuels in 2017 nearly
  five times the 2012 target now in law.
• Reforming and modernizing Corporate Average Fuel
  Economy (CAFE) standards for cars and extending
  the current Light Truck rule.

71
USDA Projected Ethanol and Biodiesel Production
Future Directions -
20 in 10

22 billion
72
BiomassPotential-Longer Term(including
corn-based ethanol)(_at_ 90 gallon per dry ton)
Future Directions -
73
Future Directions We are living in a new world
of potential.

• Growing need for clean and affordable supply of
  energy.
• Opportunity for agriculture to supply some of
  that energy.
• USDA agencies support renewable energy
  production.
• USDA collaborates with other Federal agencies.
• Government policies and initiatives support these
  efforts.
• Increase RD Funding
• Commercialization partnerships
• Potential beneficiaries of agriculture energy
  development?
• Proposed USDA FY 2008 budget for energy
• 397 million energy outlays
• 68 percent increase compared to FY 2007.
• The 2007 Farm Bill proposes expanding renewable
  energy for U.S. agriculture and rural areas.

74
Bioenergy Bioproducts Research - 500
Million- 10 years - Production and
sustainability - Conversion efficiency Alternat
ive Energy/Energy Efficiency - 500 million- 10
years - Direct Assistance Cellulosic
Ethanol - 210 Million - Loan Guarantees -
150 Million competitive grants
Future Directions
2007 Farm Bill Title IX
75
FUTURE Directions Recommendations of the NAREEE
Board

• Take the lead on strategies for development of a
  bioenergy and bioproducts based economy.
• Announce a holistic and coherent vision of its
  role and strategy in bioenergy and to convey the
  message to the public.
• Undertake a focused effort to request the
  increased funding required to develop a
  nationally visible program.
• Take a portfolio approach while identifying which
  new intermidiates for current and new
  applications may hold the most promise for
  potential commercialization.
• Develop a systems approach including economics,
  engineering and social management to evaluate
  research directions and alternatives.
• Seek additional funding for new and enhanced
  research and education bioenergy and bioporducts
  initiatives.

76
Future Directions BBCC Vision and Goals
Growing Energy and Opportunity in America
Linking Land Conservation, Innovation, and Value

• Vision
• Reduce dependence on foreign oil imports
• Improved National security
• New economic and environmental opportunities for
  Americas farmers, ranchers, and forest
  landowners
• Goals
• Conserve and reduce energy in farm and forest
  operations
• Acquire renewable energy biobased products from
  Americas lands without supply and market
  disruption
• Produce energy and biobased feedstocks sustainably

77
Steps to Establish Future Directions for USDAs
Energy Science and Education Programs.

• Set Vision and Goals
• Establish Program Focus
• Build on Comparative Advantages
• Seek Input
• Conduct Workshop to Finalize Program Direction

78
Future Directions Activities and Events
(October 2006 2007)
Sept. 2007 REE Energy Science Education
Workshop Vision, Goals, Programs
April Sept. Seeking Additional Input and
Developing Plans for Workshop
March/April Seeking Input from Regional
Associations
March Budget Hearings Senate Ag
Committee
FEB. The BBCC Presents Vision and
Goals for USDA Bioenergy Programs
FEB. Input Sought on REE Energy
Plan - ARS CSREES Admin. Councils
FEB. NAREEE Advisory Board -
Energy Recommendations
JAN. USDA Budget Submitted with
Request for Increase Funding for Energy
JAN. Energy Science Education
Workshop Planning Committee Charged
JAN. 2007 REE Agency Heads Engaged on REE
Energy Science Education Plan
DEC. Proposed Vision and Goals
for REE Energy Program Developed
NOV. Established ABBREE Advisory
Committee
OCT. 2006 NAREEE Advisory Board - Focus -
USDA Bioenergy Responsibilities
79
USDA REE ABBREEEnergy Science and Education
Workshop

• Committee Bill Goldner (CSREES), Frank Flora
  (ARS), Neil Conklin (ERS), Mark Miller (NASS).
• Purpose
• Set Vision and Goals
• Identify Program Areas of Focus
• Identify Critical Cross Cutting Issues
• Establish Agencies Responsibilities
• Suggest Process to Achieve Goals
• Outcomes
• Vision and Goals Established
• Program Areas of Focus Established
• REE Responsibilities and Comparative Advantages
  Identified
• Agencies' Responsibility Accepted
• Cross Cutting Issues Integrated into Program
  Areas
• Initial Program Priorities Identified
• Process for Moving Forward Presented

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USDA RESEARCH EDUCATION AND ECONOMICS MISSION
AREA
ENERGY SCIENCE AND EDUCATION
VISION Building A Prosperous Future Where
Agriculture Produces and Uses Energy Efficiently
and Effectively
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GOALS
USDA RESEARCH EDUCATION AND ECONOMICS MISSION
AREA
ENERGY SCIENCE AND EDUCATION

• Develop comprehensive, integrated intramural and
  extramural research program that effectively
  explores the role of agriculture as both a user
  and producer of energy.
• Establish energy science, education and extension
  activities related to agriculture with university
  and industry partners as well as other federal
  and state agencies.
• Initiate comprehensive technology transfer
  programs for agriculture energy research to
  agriculture producers, suppliers and users.

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USDA/REE ENERGY SCIENCE
PROGRAM FOCUS

• Renewable Energy
• Energy Efficiency and Sustainability

• Bio-Based Sources
• Other Sources Wind, Solar, Geothermal

• Production Systems
• Management Systems

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USDA/REE ENERGY SCIENCERENEWABLE ENERGY PROGRAM

• Feedstocks
• Conversion Processes

• Biobased Resources

• Handling
• Harvesting
• Storage
• Transportation

• Inputs
• Fuels
• Fertilizer
• Water
• Varieties

• Sources
• Crops
• Residues
• Wastes

• Products

• Biological
• Thermochemical
• Thermal

• Fuel Co-products
• Bio-based

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USDA/REE ENERGY SCIENCE ENERGY EFFICIENCY AND
SUSTAINABILITY PROGRAM

• Production Systems
• Inputs
• Fuels
• Nutrients
• Water
• Practices
• Precision farming
• Plant breeding/genetic selection
• Pest Management
• Management Systems
• Material Handling
• Building Design
• Processing

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WHAT IS REES COMPARATIVE ADVANTAGE?The
CONTINUUM
Energy Science - Development to Utilization
Application
Feedback
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Recognized REE Agricultural Success
WHAT IS REES COMPARATIVE ADVANTAGE?

• Arguably the most successful food and
  fiber system in the world
• Requires lt 2 of workforce to feed US and others
• Affordable food
• Safe and dependable
• Maintains environmental quality

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WHAT IS REES COMPARATIVE ADVANTAGE? Tools
Resources
Uniquely Positioned to Effectively Develop
Disseminate Energy Science
Geographical Areas National Labs
Tech Transfer (CRADAs)
Universities Integrated Activities (Curriculum,
Research, Extension)
SBIR
NRI
Data Collection and Analysis System
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The Energy Science ContinuumAs it relates to
Education

• Develop agricultural energy education modules and
  curriculum.
• Educate scientists and engineers in renewable
  energy and energy efficient systems.
• Produce the next generation of scientists and
  engineers
• Develop technical school energy training and
  certification programs.
• Develop K-12 youth education programs (4-H, FFA)
  on energy systems
• Engage Extension education system to educate
  citizens on energy issues

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The REE System Can Deal withCrosscutting Issues
Issues
Environmental
Societal
Sustainability
Structural
Markets
Rural
Economical
Programs
Program Focus
Feedstocks
Production Systems
Management Systems
Conversion Processes
Products
Other
90
USDA/REE Energy Science
Biobased Renewable Energy Program
PARTNERSHIPS NRI, Integrated Activities
INFRASTRUCTURE
G O A L S
ENGAGEMENT SBIR - CRADAs
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Working Together to Develop Our Talent and
Technology
AGRICULTURE
A Prosporous Future Where Agriculture Produces
and Uses Energy Efficiently and Effectively
Energy Science Education