The United States Department of Agriculture unveiled the 2007 Farm Bill today amid widespread expectation about what it might have to say about biofuels. Before you fall asleep it's worth noting that we only get one of these every five years, so they matter more than your average piece of legislation.
By all accounts this years' Farm Bill is potentially one of the most reformist in some time (see link to New York Times article below).
Last week president Bush set ambitious goals to increase domestic biofuel production seven-fold by 2017. But he didn't go into much details about how he plans to budget it. The Farm Bill gives us a better idea. On Wednesday Florida's new Governor, Charlie Crist also announced $50 million for biofuels (see below).
The Farm bill contains good news for biofuels advocates, and for the state of Florida, according to the state's Agriculture Commissioner, Charles Bronson.
He phoned me this afternoon to tell me the good news. Here's what he had to say.
Besides putting more money into 'specialty crops' (fruits, vegetables and nurseries) such as oranges and strawberries, Commissioner Bronson said the Farm Bill includes $1.6 billion for research into cellulosic ethanol technology. This money will be available to universities as well as private companies.
Bronson says this is the first time that the Farm Bill has been the vehicle for funding of energy crops. "They are supporting the president's idea of increasing biofuel production through cellulosic ethanol," he said.
Cellulosic ethanol can be made from almost any plant fiber, greatly increasing options for biofuel production which currently depends on corn in the United States, as well as sugar cane in other major ethanol producing countries such as Brazil.
Bronson says he believes cellulosic ethanol is especially well suited to Florida which has no corn. Florida's sugar cane is also dedicated to producing sugar granules. But Florida has many other potential fuel crops, as well as forest.
"This bill really lends itself to Florida's emerging biofuels industry," he said.
"I think it's going to be like the computer chip industry. As more and more people get involved, the more efficient and cheaper it will become to produce." He said the USDA predicts in the future ethanol could cost as little as $1.20 - $1.30 a gallon to produce.
Another $2.1 billion in loans will be available to companies seeking to put cellulosic ethanol on the market.
"There's some serious money in here to help businesses in Florida roll out ethanol," he said.
"We know there are at least three of four companies poised to make a run at some form of ethanol production in the state, maybe as many as six. I'm very excited about it. We are quietly getting into the energy business."
In a press release Bronson noted that the Farm Bill complements his 'Farm to Fuel' Initiative launched last year. Bronson says he recognizes Congress will ultimately decide what the farm bill looks like, he
applauded USDA for putting forth a bold proposal.
Gov. Crist is asking the Florida Legislature to greatly expand
funding for alternative energy, proposing $68-million in new spending
and tax incentives for alternative energy.
Crist's
proposed budget suggests the state spend $68-million on alternative
energy funding. The proposal extends $17.5-million in grant programs
from the current fiscal year, and offers nearly $1-million for a public
education campaign on energy efficiency.
"Florida can become a
leader in the production of alternative fuels," said Crist spokeswoman
Vivian Myrtetus. "We must empower industry to make Florida the center
of biofuel production. Increased ethanol production will further
stimulate Florida's economy and create additional jobs."
Click here for more details form the USDA
Click here for St Petersburg Times coverage of Crist's biofuels announcement.
Click here for link to New York Times analysis, 'Agriculture Dept Urges Big Overhaul in Farm Policy.'
- David Adams
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