House Spending Bill Cuts Renewable Energy Programs
Two renewable energy programs designed to help make America more energy independent were slashed in the spending bill passed Tuesday night by the House Appropriations Committee.
The Rural Energy for America Program (REAP) which provides grants and loan guarantees to agricultural producers and rural small businesses to help purchase renewable energy systems, including ethanol blender pumps, was cut from the current $75 million to just $1.3 million, but that was at least a slight victory since the program was slated for elimination. Rep. Marcy Kaptur (D-OH) sponsored the amendment which salvaged the small amount that will allow USDA to continue to operate the program for the time being. Agriculture Secretary Tom Vilsack just announced in April that the program could be used to install blender pumps, with a goal of installing 10,000 pumps nationwide in the next five years. Last week, he was in Tennessee promoting the program.
At the same time, the committee provided no funding for the Biomass Crop Assistance Program (BCAP) in the fiscal year 2012 appropriations bill, despite pleas from a variety of agriculture, biofuels and even environmental organizations. “BCAP is just beginning to take shape in transforming rural America’s contribution to the nation’s renewable energy supply,” the groups wrote in a letter to committee leadership. “BCAP provides critical assistance to help farmers and foresters plant and collect next generation, purpose grown energy crops and other biomass that are key to ensuring the near‐term commercialization of low‐carbon advanced biofuels, power, and products. Failing to strongly fund BCAP in FY 2012 will severely stunt the development of these new dedicated energy crops just at a time when they are needed to further develop domestic sources of energy.”
The bill now goes to the full House for a vote but is likely to change substantially in the Senate.
5 Comments
Steve_V
The Intermediate blends like E30 from blender pumps can displace 15 percent more oil then even E85 by offering higher efficiency. Basically ethanol can be the efficiency extender for gasoline.
Does anyone think the oil companies are afraid that blender pumps may promote an octane competitive market? Ethanol has twice the octane value of what ASTM would show and many are seeing that E30 has little to no mileage loss yet 10 percent less energy in the tank.
Craig P
A big setback to getting more renewable energy crops planted by American farmers. Now they’ll still be planted, but only by larger, more established farmers and corporate farms. Cut out will be disadvantaged farmers, rural areas needing an agricultural boost, and farmers looking to revitalize unused or unproductive lands.
The decision to cut the BCAP program effectively increases our fossil fuel and foreign oil dependence. If you’re against trees, this action will ensure more trees are burned, rather than cleaner more efficient energy crops. If you’re against coal, this ensures more coal will be used in existing and now newly-built facilities. If you’re against corn ethanol, this action takes out alternative crops. This action has repercussions across all areas of renewable energy.
jim
I agree Craig! what a crock, to not let this program flourish- BCAP was intiated under Bush adminstration- and deployed now under Obama….
i see big oil smiling now!
Eco Nut
USDA-FSA screwed up the 2009 pilot program so badly that only big corporate conglomerate pellet and paper mill industries benefited. Those industries have all the Washington lobbyists and influence. The final 2010 BCAP rule leaves them out, so now that the program benefits “real” rural farms, lawmakers have no interest. President Obama speaks on renewable energy as a national priority, but only if it benefits G.E.(Wind) and Foreign owned PV(Solar)Companies. They get richer and the small American farmer and forester starves. Meanwhile we are sending $15 billion in 2011 to support agriculture in Afghanistan and will continue importing oil from our enemies in the Middle East. What is wrong with this picture, America?
Debbie
Ethanol is a miserable failure. People see their engines eroding, their miles per gallon dropping (so we import more oil, not less), food prices rising dramatically, and the big oil companies laughing all the way to the bank. How long can this go on???
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