Domestic Fuel

Delegates for the American Farm Bureau Federation (AFBF) last week voted overwhelmingly to support continuation of the Renewable Fuels Standard (RFS), despite the fact that membership in the organization includes a substantial percentage of livestock producers.

“The livestock guys still have concerns about high feed costs, and I’m one of them, I’m a beef producer,” said AFBF president Bob Stallman. “On the other hand, we have this renewable fuels infrastructure that’s in place, a very large industry that employs lots of people and provides a market for a lot of products, so we need to be very careful not to have policies trying to dismantle that.”

There were 362 voting delegates at the 94th AFBF Annual meeting in Nashville last week representing every crop and livestock sector in the 50 states and Puerto Rico. The policies approved at the annual meeting will guide the nation’s largest general farm organization in its legislative and regulatory efforts throughout 2013.

Secretary of Agriculture Tom Vilsack says the future success of biofuels in this country is also tied to successfully getting a new five-year farm bill passed. Speaking to delegates of the American Farm Bureau Federation at their annual meeting in Nashville, Tenn., Vilsack expressed his disappointment that a new farm bill was not passed … reserving some of his stronger language for maybe a smaller gathering. But he says the impacts of a new farm bill will be on more than just the mainstream renewable fuels, ethanol and biodiesel. It is for the overall bio-based economy.

“I’ve seen the ability to use corncobs and switch grass and algae and a wide variety of things that are grown and raised or could be produced in rural areas, converted into plastics, into chemicals, into fabrics, into fibers, into fuel, into energy. It is an unlimited future. But we require support and assistance and help and a commitment through a five-year bill,” Vilsack explained.

Vilsack reminded his audience who knows full well that rural America is providing the feed stock for most of the energy and most of the fuel that’s consumed and used across the country, while providing millions of jobs, many of those in the renewable energy sector. And he said that rural economy, booming with renewable energy, will attract young folks back to the heartland.

“If I were talking to a young person, I would say, you’re concerned about our overreliance on foreign oil, you can solve that problem in rural America.”

Vilsack also announced that he plans to serve another term as Secretary of Agriculture … a move applauded by Tom Buis, CEO of Growth Energy:

“Secretary Vilsack has been a tireless advocate for the renewable fuels industry, and I commend President Obama for his reappointment to the Department of Agriculture. I am confident that Secretary Vilsack will build upon his excellent service record supporting renewable fuels and economic growth across rural America. I know that during his tenure he will continue his strong advocacy for biofuels increased market access for higher ethanol blends such as E15.

You can listen to or download Sec. Vilsack’s speech here: Sec. Vilsack Speech

And his press conference after the closing session here: Sec. Vilsack Press Conference

During the last Domestic Fuel Cast, we talked about the U.S. Senate’s work on the renewable energy provisions of the Farm Bill. In this edition, we follow the debate over to the House, where not much funding in the energy title of the bill moved out of the Agriculture Committee.

Listen to what some key lawmakers, as well as leaders from the renewable energy sector, farm groups, and government officials had to say as the discussion spilled over into another House committee considering changes to the Renewable Fuel Standard (RFS).

You can listen to the Domestic Fuel Cast here: Domestic Fuel Cast

You can also subscribe to the DomesticFuel Cast here.

The American Farm Bureau Federation (AFBF) is opposed to a bill introduced by Congressman Jeff Flake (R-AZ) that they claim would weaken the Renewable Fuel Standard (RFS) by requiring fuel companies to blend only the amount of cellulosic ethanol currently being produced into gasoline.

“Basically any weakening of the RFS is not a good thing for the country going forward. When you look at the ambitious goals that have been set to wean ourselves off foreign sources of oil and create a domestic biofuels industry, that’s a threat when you’re trying to undermine that,” said AFBF energy specialist Andrew Walmsley, noting that pulling back on the requirement will reduce the incentive for investment in advanced biofuels.

Walmsley says investment and increased production of cellulosic biofuels could open up new markets for farmers. “Those producers that may not grow corn and have had the opportunity to benefit from the growth of corn ethanol – the advanced biofuels and cellulosic ethanol is where they can break in. There’s crops that fit into southern rotation for southern growers between peanuts and cotton or you could look at perennials. There’s crops that grow year after year that you plant and have a dedicated source of income.”

A diverse group of bioenergy stakeholders is holding a Capitol Hill Day for Bioenergy in Washington, DC on March 21.

The event is being sponsored by a number of organizations including the 25x’25 Alliance, American Farm Bureau Federation, Advance Biofuels Organization, Algal Biomass Organization, American Council on Renewable Energy, Biomass Power Association, Energy Future Coalition, National Alliance of Forest Owners, National Farmers Union, and SAFER Alliance.

The groups are holding the event to draw attention to the fact that renewables make up nearly 12 percent of all energy produced in the U.S., such as fuels, electricity and thermal energy from biomass, and that bioenergy reduces the nation’s risks from dependence on foreign oil, strengthens our economy and ensures the continued, sustainable management of our natural resources.

The day will include a morning briefing with congressional members and trade group association leaders on bioenergy issues, small group visits to educate Congressional leaders and their staffs, an evening reception on Capitol Hill to network with other industry stakeholders, Congressional staff, and association partners.

Anyone in the bioenergy sector is welcome to take part in the event – registration and other information is available on-line.

The American Farm Bureau Federation is supporting a new direction in biofuels policy away from the blenders tax credit and toward increasing infrastructure.

“The whole discussion has been evolving within the industry and within the Congress,” said AFBF President Bob Stallman during a press conference following the conclusion of the organization’s 92nd annual meeting. “It doesn’t surprise me that that showed up in our policy this year and our members have said it’s a good idea for us to make that transition.”

“Part of that is the recognition that maybe that blend credit isn’t serving as good a purpose as it could and the fact that it is a pot of money that may be subject to budget reductions and if we could shift that to infrastructure you can make the case that its a better use of public funds,” Stallman added.

The voting delegates of the nation’s largest general farm organization also adopted urged Congress to “pursue vigorous oversight” of the Environmental Protection Agency.

In approving the “sense of the delegate body” resolution, the delegates said “congressional action is necessary to restore common sense to environmental regulation on our farms.” EPA, they said, is limiting the use of private property, “encroaching on state land use and water quality planning efforts,” and impeding economic growth.

The resolution also asked lawmakers to consider legislation to “halt” EPA’s regulation of greenhouse gases.

Retired General Wesley Clark visited the second AG CONNECT Expo Saturday in Atlanta to talk with farmers and ranchers visiting the event about the importance of ethanol to our nation’s security.

Representing Growth Energy, Clark greeted folks at the CASE IH exhibit on the floor of the agricultural trade show. He also made time for some media interviews to talk about ethanol issues, like what he thinks will happen with ethanol policy this year in Congress. “We need to be thinking ahead about how to fix America’s dependence on foreign oil,” Clark said. “We probably are going to need some incentives for service station owners to invest in blender pump technology and that can be done by giving them some of the credit that is being given right now to the blender itself.” So Growth will probably support some kind of a split in the current tax incentive structure to give some for infrastructure.

Clark also talks about EPA’s rule on E15. “Ethanol is not poison at E15,” he said. “So we need to be sensitive in terms of labeling. We want consumers whose cars can take E15 to use it. It’s good for America. And I think we’re going to win that discussion.”

Listen to my interview with Wesley Clark here: Wesley Clark

2011 AG CONNECT Expo Photo Album

There were a lot of volunteers helping pump gas during the Kum & Go E-85 pump promotion in Des Moines in advance of the Iowa Corn Indy 250. Some of them were from the Polk County Farm Bureau.

I spoke with Carol Miller, past President and Board member. She and her family are farmers. They really appreciate the relationship with Kum & Go and getting the word out about E-85. She points out that 35 gallons of E-85 purchased replaces a barrel of foreign oil. She says the Indy Car drivers love it because they use less fuel. She’s hoping to be at the race on Sunday.

You can listen to my interview with Carol below.

Iowa Corn Indy 250 Photo Album.

Podcast: Play in new window | Download (1.1MB)

Tax incentives play a key role in the development and production of renewable energy, and the American Farm Bureau Federation (AFBF) is urging Congress to pass two bills that would extend renewable fuel tax credits for five years.

In a statement presented for the record to a House Ways and Means Committee hearing this week on energy tax incentives, AFBF said long-term tax incentives are needed to boost renewable energy technologies and support development of the market infrastructure necessary to make these technologies more competitive.

AFBF supports legislation that would extend the biodiesel tax incentive for five years and change the biodiesel tax incentive from a blenders excise tax credit to a production excise tax credit. The general farm organization also backs the Renewable Fuels Reinvestment Act that extends the Volumetric Ethanol Excise Tax Credit and the Small Ethanol Producers Tax Credit for five years through 2015. That bill also extends the Cellulosic Ethanol Production Tax Credit for three years, through 2015 and the secondary tariff on ethanol that offsets the benefit received by imported ethanol.

“Clean and renewable domestic energy will help America achieve long-term economic growth, create a cleaner environment and shield our energy supply from unreliable foreign sources,” said AFBF President Bob Stallman. “Renewable fuels are vital for rural America. They create much needed jobs and open new markets for farmers and ranchers. Tax incentives play a key role in the development and production of renewable energy.”