Vilsack's remarks

October 21, 2010

BY Ron Kotrba

In case anyone didn’t catch all of USDA Secretary Vilsack’s remarks to the press club today, I thought I would share a few interesting quotes from him, regarding biorefining, advanced biofuels and our nation’s energy situation.

“No one can dispute that we remain too dependent on imported oil. That dependency, absent action now, will grow as our need for more energy grows. The Energy Information Administration estimates that by 2035, U.S. Energy consumption will have increased by another 50 percent. Thirty years ago 28 percent of the oil consumed in the United States was imported. Today that figure is closer to 60 percent-some of which comes from countries that neither like us nor support us. Today we still send a billion dollars a day outside our shores helping other countries' economies to grow while our economy recovers from a deep recession. With the disastrous oil spill in the Gulf of Mexico, we are also reminded that the development of our own oil resources is not without environmental and economic risk.”


RFS2, he said, “reaffirmed” the goal of producing 36 billion gallons of biofuels by 2022, to include 21 billion gallons of advanced biofuels.


“Today, we produce around 12 billion gallons of ethanol biofuels and around 800 million gallons of biodiesel. Very little of which is considered an advanced biofuel. While, under the RFS2, the biodiesel is an advanced biofuel, we are pushing the limits of technology and surging towards the production of advanced cellulosic ethanol, biobutenol, drop-in fuels and other advanced biofuels. … However, to meet the 36 billion gallon goal, we need to work harder and faster. Incentives helped build the biofuel industry and incentives need to continue. Congress should start by reinstating the Biodiesel Production Tax Credit and providing a fiscally responsible short-term extension of the Volumetric Ethanol Excise Tax Credit. At the same time, we need to begin to think about reforms to the ethanol credit program to make it more efficient and effective at addressing the full range of challenges we face in meeting our goals for traditional and next generation biofuels. We have already seen what happens when incentives are withheld too quickly. The lapse of the biodiesel tax credit cost the industry jobs-nearly 12,000 jobs were lost as production was cut in half once the credit lapsed, according to industry estimates-these are jobs we can't afford to lose.”

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Vilsack went on to say, “Incentives, by themselves, are not enough. Our effort must include identifying additional feed stocks available throughout the country and discovering more efficient production processes. Research and development must intensify.”


“Production of 36 billion gallons of [biofuels] will require that biorefineries dot the rural landscape. The Farm Bill of 2008 authorized investments to assist in the construction of new biorefineries. Today, I am directing the Rural Development mission area of USDA within 60 days to announce funding under the current Biorefinery Assistance Program for the construction (to commence in 2011) of a biorefinery or bioenergy plant in each of the regions serviced by the regional centers. In doing so, the entire country can begin to see the economic benefit to producers and job creation potential of the biofuel/bioenergy industry.”


“I have instructed Rural Development officials to provide financial assistance, using existing resources, to provide the resources and matching funds to help install 10,000 blender pumps and storage systems over the next 5 years. Work will commence immediately on putting that program together. Our effort to expand the biofuel industry will also include opportunities we control within our own vehicle fleet at USDA. We are committed to make E 85 and other blends of biofuels, including biodiesel mixes, more conveniently located. We'll encourage more use of biofuels in our fleet of almost 43,000 vehicles. The impact can be significant. The Department reported 42,882 light, medium, and heavy duty vehicles in the motor vehicle inventory in FY 2009. The approximate total fuel consumption was 19,500,000 gallons. The miles traveled by the USDA Motor Vehicle Fleet were approximately 342,500,000 with approximately $41,000,000 in fuel costs reported.”


“I recognize that some may doubt our capacity to meet the challenge of expanding the biofuels industry. I do not under estimate the challenges, but I have seen Rural America rise again and again to continually meet the large challenge of providing food, feed, and fiber for the country and the world. Belief and action remain powerful forces to affect change. I believe the President's vision for rural America compels us to action. I believe the goals articulated within the RFS2 mandate action. And, I believe the need for energy security, a cleaner environment, and better economic opportunity in rural American make the case for immediate action.”

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The extensive remarks from Vilsack makes you want to go out and build a biorefinery, doesn’t it?


Aside from a difficult Senate, what other obstacles do you all foresee inhibiting fulfillment of these directives discussed in the political sermon?  


 


 


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