USDA to Advance Development of Advanced Biofuels and Other Renewables; Provide Support for Struggling Corn-Ethanol Industry

26 January 2009

The US Department of Agriculture (USDA) will advance R&D and pursue opportunities to support the development of advanced biofuels, wind power, and other renewable energy sources, said Agriculture Secretary Tom Vilsack. Vilsack was discussing his priorities as Secretary of Agriculture during a teleconference call with the media.

Vilsack said that the USDA needs to make sure that the existing biofuels industry has the necessary support to survive the current challenging market. For example, the USDA will research, develop and promote best practices to improve the efficiency of corn ethanol plants, Vilsack said. USDA also will promote policies to accelerate the development of next-generation biofuels.

Vilsack said that quickly implementing the 2008 Farm Bill, which contains a number of measures such as tax credits, grants and plant expansion and conversion loans, is one of USDA’s multiple priorities. (Earlier post.)

Earlier in January, USDA awarded Range Fuels, Inc. a conditional commitment for an $80 million loan guarantee to assist construction of Range Fuels’ commercial cellulosic ethanol plant near Soperton, Georgia. This is the first loan guarantee to a commercial-scale cellulosic ethanol plant. The $80 million loan comes from the Section 9003 Biorefinery Assistance Program authorized by the 2008 Farm Bill. (Earlier post.)

The Secretary also said that making progress on major environmental challenges, including climate change, is one of the priorities for USDA. Vilsack said it’s important that farmers and ranchers play a role with USDA in efforts to promote incentives for management practices that provide clean air, clean water, and wildlife habitat, and help farmers participate in markets that reward them for sequestering carbon and limiting greenhouse gas emissions.

Among the other priorities detailed was restoring the mission of the Forest Service as a protector of clean air, clean water, and wildlife habitat; a provider of recreation opportunities; a key player in reducing greenhouse gas emissions and carbon sequestration. Vilsack indicated that it is important that we appropriately budget for wildfires so that the Forest Service has the resources it needs for both wildfires and its other missions.