Bioamss Initiative Newsletter

Feature Article July 2006
TAKING STOCK: Progress in Implementing the Biomass Initiative

Kenneth Green
BCS, Incorporated

The multi-agency Biomass Initiative (Initiative) established by the Biomass R&D Act of 2000 has made important progress in coordinating federal efforts to promote the use of biobased fuels and products. Five years in, the Initiative was energized by the EPAct 2005 update to the Biomass R&D Act and is now set to play a strategic role as biofuel takes center stage in the President's Advanced Energy Initiative. This seems an appropriate time to take stock in Initiative accomplishments to date.

Exhibit 1: Objectives of the Biomass R&D Initiative

The objectives of the Initiative, recently updated by EPAct 2005 (see Exhibit 1), are far reaching and require a long-term strategy. Laying the groundwork to achieve these objectives requires coordination and collaboration across the federal sector, industry, and the research community. The Act put in place four tools to accomplish this cooperation:

  • Biomass Research and Development Board - A Cabinet level council co-chaired by appointees from the U.S. Department of Agriculture and the U.S. Department of Energy. The Board coordinates biomass research and development programs within and among departments and agencies of the federal government.

  • Biomass Research and Development Technical Advisory Committee - A group of individuals from industry, academia, non-profits, and the agricultural and forestry sectors. The Committee advises the Secretaries of Energy and Agriculture through the Biomass Research and Development Board on the administration of the Biomass R&D Act.

  • U.S. Department of Agriculture (USDA) and U.S. Department of Energy (DOE) Joint Solicitation - A collaborative interagency solicitation for R&D projects focusing on the objectives of the Initiative.

  • National Biomass Coordination Office - The office is led by the Designated Federal Officer from the U.S. Department of Energy and coordinates the activities of the Committee and the Board. It also responds to public inquiries and maintains a public website.

Academia and the private sector play an important role in the Initiative through the activities of the Biomass R&D Technical Advisory Committee. "Volunteers serving on the Committee have given many hours to the cause," said Thomas Ewing, Committee Chair. He acknowledged that while achieving the objectives of the Initiative remains a long way off, important progress has been made in the areas of planning, coordination, research and development, and communications and outreach.

Planning

In 2002 the Committee released its Vision and Roadmap , setting aggressive goals for biobased fuels, power, and products and establishing guidance for biomass research and development activities. These documents have since helped to provide the guidance for the R&D needed to achieve the Initiative's objectives, and in particular providing direction to the USDA/DOE Joint Solicitation projects. A recent analysis of the progress toward achieving the Committee's Vision goals indicates that the U.S. is on track to meet the Committee's 2010 goal to have biofuels represent four percent of the market share for transportation fuels. The ability to meet the Committee's 2010 goals for biopower and biobased products is less certain. The Committee is now updating both its Vision and Roadmap.

Each year since 2001, the Committee has provided recommendations to the Secretaries of Agriculture and Energy on the technical direction of the Joint Solicitation. These recommendations have been implemented by the Secretaries and helped to direct both the technical focus of research proposals as well as the process by which the solicitations are implemented.

The Committee has conducted an annual review of biomass related research funded by DOE and USDA and has provided recommendations to the agencies on the focus and direction of the research. This review is also helping the agencies to identify opportunities for research collaboration thereby avoiding duplication of effort.

Finally, the Committee gives regular input to the USDA in the planning for the Federal Biobased Products Preferred Procurement Program (FB4P) which is currently underway.

Research & Development

Since 2002 $142 million in federal funds has been awarded under the annual USDA/DOE Joint Solicitation to conduct approximately 60 cost-shared research projects that address the objectives of the Biomass Initiative. The first of these projects started in late 2002/early 2003, and the majority of projects are currently underway. The projects address technical challenges in areas such as biotechnology and plant physiology, feedstock development, thermochemical and biochemical conversion, and fuels and products development. Early projects funded under the Initiative are beginning to show technical and cost improvements in converting biomass resources to fuels and chemicals. For example, the Broin & Associates Second Generation Dry Mill Biorefinery project has demonstrated an efficient and economical means of grain fractionation. Multiple new co-product options are now possible for the first time. One of the most important accomplishments has been the ability to efficiently ferment endosperm. Endosperm is a tissue found in the seeds of flowering plants which is mostly composed of starch, though it can also contain oils and protein.

For a listing of projects funded under the joint solicitation since 2002, visit the Initiative website http://www.biomass.govtools.us/pdfs/USDA-DOEJointSolicitationRDMatrixmsm.xls.

Interagency Coordination

The Interagency R&D Board has proven to be a vehicle for communication and information sharing across nine federal agencies and offices. The U.S. Department of Transportation is the newest addition to the Board.

The Initiative has fostered strong collaboration between USDA and DOE. The agencies have conducted joint technical analyses such as the Biomass as Feedstock for a Bioenergy and Bioproducts Industry: The Technical Feasibility of a Billion-Ton Annual Supply, and a joint study between USDA and Argonne National Laboratory on the net energy benefits of ethanol. They also collaborate to implement the Joint Solicitation, conduct joint workshops, and perform an annual inventory of biomass R&D investments.

Communication and Outreach

A number of activities have been conducted to educate the public and decision makers on the opportunities of biomass and the activities of the Initiative. Committee Chair Tom Ewing presented the efforts of the Initiative to the U.S. Senate Committee on Agriculture, Nutrition, and Forestry on the efforts of the Initiative. Readership for the Biomass Initiative Newsletter has grown from about 200 people in 2001 to over 3,000 currently. The National Biomass Coordination Office has fielded hundreds of requests for information from the public and the research community on the benefits of biomass technologies and on biomass research being conducted. Moreover the Committee holds quarterly public meetings where it hears from a variety of stakeholders.

Looking forward, the Committee is analyzing policy gaps that limit the ability to achieve the Committee's Vision goals, and it is broadening its outreach by conducting regional meetings. Technical results of projects funded under the joint solicitation will continue to contribute to addressing the technical challenges of cost-competitive biobased fuels and products. Technical results of these projects will be disseminated. All of these activities are positioning DOE and USDA to be better prepared to implement requirements under the Farm Security and Rural Investment Act, EPAct 2005, the President's Advanced Energy Initiative.

The Biomass Initiative website contains a complete timeline of Initiative activities. http://www.biomass.govtools.us/about/chronology.asp


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State Spotlight: Maine
Maine   In 2001 the state of Maine consumed roughly 507 trillion Btu of energy. The majority of consumption came from petroleum and biomass/waste accounting for 45 percent and 28 percent of the total energy consumption for the state respectively. Natural Gas accounted for the next highest amount with 20 percent with hydroelectric and coal accounting for 5 and 2 percent of the total consumption respectively.1

Energy Profile Approximately 2,213,697 annual dry tons of biomass is available in the state of Maine for energy production. Of this, urban wood wastes have the potential to supply 180,597 dry tons per year. Urban wood wastes include yard trimmings, wood packaging, and other miscellaneous household and commercial wood wastes. Forest residues, consisting of logging residues, salvable dead wood, and small pole trees and saplings, have the potential to provide up to 1,529,100 annual dry tons. Finally, mill residues, consisting of bark and other residues from pulping mills, could provide up to 504,000 dry tons of biomass each year. Currently, dedicated energy crops are not produced in the United States, but could be if they could be sold at a price that ensures the producer a profit at least as high as could be earned using the land for alternative uses such as producing traditional agricultural crops.2

Biomass Potential by Source Maine does not have a consortium or a council dedicated to biomass itself but any energy issues are managed by the state's Energy Resources Council. The Energy Resources Council is a Cabinet-level council established by the Maine Legislature in 2002 to facilitate more effective interagency coordination of State activities related to energy. The Council is directed to address energy issues of state-level significance that involve or affect more than one agency.3

Total Biomass Potential At this time the state of Maine is offering only one financial incentive supporting renewable resource research and development and community demonstration projects using renewable-energy technologies.4

1Energy Information Administration. Table 7: Energy Consumption Estimates by Source, 1960-2001, Maine. http://www.eia.doe.gov/emeu/states/sep_use/total/use_tot_me.html (7/4/06).
2Biomass Feedstock Availability in the United States: 1999 State Level Analysis. Oak Ridge National Laboratory. Updated January 2000. http://bioenergy.ornl.gov/resourcedata/index.html (7/4/06). *Note: $50/dry ton cost data was used in this article.
3The Energy Resource Council. http://www.maine.gov/spo/energy/energycouncil/ (7/4/06).
4DSIRE: Incentives by state: Louisiana. http://www.dsireusa.org/library/includes/map2.cfm?State=ME&CurrentPageId=1 (7/4/06).

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On the Hill

Bill # Sponsor Description Last Action
H.R.5331 Rep Pomeroy, Earl [ND] BOLD Energy Act of 2006: To promote energy production and conservation, and for other purposes. 5/9/2006: Referred to House Science
H.R. 5259 Rep Berry, Marion [AR-1] Biobased Fuel Action Plan Act of 2006: To require the Biomass Research and Development Board to prepare a biobased fuel action plan to increase the use in the United States of biobased fuel as a ground transportation fuel. 5/10/2006: Referred to the Subcommittee on Energy.
H. R. 5395 Rep Israel, Steve [NY-2] Energy Freedom Bonds Act of 2006: To authorize the Secretary of the Treasury to issue Energy Freedom Bonds to finance programs to facilitate the research, development, and deployment of clean renewable energy technologies. 5/16/2006: Referred to the House Committee on Ways and Means.
S.2829 Sen Cantwell, Maria [WA] Clean EDGE Act of 2006: To reduce the addiction of the United States to oil, to ensure near-term energy affordability and empower American families, to accelerate clean fuels and electricity, to provide government leadership for clean and secure energy, to secure a reliable, affordable, and sustainable energy future, and for other purposes. 5/17/2006: Read twice and referred to the Committee on Finance.
H.R.5372 Rep Herseth, Stephanie [SD] Bioenergy Innovation, Optional Fuel Utilization, and Energy Legacy (BIOFUEL) Act of 2006: To promote the increased utilization of domestically produced, renewable, biobased motor vehicle fuel supplies and the increased manufacture of flexible-fuel vehicles in the United States, and for other purposes. 5/19/2006: Introductory remarks on measure. (CR E904-905)
H.R.5301 Rep Israel, Steve [NY-2] Clean Energy Partnership Act of 2006: To provide for the establishment by the Secretary of Energy of a program of Federal support for local governments and school districts that establish comprehensive clean energy plans. 5/24/2006: Referred to the Subcommittee on Education Reform.
H.R.5509 Rep Nunes, Devin [CA-21] To amend the Internal Revenue Code of 1986 to clarify the tax credit for electricity produced from open-loop biomass. 5/25/2006: Referred to the House Committee on Ways and Means.
H.R.5254 Rep Bass, Charles F. [NH-2] Refinery Permit Process Schedule Act: To set schedules for the consideration of permits for refineries. 6/7/2006: Passed/agreed to in House: On passage Passed by recorded vote: 238 - 179 (Roll no. 232).
6/8/2006: Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources.
H.R.5653 Rep Lewis, Ron [KY-2] Investment in Energy Independence Act of 2006: To amend the Internal Revenue Code of 1986 to promote investment in energy independence through coal to liquid technology, biomass, and oil shale. 6/20/2006: Referred to the House Committee on Ways and Means.
H.R.5656 Rep Biggert, Judy [IL-13] Energy Research, Development, Demonstration, and Commercial Application Act of 2006: To provide for Federal energy research, development, demonstration, and commercial application activities, and for other purposes. 6/27/2006: Ordered to be Reported (Amended) by Voice Vote.
S.2993 Sen Clinton, Hillary Rodham [NY] Strategic Energy Fund Act of 2006: To amend the Internal Revenue Code of 1986 to impose a temporary oil profit fee and to use the proceeds of the fee collected to provide a Strategic Energy Fund and expand certain energy tax incentives, and for other purposes. 6/28/2006: Introductory remarks on measure. (CR S6593).
H.R.5538 Rep Smith, Lamar [TX-21] Plug-In Hybrid Electric Vehicle Act of 2006: To reduce the Nation's dependence on foreign sources of oil by promoting plug-in hybrid electric vehicles and related advanced vehicle technologies. 6/28/2006: Referred to the Subcommittee on Energy.
H.R.5634 Rep Biggert, Judy [IL-13] Advanced Energy Initiative Act of 2006: To authorize research, development, demonstration, and commercial application activities for advanced energy technologies. 6/28/2006: Referred to the Subcommittee on Energy.

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Grassroots


Carmakers Press EU on Biofuels
Carmakers, including Volkswagen and Fiat, have begun lobbying the European Commission to do more to promote biofuels by asking member states to introduce graduated tax breaks giving bigger discounts for low-carbon fuels. Full article Full article

Agriculture Organizations Join New Alliance for Biobased Economy
The National Corn Growers Association, American Soybean Association and American Farm Bureau Federation in an effort to further policy and usage of biobased products announced recently they are joining the new Alliance for a Biobased Economy (ABE). Biobased products range from corn-based fabrics to soy-based hydraulic fluids and carpet backing and they represent a significant market for U.S. agricultural commodities. Full article Full article

China gets a spurt of new energy
To help ease its oil shortage while reducing its increasing reliance on oil imports, China is putting effort and money into research and development for new sources of energy, in addition to speeding up its ambitious coal-to-liquid fuel projects, intended to convert the country's abundant coal resources into liquid fuel. There are now signs that the Chinese government is increasing its support for biomass energy, and development of fuel ethanol as a kind of biomass energy is entering a rapid-growth stage.
Full article Full article

U.K. seeks to unlock the power of plants
Viewed by U.S. President Bush as one of the key solutions to the United States` reliance on oil, the power of plants is capturing the imagination of the world`s industrialized nations as the scramble for sustainable sources of energy intensifies. In Britain, the sight of fields of giant grass swaying in the breeze could soon become commonplace, as the government turns to crops as an energy source that could help tackle the effects of climate change. Full article

Weyerhaeuser says to switch to more biomass fuel
Timber products company Weyerhaeuser Co.said it would reduce greenhouse gas emissions 40 percent by 2020 by running the boilers at its facilities on more biomass fuels and less fossil fuels.
Full article Full article


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Marketplace


The Grain Prices graph shows the cost of soybeans, the main biodiesel feedstock, and corn, the main ethanol feedstock. The tables show actual grain prices, indicators which may affect gasoline prices, and the production of ethanol. Fuel prices come from OPIS Ethanol and Biodiesel Report. Ethanol and RBOB Unl New York spot prices and SME Biodiesel Rack, Chicago, July 2006.
U.S. Cash Grain Prices June 2006 Transportation Fuel Prices 2006 Transportation Fuel Prices
Grain Prices June 2005 June 2006 % Change
Corn 2.03 2.05
1%
Soybean 6.58 5.57 -15%
Fuel Supply June 2005 June 2006 % Change
Percent Refinery Utilization 95.7 92.7 -3.11%
Production by Product - Finished Motor Gasoline (Million Barrels) 8,963.3 9,255.8 3.26%
Stocks - Finished Motor Gasoline (Million Barrels) 141.6 121.6 -14.16%
Imports - Total Motor Gasoline (Million Barrels) 1,013.0 1,212.8 19.72%
Oxygenate Production April 2005 April 2006 % Change
Ethanol Production
(Million Barrels)
238 289 17.65%
MTBE Production
(Million Barrels)
142 97 -46.39%

Data Sources:
U.S. DOE-Energy Information Administration, "Weekly Petroleum Status Report", "Monthly Oxygenate Report"
USDA-National Agricultural Statistics Service, "Agricultural Prices," "Grain Stocks"

U.S. Historic Imports of Motor Gasoline U.S. Historic Finished Motor Gasline Products U.S. Historic Refinery Utilization U.S. Historic Stocks of Finished Motor Gasoline

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R&D Awards

Title: Ralph E. Powe Award
Description: This award supports Dr. Zhang's work to understand and make the best use of the enzymes that work together in the hydrolysis of cellulose -- that is, to breakdown tough plant material into soluble compounds that are ultimately converted into biofuel and other products.
Recipients: Y. H. Percival Zhang, College of Agriculture and Life Sciences, Virginia Polytechnic Institute and State University
Award Total: $5,000
Sponsoring Office: Oak Ridge Associated Universities
URL: http://filebox.vt.edu/users/ypzhang/research.htm

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Solicitations
Title: Continuing Solicitation for the Office of Science
Description: Seeking grant applications for support of basic energy science fundamental research in the natural sciences and engineering leading to new and improved energy technologies and to understanding and mitigating the environmental impacts of energy technologies.
Government Agency: U.S. Department of Energy, Office of Science
Schedule: Applications may be submitted at any time.
URL: http://www.science.doe.gov/grants/FAPN05-01.html

Title: Energy Innovations Small Grant (EISG) Program
Description: The EISG provides funding to small businesses, small non-profits, individuals and academic institutions for establishing the feasibility of new energy concepts. Qualifying entities outside of California are eligible. Projects must develop innovative and original energy concepts that address a clear market need, provide benefit for California electricity ratepayers and target one or more areas of interest: industrial/agriculture/water end-use efficiency; building end-use efficiency; advanced generation; renewable generation; energy-related environmental research; strategic energy research.
Government Agency: California Energy Commission
Schedule: EISG has up to 4 cycles of grants a year
URL: http://www.energy.ca.gov/research/innovations/index.html

Title: Energy Performance Contracting in State-Owned Facilities
Description: Funded by a System Benefits Charge (SBC) on electric transmission, this program offers energy efficiency, research and development, low-income and environmental disclosure funding and education to assist electric consumers as the regulated electricity market moves to more open competition.
Government Agency: New York State Energy Research and Development Authority
Schedule: Grant programs, funding amounts, and funding cycles vary
URL:http://www.nyserda.org/Funding/funding.asp?i=2

Title: Flail-Type Biomass Harvester and Weigh System
Description: The USDA, Agricultural Research Service, Grain Forage and Bioenergy Research Unit, Lincoln, Nebraska, requires one NEW Flail-Type Biomass Harvester and Weigh System for harvesting biomass from bioenergy research plots in a 36-inch cutting width and weigh the biomass in a large capacity hopper mounted on the harvester.
Government Agency: U.S. Department of Agriculture
Schedule: Applications due by July 28, 2006
URL: http://www.fbo.gov/spg/USDA/ARS/NPA/RFQ%2D013%2D82HW%2D06/SynopsisP.html

Title: National Research Initiative
Description: The U.S. Department of Agriculture requests applications for the National Research Initiative Competitive Grants Program (NRI). NRI supports research, extension, and education projects that address key problems of national, regional, and multi-state importance in sustaining all components of agriculture. 29 program areas identified including Biobased Products and Bioenergy Production; Water and Watersheds; and Rural Development.
Government Agency: USDA
Schedule: Due dates range from November 30, 2005 go October 31, 2006
URL:http://www.csrees.usda.gov/funding/nri/nri.html

Title: Biorefinery Construction Solicitation
Description: This Funding Opportunity Announcement (FOA) is being issued under authorization of the Energy Policy Act (EPAct) of 2005, Section 932. Amendments to the Internal Revenue Code of 1986 within Title XIII, Energy Policy Tax Incentives cited in EPAct and sections 1345 and 1346 (renewable fuel and biodiesel credits) of EPAct provide additional impetus and credit enhancements for potential applicants to respond to this announcement. Approximately $53,000,000 is expected to be available in FY07 for new awards under this FOA. Additional funding is expected to be available in FY08 and FY09. In total, approximately $160,000,000 over three years is expected to be available for new awards under this FOA.
Government Agency: DOE
Schedule: Applications due by September 10, 2006
URL: http://e-center.doe.gov/iips/faopor.nsf/

Title: BAA06-43 - BioFuels
Description: The Defense Department has been directed to explore a wide range of energy alternatives and fuel efficiency efforts in a bid to reduce the military?s reliance on oil to power its aircraft, ground vehicles and non-nuclear ships. DARPA is interested in proposals for research and development efforts to develop a process that efficiently produces a surrogate for petroleum based military jet fuel (JP-8) from oil-rich crops produced by either agriculture or aquaculture (including but not limited to plants, algae, fungi, and bacteria) and which ultimately can be an affordable alternative to petroleum-derived JP-8. Current commercial processes for producing biodiesel yield a fuel that is unsuitable for military applications, which require higher energy density and a wide operating temperature range.
Government Agency: Department of Defense
Schedule: Applications due by July 20, 2006
URL: http://www.fbo.gov/spg/ODA/DARPA/CMO/BAA06%2D43/SynopsisP.html


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Events

July 9 - 12, 2006
Portland, Oregon

2006 Annual International Meeting - American Society of Agricultural and Biological Engineers
Organizer: ASABE
Contact: Sharon McKnight
Email: mcknight@asabe.org
Tel: (269) 428-6333
Website: http://www.asabe.org/meetings/aim2006/

July 11 - 4, 2006
Toronto, Canada

2006 World Congress on Industrial Biotechnology and Bioprocessing/The 2nd Annual Agri-Food Innovation Forum
Organizer: Agriculture and Agri-Food Canada, Ontario Ministry of Agriculture, Food and Rural Affairs and Ontario Agri-Food Technologies
Contact: BBI Biofuels
Email: agrifoodforum@bbibiofuels.com
Tel: (519) 576-4500
Website: http://www.agrifoodforum.com/english/index.html

July 13 - 19, 2006
Whitefish, Havre and Sidney, Montana

Montana Biodiesel Production Workshop
Organizer: Montana Department of Environmental Quality
Contact: Bill Webb
Email: biwebb@mt.gov
Tel: (406) 841-5204
Website: http://www.deq.mt.gov/Energy/bioenergy/biodieselConf/index.asp

July 13 - 14, 2006
Santa Fe, New Mexico

Energy in the Southwest 2006
Organizer: Law Seminars International
Contact: Registrars
Email: registrar@lawseminars.com
Tel: (202) 567-4490; 1(800) 854-8009
Website: http://www.lawseminars.com/seminars/06BSENM.php

July 15 - 17, 2006
New Orleans, Louisiana

Southern States Energy Board 46th Annual Meeting
Organizer: Southern Governor's Association
Contact: SGA Registration and Housing Center
Email: lkrauss@jspargo.com
Tel: (703) 679-3919
Website: https://reg.jspargo.com/sga06/reg/

July 18 - 19, 2006
Grand Forks, North Dakota

Biomass '06: Power Fuels, and Chemicals Workshop
Organizer: Energy & Environmental Research Center (EERC), University of North Dakota and U.S. Department of Energy
Contact: Anne Fiala
Email: afiala@undeerc.org
Tel: (701) 777-3119
Website: http://www.undeerc.org/biomass/

July 29 - 30, 2006
Hermann, Missouri

Ozark Renewable Energy and Sustainable Living Expo
Organizer: Missouri Coalition for the Environment
Contact: Henry Rentz
Email: rrickrod@charter.net
Tel: (573) 486-5709
Website: http://www.ozarkre.org/


Click here for additional bio-related events.

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The Biomass Initiative, formed as part of the Biomass R&D Act of 2000, is a multi-agency effort to coordinate and accelerate all Federal biobased products, biofuels, and bioenergy research and development. The Biomass Initiative distributes an online monthly newsletter to inform government institutions and the public, including private companies, about the Biomass Initiative and biomass-related activities. The newsletter’s contents include a feature article highlighting important biomass-related stories of the month, as well as grassroots information and a state spotlight recognizing important local activities. In addition, the newsletter includes biomass-related information on recent legislation, R&D awards, solicitations, and market trends.

If you have any questions or comments about the Biomass Initiative Newsletter, please contact mmanella@bcs-hq.com.