Bioamss Initiative Newsletter

Feature Article September 2006
Biomass R&D Technical Advisory Committee FY 2006 Annual Recommendations

Harriet Foster
BCS, Incorporated

During its August 10, 2006 public quarterly meeting, the Biomass Research and Development Technical Advisory Committee approved its annual recommendations to the Secretaries of Agriculture and Energy for the fiscal year.

Recommendations are submitted in the following categories, according to the specifications of the Biomass R&D Act of 2000 (Title III of the Agricultural Risk Protection Act of 2000, P.L. 106-224, as revised by the Energy Policy Act of 2005, P.L. 109-58):

    1. Recommendations regarding the distribution and use of Initiative funds
    2. Recommendations on the solicitation and proposal review process
    3. Overall recommendations to the Secretaries
  1. Recommendations regarding the distribution and use of Initiative funds
    1. In order to fully support the Vision of the integrated biorefinery, the Thermochemical platform should receive continued funding, and those thermochemical technologies should become an integral part of the Biofuels Initiative.
    2. The Biomass Program and the Fossil Energy Program at the U.S. Department of Energy (DOE) should report to the Committee on how their efforts in the areas of thermochemical conversion and in carbon capture and storage are interacting with each other, what synergies and benefits they see in expanding the coordination and collaboration from current levels, and what future coordination and collaboration are being planned.
    3. R&D should be pursued to develop liquid transportation fuels from biomass, in addition to ethanol and biodiesel.
    4. R&D should be funded to develop technologies capable of processing multiple and mixed feedstocks into biofuels and bioproducts (to the extent possible).
    5. Research should endeavor to provide technologies of scales that can be practiced on a local basis in dispersed geographies utilizing readily available feedstocks. Such technologies will help to reduce the concentration of plant emissions in an area, reduce the transportation requirements for inbound feedstocks and outbound finished products and provide the economic benefits of resulting jobs to more locations.
    6. To reach the billion-ton feedstock goal, the departments should support R&D capable of handling and converting a wide variety of feedstocks. This should include research directed at overcoming logistical hurdles and addressing issues of harvesting, handling, densifying, transporting, preparing, and storing feedstocks headed for the biorefinery.

  2. Recommendations on the solicitation and proposal review process
    1. The Committee recommends that the 2007 USDA-DOE joint solicitation be issued in a timely manner, by October 1, 2006.
    2. *Budgeted funding for the Initiative should be subject to fewer Congressionally directed projects, and provide a greater proportion of discretionary amounts to pursue projects that are measured by documented milestones and which reflect the Committee's Vision and Roadmap. For example, a separate targeted program and/or solicitation should be developed in consultation with appropriate Congressional staff, focusing on drawing in state research and demonstration funding in a true partnership fashion. Around the nation, governors and legislators are making decisions about increasing funding for biofuels and bioproducts research, demonstration, and infrastructure efforts. States are providing not only funding but tax incentives, education, and outreach to the public. Leveraging these public interest funds and efforts in a manner that recognizes the important role of the states would greatly expand available resources for biofuels and bioproducts development. Moreover, properly structured and communicated, it would greatly aid efforts in reducing the overall proportion of Congressionally directed funding.
    3. The Committee should support ongoing review and analysis of awards made to determine the impact of funded programs.

  3. Overall recommendations to the Secretaries
    1. Opportunities for workforce development in biomass-related disciplines should be pursued.
    2. Outreach to the general public should be expanded to better communicate the benefits of biomass technologies.
    3. Fuel tax abatement has been extremely successful in promoting biofuels. Similar incentives should be developed to promote biobased products. An evaluation should be conducted to identify policy initiatives which will support the growth of biobased products.
    4. The Committee recommends that Congress provide full funding for the integrated biorefinery solicitation under section 932 of EPAct - FOA # DE-PS36-06GO96016.
    5. *The Committee encourages the agencies of the Interagency Biomass R&D Board to provide solicitations which support biomass R&D so that a greater number of university faculty members are directly involved in biomass R&D projects. This will advance the influence of the biomass community, facilitate the increase of the biomass workforce, and encourage cooperation with industry and federal scientists.
    6. *Increased support should be given for international peer exchange among policy makers and researchers on biofuels and biobased products issues. Supporting a global market for biofuels and biobased products would greatly advance U.S. efforts by facilitating the exchange of complementary cross-border policies, developing joint research projects, and increasing the understanding of the potential of biofuels and biobased products.
    7. *The Committee recommends a study and test of the existing infrastructure to identify methods in which it can be modified or improved to transport and distribute biobased fuels, products and energy.

    *These are recommendations which were either submitted for the first time or significantly modified at the August 10, 2006 meeting, and approved by the Committee.

    These recommendations will be submitted to the Secretaries of Energy and Agriculture for review in managing the implementation of the National Biomass Initiative including the joint solicitation and the overall guidance on biomass R&D. These recommendations will be reviewed by the agencies, and the departmental responses will be included in the Secretaries' 2006 Annual Report to Congress. Previous year’s recommendations have been used to modify the direction of proposals requested under the joint solicitation and have resulted in modifications to how the joint solicitation is implemented.


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Biomass Spotlight: Kentucky
State Spotlight: Kentucky

On April 26, 2006 Governor Ernie Fletcher signed into law House Bill 299, "Kentucky Energy Security National Leadership Act." This bill aims to "ensure that Kentucky will lead the states in securing the energy independence of the United States and will consequently benefit from economic growth and stabilization of the Commonwealth's coal industry and agriculture, the Kentucky Office of Energy Policy (KOEP) shall develop and implement a strategy for production of transportation fuels and synthetic natural gas from fossil energy resources and biomass resources." The State's Office of Energy Policy (OEP) is already active in determining how it will implement the bill. This bill is a welcome addition to policies that already support the state's growing biofuels industry; such as an income tax credit that is available for biodiesel producers and blenders at a rate of $1.00 per gallon.

Currently, biodiesel and ethanol are being produced and sold in Kentucky. The state has two active ethanol production facilities with two planned to start up in late 2007 and in winter of 2008. Kentucky also has one active biodiesel facility, with two planned to go online this fall.

Table 1: Active and Proposed Biomass Production Facilities


The number of stations that sell E-85 (a blend of 85 percent ethanol and 15 percent gasoline) and biodiesel are also increasing. Currently, there are 5 stations that sell E-85 and 5 that sell biodiesel. Below is a map that shows the locations of these stations.

Figure 1: Kentucky Ethanol and Biodiesel Stations

Legend
Ethanol Station
Biodiesel Station

A few organizations in Kentucky support Kentucky's booming biomass industry. First, the Kentucky Corn Growers Association (KyCGA) is a strong supporter of the ethanol industry since corn is the crop that is used mostly to produce ethanol. The KyCGA is involved in many projects such as helping develop ethanol infrastructure in the state, investing in ethanol production facilities, encouraging fleet controllers to purchase flex fuel vehicles (FFV) which are able to run on E-85 and educating growers and students of all ages on the benefits of ethanol. Second, the Kentucky Clean Fuels Coalition, established in 1993 with the goal of promoting air quality and economic development across Kentucky, actively promotes the increased use of E-10, E-85 and biodiesel. Finally, the Kentucky Soybean Board and Association promote research efforts and education to increase the use of soy biodiesel.

Through its policies, Kentucky is succeeding in becoming a leading example of how a state can contribute to making the United States more energy independent and environmentally friendly by supporting biomass projects.



1 Kentucky Office of Energy Policy- Division of Fossil Fuels and Utility Services Website: http://www.energy.ky.gov/dffus/hb299.htm (8/29/06).
2 U.S. Department of Energy- Office of Energy Efficiency and Renewable Energy; State & Federal Incentives & Laws http://www.eere.energy.gov/afdc/progs/view_ind.cgi?afdc/5831/0 (8/29/06).
3 Kentucky Office of Energy Policy- Division of Fossil Fuels and Utility Services Website: Biofuels Production Facility Chart http://www.energy.ky.gov/dre3/renewable/biofuels.htm#producers (8/29/06).
4 Kentucky Office of Energy Policy- Division of Fossil Fuels and Utility Services Website: Biofuels Production Facility Chart http://www.energy.ky.gov/dre3/renewable/biofuels.htm#producers (8/29/06).
5 U.S. Department of Energy- Office of Energy Efficiency and Renewable Energy; Fuel and Infrastructure Map http://www.eere.energy.gov/afdc/infrastructure/station_maps.html (8/29/06). Also see Kentucky Clean Fuels Coalition Website http://www.kentuckycleanfuels.org/biodiesel/Map.pdf for a detailed map of all alternative fuel filling stations in Kentucky (8/27/06).
6 Kentucy Corn Growers Association Project Overview Website http://www.kycorn.org/kycgaprojects/ethanol/ethanol.htm (8/29/06).
7 Kentucky Clean Fuels Coalition Mission Webpage http://www.kentuckycleanfuels.org/ (8/29/06).
8 Kentucky Clean Fuels Coalition Mission Webpage http://www.kysoy.org/ (8/29/06).

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On the Hill

Bill # Sponsor Description Last Action
H.R. 5927 Rep Cardin, Benjamin L.[MD-3] American Energy Independence Act: To provide energy independence to Americans, to increase the efficiency and decrease the environmental impact of America's energy policy, to increase America's research and development in energy, and to encourage the development and use of renewable forms of energy. 7/24/2006: Referred to House subcommittee. Status: Referred to the Subcommittee on Energy and Air Quality
H.R. 5890 Rep Nunes, Devin [CA-21] American-Made Energy Freedom Act of 2006: To establish the American-Made Energy Trust Fund, to increase the tax credits for cellulosic biomass ethanol, to extend tax incentives for solar and fuel cell property, to promote coal-to-liquid fuel activities, to direct the Secretary of the Interior to establish and implement a competitive oil and gas leasing program for the Coastal Plain of Alaska, and for other purposes. 7/26/2006: Referred to the Committee on Ways and Means
H.R. 5926 Rep Berkley, Shelley [NV-1] Freedom through Renewable Energy Expansion (FREE) Act: To provide for the energy independence of the United States. 8/7/2006: Executive Comment Requested from Interior
H.R. 5950 Rep Udall, Tom [NM-3] Family Farm Energy Relief Act of 2006: To repeal certain tax subsidies enacted by the Energy Policy Act of 2005 for oil and gas, to allow a credit against income tax for farm diesel expenses, and to allow a credit to farmers who produce biodiesel and agri-biodiesel. 7/27/2006: Referred to the House Committee on Ways and Means.
H.R. 5959 Rep Lofgren, Zoe [CA-16] TEAM up for Energy Independence Act: To amend the Internal Revenue Code of 1986 to impose an excise tax on automobiles sold in the United States that are not alternative fueled automobiles, and for other purposes. 8/1/2006: Referred to the Subcommittee on Energy and Air Quality
H.R. 5402 Rep Conaway, K. Michael [TX-11] Fuel Consumption Education Act: To authorize a partnership between the Secretary of Energy and appropriate industry groups for the creation of a transportation fuel conservation education campaign, and for other purposes. 7/26/2006: Passed in the House. 7/27/2006: Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources
H.R. 5965 Rep Hoyer, Steny H. [MD-5] Program for Real Energy Security Act: To strengthen national security and promote energy independence by reducing the Nation's reliance on foreign oil, improving vehicle technology and efficiency, increasing the distribution of alternative fuels, bolstering rail infrastructure, and expanding access to public transit. 8/1/2006: Referred to the Subcommittee on Energy and Air Quality.

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Grassroots


Md. County to Study Ways to Convert Waste to Energy
Anne Arundel County, whose farms produce 1.7 million square feet of horse manure each year, plans to study the feasibility of converting that and other waste materials into energy. The plan is to create a renewable energy source while reducing nutrient runoff into the Chesapeake Bay.
Full article Full article

State Approves Biofuel Plant Tax Credits
The Vermont Economic Progress Council approved tax credits Thursday that a Canadian company described as crucial to its plan for establishing a biodiesel production plant in Swanton.
Full article Full article

USDA Designates 20 Biobased Items for Federal Procurement
The U.S. Agriculture Department has announced two proposed rules under the Federal Biobased Products Preferred Procurement Program, designating 20 items that must receive special consideration by all federal agencies when making purchases.
Full article Full article

High hopes for processing fuel from plant stems and leaves
The stony, hillside fields of Thomas Stickle's farm here in Western Pennsylvania bear an unusual crop: a tall grass meant to feed not animals, but cars. Stickle, who once farmed more than 1,000 acres of corn and other row crops, and government scientists are studying how to get the most out of his switchgrass as a renewable fuel while creating wildlife habitat and conserving soil.
Full article Full article

Bacteria Beat the Heat
A team of scientists from the Weizmann Institute's Plant Sciences Department, led by Prof. Avigdor Scherz, has found that a switch in just two amino acids (the building blocks of protein) can make a difference between functioning best at moderate temperatures and being adapted to living in extreme heat. The results of their research, which recently appeared in Nature, might have implications for future attempts to adjust crops to differing climate conditions or improve enzyme efficiency in industrial processes.
Full article Full article


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Marketplace


The Grain Prices graph shows the cost fluctuation 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, August 2006.
Cash Grain Prices Received by Farmers Aug 2006 Transportation Fuel Prices 2006 Transportation Fuel Prices
Grain Prices August 2005 August 2006 % Change
Corn 1.95 2.03
4%
Soybean 6.15 5.24 -15%
Fuel Supply August 2005 August 2006 % Change
Percent Refinery Utilization 94.8 92.2 -2.69%
Production by Product - Finished Motor Gasoline (Million Barrels) 8,727.0 9,205.3 5.48%
Stocks - Finished Motor Gasoline (Million Barrels) 127.4 115.9 -9.05%
Imports - Total Motor Gasoline (Million Barrels) 1164.0 1,278.0 9.80%
Oxygenate Production June 2005 June 2006 % Change
Ethanol Production
(Million Barrels)
249 318 21.70%
MTBE Production
(Million Barrels)
151 85 -77.65%

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

No R&D Awards were granted for this month.


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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: GTL Bioenergy Research Centers
Description: The Genomics: GTL program (GTL) in the Office of Biological and Environmental Research (BER) of the Office of Science (SC), U.S. Department of Energy (DOE), is a systems biology research program with the mission goal of developing the science, technology, and knowledge base to harness microbial and plant systems for cost-effective renewable energy production, carbon sequestration, and environmental remediation. This Funding Opportunity Announcement (FOA) requests that the scientific community submit applications for the establishment of GTL Bioenergy Research Centers that develop novel biological solutions for the production of such fuels as cellulosic ethanol or hydrogen or for other groundbreaking bioenergy research with the potential to revolutionize biology-based energy production.
Government Agency: U.S. Department of Energy
Schedule: Applications due by February 1, 2007
URL: http://e-center.doe.gov/iips/faopor.nsf/

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 to October 31, 2006
URL:http://www.csrees.usda.gov/funding/nri/nri.html


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Events

September 5-7, 2006
Hong Kong, China

Power-Gen Asia 2006
Website: http://www.powergenasia.com

September 5-8, 2006
York, United Kingdom

Renewable Resources & Biorefineries Conference (RRB)
Website: http://www.rrbconference.net/

September 11-13, 2006
Newcastle Gateshead, United Kingdom

9th 5th European Motor Biofuels Forum 2006
Website: http://www.europoint-bv.com/biofuels2006

September 12-14, 2006
Brussels, Belgium

European Conference for Renewable Energy Policy
Website: http://www.erec-renewables.org/

September 13, 2006
Washington, DC

Understanding the Energy-Water-Climate Nexus
Website: http://http://www.eesi.org/

September 13-15, 2006
Washington, D.C.

29th World Energy Engineering Congress
Website: http://www.energycongress.com/

September 18, 2006
New Brunswick, New Jersey

New Jersey Clean Energy Conference
Website: http://www.njcleanenergy.com/conference/index.html

September 18-20, 2006
St. Louis, Missouri

2006 Biobased Industry Outlook Conference
Website: http://www.bioeconomyconference.org

September 18-20, 2006
Toronto, Canada

2006 Clean Energy Conference
Website: http://www.informationexchange.ca/CEC/

September 18-20, 2006
Kiev, Ukraine

Conference on Biomass for Energy
Website: http://www.biomass.kiev.ua/conf2006/index.php?lang=en

September 18-22, 2006
Amman, Jordan

Global Conference on Renewable Energy Approaches for Desert Regions (GCREADER)
Website: http://www.ju.edu.jo/confernces/gcreader/index.htm

September 19-20, 2006
Fibes, Seville, Spainbr>
International Trade Show of Edible Oils and Fats
Website: http://www.edibleoil.net/new/english/

September 19-20, 2006
London, Ohio

Farm Science Review
Website: http://www.fsr.osu.edu/

September 20-21, 2006
Lansing, Michigan

Michigan Bio-Economy Summit
Website: http://www.miagbiz.org/

September 22-23, 2006
Kempton, Pennsylvania

Pennsylvania Renewable Energy Festival
Website: http://www.paenergyfest.com/

September 22-24, 2006
Fredericksburg, Texas
Renewable Energy Roundup and Green Living Fair
Website: http://www.theroundup.org/

September 25-26, 2006
Bruges, Belgium

Biomass for Energy: Challenges for Agriculture
Website: http://www.northseabioenergy.org/default.asp?objectid=17294

September 25-26, 2006
Syracuse, New York

Empire Energy and Environmental Expo (E4)
Website: www.eba-nys.org

September 26-28, 3006
Karlstad, Sweden

RecAsh 2nd International Seminar: From Extraction of Forest Fuels to Recycling of Wood Ash
Website: www.skogsstyrelsen.se

September 27, 2006
Bangkok, Thailand

International Workshop on the use of Bio-Slurry in Domestic Biogas Programmes
Website: http://www.hedon.info/goto.php/view/389/events.htm

September 28-October 1, 2006
Augsburg, Germany

Wood Energy 2006
Website: http://www.ihe-woodenergy.com/

September 28-29, 2006
Baltimore, MD

Mid-Atlantic Power Markets Forum
Website: http://www.platts.com/Events/pc633/

September 30-October 1, 2006
Athens, Ohio

6th Annual Athens Area Sustainability Festival
Website: http://www.susfest.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 biomass@bcs-hq.com.