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Recognizing the important benefits biomass technologies can have on the environment, rural economies, and national security, the Biomass Research and Development Act of 2000 called for coordinated federal biomass research. The Act established the Biomass Research and Development Technical Advisory Committee to help facilitate this coordination. As part of its responsibilities, the Committee makes recommendations on the strategic direction of research being funded by the U.S. Department of Energy (DOE) and the U.S. Department of Agriculture (USDA). In order to fulfill this responsibility, the Committee recently requested and reviewed the FY03 research portfolios of USDA and DOE as they relate to the Committee's recently published Roadmap for Bioenergy and Biobased Products in the United States. Exhibit 1 illustrates combined DOE and USDA funding by Roadmap category for FY03 and FY04 (estimated). These categories are: Feedstock Production, Processing and Conversion, Product Uses and Distribution, and Public Policy Measures.

Funding in the processing and conversion category includes significant amounts of funding for research in the area of biorefinery integration under the DOE-USDA joint solicitation, as well as USDA's Rural Business-Cooperative Service (RBS) Grant Program to increase the conversion of agricultural products to end-uses. While the processing and conversion category contains the majority of the funding, the Departments are performing significant research in each of the Roadmap activities. The remainder of this article provides a brief overview of the agencies' biomass portfolios.

• Feedstock Production - USDA funding in biomass feedstock production falls largely in the Agricultural Research Service (ARS), Forest Service (FS), and the Cooperative State Research Education and Extension Service (CSREES). Research is focused primarily on improving biomass yield and quality, optimizing sivicultural practices, and feedstock handling. For example, through its research centers in locations such as Tifton, GA, Lincoln, NE, and elsewhere, ARS is developing germplasm and cultivars for grasses suited for biomass production. ARS centers are also researching sustainable crop management practices and improved harvesting and handling systems.Biomass funding at DOE is performed through the Office of the Biomass Program (OBP) and in terms of basic science, through the Office of Science. The OBP is looking to decrease the unit cost of raw materials and improve raw material quality. In addition, the program is supporting development of the Feedstock Infrastructure Roadmap and conversion of indigenous U.S. resources to produce environmentally friendly polymers and chemicals important to the U.S. economy.

• Processing and Conversion - This category of research includes R&D in thermochemical conversion and bioconversion technologies as well as biorefinery integration. It also includes the projects funded under the 2002 Joint Solicitation and the 2003 Joint Solicitation between the DOE and USDA. OBP research is focusing on bioconversion technologies to process component sugars of biomass for the production of fuels and chemicals. OBP is also focusing on thermochemical conversion to convert biomass into sythesis gas which can be used to create heat, power, or products. OBP is also managing research with industry, universities, and labs to develop the integrated biorefinery. These research partners are developing processes to convert corn and other biomass resources into useful fuels and chemicals. The majority of USDA funding in processing and conversion is in the area of bioconversion. This includes considerable research at ARS centers in New Orleans, LA, Albany, CA, Peoria, IL and Wyndmoor, PA and elsewhere to develop fuels, chemicals, and other value-added products from plant cellulose and lingnocellulose, animal byproducts, and agricultural residues. In addition, a portion of the Value-Added Agricultural Product Market Development Grants issued by the Rural Development Program, RBS go to biomass-related projects.

• Product Uses and Distribution - OBP focuses on reducing technical barriers that inhibit broader use of biobased products. This includes testing of biodiesel fuels as well as research and development on polyhydroxyalkanoates (PHA) polymers. In the USDA, ARS and FS are conducting research for the development of high-value products from woody biomass and for improving the performance of biodiesel from soybean oil.

• Public Policy Measures to Support Biomass Development - While neither the USDA or DOE fund development of public policy, both agencies conduct analysis, support, and education or provide incentives which contribute to the public policy strategies in the Committee's Roadmap. For example OBP is funding market and technical analysis of biomass technologies as well as funding state grants and the Federal Government procurement of bioproducts, education initiatives, and working with the USDA to accelerate Federal Government procurement of bioproducts through the BuyBio program. USDA funding in this category includes efforts in the BuyBio program, highlighted in last month's newsletter and economic and market analysis. The majority of USDA funding in this category is through the Farm Service Agency, Commodity Credit Corporation (CCC) Bioenergy Program. This program was extended through the 2002 Farm Bill and reimburses eligible producers of commercial fuel grade biofuels, with FY03 funding over $115 million.

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Bagasse, the dry residue left after the juice is extracted from sugar cane stalks, is an important source of bioenergy in Hawaii since sugar is one of the state's major crops. Many Hawaiian sugar factories burn bagasse to provide steam for sugar processing and electricity production. Excess electricity not required by the factories is often sold to local utility companies. The Gay and Robinson sugar plantation on Kauai and the HC&S plantation on Maui-two of several places where Hawaiians are producing bioenergy from sugar-can produce a combined total of approximately 46 MW of power from biomass.⁴ A biomass gasification research facility on Maui successfully produced biogas from bagasse. This gas can be used to generate electricity (in gas turbines) or to produce methanol fuel.⁵

The Honolulu Project of Waste Energy Recovery (H-POWER) involves a plant in Kapolei on the island of Oahu that burns refuse-derived fuel to produce electricity, which is then sold to Hawaiian Electric Company (HECO). HECO estimates that the plant can consume about 2,160 tons of garbage each day and save 524,900 barrels of oil each year. The plant has a 63,800 kW capacity. H-POWER produces enough electricity to service 40,000 homes and reduces the volume of landfill space on Oahu by about 90 percent.⁶

Several incentives encourage Hawaiians to use bioenergy. The State of Hawaii's Act 143 adjusts Hawaii's fuel tax to reflect the energy content of alternative fuels and to reduce the tax rate of alternative fuels. Before this adjustment, most alternative fuels were taxed at a higher rate than conventional fuels.⁷ Also, alcohol fuels are exempt from the four percent state excise tax on retail sales.⁸

Hawaiian facilities that invest in ethanol receive a tax credit of either $300,000 or 30% of the money invested for each one million gallons per year capacity (roughly 30 cents per gallon). Facilities can receive up to $4.5 million per facility per year through this incentive.⁹

According to a renewables portfolio standard (RPS) passed in 2001, seven percent of each Hawaiian electric utility's net sales must be due to renewable energy use by the end of 2003. The required proportion becomes eight percent in 2005 and nine percent in 2010.¹⁰ Biomass is likely to play an important role in helping Hawaii meet this standard.

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1. Energy Information Administration. "Table 7. Energy Consumption Estimates by Source, Selected Years, 1960-2000, Hawaii."
   http://www.eia.doe.gov/emeu/states/sep_use/total/use_tot_hi.html
2. Energy Information Administration. "Table 10. Industrial Energy Consumption Estimates, 1960-2000, Hawaii."
   http://www.eia.doe.gov/emeu/states/sep_use/ind/use_ind_hi.html
3. "Hawaii: Biobased Fuels, Power, and Products State Fact Sheet." http://www.bioproducts-bioenergy.gov
4. State of Hawaii. "Biomass Energy Fact Sheet.
   http://www.state.hi.us/dbedt/ert/bioma_hi.html
5. See note 4.
6. State of Hawaii. "Biomass Energy Fact Sheet."
   http://www.state.hi.us/dbedt/ert/bioma_hi.html#anchor1485423; "Hawaii: Biobased Fuels, Power, and Products State Fact Sheet."
   http://www.bioproducts-bioenergy.gov; Hawaiian Electric Company, Inc. "Renewable Energy: Power for Our Customers: H-POWER"
   http://www.heco.com/CDA/default/0,1999,TCID=0&LCID=0&CCID=3454&CTYP=ARTC,00.html; The Office of Energy Efficiency and Renewable Energy. "Operating Facilities by Technology in the State of Hawaii."
   http://www.eere.energy.gov/state_energy/opfacbytech.cfm?state=HI
7. Database of State Incentives for Renewable Energy. "Hawaii Incentives for Renewable Energy: Reduced Highway Taxes for Alternative Fuels."
   http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=HI11F&state=HI&CurrentPageID=1; State of Hawaii. "Act 143."
   http://www.state.hi.us/dbedt/ert/fueltax-act143.html
8. "§ 237-27.1 Exemption of sale of alcohol fuels."
   http://www.capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0237/HRS_0237-0027_0001.htm; "Database of State Incentives for Renewable Energy. "Hawaii Incentives for Renewable Energy: Alcohol Fuels Exemption."
   http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=HI05F&state=HI&CurrentPageID=1
9. Database of State Incentives for Renewable Energy. "Hawaii Incentives for Renewable Energy: Ethanol Production Investment Tax Credit."
   http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=HI10F&state=HI&CurrentPageID=1
10. Database of State Incentives for Renewable Energy. "Hawaii Incentives for Renewable Energy: Renewable Portfolio Standard Goal."
    http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=HI06R&state=HI&CurrentPageID=1

NEC Develops Biodegradable Plastic for Personal Computers
NEC Corporation has developed a type of biodegradable plastic that is suitable for personal computer cases. The plastic is made from lactic acid derived from corn and other natural sources, with fibers of the kenaf plant mixed in to increase both strength and heat resistance. NEC aims to use this new biodegradable plastic in its products in two years and in 10 percent of its PC cases by around 2010. The company has already secured a source of kenaf fibers from Australia and is now working to lower the manufacturing cost of the plastic.
http://www.atimes.com/atimes/Japan/EG10Dh02.html

Researchers Complete First Phase of Mapping Corn Genome
Researchers working on the maize genome project, which is funded by the National Science Foundation and supported by the National Corn Growers Association, have completed the first phase in mapping the corn genome. Project manager Dr. Jack Gardiner of the University of Missouri, said the project to map the DNA fragments of the corn genome, now in its fourth year, will benefit corn growers by identifying more of the useful traits within the structure of corn, opening the door for new uses.
http://www.cropdecisions.com/show_story.php?id=20449