Biofuels News, Spring/Summer 2001, Vol. 4, No. 2

Home , Spencer Abraham

N THE EDERAL RONT New Administration Boosts Ethanol O F F In a decision that is expected to have a huge impact on the ethanol industry, the U.S. Environmental Protection New Faces at Agency (EPA) has decided that California must abide by the DOE headquarters Clean Air Act requirement for oxygenates in reformulated news gasoline. California had petitioned EPA to waive the BiofuelsVolume 4, Number 2 Summer 2001 requirement because widespread water pollution is forcing Spencer Abraham – Secretary of Energy the state to phase out the use of the oxygenate MTBE. In January 2001, the U.S. Senate confirmed Ethanol is considered the obvious choice for replacing David Garman, the new Assistant Spencer Abraham as Secretary of Energy. MTBE in California. FOCUS ON… Secretary for Energy Efficiency and Abraham previously served as a senator from Analysts estimate that the California oxygenate market Renewable Energy (right), expressed the state of Michigan, as a member of the will need about 580 million gallons of ethanol each year to strong support for renewable energy National Energy during a June visit to the National Budget, Commerce, Science and Transporta- replace MTBE. According to the Renewable Fuels Association, tion, and Judiciary and Small Business com- Renewable Energy Laboratory the EPA ruling has already had an impact on ethanol plant Policy and Biofuels (NREL). Garman toured NREL and mittees, and chair of the Manufacturing and construction with new plants being planned to begin con- spoke to staff about the budget and Competitiveness and Immigration Subcommittees. struction this year in Iowa, South Dakota, and Minnesota. his goals. Below Garmen poses with Secretary Abraham received a B.A. from Michigan State For more information visit www.ethanolrfa.org/press.html. “The NEPD Group recommends that DOE and NREL managers Richard University in 1974 and a law degree from Harvard in 1979. the President direct the Secretary of Truly, Bob Dixon, Stan Bull, Frank Stewart, and Bill Becker. David Garman – Assistant Secretary of Energy for organization dedicated to developing and researching the Treasury to work with Congress Energy Efficiency and Renewable Energy advanced energy technologies and houses the Office of to continue the ethanol excise tax Before his appointment as the Assistant Fuels Development, which manages the Biofuels Program. exemption.” Secretary of Energy for Energy Efficiency and Renewable Energy (EERE), David Douglas Faulkner - Principal Deputy Assistant With energy shortages in California and high gaso- Garman served as chief of staff to Senator Secretary for Energy Efficiency and Renewable Energy line prices nationwide, energy and fuels have been Frank Murkowski (R. Alaska) from 1995 to Douglas Faulkner has been appointed as the new getting a lot of attention recently. What does all this 1998. During his time with Murkowski, Principal Deputy Assistant Secretary for EERE. Faulkner attention mean for biofuels development? In general, Garman also worked as a professional staff member on will report directly to Assistant Secretary of Energy biofuels and bioenergy have fared well in proposals the Senate Energy Committee, where he was involved Garman and will be working on conservation and for energy funding and energy policy. In a recent state- with energy efficiency and renewable energy issues. alternative energy issues. Faulkner’s previous experience ment to the Senate Committee on Energy and Natural Garman holds a B.A. in Public Policy Sciences from as the Office of Industrial Technologies’ Agriculture Sarah Barba, NREL/PIX 0065, 10066 Resources, Secretary of Energy Spencer Abraham identi- Duke University and a M.S. in Environmental Sciences Industry of the Future team leader has given him a fied biomass and biofuels as research areas that would from Johns Hopkins University. strong understanding of bioenergy programs. He has a members). Titled “Reliable, Affordable, and Environmentally be emphasized by the new administration (see box on Garman will head DOE’s Office of Energy Efficiency B.S. from the University of Illinois and a master’s degree Sound Energy for America’s Future,” Secretary and Renewable Energy. EERE is the primary federal from Johns Hopkins University. page 3). The President’s energy policy plan also recog- Abraham called it “a historic first step to addressing nized that ethanol is a likely substitute for methyl ter- long-neglected energy challenges.”

page 4 1000 Independence Ave., S.W., Washington, D.C. 20585-1121. 20585-1121. D.C. Washington, S.W., Ave., Independence 1000 tiary butyl ether (MTBE) and recommended continuing The National Energy Policy Plan is a 170-page outline

Produced for the National Biofuels Program, Office of Fuels Development, U.S. Department of Energy, of Department U.S. Development, Fuels of Office Program, Biofuels National the for Produced the ethanol tax exemption. Added to DOE recommenda- of the Bush Administration’s plans for America’s energy

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Register your e-mail address to receive electronic notiﬁcation of future issues at: at: issues future of notiﬁcation electronic receive to address e-mail your Register tions for nearly level biofuels funding in 2002, these www.ott.doe.gov/biofuels/ DOE/GO-102001-1371 Past issues and other related information are available on the Biofuels Program Web site site Web Program Biofuels the on available are information related other and issues Past DOE/GO-102001-1371 future. Chapter 6, titled “Nature’s Power: Increasing developments indicate continued support for biofuels America’s Use of Renewable and Alternative Energy,” research. contains 18 pages on renewable and alternative energy On May 17, President Bush released the National sources. Two sections address biofuels: “Biomass” and Energy Policy Plan, which was prepared by the National “Alternative Transportation Fuels.” The entire Plan is Energy Policy Development (NEPD) group (see box for available on the DOE Web site at www.energy.gov. The NEPD report NEPD GROUP MEMBERS contains 105 energy

VICE PRESIDENT ...... Dick Cheney SECRETARY OF STATE ...... Colin L. Powell ADDRESS SERVICE REQUESTED SERVICE ADDRESS SECRETARY OF THE TREASURY ...... Paul O’Neill SECRETARY OF THE INTERIOR ...... Gale Norton policy recommenda- SECRETARY OF AGRICULTURE . . . . . Ann M. Veneman SECRETARY OF COMMERCE ...... Donald L. Evans tions, including ﬁve

Golden, CO 80401 CO Golden, SECRETARY OF TRANSPORTATION . . .Norman Y. Mineta SECRETARY OF ENERGY ...... Spencer Abraham that speciﬁcally 1617 Cole Blvd., MS-1634 Blvd., Cole 1617

National Renewable Energy Laboratory Energy Renewable National DIRECTOR OF THE FEDERAL EMERGENCY MANAGEMENT AGENCY ...... Joe M. Allbaugh mention biofuels or DOE National Biofuels Program Biofuels National DOE ADMINISTRATOR OF THE ENVIRONMENTAL PROTECTION AGENCY ...... Christine Todd Whitman bioenergy. These

Biofuels SSISTANT TO THE RESIDENT AND EPUTY HIEF OF TAFF FOR OLICY Golden, Colorado Golden, A P D C S P ...... Joshua B. Bolten

recommendations news Permit No. 258 No. Permit DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET ...... Mitchell E. Daniels

include continuing

PAID ASSISTANT TO THE PRESIDENT FOR ECONOMIC POLICY ...... Lawrence B. Lindsey

U.S. Postage U.S. DEPUTY ASSIST. TO THE PRESIDENT AND DIRECTOR OF INTERGOVERNMENTAL AFFAIRS ...... Ruben Barrales NONPROFIT continued on page 3 EXECUTIVE DIRECTOR ...... Andrew D. Lundquist —STAFF DIRECTOR FOR THE SENATE ENERGY AND NATURAL RESOURCES COMMITTEE National Energy continued from page 1 PROPOSED BIOENERGY FUNDING IN THE SPOTLIGHT Policy and Biofuels… ON THE FEDERAL FRONT FY 2001 FY 2002 the ethanol excise tax exemption and working to A Look at the FUNDING* REQUEST* expand the tax credit for electricity produced from Speaking of Proposed Budget BIOFUELS ENERGY SYSTEMS biomass. The policy also contains recommendations Biofuels… for Bioenergy to include landfill methane projects in the Section 29 Ethanol Production 33,614 35,451 tax credit and to re-evaluate access limitations on fed- In his May 10 statement before the Senate DOE has requested an FY 2002 budget eral lands to increase renewable energy production. Committee on Energy and Natural Resources, of roughly $82 million for biofuels and Renewable Diesel Alternatives 750 750 Of the 105 recommendations in the National Secretary Abraham reiterated the Bush Administration’s biopower. The requested funds would be Energy Policy Plan, the one that most directly affects commitment to biofuels. In his statement Abraham split between Biopower Energy Systems BIOPOWER ENERGY SYSTEMS biofuels urges Congress to continue the ethanol excise outlined the 2002 DOE budget request and explained ($37.7 million) and Biofuels Energy tax exemption. Although the Plan does not recom- Thermochemical Conversion 3,400 4,000 the principles behind it. Biomass and Biofuels were Systems ($44.2 million). Under the pro- mend a specific time period for the continuation, a highlighted in the Renewable Energy Resources section posed budget, ethanol production and current bill in Congress (S 907) would extend the end Systems Development 25,707 26,570 of the statement. To view Abraham’s statement visit biopower systems development are of the ethanol tax credit from 2007 to 2015. scheduled to receive 43% and 32%, INTEGRATED BIOENERGY RESEARCH** In addition, the NEPD report specifically mentions www.energy.gov/ HQDocs/testimony/hgtestimony.html. respectively, of the total bioenergy bud- ethanol—particularly ethanol made from corn—as the “The Biomass Research and Development get. Under the proposed budget, overall (from Biofuels Funds) 6,350 2,500 gasoline oxygenate that will be used to replace MTBE, biopower/biofuels funding would be which is being phased out by California and other Act of 2000 established a Biomass R&D reduced by 5% from the FY 2001 levels. (from Biopower Funds) 6,000 2,500 states because of environmental concerns. Initiative, to be carried out jointly by DOE’s FY 2002 budget request is avail- BIOENERGY FEEDSTOCK PRODUCTION the Secretaries of Agriculture and Energy. able at www.cfo.doe. gov/ budget/02budget/ The $82 million requested in FY 2002 for highlite/highlght.pdf. (from Biofuels Funds) 3,600 3,500 Biomass/Biofuels, supports collaborative The budget request includes an PUBLIC FORUMS amendment that increases the original (from Biopower Funds) 3,300 3,500 research and development to improve biomass/biofuels funding request by Strategic Review of our nation’s ability to not only convert $1.4 million. The amendment is intend- REGIONAL BIOMASS ENERGY PROGRAM Renewable Energy biomass into electric power, heat, and ed to provide additional funding to Programs clean liquid transportation fuels, but critical research areas including the (from Biofuels Funds) 2,212 2,000 Advanced Fermentation Organisms In response to a National Energy Policy Plan rec- also to extract high-value bio-based (from Biopower Funds) 1,335 1,184 Research and Development Project1. ommendation, DOE held a series of meetings to solicit industrial materials such as chemicals, To view an electronic copy of the SUBTOTAL, BIOFUELS SYSTEMS 46,526 44,201 comments on energy efficiency and renewable energy plastics, and building materials. DOE’s programs. The comments will be passed on to DOE renewable energy budget amendment, biomass activities within the jurisdiction visit www.cfo.doe.gov/budget/02budget/ House-Passed Energy and Water Appropriations Bill 47,950 Headquarters where they will be considered as part of of the Energy and Water Development es/Amendmen.pdf. a strategic review to recommend performance-based SUBTOTAL, BIOMASS POWER SYSTEMS 39,742 37,754 funding levels. According to Abraham, “the public’s Subcommittee focus on two distinct 1 The Advanced Fermentation Organisms input at these meetings will help us identify opportu- elements: Biopower, which co-fires House-Passed Energy and Water Appropriations Bill 41,010 nities for future research and investment while assess- Research and Development Project, also biomass with coal or gasifies biomass known as the Yeast Platform Project, seeks ing our past effectiveness in these areas.” TOTAL, BIOMASS/BIOFUELS ENERGY 86,268 81,955 material that is combusted to generate to find or develop by metabolic engineering Supporters of renewable energy and conservation have used this opportunity to urge DOE to continue power; and Biofuels, which convert a yeast capable of converting all of the House-Passed Energy and Water Appropriations Bill 88,960 sugars from lignocellulosic biomass into funding for these programs. “Solar, wind, biomass, agricultural and other products to * In thousands of dollars. ethanol and other chemicals that could and geothermal are the only energy sources that don’t ethanol. Combined, these core activities serve as a basis for a “biorefinery” making **Note that certain research efforts included under Bioenergy funding in FY 2001 consume natural resources, and global warming is a variety of biobased products. have been returned to the Biofuels and Biopower research programs for FY 2002. making renewable energy far more important,” stated underpin a national effort to more Chuck Kutscher of the American Solar Energy Society effectively use a vast domestic resource.” at the Denver meeting. On June 19, the House of Representatives passed a Fiscal Year 2002 energy and water appropriations bill that -Spencer Abraham, Secretary of Energy The public meetings were held in Atlanta, Chicago, would increase bioenergy funding from $82 million to $89 million and also restore funding for other energy efficiency Boston, Seattle, Denver, Philadelphia, and Washington, Testimony before the Senate Committee on and renewable energy programs. This bill has now been sent to the Senate for action. D.C. For more information visit www.energy.gov/ Energy and Natural Resources, May 10, 2001. HQPress/releases01/junpr/junpr.htm. page 2 page 3 Printed with a renewable-source ink on paper containing at least 50% wastepaper, including 20% postconsumer waste. N THE EDERAL RONT New Administration Boosts Ethanol O F F In a decision that is expected to have a huge impact on the ethanol industry, the U.S. Environmental Protection New Faces at Agency (EPA) has decided that California must abide by the DOE headquarters Clean Air Act requirement for oxygenates in reformulated news gasoline. California had petitioned EPA to waive the BiofuelsVolume 4, Number 2 Summer 2001 requirement because widespread water pollution is forcing Spencer Abraham – Secretary of Energy the state to phase out the use of the oxygenate MTBE. In January 2001, the U.S. Senate confirmed Ethanol is considered the obvious choice for replacing David Garman, the new Assistant Spencer Abraham as Secretary of Energy. MTBE in California. FOCUS ON… Secretary for Energy Efficiency and Abraham previously served as a senator from Analysts estimate that the California oxygenate market Renewable Energy (right), expressed the state of Michigan, as a member of the will need about 580 million gallons of ethanol each year to strong support for renewable energy National Energy during a June visit to the National Budget, Commerce, Science and Transporta- replace MTBE. According to the Renewable Fuels Association, tion, and Judiciary and Small Business com- Renewable Energy Laboratory the EPA ruling has already had an impact on ethanol plant Policy and Biofuels (NREL). Garman toured NREL and mittees, and chair of the Manufacturing and construction with new plants being planned to begin con- spoke to staff about the budget and Competitiveness and Immigration Subcommittees. struction this year in Iowa, South Dakota, and Minnesota. his goals. Below Garmen poses with Secretary Abraham received a B.A. from Michigan State For more information visit www.ethanolrfa.org/press.html. “The NEPD Group recommends that DOE and NREL managers Richard University in 1974 and a law degree from Harvard in 1979. the President direct the Secretary of Truly, Bob Dixon, Stan Bull, Frank Stewart, and Bill Becker. David Garman – Assistant Secretary of Energy for organization dedicated to developing and researching the Treasury to work with Congress Energy Efficiency and Renewable Energy advanced energy technologies and houses the Office of to continue the ethanol excise tax Before his appointment as the Assistant Fuels Development, which manages the Biofuels Program. exemption.” Secretary of Energy for Energy Efficiency and Renewable Energy (EERE), David Douglas Faulkner - Principal Deputy Assistant With energy shortages in California and high gaso- Garman served as chief of staff to Senator Secretary for Energy Efficiency and Renewable Energy line prices nationwide, energy and fuels have been Frank Murkowski (R. Alaska) from 1995 to Douglas Faulkner has been appointed as the new getting a lot of attention recently. What does all this 1998. During his time with Murkowski, Principal Deputy Assistant Secretary for EERE. Faulkner attention mean for biofuels development? In general, Garman also worked as a professional staff member on will report directly to Assistant Secretary of Energy biofuels and bioenergy have fared well in proposals the Senate Energy Committee, where he was involved Garman and will be working on conservation and for energy funding and energy policy. In a recent state- with energy efficiency and renewable energy issues. alternative energy issues. Faulkner’s previous experience ment to the Senate Committee on Energy and Natural Garman holds a B.A. in Public Policy Sciences from as the Office of Industrial Technologies’ Agriculture Sarah Barba, NREL/PIX 0065, 10066 Resources, Secretary of Energy Spencer Abraham identi- Duke University and a M.S. in Environmental Sciences Industry of the Future team leader has given him a fied biomass and biofuels as research areas that would from Johns Hopkins University. strong understanding of bioenergy programs. He has a members). Titled “Reliable, Affordable, and Environmentally be emphasized by the new administration (see box on Garman will head DOE’s Office of Energy Efficiency B.S. from the University of Illinois and a master’s degree Sound Energy for America’s Future,” Secretary and Renewable Energy. EERE is the primary federal from Johns Hopkins University. page 3). The President’s energy policy plan also recog- Abraham called it “a historic first step to addressing nized that ethanol is a likely substitute for methyl ter- long-neglected energy challenges.”