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Assessment of the BIOENERGY PROVISIONS in the 2008 Farm Bill

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Assessment of the BIOENERGY PROVISIONS in the 2008 Farm Bill Assessment of the BIOENERGY PROVISIONS in the 2008 Farm Bill www.fishwildlife.org IOMASS PRODUCTION ASSESSMENT OF THE BIOENERGY PROVISIONS IS A POTENTIAL IN THE 2008 FARM BILL GAME‐CHANGER A Report Prepared for the Association of Fish and Wildlife Agencies Bfor U.S. landscapes and ecosystems. Contractor: Bill D. McGuire Communication, collaboration, and 4 EXECUTIVE SUMMARY cooperation are extremely important 10 INTRODUCTION if bioenergy and fish, wildlife, and 12 Background biodiversity are to be integrated in ways 16 THE CHALLENGES that are truly sustainable. Legislators 18 Land Conversion 19 Use of Aggressive Plants that Invade and Degrade Native Plant Communities and other policymakers have choices. 20 Reduced Diversity Through Monoculture Plantings 21 Management that Diminishes Habitat 22 Water Quantity/Quality 24 BIOENERGY PROVISIONS IN THE 2008 FARM BILL 25 Title I – Commodity Programs 26 Title II – Conservation 27 Title VI - Rural Development 29 Title VII – Research and Related Matters 30 Title VIII – Forestry 31 Title IX - Energy 36 Title XI – Livestock 36 Title XV – Trade and Tax Provisions 37 Opportunities 40 Discussion and Take Home Messages 46 APPENDIX A – Guidelines for Integrating Fish and Wildlife Conservation with Biomass Production 48 FOOTNOTE CITATIONS This project is made possible by way of a grant administered by the Association of Fish and Wildlife Agencies with funding from the Sport Fish and Wildlife Restoration Programs of the USFWS, pursuant to the Stevens Amendment to P.L. 100‐463. © 2012 Association of Fish and Wildlife Agencies t makes sense to first use EXECUTIVE SUMMARY biomass produced in ways CONCERN about the cost of energy, U.S. dependence on foreign oil, and increasing global energy demand is generating attention to bioenergy. Congress created a Biomass Caucus and the White House issued the 2011 that do not compete with Blueprint for a Secure Energy Future to further engage federal agencies (U.S. Departments of Agriculture, Defense, Energy, Transportation, and the Environmental Protection Agency), industry, agriculture producers, private I other societal needs. organizations, and citizens in the discussion of a bioenergy future. Many aspects of federal bioenergy policy pertaining 1974 promoted ethanol as an additive to gasoline. to agriculture have roots in the Farm Security and The Energy Policy Act of 2005 mandated the use of Rural Investment Act of 2002 (2002 Farm Bill), as well ethanol through the Renewable Fuel Standard (RFS). as the Food, Conservation, and Energy Act of 2008 The Energy Independence and Security Act of 2007 (2008 Farm Bill), which contained over $1 billion in raised the RFS target to 36 billion gallons of ethanol mandatory funding for energy efficiency and renewable by 20224. These legislative actions are game-changers energy. The production of biomass is a game‐changer because they mandate ethanol use. Interest in bioenergy regarding land‐use because of the profit potential feedstock includes terrestrial native and non‐native on lands not historically suited to farming. It will be plants as well as aquatics such as cyanobacteria, lemna important to proceed with thought and attention to (duckweed), and plankton. One of the most unusual conserving the nation’s irreplaceable natural resources, possibilities is described in a 2007 article as “synthetic including fish, wildlife, and their native habitats. life,” a concept in which the U.S. Department of Energy Sustainability of species is at stake as is the viability of (DOE) is reported as committing $125 million to tailor the $730 billion/year outdoor industry that supports 6.5 an organism by using genetics from several organisms.5 million jobs (1 out of 20 of all U.S. jobs)1. Pelletized biomass to generate energy is the most active This study provides an overview of the bioenergy current market, but there is much interest in liquid movement and policy rooted in the 2008 Farm Bill. biofuels from cellulosic sources as well. ‘First‐generation The risks and opportunities of bioenergy production biofuels’ are produced from corn‐kernel starch or related to fish, wildlife, and their native habitats include: soybeans (biodiesel) and ‘advanced biofuels’ comes land conversion; use of aggressive plants that invade from about anything else.6 Because first generation and degrade native plant communities; monoculture biofuels use crops also grown for food (40% of the plantings that reduce diversity; management that 2011 corn crop grown on about 92 million acres were diminishes habitat; and, decline in water quantity/ reportedly to be used for ethanol production), many quality. In addition to review of the 2008 Farm have voiced concern about the diversion of food Bill, the report addresses the use of aggressive and crops to fuel purposes. Other concerns are that the genetically modified (GM) plant materials; guidelines intensive cultivation needed for first‐generation biofuel for integrating fish and wildlife needs with bioenergy; production may lead to increased soil erosion, decreased environmental services in the context of bioenergy and water quantity/quality, and conversion/deterioration fish and wildlife resources; and examples of bioenergy of already diminished wildlife habitat while yielding production that integrate fish and wildlife needs. only modest greenhouse gas savings. The commonly‐ communicated advantage of using cellulosic biomass is Bioenergy is not new; wood has been burned since the that it can be derived as a co‐product of crops grown for early days of mankind. Wood, grasses and other organic first generation biofuels or grown as dedicated energy materials remain an important part of the modern crops on land too poor for food production.7 Residue biomass stream, particularly with increasing demand from ecologically site‐appropriate and sustainably for pelletized wood from North America (European managed native forest, grasslands, etc. have considerable and Asian markets in particular)2 and growing export potential to generate biomass in ways that contribute to interest in areas with access to deep water ports. Liquid our energy independence while conserving irreplaceable biofuels also have a long history. Camelina, an oil seed natural resources and aspects of the U.S. economy that crop pursued as a feedstock for jet fuel, provided lamp depend on them. oil in the Bronze Age.3 Ethanol was the fuel for an engine developed in 1826 by Samuel Morley and the A report sponsored by the DOE titled the U.S. Billion‐ Model T was introduced as a flexible fuel vehicle in Ton Update8 indicates that biomass production by 2030 1908. But World War I drove up ethanol demand and could be increased from the current 473 million dry by the 1920s gasoline dominated. In 1974, following tons per year to as much as 1.6 billion dry tons per a time of food and fuel concern, the Solar Energy year (more than enough to offset 30% of current U.S. Research, Development, and Demonstration Act of petroleum consumption). 4 5 bioenergy report www.fishwildlife.org The report indicates that this could be done with reliance bioenergy in ways that enhance the environment. These contains forestry bond authorities – the $1.01 per gallon the private landowner/government agency whose lands summaryexecutive on advances in plant breeding, genetic modification, and entities are designed to represent many perspectives, tax credit for cellulosic ethanol production – and directs are invaded, or the general public through taxation? production technology along with crop residues from including natural resources. Title VII – Research and a study (National Academies suggested) concerning In the case of genetically modified and patented plant agricultural production (corn stover) and dedicated Related Matters, is an important driver of bioenergy biofuels production, capacity, the environment, and other materials, is it the company that holds patent rights or energy crops like short‐rotation willow, eucalyptus, giant because of the advisory groups created to set priorities for issues. someone else? These questions are beyond the scope of this miscanthus, hybrid switchgrass, and others with biomass bioenergy research as well as grants and other funding report, but need answers. potentials of 17.1 to 24.3 dry tons/acre/year. By contrast, provided through the Agriculture and Food Research Developing bioenergy markets offers opportunities to annual yields for corn are reported at about 250 gallons/ Initiative (NIFA), and the Sun Centers, which provide optimize many societal needs while stimulating diverse In addition to bioenergy needs in the U.S., international acre and sugar cane at about 450 gallons/acre.9 Even a regional focus regarding renewable energy. State fish industries and sustaining natural resources that include demand is in play with rapidly increasing export with dedicated energy crops, an area the size of Iowa and and wildlife agencies, the U.S. Fish and Wildlife Service fish, wildlife, and their native habitats. Native plants, of pelletized and chipped wood as well as ethanol. executive summaryexecutive Missouri (79 million acres) reportedly would be needed. (USFWS), and the outdoor recreation industry appear in particular, offer potential because they are disease/ An unknown is whether international demand for Can this be done without conversion of remaining native absent or not often engaged in activities under both Titles insect resistant and adapted to the soils and climate. And, biomass will create land‐conversion pressures in the ecosystems that
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