How to Get to a Biofuels FutureHow to Get to a Biofuels FutureGovernors’ Ethanol CoalitionGovernors’ Ethanol Coalition

August 2007August 2007 Omaha, NebraskaOmaha, Nebraska

Ethanol From BiomassEthanol From Biomass

Ethanol From Biomass: How to Get to a Biofuels FutureEthanol From Biomass: How to Get to a Biofuels Future

Status of the the Coalition’s FY’08 Appropriations WorkStatus of the the Coalition’s FY’08 Appropriations WorkBiofuels Appropriations Progress

DOE Biofuels RD&D Funding (dollars in millions)

FY’06 FY’07 FY'08 FY’08 FY’08

Final Final Request House Senate

DOE Biomass Program $90 $199 $179 $250 $244

DOE Biofuels Genomics (GTL)* 87 135 155 184 155

DOE Clean Cities 8 8 8 16 10

Total 185 342 342 450 409

Coalition Recommendations Total

-Biomass Program

-GTL

-Infrastructure

na

na

na

na

$298

213

75

10

$436

251

175

10

$436

251

175

10

$436

251

175

10

*GTL amounts are estimated due to limited availability of budget detail

Ethanol From Biomass: How to Get to a Biofuels FutureEthanol From Biomass: How to Get to a Biofuels Future

Last Year’s (FY’07) Appropriations Work Bears Fruit:Last Year’s (FY’07) Appropriations Work Bears Fruit:

$385 million for $385 million for sixsix commercial scale cellulosic biorefineries: commercial scale cellulosic biorefineries:– MO, 11.4 million gallons of ethanol a year from corn stover and wheat straw.MO, 11.4 million gallons of ethanol a year from corn stover and wheat straw.– FL, 13.9 million gallons of ethanol a year, as well as 6,255 kilowatts of electric power, 8.8 FL, 13.9 million gallons of ethanol a year, as well as 6,255 kilowatts of electric power, 8.8

tons of hydrogen, and 50 tons of ammonia each day from food waste, and wood waste.tons of hydrogen, and 50 tons of ammonia each day from food waste, and wood waste.– CA, 19 million gallons of ethanol a year from 700 tons a day of sorted green and wood CA, 19 million gallons of ethanol a year from 700 tons a day of sorted green and wood

waste from adjacent landfill.waste from adjacent landfill.– IA, 30 million gallons of ethanol a year from combined cellulosic and corn starch ethanol IA, 30 million gallons of ethanol a year from combined cellulosic and corn starch ethanol

plant (combined production of 125 million gallons a year).plant (combined production of 125 million gallons a year).– ID, 18 million gallons of ethanol a year from 700 tons per day of wheat straw, barley straw, ID, 18 million gallons of ethanol a year from 700 tons per day of wheat straw, barley straw,

corn stover, switchgrass, and rice straw.corn stover, switchgrass, and rice straw.– GA, 40 million gallons of ethanol and 9 million gallons of methanol a year from 1,200 tons GA, 40 million gallons of ethanol and 9 million gallons of methanol a year from 1,200 tons

a day of wood residue and wood based energy crops.a day of wood residue and wood based energy crops. $200 million for $200 million for tenten small-scale cellulosic demonstrations to be selected this year. small-scale cellulosic demonstrations to be selected this year. $375 million for $375 million for threethree genomics biofuel research centers established at Oak Ridge genomics biofuel research centers established at Oak Ridge

National Lab; University of Wisconsin; and Lawrence Berkeley National Lab.National Lab; University of Wisconsin; and Lawrence Berkeley National Lab.

RFS ImplementationRFS ImplementationOn track, no significant implementation issues.On track, no significant implementation issues.

Reverse Auction Cellulosic Production Incentive Reverse Auction Cellulosic Production Incentive Statute allows first auction after August 2008, $100 million authorized, not more Statute allows first auction after August 2008, $100 million authorized, not more than 25 percent of each auction for any one facility, multi-year awards unlikely, than 25 percent of each auction for any one facility, multi-year awards unlikely, Administration request and Congressional support for $5 million in FY’08.Administration request and Congressional support for $5 million in FY’08.

DOE held stakeholder input meeting on August 16, 2007; Coalition supported DOE held stakeholder input meeting on August 16, 2007; Coalition supported making existing and planned demonstrations eligible.making existing and planned demonstrations eligible.

Biofuels Trust Fund “royalty holiday” ConceptBiofuels Trust Fund “royalty holiday” ConceptGrowing Congressional support for use of certain oil royalty funds for ARPA-e, Growing Congressional support for use of certain oil royalty funds for ARPA-e, newly established federal energy commercialization entity. Consensus that ARPA-newly established federal energy commercialization entity. Consensus that ARPA-e will focus significant resources on breakthrough biofuels research.e will focus significant resources on breakthrough biofuels research.

Ethanol From Biomass: How to Get to a Biofuels FutureEthanol From Biomass: How to Get to a Biofuels Future

Status of the Coalition’s Biofuel Policy Implementation WorkStatus of the Coalition’s Biofuel Policy Implementation Work

Infrastructure Infrastructure No progress in obtaining specific appropriations for the City-to-Region No progress in obtaining specific appropriations for the City-to-Region Initiative. Need to build consensus of stakeholders later this year.Initiative. Need to build consensus of stakeholders later this year.

Significant progress in the House energy bill which contains a new ethanol Significant progress in the House energy bill which contains a new ethanol infrastructure development program with the Coalition’s recommended infrastructure development program with the Coalition’s recommended elements. elements.

Senate Infrastructure Hearing: Senate Infrastructure Hearing: Coalition testimony supported regional Coalition testimony supported regional analysis and City-to-Region strategy; ongoing national infrastructure analysis and City-to-Region strategy; ongoing national infrastructure activities; and research and testing on intermediate blends.activities; and research and testing on intermediate blends.

Ethanol From Biomass: How to Get to a Biofuels FutureEthanol From Biomass: How to Get to a Biofuels Future

Status of the the Coalition’s Biofuel Policy Implementation WorkStatus of the the Coalition’s Biofuel Policy Implementation Work

Ethanol From Biomass: How to Get to a Biofuels FutureEthanol From Biomass: How to Get to a Biofuels Future

Adoption of the Coalition’s 2007 RecommendationsAdoption of the Coalition’s 2007 Recommendations

Recommendations and StatusRecommendations and Status: :

1) Expanded RFS with cellulosic portion beginning in 2012;1) Expanded RFS with cellulosic portion beginning in 2012;– Status. Included in Senate energy bill, House amendment withdrawn; Status. Included in Senate energy bill, House amendment withdrawn;

definition and schedule refinement to occur in conference; probability of definition and schedule refinement to occur in conference; probability of passage unclear.passage unclear.

2) 2) Cellulosic ethanol production tax creditCellulosic ethanol production tax credit– Status. Included in House energy bill tax provisions at $0.50 a gallon; Status. Included in House energy bill tax provisions at $0.50 a gallon;

probability of tax package moving in conference likely, but unclear.probability of tax package moving in conference likely, but unclear. 3) Higher-blend ethanol infrastructure development.3) Higher-blend ethanol infrastructure development.

– Status. Infrastructure development programs in both House and Senate Status. Infrastructure development programs in both House and Senate energy bills; House bill provisions closer to Coalition recommendations, energy bills; House bill provisions closer to Coalition recommendations, differences to be settled during conference.differences to be settled during conference.

Near-Term Implementation ActionsNear-Term Implementation Actions:: Achieve inclusion and refinement of expanded RFS and Achieve inclusion and refinement of expanded RFS and

cellulosic ethanol production tax credit in conference of House cellulosic ethanol production tax credit in conference of House and Senate energy bills, as well as adoption of House and Senate energy bills, as well as adoption of House infrastructure program elements.infrastructure program elements.

Overcome issues that could lead to a potential Presidential veto Overcome issues that could lead to a potential Presidential veto of a final Energy Bill and FY’08 appropriations bill.of a final Energy Bill and FY’08 appropriations bill.

Continue to Advance Farm Bill recommendations.Continue to Advance Farm Bill recommendations.

Ethanol From Biomass: How to Get to a Biofuels FutureEthanol From Biomass: How to Get to a Biofuels Future

New Policy Development and Implementation Actions:New Policy Development and Implementation Actions: Launch Low Carbon Fuel Study:Launch Low Carbon Fuel Study:

– Assess and communicate results of study,Assess and communicate results of study,– Consider low carbon fuel policy optionsConsider low carbon fuel policy options

Initiate stakeholder input meetings on infrastructure expansion.Initiate stakeholder input meetings on infrastructure expansion. Prepare briefing reports on such key ethanol issues as: efficiency of Prepare briefing reports on such key ethanol issues as: efficiency of

water use in ethanol production; food and fuel facts; and overcoming water use in ethanol production; food and fuel facts; and overcoming entrenched energy objections to biofuels.entrenched energy objections to biofuels.

Initiate FY’09 appropriations strategy in support for DOE’s Biomass Initiate FY’09 appropriations strategy in support for DOE’s Biomass Program, DOE’s Genomes to Life, and Infrastructure development.Program, DOE’s Genomes to Life, and Infrastructure development.

Improve coordination of state, federal, and industry activities to Improve coordination of state, federal, and industry activities to leverage resources and expedite delivery of biofuels.leverage resources and expedite delivery of biofuels.

Implement and Build on adopted Farm Bill recommendations.Implement and Build on adopted Farm Bill recommendations. Engage in establishing and supporting funding for ARPA-e biofuels Engage in establishing and supporting funding for ARPA-e biofuels

work.work.

Ethanol From Biomass: How to Get to a Biofuels FutureEthanol From Biomass: How to Get to a Biofuels Future

Ethanol From Biomass: How to Get to a Biofuels FutureEthanol From Biomass: How to Get to a Biofuels Future

David TerryDavid TerryGovernors’ Ethanol CoalitionGovernors’ Ethanol CoalitionWashington, DCWashington, DC

Phone: 703-395-1076Phone: 703-395-1076Email: DTerry@StatelineEnergy.orgEmail: DTerry@StatelineEnergy.org

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