New Farm Bill Initiatives, Consistent Federal Incentives Key to Continued Growth of U.S. Ethanol Industry

WASHINGTON, DC - Recognizing the important role the federal government must play in developing new renewable fuel technology, the Department of Agriculture (USDA) today called for $1.6 billion in grant programs and loan guarantees to accelerate the development of cellulosic ethanol technology in particular.

"USDA and the Bush Administration have recognized the importance of public/private partnerships to accelerating the development of new renewable fuel technology, such as cellulosic ethanol," said Renewable Fuels Association President Bob Dinneen.  "To achieve the kind of goals President Bush and Congress have put forth, it will take a range of solutions including ethanol from feedstocks in addition to grain.  These new programs together with the continued consistent federal incentives for renewable fuel use will help America achieve energy independence sooner than many think."

According to the administration's proposals, they are seeking to provide $1.6 billion in new funding for renewable energy research, development and production, targeted for cellulosic ethanol, which will support $2.1 billion in guaranteed loans for cellulosic projects and includes $500 million for a bio-energy and bio-based product research initiative.

Specifically, the proposals include:

Providing $500 Million For A Bioenergy and Biobased Product Research Initiative;

Providing $500 Million For Renewable Energy Systems And Efficiency Improvements Grants Program;

Providing $210 Million To Support An Estimated $2.1 Billion In Loan Guarantees For Cellulosic Ethanol Projects In Rural Areas. 

Currently, 112 ethanol biorefineries nationwide have the capacity to produce more than 5.5 billion gallons annually.  There are 77 ethanol refineries and 7 expansions under construction with a combined annual capacity of more than 6.1 billion gallons.  There are no commercial-scale cellulosic ethanol biorefineries operating in the U.S. today.

###

For more information, visit the Renewable Fuels Association website at:  www.ethanolRFA.org.