William Goldner, Ph.D. Chair, Biobased Product and Bioenergy

Coordination Council and National Program Leader, Competitive Programs,

CSREESand

Harry Baumes, Ph.D.Associate Director, Office of Energy Policy

and New Uses, Office of the Chief Economist

USDA Update: A Systems Approach…OPPORTUNITIES FOR

RENEWABLE ENERGY AND BIOBASED PRODUCTS

OVERVIEW

How We Arrived at Where We Are 2008 Farm Bill National Bioenergy Coordination USDA Bioenergy and Biobased

Products Coordination USDA/REE Energy Strategic Plan Relevant USDA Competitive Programs Closing Remarks: Looking Ahead

How We Arrived at Where We Are

High Oil and Gasoline Prices 2006, 2007 and 2008 State of the Union

Addresses Low corn and commodity prices Significant Investment in Biofuels

Industry Global Economic Growth

How We Arrived at Where We Are

Energy Independence and Security Act of 2007 RFS 2 GHG Reductions

ISSUES IN 2008 Energy & Commodity Price Run-up Food & Fuel Indirect Land Use Collapse of the Financial Sector and Commodity

Bubble

Food, Conservation and Energy Act of 2008

RFS1

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How We Arrived at Where We Are

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How We Arrived at Where We Are

2008 Farm Bill

Biomass Research and Development Initiative (9008) Research, development, demonstration grants

(CSREES/DOE) Shared risk through demonstration and

commercialization grant and loan guarantee programs (RD)

Bioenergy Program for Advanced Biofuels Biomass Crop Assistance Program (FSA) Forest Biomass for Energy (FS) Conservation Reserve Program will include biomass

for energy production (FSA) BioPreferred Program becomes the Biobased

Markets Program

Energy Title IX

The Food, Conservation, and Energy Act of 2008

2008 Farm Bill

The Food, Conservation, and Energy Act of 2008

Research Title VII

•Research Management and Coordination

•Research, Education, and Extension Funding

Agriculture and Food Research Initiative (AFRI)

•Bioenergy Research (Authorized)

National Biomass R & D

Biomass Research and Development (BRDI) Board - National Biomass and Biofuels Coordination (USDA, DOE Chairs) USDA, DOE, EPA, DOI, DOD, DOT, NSF,

other National Biofuels Action Plan Economics of Biomass Feedstocks in the U.S. Interagency Working Groups

Resource Needs and Research Recommendations Focus and Coordination toward Implementation

Interagency Working Groups

Sustainable Biofuels Production Feedstock Production Feedstock Logistics Conversion Science and Technology Distribution Infrastructure Blending Environment, Health, and Safety

USDA Energy Leadership

Energy Council Coordination Committee Policy-oriented

Biobased Product and Bioenergy Coordination Council (BBCC) Authorized to coordinate research, policy, and

implementation strategies

Goal: Create a systematic approach for USDA energy priority setting, coordination, and implementation

Developing a Roadmap forResearch, Education, and Extension

The Secretary must prepare a roadmap for agricultural research, extension, & education

Identify major opportunities & knowledge gaps Stakeholders involved in preparation Incorporate other roadmaps for ag research Recommend funding levels

USDA/REE Energy Science Strategic Plan for Research,

Education, and Extension

ARS, CSREES, ERS, NASS and Our University Partners

THE FIRST STEP In September 2007, REE held an

“Energy Science and Education Workshop.”

Attendees at this workshop included leaders in bioenergy and bioproducts research from the USDA, other federal agencies and the nation’s leading Institutions of higher learning.

The product of this workshop is a roadmap for REE’s future bioenergy research, education and extension programs.

USDA/REE Energy Science and Education Workshop

USDA Energy Research, Education, and Extension Strategy

This Plan presents a This Plan presents a unifying vision and goals forunifying vision and goals for

research, education and extensionresearch, education and extensionenergy initiativesenergy initiatives

www.reeusda.govwww.reeusda.gov

Purpose of the Plan

Establish focus and facilitate collaboration Create public benefit through both internal

activities and partnerships Pursue reliable and sustainable sources of

agriculture and natural resource-based energy and biobased products

Promote the health of rural communities Provide responsible stewardship of our

natural resources

Unique Resources and Capacities

Regional and local outreach Genetic resources, collections and crop breeding/genetics/genomic

expertise for feedstock development Systems approach to feedstock development, production, and

conversion Feedstock logistics (harvest, transportation, storage, and pre-

treatment) The use of animal manures, crop & forest residues, and other

residuals as feedstocks Development of biobased products and value-added co-products A network of dedicated laboratories for performing basic and applied

research Integration of basic and applied research, education, and

Cooperative Extension in land-grant universities Integration and coordination of activities among the REE agencies

(ARS, CSREES, ERS, NASS)

5-year Leadership Objectives

USDA Energy Research, Education, and Extension Plan is recognized for its innovation across REE, USDA, Federal agencies, Congress and university community.

The Energy Research, Education, and Extension Plan is incorporated into U.S. national energy strategy and action plans.

Successful implementation of all initiatives, with outcomes continuously re-evaluated and executed for maximum achievement.

A strong network of partners with a shared vision is in place. Vibrant and effective public and private partnerships focused on specific

issues with defined scopes exist at the national, regional, State, and local levels.

Organized educational partnerships, including youth and adult education as well as college curricula are in place.

Well-established marketing partnerships with scientific, educational, and industrial organizations are functioning.

Programmatic Goals Sustainable agriculture and natural

resource-based energy production Sustainable bioeconomies for rural

communities Efficient use of energy and energy

conservation Workforce development for the

bioeconomy

Goal 1: Sustainable Agriculture and NaturalResource-Based Energy ProductionResults by 2013:

Whole life-cycle analyses of at least two potential regionally appropriate production systems.

High quality, cost effective feedstocks are developed. High quality, cost effective feedstocks are sustainably produced following

REE science-based conservation plans. Demonstrate at least two scalable conversion technologies suitable for

regional energy production. Sustainable integrated harvesting, transportation, storage, conversion,

and distribution systems exist. Analysis of environmental and economic impact of bioenergy production

will have been conducted at the regional and national levels. Analytical tools have been developed to assess the site-specific impacts

of bioenergy feedstock production. Comprehensive databases of feedstock characteristics are publicly

accessible.

Goal 2: Sustainable BioeconomiesResults by 2013: Decision tools are available and training in their use is provided

to all farmers, rural communities, processors, and policy makers..

Cooperative Extension educators are fully trained to support farmers, processors, and rural communities

eXtension Communities of Practice are formed to support farmers, processors, and rural communities

Biobased products and bioenergy coproducts have been evaluated for sustainability and market potential for regional integrated bioeconomies.

Those farmers, communities, and processors displaced by a growing bioenergy industry in transitioning to new viable economic activities are assisted.

Goal 3: Energy Efficiency & Conservation

Results by 2013:

Energy education programs, including eXtension Communities of Practice established by Cooperative Extension personnel to reach traditional and non-traditional audiences.

Energy intensity of agricultural production reduced by 10 percent.

Establish a national agriculture- and natural-resource-based energy awareness campaign.

Promote energy conservation awareness across the United States.

Goal 4: Human Capital Development

Results by 2013:

Triple the number of students in college- and university- based bioenergy & bioeconomy education programs.

A large proportion of high school students are aware of and take action on bioenergy concepts and agriculture and natural resource roles in developing the country’s energy future.

Expertise is available to implement Cooperative Extension energy programs across all States.

Critical to Implementation

Creating Partnerships for Plan Implementation USDA & Federal Agencies University and State Partners Associations and Organizations Industry

Energy Plan Implementation

24 Month Goal Action Plan Initial Goal Action Plan (Complete) Identify Goal Leaders/Teams (Complete) Evaluate Goal Implementation Team Plans

(Ongoing) Agency Program Alignment (ARS, CSREES,

ERS, NASS) USDA Energy Summit: Building and Growing

Partnerships September 29-30, 2008)

Bioenergy, Complex and Interdisciplinary

Issues and Concerns Sustainability

Climate Change Environment Social Land Use

Consistency of Supply and feedstock quality

Policy Objectives Energy security Implementation EISA Implementation FCEA

Complex and Interdisciplinary Work

Energy inputs for farming

FertilizerCarbon in

kernelsCarbon in ethanol

DGS

N2O emissions from soil and water streams

In direct land use changes for other crops and in

other regions

Change insoil carbon

CO2 emissions from ethanol combustion

CO2 emissions during fermentation

CO2 in the atmosphereCO2 via

Photosynthesis

Conventional animal feed production cycle

Fossil energy inputs to ethanol plant

GHG Benefits and Burdens for Fuel Ethanol Cycle Occur at Different Stages (and With Different Players)

1

FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008Actual Actual Actual Actual Actual Actual Actual Estimate

Biobased Products, Bioenergy/Renewable Energy Related Programs

Commercialization…………………………..…………………………………………………………………………………..…………………………………………………………………………… $43,385 $83,243 $170,750 $175,171 $118,209 $116,877 $50,999 $76,109

Research and Development ……………………………..……………………………………………………………………………………………………………………………………………………………. 73,535 88,852 111,040 116,961 113,395 112,841 113,941 116,600

Education and Outreach………………………………………………..…………………………………………………………………………………………………………………………………. 0 0 1,000 1,000 1,000 1,909 1,753 1,924

Energy Efficiency and Conservation……………………………...……………………………………………………………………………………………………………………………………………… 7,059 7,539 723 0 0 3,152 689 689

Total, Discretionary (Budget Authority)…………………………………………….………………. 123,979 179,634 283,513 293,132 232,604 234,779 167,382 195,322

Total, Discretionary + Loans/Guarantees…………………………………………….………………. (153,637) (176,814) (261,673) (293,132) (242,125) (274,216) (289,373) (458,387)

UNITED STATES DEPARTMENT OF AGRICULTUREBiobased Products, Bioenergy/Renewable Energy Related Programs

(Dollars in Thousands)

Source: USDA, Office of Budget and Program Analysis

USDA Bioenergy and Bioproduct Funding

Transition…

CSREES

National Institute of Food and Agriculture

CSREES Organizational Changes

National Institute of Food and Agriculture (NIFA) established by October 1, 2009 Agency head appointed to a 6-year term

by the President Reports directly to the Secretary or

designee CSREES Authorities will be Incorporated

into The National Institute

Other ProvisionsNRI & IFAFS combined into Agriculture and Food

Research Initiative (AFRI) to become the core competitive grant program for research, education and extension Effective in FY 2009 Research funding split 60% to fundamental and

40% to applied. Authorizes up to $700,000,000 annual funding Not less than 30% for integrated projects 406 authority maintained and referenced

CSREES/National Institute Programs

Biomass Research and Development Initiative – competitive (RFA just released)

Agricultural Materials Program - non-competitive Formula funding Special Research Grants

Small Business Innovation Research Program – competitive

Agriculture and Food Research Initiative – competitive Higher Education Grants - competitive

Challenge Grants National Needs Fellowships

Sustainable Agricultural Research Education (SARE) Program

www.csrees.usda.gov

Biomass Research and Development Initiative (9008)

USDA ($20 M) and DOE ($1-5 M) Joint Solicitation FY 2009

USDA funding will grow to $40 M in 2012 Focus on Research, development, and

demonstration Sustainability Feedstock Development and Production Feedstock Conversion Analysis

http://www.csrees.usda.gov

Agricultural and Food Research Initiative

$5.4M in 2008

2009 Information Posting November, 2008

RFA anticipated release early February, 2009

http://www.csrees.usda.gov

Biobased Products Bioenergy Program

NRI/AFRI Success Story

Ramon Gonzalez at Rice University developed a new fermentation process that uses E. coli to convert glycerol into high-value chemicals, like succinate.

Joint Solicitation with DOE Office of Science - $10.8 M Plant Feedstock Genomics for Bioenergy

Regulation of genes, proteins and metabolites Genetic markers for more efficient plant breeding. Understanding of the structure, function, and organization

of plant genomes 2007 - Perennial grasses, sorghum, poplar, alfalfa 2008 – Foxtail millet, willow, switchgrass, pine, rice,

sunflower

http://genomicsgtl.energy.gov

Agricultural and Food Research Initiative

Small Business Innovation Research

Forests & Related Resources

Small & Mid-Sized Farms

Plant Production and Protection - Biology

Biofuels and Biobased Products

Plant Production & Protection-

Engineering

Topic Areas That Support Bioenergy and Biobased Products (and Industrial Crop) Research

Small Business Innovation Research

Production of next generation biofuels and related co-products (no support for corn grain ethanol)

New crops for the production of non-food biobased products

New non-food biobased products from new industrial crops

New biobased plastics

www.csrees.usda.gov/fo/sbir

Biofuels and Biobased Products (8.8) 2009 Emphasis

SBIR Success Story•Resodyn Corp developed technology to convert waste grease and tallow from meat rendering plants into biodiesel.

•The successful technology was licensed for $29 MM and three biodiesel plants have been built in the Midwest.

Small Business Innovation Research (SBIR) Program

In the past five years: $3.5 million in support for small businesses

and their university and ARS partners to conduct industrial crop development and product research

Tobacco, kenaf, sorghum, camelina, algae, sweet potato, guayule, switchgrass, jojoba, and jatropha

SBIR Success Story

Native Seedsters Inc. developed a switchgrass seed harvester and has sold its first units to Noble Foundation and Ceres.

Closing Remarks Focus on sustainable bioenergy highlights the

value of agricultural research, education, and outreach

Strategic roadmaps such as the Energy Science Strategic Plan may create opportunities for stronger partnerships and new collaborations

The new USDA administration will have a strong base for continued bioenergy and biobased product activities.

Closing Remarks

Economy must improve – Stimulus package help directly for in bioenergy industry and credit market

New Administration’s team is being put in place – Appears clear that there is support for bio or renewable energy – commitment to alternative energy

Recognition that bioenergy is not independent of climate change, environment, and sustainability

Alternatives to fossil based energy is a global concern

Closing Remarks

Recognize the complexity of developing, deploying, and using alternative bioenergy - Systems approach to solutions

Interdisciplinary cooperation and collaboration – research teams

Commitment to Research and Development

Commitment to Extension, Education, and Tech Transfer

Continue to be a role for public policy