US department to invest $1.6 billion in green fuels

WASHINGTON, DC, US, January 31, 2007 (Refocus Weekly) The U.S. Department of Agriculture will ask for US$1.6 billion in new funding to support renewable energies, with a focus on cellulosic energy research and production.

Agriculture secretary Mike Johanns says the plan is part of the administration's 2007 farm bill proposals and would support the goal of reducing gasoline usage by 20% in the next decade, as promoted by president George Bush. The funding would also complement an array of renewable energy efforts underway at USDA.

In his ‘State of the Union’ address, Bush announced his vision for energy independence, including $2 billion in cellulosic production loan guarantees. The proposals include a new Alternative Fuels Standard which contains a requirement for sources produced by farmers and ranchers.

“It remains a priority across USDA to support the development of biofuels; we will continue to build on current programs and turn the corner on renewable energy,” explains Johanns. “With biofuels coming to the forefront, American agriculture faces the greatest opportunity of a generation to lead a future in which we get our energy by the bushel and not by the barrel.”

Johanns will provide information about the proposal for $1.6 billion in new funding for renewable energy within the next few weeks, as he unveils the administration's full package of 2007 farm bill proposals. Among the examples of USDA projects already underway is the formal request for information to initiate discussion with private sector partners who want to establish a biofuels pumping station in Washington which would serve the general public and 800 flex fuel vehicles in the federal fleet.

Last year, USDA launched BioPreferred, a procurement program to increase the use of biobased products by federal agencies. Between 2001 and 2005, USDA spent $1.7 billion on energy-related programs.


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