Biofuels

veloping and researching

es and houses the Office of

manages the Biofuels Program.

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ncy and Renewable Energy

en appointed as the new

Secretary for EERE. Faulkner

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ulkner’s previous experience

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members). Titled “Reliable, Affordable, and EnvironmentallySound Energy for America’s Future,” SecretaryAbraham called it “a historic first step to addressinglong-neglected energy challenges.”

The National Energy Policy Plan is a 170-page outline

of the Bush Administration’s plans for America’s energyfuture. Chapter 6, titled “Nature’s Power: IncreasingAmerica’s Use of Renewable and Alternative Energy,”contains 18 pages on renewable and alternative energysources. Two sections address biofuels: “Biomass” and“Alternative Transportation Fuels.” The entire Plan isavailable on the DOE Web site at www.energy.gov.

The NEPD report

contains 105 energypolicy recommendations, including fivethat specifically mention biofuels orbioenergy. These recommendationsinclude continuing

“The NEPD Group recommends thatthe President direct the Secretary of the Treasury to work with Congress to continue the ethanol excise taxexemption.”

Biof

news

Volume 4, Number 2 Summer 2001

DOE National Biofuels ProNational Renewable Energy 1617 Cole Blvd., MS-1634Golden, CO 80401

National Energy Policy and Biofuels

ADDR

Sarah Barba, NREL/PIX 0065, 10066

continued on page 3

With energy shortages in California and high gasoline prices nationwide, energy and fuels have been

getting a lot of attention recently. What does all thisattention mean for biofuels development? In general,biofuels and bioenergy have fared well in proposalsfor energy funding and energy policy. In a recent statement to the Senate Committee on Energy and NaturalResources, Secretary of Energy Spencer Abraham identified biomass and biofuels as research areas that wouldbe emphasized by the new administration (see box onpage 3). The President’s energy policy plan also recognized that ethanol is a likely substitute for methyl tertiary butyl ether (MTBE) and recommended continuingthe ethanol tax exemption. Added to DOE recommendations for nearly level biofuels funding in 2002, thesedevelopments indicate continued support for biofuelsresearch.

On May 17, President Bush released the National

Energy Policy Plan, which was prepared by the NationalEnergy Policy Development (NEPD) group (see box for

NEPD GROUP

MEMBERS

VICE

PRESIDENT . . . . . . . . . . . . . . . . . . . Dick Cheney SECRETARY OF STATE . . . . . . . . . . . Colin L. Powell

SECRETARY OF THE

TREASURY . . . . . . . . . . Paul O’Neill SECRETARY OF THE INTERIOR . . . . . . . Gale Norton

SECRETARY OF

AGRICULTURE . . . . . Ann M. Veneman SECRETARY OF

COMMERCE . . . . . . Donald L. Evans

SECRETARY OF

TRANSPORTATION . . .Norman Y. Mineta SECRETARY OF ENERGY . . . . . . . Spencer Abraham

DIRECTOR OF THE FEDERAL EMERGENCY

MANAGEMENT

AGENCY . . . . . . . . . . . . . . . . . . . . . . . . . Joe M. Allbaugh

ADMINISTRATOR OF THE ENVIRONMENTAL

PROTECTION

AGENCY . . . . . . . . . . . . . . . . Christine Todd Whitman

ASSISTANT TO THE

PRESIDENT AND

DEPUTY

CHIEF OF STAFF FOR

POLICY . . . . . . . . . . . . . . . . . . . Joshua B. Bolten

DIRECTOR OF THE

OFFICE OF

MANAGEMENT AND BUDGET . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mitchell E. Daniels

ASSISTANT TO THE

PRESIDENT FOR ECONOMIC

POLICY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lawrence B. Lindsey

DEPUTY

ASSIST. TO THE

PRESIDENT AND

DIRECTOR OF INTERGOVERNMENTAL

AFFAIRS . . . . . . . . Ruben Barrales

EXECUTIVE

DIRECTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Andrew D. Lundquist

—STAFF

DIRECTOR FOR THE SENATE ENERGY AND

NATURAL

RESOURCES

COMMITTEE

David Garman, the new AssistantSecretary for Energy Efficiency andRenewable Energy (right), expressedstrong support for renewable energy during a June visit to the NationalRenewable Energy Laboratory(NREL). Garman toured NREL andspoke to staff about the budget andhis goals. Below Garmen poses withDOE and NREL managers RichardTruly, Bob Dixon, Stan Bull, FrankStewart, and Bill Becker. 

n Boosts Ethanol

ected to have a huge impact on

S. Environmental Protection

hat California must abide by the

for oxygenates in reformulated

titioned EPA to waive the

pread water pollution is forcing

se of the oxygenate MTBE.

bvious choice for replacing

he California oxygenate market

 gallons of ethanol each year to

the Renewable Fuels Association,

had an impact on ethanol plant

ts being planned to begin con

South Dakota, and Minnesota.

sit www.ethanolrfa.org/press.html.
In response to a National Energy Policy Plan recommendation, DOE held a series of meetings to solicit

comments on energy efficiency and renewable energyprograms. The comments will be passed on to DOEHeadquarters where they will be considered as part of a strategic review to recommend performance-basedfunding levels. According to Abraham, “the public’sinput at these meetings will help us identify opportunities for future research and investment while assessing our past effectiveness in these areas.”

Supporters of renewable energy and conservation

have used this opportunity to urge DOE to continuefunding for these programs. “Solar, wind, biomass, and geothermal are the only energy sources that don’tconsume natural resources, and global warming is making renewable energy far more important,” statedChuck Kutscher of the American Solar Energy Societyat the Denver meeting.

The public meetings were held in Atlanta, Chicago,

Boston, Seattle, Denver, Philadelphia, and Washington,D.C. For more information visit www.energy.gov/HQPress/releases01/junpr/junpr.htm.

OENERGY

FUNDING

FY 2001 FY 2002 

FUNDING* REQUEST* 

33,614 35,451

750 750

3,400 4,000

25,707 26,570

RCH**

6,350 2,500

6,000 2,500

CTION

3,600 3,500

3,300 3,500

OGRAM

2,212 2,000

1,335 1,184

46,526 44,201

Appropriations Bill 47,950

STEMS 39,742 37,754

Appropriations Bill 41,010

RGY 86,268 81,955

Appropriations Bill 88,960

d under Bioenergy funding in FY 2001 

opower research programs for FY 2002.

In his May 10 statement before the Senate

Committee on Energy and Natural Resources,Secretary Abraham reiterated the Bush Administration’scommitment to biofuels. In his statement Abrahamoutlined the 2002 DOE budget request and explainedthe principles behind it. Biomass and Biofuels werehighlighted in the Renewable Energy Resources sectionof the statement. To view Abraham’s statement visitwww.energy.gov/ HQDocs/testimony/hgtestimony.html.

“The Biomass Research and DevelopmentAct of 2000 established a Biomass R&DInitiative, to be carried out jointly bythe Secretaries of Agriculture and Energy. The $82 million requested in FY 2002 forBiomass/Biofuels, supports collaborativeresearch and development to improve our nation’s ability to not only convertbiomass into electric power, heat, andclean liquid transportation fuels, but also to extract high-value bio-basedindustrial materials such as chemicals,plastics, and building materials. DOE’sbiomass activities within the jurisdictionof the Energy and Water DevelopmentSubcommittee focus on two distinct elements: Biopower, which co-fires biomass with coal or gasifies biomassmaterial that is combusted to generatepower; and Biofuels, which convert agricultural and other products toethanol. Combined, these core activitiesunderpin a national effort to more effectively use a vast domestic resource.”

-Spencer Abraham, Secretary of Energy

Testimony before the Senate Committee onEnergy and Natural Resources, May 10, 2001.

nsumer waste.

page 3

O

N THE FEDERAL FRONT

PUBLIC FOR

UMS

Speaking of Biofuels...

the ethanol excise tax exemption and working toexpand the tax credit for electricity produced frombiomass. The policy also contains recommendations to include landfill methane projects in the Section 29tax credit and to re-evaluate access limitations on federal lands to increase renewable energy production.

Of the 105 recommendations in the National

Energy Policy Plan, the one that most directly affectsbiofuels urges Congress to continue the ethanol excisetax exemption. Although the Plan does not recommend a specific time period for the continuation, acurrent bill in Congress (S 907) would extend the endof the ethanol tax credit from 2007 to 2015.

In addition, the NEPD report specifically mentions

ethanol—particularly ethanol made from corn—as thegasoline oxygenate that will be used to replace MTBE,which is being phased out by California and otherstates because of environmental concerns.

National Energy continued from page 1Policy and Biofuels... 

energy and water appropriations bill that

 restore funding for other energy efficiency 

for action.

Strategic Review ofRenewable EnergyPrograms