New Energy Supplies Subject of House Hearing

October 20, 1999

Finding ways to provide the nation with fuels from biomass technology is necessary to supply future energy needs, says a House subcommittee chairman. A bill is pending to spur the technology and construct a pilot plant for corn-based ethanol research.

I. Miley Gonzalez, USDA under secretary for research, education and economics, told the risk management, research and specialty crops subcommittee that biomass crops "could become important feed stocks of electric power, liquid fuel and chemical production" and "offer significant environmental benefits compared to fossil fuels."

A bill introduced in early September by subcommittee Chairman Tom Ewing (R-IL) would create a sustainable fuels and chemicals research initiative to integrate research and development efforts and provide research grants; establish a sustainable fuels and chemicals board with a technical advisory committee to guide the board on how to award research funds, and authorize construction of a pilot plant for corn-based ethanol research.

Gonzalez says the administration supports the bill, but USDA believes "a mix of directed and competitive research would be the best approach."

USDA now spends $9 million a year for biofuels research and $63 million for research on new industrial uses of biobased products.

Energy Department Assistant Secretary for Energy Efficiency and Renewable Energy Dan W. Reicher told the panel "there is woefully inadequate integration across the biofuels, biopower and biochemical products industries." The lack of integration among technologies, applications, markets and policies "has been a major barrier to industry growth."

American Soybean Association Chairman Mike Yost told the subcommittee that biodiesel and soy ink are the most visible and commercially successful soy-based industrial products, but many more, such as soy-based lubricants, adhesives and particle boards also are on the market.

Legislation such as Ewing's and a companion bill introduced by Senate Agriculture Committee Chairman Richard Lugar (R-IN) and already approved by that committee "can help serve as catalysts for encouraging federal investment in biodiesel and other bio-based products."