White House Announces Two Ag-Related Budget Provisions

January 24, 2000

The White House says President Clinton's 2001 budget will include an increase of more than $93 million to develop bio-based technologies with a separate $30 million dedicated to protecting and restoring wetlands.

"Biobased" industries use agricultural, forestry and aquatic materials to make commercial products such as fuels, electricity, chemicals, adhesives, lubricants and building materials. Of the $93 million in additional funding proposed by Clinton, $49 million will go to the Department of Energy and $44 million to USDA.

In addition, the Commodity Credit Corporation would provide $100 million in fiscal year 2000 and up to $150 million in fiscal 2001 and 2002 in incentive payments to encourage biobased fuel production.

The administration claims the initiative would produce 50,000 new, high-tech jobs in small processing plants in rural areas and up to 130,000 jobs in biobased industries. It also would generate 348 million barrels of oil a year, equal to 158 super tankers and would lower greenhouse gas emissions by 100 million tons, the administration says.

By proposing $30 million for wetlands protection and restoration, the administration would double this year's funding. The programs would center on voluntary partnerships with state and local governments, farmers and other private landowners, Indian tribes and non-profit conservation groups.

A $15 million increase is being requested for the North American Wetlands Conservation Fund, a wetlands conservation program that has protected 3.2 million acres of wildlife habitat nationwide.