President signs renewable energy bill

A new renewable energy bill, the Energy Independence and Security Act, was signed into law before Christmas by President Bush, Most think the bill will give agriculture an even more expanded role as we turn to more renewable energy.

The bill increases the Renewable Fuels Standards (RFS), which is an annual mandate for the amount of renewable fuels produced and used in motor vehicles. In 2008 the bill requires 9 billion gallons of renewable fuels and progressively increases the amount to 36 billion gallons by 2022.

The largest component of the renewable fuels at this time is ethanol, which for all practical purposes is made entirely from corn at this time.

Some say the renewable fuels goal of 36 billion gallons is too ambitious, but Bob Dinneen, president of Renewable Fuels Association, said those similar concerns were voiced two years ago when critics questioned how the country would produce the previously mandated 7.5 billion gallons by 2012. Dinneen pointed out the country will be producing that much by next month.

“It's not a technological issue,” he said. “It's really a question of the marketplace and the economicsŠand the bill is clearly empowering the marketplace to resolve those issues.”

The new energy law will ensure that biodiesel and cellulosic sources for ethanol, such as switchgrass, are a key part of the RFS increase, according to U.S. Rep. Earl Pomeroy (D-N.D.). A news release from his office notes that beginning in 2016, an increasing portion of renewable fuels must be advanced biofuels, starting at 3 billion gallons in 2016 and increasing to 21 billion gallons in 2022.

In addition, the bill includes a minimum renewable requirement for biodiesel within the diesel pool from 500 million gallons in 2009 to 1 billion gallons in 2012 which, in Pomeroy's words, will create a stable, viable domestic market for biodiesel.

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