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Washington, D.C.- U.S. Congressman Frank Lucas introduced his comprehensive “Rural America Energy Bill” today, in an effort to allow rural areas to play a larger role in making the U.S. less dependent on foreign sources of energy.
Lucas’ eight-point plan seeks to expand the use of energy sources that can be utilized in rural areas, such as wind energy and cellulosic ethanol, and to help farmers participate in energy development, through small wind tax credits and dedicated funding for renewable energy projects. It will also work to reduce high feed prices and fund research on a pipeline system for ethanol.
“Rural America wants to be out from under the thumb of the OPEC countries, and they want to play a larger role in helping make that happen,” Lucas said. “These provisions will help increase our energy independence, as well as bring jobs and infrastructure to rural areas.”
The bill, H.R. 2261, will revamp the USDA Bioenergy Program to promote cellulosic refineries. The program will provide payments for cellulosic ethanol production, to encourage the construction of cellulosic plants.
“Cellulosic ethanol would allow Oklahomans to get in on the ethanol game that our neighbors to the north have been benefiting from for years,” Lucas said. “Whether it is switchgrass, wheat straw or other forms of cellulosic, we can grow these crops abundantly in our state.”
The bill will also establish a transitional payment program for farmers who switch to cellulosic crops, to ensure a market for both ethanol producers and potential cellulosic farmers in the critical first years of production. Payments will be based on the number of acres planted to cellulosic crops.
Lucas said once the technology and economic barriers are overcome, the potential for cellulosic in Oklahoma could be tremendous.
“Now that corn ethanol is on its feet economically, we need to give cellulosic the chance to play in the renewable fuels market,” Lucas said.
“The potential for cellulosic growth is fantastic,” Lucas said. “Compared to traditional ethanol production, it will create more energy per acre, it will use less pesticides and fertilizer, and it will produce a greater reduction in carbon dioxide emissions.”
Lucas’ bill also helps bring wind energy to rural areas, by extending the wind energy tax credit, as well as providing a tax credit for the installation of small wind turbines used to generate electricity for homes, farms, and small businesses.
“Scientific measurements have proven what we know to be true in Oklahoma – the potential for wind energy is vast, “Lucas said. “Oklahoma and our Midwestern neighbors could be the Saudi Arabia of wind, and these tax credits will help us harness this power for generations to come.”
In addition, the bill will double the funding for the Renewable Energy Program, which funds grants and loans to farmers and rural businesspeople who make energy efficiency improvements or purchase renewable energy systems, such as wind, solar, or biomass. Lucas’ bill also ensures a portion of the money is directed to smaller projects.
To continue to encourage greater traditional ethanol production, Lucas’ bill would fund a feasibility study by the Department of Energy for the construction of an ethanol pipeline system, to move the product from the Midwest to the East and West Coasts. The study would investigate the technological and regulatory issues related to ethanol pipeline transport.
Finally, Lucas’ bill will help producers dealing with higher feed costs associated with corn put into ethanol production, by instructing USDA to move acres out of the Conservation Reserve Program so they can be put into biofuels production. Acres taken out of CRP will be replaced with more sensitive acres not currently enrolled in the program. Lucas proposes increasing the CRP enrollment to 40 million acres.
Lucas is ranking member on the agriculture subcommittee with jurisdiction over energy issues, and will be involved in writing the energy title of the Farm Bill this year.
“We need to give the countryside a seat at the energy table,” Lucas said. “This bill helps us diversify our energy portfolio and puts us on the path to energy independence.”
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