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Senator Klobuchar, Chairmen Harkin and Conrad Introduce the Farm-to-Fuel Investment Act

Groundbreaking legislation paves the way for investment in cellulosic ethanol

May 15, 2007

(Washington, D.C.) Today U.S. Senator Amy Klobuchar (D-MN), Senator Tom Harkin (D-IA), Chairman of the Senate Agriculture Committee, and Kent Conrad (D-ND), Chairman of the Senate Budget Committee, introduced first-of-its-kind legislation that aims to reduce U.S. dependence on foreign oil by encouraging American farmers to produce cellulosic energy crops. The legislation, the Farm-to-Fuel Investment Act, would provide transition assistance for farmers to grow dedicated energy crops (crops like switchgrass grown solely for the purpose of producing energy).

"Farmers are going to be a key part of our nation's ability to achieve energy independence," said Klobuchar. "These crops could revolutionize how we look at energy just like ethanol and biodiesel have. Now its time for Congress to act and reward our farmers at home, protect the environment, and pave the way for tomorrow's energy."

"When we draw our energy from farm fields and other renewable sources here in the U.S., and reduce our dependence on the oil fields of the Middle East, that is a win, win, win for America," said Chairman Harkin. "This bill charts a course for initiating the extensive production of biomass feedstocks while continuing to protect wildlife and promote sound soil and water conservation practices. I commend Senator Klobuchar for her work to push additional biofuels production from biomass and the contribution she is making to the debate on the new farm bill."

"I just held a field hearing in Fargo where I was told that native prairie grasses can be a phenomenal source of cellulosic ethanol," Senator Conrad said. "I'm supporting this legislation because I believe that North Dakota can help this nation grow its way out of our dependency on foreign energy - whether it's from cellulosic ethanol or biodiesel. It's time we turned from the Mid East for our energy and turned instead to the Mid West."

The bill would provide three years of transition assistance to farmers who produce dedicated energy crops in an area 50 miles around a biorefinery that will produce fuels like cellulosic ethanol. Incentives are needed for the first few years because it takes about three years for crops like switchgrass to reach their first mature harvest. The three-year period also takes into account the time needed to develop a biorefinery to purchase the crop. After a market has developed and the crops have matured, the transition assistance would phase out.

To participate, farmers would have to agree to adopt conservation practices for soil quality, water quality and wildlife habitat. This legislation also allows for an additional incentive to farmers who produce native perennial energy crops, such as prairie grass mixtures, because of the tremendous conservation benefits those crops provide. Perennial grasses protect soil and water quality, sequester carbon, create wildlife habitat and save farmers money on fuel and fertilizer.

Renewable fuels groups and farmers organizations alike back the bill:

"The Renewable Fuels Association applauds Senator Klobuchar for her leadership in identifying a critical need in achieving the goals for renewable fuel use our nation has put forward, goals that will require more than grain-based ethanol to achieve," said Bob Dinneen, President and CEO of the Renewable Fuels Association. "Senator Klobuchar's legislation, which would provide transitional assistance for farmers interested in producing bioenergy crops, is a logical first step in bringing farmers and biorefineries together to grow the feedstocks for cellulosic ethanol facilities across the nation."

Tom Buis, President of the National Farmers Union commented on the legislation stating, "Developing commercial production of cellulosic ethanol offers a bright future for rural America. The Farm to Fuel Investment Act of 2007 will create economic opportunities for farmers, ranchers and their rural communities while moving our nation toward energy independence. I commend Senator Klobuchar for her leadership in creating a means to help rural America achieve our country's energy goals."

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