House panel questions future of U.S. biofuel use

A House committee questioned the slow development of advanced biofuels like cellulosic ethanol. In 2007, Congress required the nation to use 21 billion gallons of advanced biofuels by 2022 — including 16 billion gallons of cellulosic ethanol and at least 1 billion gallons of bio-diesel. But the Environmental Protection Agency in 2010 and this year had to "substantially reduce" requirements because of "limited production capacity," said Margo Oge, director of the EPA's office of air and radiation. The targets set by Congress were 100 million gallons for 2010 and 250 million for 2011; EPA reduced them to 6.5 million gallon for both years. Many government-supported cellulosic biorefineries have been stalled, in or delayed, including a project in Michigan's Upper Peninsula. In March, President Barack Obama called for four new cellulosic ethanol refineries by 2013 as part of a strategy for cutting the nation's imported oil use by one third by 2025 from 2008 levels. Rep. Lee Terry, R-Neb., questioned why more progress hasn't been made on cellulosic ethanol. "In the last five years it doesn't seem like we've made a lot of progress," I would have expected mass production by now," he asked. "What's the hold up? What's the problem?" At the same time, corn-based ethanol production and government subsidies have come under attack by some in Congress and others who argue that diverting so much corn into gas tanks raises food prices and feed prices for livestock. Sens. Charles Grassley, R-Iowa, and Kent Conrad, D-N.D., introduced a bill Wednesday that "would reduce significantly tax incentives for ethanol," they said...more

But never fear, the deep thinkers in the Obama administration keep plowing a crooked furrow with our tax dollars, hoping to harvest green votes.

Agriculture Secretary Tom Vilsack announced today the establishment of the first Biomass Crop Assistance Program (BCAP) Project Area to promote the production of dedicated feedstocks for bioenergy. This project will help spur the development of next-generation biofuels and is part of Obama Administration efforts to protect Americans from rising gas prices by breaking the nation’s dependence on foreign oil. The program provides an opportunity for teams of crop producers and bioenergy facilities to submit proposals to USDA to be selected as a BCAP project area. If selected, crop producers will be eligible for reimbursements of up to 75 percent of the cost of establishing a bioenergy perennial crop, and can receive up to five years of annual payments for grassy crops (annual or perennial), and up to 15 years of annual payments for woody crops (annual or perennial). Bioenergy facilities are those facilities that produce heat, power, biobased products, or advanced biofuels from biomass feedstocks...Press Release

BCAP is a creature of the 2008 Farm Bill, which Congress passed by overriding Bush's veto.