Alternative energy development to promote USA economy growth
Making his speech at National Press Club in Washington the Agriculture Secretary Tom Vilsack informed about the range of Obama administration measures in frames of the efforts aimed at renewable resources fuel manufacturing incentive, creation of jobs and fighting the influence of climate changes.
The Secretary named interior alternative energy generation and biofuels to be the country principal goal and said that his Secretariat takes all necessary steps in assisting biofuel industry development in every state. He said that the growth of biofuels production would help to create new jobs, fight global warming, reduce country's dependence on foreign oil supplies and increase the capacities of US economy in 21 century.
Tom Vilsack informed the audience about the promulgation Biomass Crop Assistance Program (BCAP) enrollment requirements final version. In accordance with the aforementioned program USDA will continue payment to correct manufacturers. This program continues its' operation in form of pilot version until its final rules official publication. BCAP had been approved in frames of Food, Conservation, and Energy Act of 2008 and its goal is to make big amount of new, inedible, non-stern biomass to provide future necessities of the country in alternative energy.
Agriculture Secretary informed that president administration provides all possible support to US farmers, ranchers and biofuels manufacturers as they prompt US coming to bigger energy independence. The aforementioned program will assists US energy, biobased goods and advanced fuel manufacturers to generate energy from renewed country sources and create jobs for their local economy stimulation.
The program final version is the result of processing of more than 24000 offers, obtained from Federal Register notices together with the experience obtained from program functioning in 2009. It applies dual approach. First the participants get aid in installation and manufacturing of necessary renewable biomass crops in accordance with specified project domains. Manufacturers the BCAP participants have the possibility to obtain up to 75% of manufacturing costs reimbursement. Afterwards they have the possibility to obtain payment for annual or non-woody perennial crops within five years and the payment for woody perennial crops within 15 years. FSA takes up the acceptance and approval of the offers coming from the manufacturers. Any interested manufacturer may come and enroll at FSA program regional office. Rural and forest area owners and tenant might also obtain help from BCAP in form of transportation costs payment for certain appropriate materials, which are then forwarded to biomass refinery plants. The said plants convert supplies into heat, power, biobased goods or advanced biofuels.
The Secretary had also informed about conclusion of five year agreement with the Federal Aviation Administration (FAA) for the elaboration of jet fuels from crop and other "green" raw materials and reduces jet fuel costs. Working in partnership, using joint experience in research, analyzing policy and air transportation sector dynamics, the agencies would assess the presence of different supplies type and the possibility of their further processing at bio-refinery plants for jet fuel manufacturing. Their task is to develop instrument for assessment of the status different components from the supply grid, farm and forests biomass availability, its potential for jet-fuel manufacturing, the terms needed for full scale manufacturing. The agencies have already operational programs and collaboration contracts with public and private companies together with the resources necessary for biorefinery plants assistance at making jet biofuels efficient manufacturing plans.
The aforementioned agreement is part of USDA bigger research plant implemented by them through their five Regional Biomass Research Centers. Such plan will help to speed up the development of advanced biofuels industry in US. Plus the plan goal is to insert as much US rural areas as possible for obtaining maximum economical profit from biofuels manufacturing in the country. Such Centers will give main resources needed for highly-efficient teams work. The task of such teams is to conduct biomass researches in a way to satisfy needs both public and private sector, such as commercial aviation, military transportation, and other activities.
The Secretary also gave comments concerning biofuels report done by USDA's Economic Research Service (ERS), which confirms that replacement of more petroleum with cheaper interior biofuels will assist foreign oil import reduction, making US energy prices lower and giving the profit to US economy. The report also confirms that biofuels industry gain more productivity when applying costs-deduction technologies by giving the possibility to pay higher salary to workers. Gross Domestic Product and real income would mainly grow due to biofuels technological aspect investment, which grow country economy sustainability. Next generation biofuels are regarded as cheap domain meaning the decrease of ethanol price together with manufacturing amounts increase.
