"Over time, a key missing link in the effort to meet the [Renewable Fuels Standard] goal has been and will continue to be the lack of convenient locations to obtain higher blends of biofuels. [image-nocss] Convenient store operators and marketers remain reluctant to incur the cost of new pumps and tanks. USDA and other federal departments can and should offer help," he said. "I have instructed Rural Development officials to provide financial assistance, using existing RD programs and resources, to provide matching funds to help install 10,000 blender pumps and storage systems over the next five years. Work will commence immediately on putting that program together."
Also, the U.S. will pay farmers to produce nonfood crops that can be converted to fuels to reduce reliance on imported oil and boost rural economies, said Vilsack. The department will resume payments to farmers under the 2008 Biomass Crop Assistance Program for eligible perennial crops. The effort is part of a plan to boost annual production of biofuels, including corn-based and cellulosic ethanol, to 36 billion gallons required by the Renewable Fuels Standard, the report said.
U.S. drivers will use about 138 billion gallons of gasoline this year, and ethanol facilities are expected to produce 12.8 billion gallons of the additive, according to the Renewable Fuels Association.
"Domestic production of renewable energy, including biofuels, is a national imperative," Vilsack said. "That's why USDA is working to assist in developing a biofuels industry in every corner of the nation."
Vilsack said he is directing the agency to plan within 60 days and help fund construction of five refineries spread across the country to process biomass into fuels. Higher costs for refiners related to use of the new feedstocks will be paid from up to $281.5 million that remains from the 2008 Farm Act, he said.
The Environmental Protection Agency (EPA) last week approved increasing concentrations of ethanol blended with gasoline for U.S. vehicles made in 2007 and later to 15% from 10%. A decision on whether to extend that ruling to cars built from 2001 to 2006 will come next month after more testing (click here for previous CSP Daily News coverage).
"The recent EPA announcement authorizing E15 for late-model vehicles will help boost demand. It already convinced NASCAR to use E15. If it is good enough for Jimmy Johnson to remain hopeful, it will also be good enough for earlier vehicles from 2001 to 2006," Vilsack said.
Click hereto read the full text of the remarks by Agriculture Secretary Tom Vilsack on Biofuels as Prepared for Delivery at the National Press Club.
To read the report "Effects of Increased Biofuels on the U.S. Economy in 2022," click here.
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