Uniting Leaders for a Common Energy
Goal
Oklahoma Renewable
Energy Council
November 14, 2007
Oklahoma City, OK
Brent Bailey
25x’25 Facilitator

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U.S. imports nearly 65% of our petroleum needs; predicted to only increase

U.S. Energy Use
Coal
23%
Total = 100.2 Quadrillion Btu
Natural Gas
23%
Total = 7 Quadrillion Btu
4% Wind
42% Hydroelectric
Renewable Energy
7% 5% Geothermal
Petroleum
40%
Nuclear Electric
8%
48% Biomass
1% Solar
Source: From the Energy Information Administration, Annual Ener gy Review for 2006

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Oklahoma Energy
Consumption by
Source, 2003

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• Ranked 11 th in the nation for per capita energy consumption and ranked 25 th for total energy consumption, despite being ranked 47 th for per capita income.
• Large industrial and transportation use;
~25% of households have electricity as primary heating source; all coal comes from out of state; no nuclear.
Source: EIA

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The 13 Southeastern states use 40% of total energy consumed in the U.S.
Texas leads nation in coal, nat gas, and petroleum use
Total consumption per capita: 9 of top 15 states are Southeastern states

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• Judged in six categories: carbon footprint, air quality, water quality, hazardous waste management, energy efficiency policy initiatives, and energy consumption.
• Botton 10: MO, ND, TN, AR, KY, MS, LA,
AL, IN, and WV – “lots of pollution and consumption and no clear plans to do anything about it.”
• Oklahoma - #38 on list

Source: State of Georgia Energy Strategy Development Materials

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Energy Information Administration has projected costs to increase 4 to 22 percent for natural gas, heating oil, propane, and electricity this winter.
The International Energy Agency (IEA) projects a 50 percent increase in worldwide demand for energy between now and 2030.

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The U.S. Department of Energy
(DOE) estimates that America's total energy demand will increase 30 percent by 2030.
All the more reasons to strongly support
U.S. bioenergy production and use

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• U.S. accounts for 25% of global consumption, but holds 3% of reserves and has 4% of global population.
• Demand is nearly equal to supply + global political unrest = volatile prices.
• Oil price: $96+/barrel
• But…..what other country has the standard of living that we enjoy?
• Drinking water, waste water, mobility, heating/cooling, food production…..all takes energy!

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• Pres. Bush declares America is “addicted to oil”
• Cellulosic and biomass on public stage
• Venture capital investments set new record while federal funding for renewable energy programs were cut
• Biofuel production ahead of RFS
• Wind energy surpassed 10 GW
• Solar efficiency breakthroughs (>40%)
• Prior to end of 109 th Cong., Cong. passed legislation extending important TCs until 2008
• Congressional leadership shifts

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• Pres. Bush issues a new biofuels challenge –
“20 in 10”
• DOE issues $400+M in grants to facilities that will utilize cellulosic ethanol conversion technologies
• Venture capital investments in renewable energy continue – here and abroad
• House passes Farm Bill and Energy Bill;
Senate debating Farm Bill and Senate passed
Energy Bill
• 25x’25 Action Plan introduced

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25x’25 Initiative:
Renewable energy initiative born in the ag and forestry sectors; formed in 2004
Seeks to forge consensus on a new energy future
Organized to explore agriculture and forestry’s role in energy production

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25x’25 Initiative:
Four-phase project
Create the Vision
Tested the Vision/Built an Alliance
Created a pathway to the Vision
Implement the Vision

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Our Vision:
By the year 2025, America’s farms, ranches and forests will provide 25 percent of the total energy consumed in the U.S. while continuing to produce safe, abundant and affordable food, feed and fiber.

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Today (2006)
~7 Quads
Renewable Energy
= 7%
Goal (2025)
31.75 Quads
Renewable Energy
= 25%
100.2 Quads
Total Energy
Consumed
EIA predicts consumption of
127 Quads by 2025

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We will meet this goal by:
Producing transportation fuels
Harnessing wind energy
Converting biogas emissions
Utilizing geothermal resources
Capturing solar energy
Providing biomass for generating heat, power, and biofuels (~half of RE needs)
Observing the benefits to the environment and increasing energy efficiency

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Over 600 farm, business, energy and environmental organizations!
American Farm Bureau Federation
National Corn Growers Association
American Soybean Association
Forest Landowners Association
National Association of State Departments of Agriculture
Monsanto
Deere & Company
“Big 3” Automakers – Ford, Daimler Chrysler, GM
American Wind Energy Association
Natural Resources Defense Council

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OK-based farm, business, energy and environmental organizations
Oklahoma Farm Bureau Federation

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22 Governors
MT
MN
PA
IN
ND
KY
IL
NM
WI
GA
NE
KS
MI
CA
6 Former Governors
FL
IA
MD
NY
ID
OH
VT ID
AL SD
NH TN
VA CO

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12 State Legislatures
Colorado
Nebraska
Vermont
Kansas
Montana
Louisiana
Florida
North Dakota
Georgia
Mississippi
Alabama
California

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Legislative Endorsements

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State alliance activity:
Formed in CO, KS, LA , MS , FL , SC , KY ,
NE, TX , NY, OH, PA, WA, OR, ID, and
VT
Forming in AL , AR , CA, GA , TN , VA , IA,
AZ, NM, WY, and MT
Action pending in NC , OK , IL, IN, MO,
WI, MN, ND, SD, NV, and ME

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Alliance Planning Underway

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All Alliance Activity

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Role of alliances:
Ensure grass roots participation and ownership
Vehicle to unite state level champions
Channel support to national and state initiatives that:
• Increase renewable energy production
• Expand the renewable energy market

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Organizing Model
Identify primary leaders/share the “vision”
Secure commitments
Organize state level Steering Committee
Identify and recruit partners
Form an alliance
Develop a state action plan

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What’s in it for ag and forestry?
Increased farm income
Added value uses
Alternative enterprises
More productive uses of marginal lands
Assist in resolution of air, water and soil quality problems
Reduced reliance on government payments
Enhanced rural economies

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25x’25’s number one renewable fuel priority
The key to reaching our goal
Farm Bill and Energy Bill will have significant impacts to research, development, and deployment

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Solar and Wind Resources in the U.S.

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• 209 million acres of forestland
• 86 million acres of traditional cropland
• 120 million acres of pasture/hayland
• 8.5 million acres of CRP land
• 7.5 billion head of poultry
• 43 million head of livestock
• 151 million tons of municipal solid waste
• Many other unique biomass resources

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The Opportunity & Potential
Biomass
Feedstock
Ded. Energy Crops
Ag and Forest Residues
Hazardous Fuel
Treatments
- Short Rotation
Woody Crops
- Wood Waste
Conversion
Processes
– Manufacturing
– Co-firing
–
Combustion
–
Gasification Fermentation
– Enzymatic Fermentation
– Acid Hydrolysis/Fermentation
– Catalytic Cracking
USES
Fuels:
− Bio/Renewable Diesel
− Ethanol
Electricity and Heat
Biobased Products
– Composites
– Specialty Products
– New Products
– Chemicals
– Traditional Products

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Feedstocks Collection Conversion Distribution
Pricing
Availability
Form
Harvest
Storage
Transport
Pre-
Processing
Technology
Efficiency
Inputs
Method
Distance
Acceptance
Co-products

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• Cost improvement past 20 years: 57%
• Projected improvement next 20 years:
45%
• Source: National Renewable Energy Laboratory Energy
Analysis Office

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Univ. of Tennessee Study Objectives
• Determine the ability of America’s farms, forests and ranches to provide 25% of
U.S. total energy needs in 2025
• Assess the economic impacts of achieving the 25x’25 goal on the ag sector and the overall economy

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By 2025, America’s farms, forests and ranches can annually produce:
87 billion gallons of biofuels
(Assuming that cellulosic technologies will be available and competitive by
2012)
932 billion kwh of electricity
15.45 quads of energy from biomass
(Remainder of renewable energy to come from solar, wind, geothermal, hydro, etc.)
Source: UT Study

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Impacts on national economy in 2025
Economic Activity
$700 billion annually
Jobs
5.1 million
All for only an investment equal to 5% of what America spent on imported oil in 2006 .

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By 2025, Oklahoma’s farms, forests and ranches can annually produce:
2.42 billion gallons of biofuels
43.3 billion kwhr of electricity (plus 44.1 bkwh from wind and solar!)
While creating 133,676 new jobs and
$13.6 billion in economic activity
(42.0 million dry tons of cellulosic feedstocks will be needed)
Source: UT Study

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National goal:
June 7, 2006 – Bipartisan group of Senators and Representatives introduced concurrent
Congressional resolutions calling for a new national renewable energy goal of 25x’25
109 th : 28 Senate; 94 House
110 th : SCR 3 has 34 co-sponsors; HCR 25 has 72 co-sponsors (Rep. Lucas)

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Why establish this National Goal?
Sets a benchmark for our nation
Help to unify leaders behind a common goal
We think it is achievable

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Congress has spoken and adopted the 25x’25 vision as a national goal
Senate: S. Con. Res. 3 adopted June 15, 2007
House: H. Con. Res. 25 adopted October 15, 2007

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Improving Energy Efficiency and
Productivity (policy option of first choice)
Increasing Renewable Energy Production
Delivering Energy to Markets
Expanding Renewable Energy Markets
Strengthening Conservation of Natural
Resources and the Environment

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Increased funding for RDD&D
Expansion of current production incentives
New Feedstock Residue Management Program
Exploring a permanent counter-cyclical incentive system for biofuels in relation to oil
Incentives to build new transmission lines
Mechanism to get to 50% flex-fuel vehicles
Expanding conservation and energy programs in the Farm Bill

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Challenges

Goal vs. mandate questions

Feedstock competition concerns in animal agriculture and forestry sectors

Balancing national and state objectives

Sustainability

Efficient conversion technologies

Subsidy issues

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• Oklahoma Energy Office – provides renewable energy/energy efficiency info
• Oklahoma Alternative Fuel Incentives
• Private company initiatives (biofuel production; litter gasification; cellulosic conversion)
• University and agency Initiatives

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25x’25 Activities for 2008
Core Mission:
Keep partners connected and informed
Maintain momentum and visibility
Create and help strengthen state alliances
Engage candidates for public office on the need to embrace a 25x’25 energy future

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Woody Biomass Economic Analysis
Addressing infrastructure challenges
Agriculture and forestry’s role in a reduced carbon economy
Defining sustainable production of bioenergy

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The 25x’25 Vision:
Provides a positive impact on the national and rural economies
Reduces our reliance on foreign oil and improves national security
Creates important environmental benefits

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We Need Your:
Involvement
Insight
Expertise
Leadership skills
We invite Oklahoma leaders to endorse the vision and join us in building an alliance and promoting a new strategy for a new energy future.

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Please join us in bringing the vision of 25x’25 to life.
www.25x25.org