Testimony of Joan L. Pellegrino, Acting President Biomass Energy Research Association ON BIOBASED PRODUCTS AND BIOENERGY RESEARCH USDA Forest Service Fiscal Year 2007 Budget Appropriation Submitted to the Senate Committee on Appropriations Subcommittee on Interior and Related Agencies April 11, 2006 This testimony pertains to the Biomass Energy Research Association’s (BERA) recommendations for fiscal year 2007 (FY07) in support of appropriations for the USDA’s Forest Service (USDAFS) to support bioenergy-related R&D under the President’s Healthy Forest Initiative and through the USDAFS Forest Products Laboratory. Both activities are conducted under the auspices of the Natural Resources and Environment program of the U.S.D.A. BERA recommends that $56,000,000 be appropriated for these efforts in FY07. A separate statement has been prepared for submission on other biomass energy RD&D performed by the Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy (EERE) under the Energy and Water Development Bill. Specific line items for the USDAFS budget are as follows: $35,000,000 under the President’s Healthy Forest Initiative for the reduction of hazardous fuels via removal of forest thinnings, waste and underbrush. $5,000,000 to continue the Biobased Products and Bioenergy Research (BPBR) program of the USDAFS Forest Products Laboratory. $1,000,000 to collect and consolidate the results of two decades of R&D conducted at the DOE on utilization of forestry energy sources. $5,000,000 to develop and implement an integrated R&D plan for forestry-derived bioenergy. $10,000,000 for industry cost-shared energy plantation demonstration projects BACKGROUND On behalf of BERA’s members, we would like to thank you, Mr. Chairman, for the opportunity to present the recommendations of BERA’s Board of Directors for the high-priority programs that we strongly urge be continued or started. BERA is a non-profit association based in the Washington, DC area. It was founded in 1982 by researchers and private organizations conducting biomass research. Our objectives are to promote education and research on the economic production of energy and fuels from freshly harvested and waste biomass, and to serve as a source of information on biomass RD&D policies and programs. BERA does not solicit or accept federal funding for its efforts. There is a growing realization in our country that we need to diversify our energy resources and reduce reliance on foreign oil. Economic growth is fueling increasing energy demand and placing considerable pressure on our already burdened energy supplies and environment. The import of oil and other fuels into the United States is growing steadily and shows no sign of abating. Industry and consumers both are being faced with rapidly rising costs for petroleum and natural gas, which are vital to our economy. A diversified energy supply will be critical to meeting the energy challenges of the future and maintaining a healthy economy with a competitive edge in global markets. The recently announced Biofuels Initiative at the DOE provides funding to support the use of cellulosic biomass as a feedstock for ethanol, including wood and forestry resources, with the potential to replace as much as 30% of domestic gasoline demand in 2030. We support this Initiative and believe it will help to accelerate the use of this important energy resource. Forest biomass energy plantations that provide feedstocks for forest biorefineries producing paper products as well as fuels and biopower could make an important contribution to our energy supply while providing a boost for rural economies and reducing wildland forest fires. In addition, wood can be used instead of petroleum and natural gas to produce many high-value products such as plastics and chemicals. However, targeted research is needed to make this a reality. BERA RECOMMENDATIONS FOR USDA FOREST SERVICE R&D The Bioenergy/Bioproducts Initiative, which was created as a result of “The Biomass Research and Development Act of 2000,” and Title IX of the Farm Bill, sought to triple U.S. usage of bioenergy and biobased products. A strategic plan was developed to reach this goal by the multiagency Biomass Research and Development Board (BRDB) co-chaired by the Secretary of Energy and the Secretary of Agriculture. To meet goals for bioenergy and biobased products, substantial increases in biomass energy and fuel consumption are clearly needed. BERA’s recommendations support several key areas that will contribute to the goals of sustainable forestry as well as the creation of viable renewable resources as part of a diversified energy supply. Specific programs are recommended as follows. Recommendation 1: Support the President’s Healthy Forest Initiative: Reduction in Hazardous Fuels via Forest Waste Recovery for Fuel and Feedstocks Large, repetitive, wide-spread losses have occurred in the Nation’s forests over the last several years because of wild fires. Such fires are supported by the accumulation of dense undergrowth and brush coupled with poor forest management practices, insect infestation and disease that increase the number of dead trees, and other factors. As a result, loss and injury to fire fighters and others, large property, financial, and esthetic losses, and environmental harm have occurred in commercial as well as private and federally owned forests. BERA believes that this problem can be optimally addressed by conducting a targeted RD&D program to develop economic, practical methods for collection and removal of forest wastes, underbrush, and small-diameter tree thinnings, for the purpose of using them as energy resources. Forest wastes could be combined with large-scale forest biomass energy plantations to provide fuel and feedstocks for forest biorefineries producing fuels and high-valued products. Funding should be provided to start an RD&D program in this area as soon as possible. This is essential to the long-term sustainability of the forest and biomass energy industries in North America and to help reduce and displace fossil fuel consumption. Recommendation 2: Continue to Conduct Wood-based Feedstock Research at the USDAFS Forest Products Laboratory Critical research to develop, plant, grow, and manage energy crops, particularly forest biomass, for conversion to cost-competitive energy and fuels, was once conducted by the DOE but has since been terminated. DOE’s position is that other agencies (USDA) are better suited to handle this research. While DOE’s feedstock production program has made significant research contributions over the last 25 years, BERA strongly endorses the idea that the USDA should assume responsibility for this program. The USDA has a long history in biomass production and is recognized worldwide for its accomplishments in developing advanced agricultural and forest biomass production methods. According to a recent study (Biomass as Feedstock for a Bioenergy and Bioproducts Industry: The Technical Feasibility of a Billion-Ton Annual Supply, DOE/USDA April 2005), woody feedstocks can make a substantial contribution (368 million dry tons per year) and are an essential component of a large-scale industry producing affordable biomass energy, fuels, and chemicals. BERA strongly recommends that RD&D on woody biomass production for dedicated energy and feedstock uses be continued by the USDAFS Forest Products Laboratory Biobased Products and Bioenergy Program(BPBR) under the Interior and Related Agencies Bill. This program is developing new and more economical technologies for the production, management, harvest, and utilization of woody materials for energy and highvalue products. The research is a natural complement to the forest waste recovery R&D that BERA recommends be added to its overall program. Recommendation 3: Collect/Consolidate DOE’s Research and Field Results DOE has conducted an extensive forest biomass production program from the 1970’s up to 1992. This research included laboratory and field projects performed by academe, national laboratories, research institutes, and the private sector. The program emphasized the development and selection of special species, hybrids, and clones of trees, and advanced growth, management, and harvesting procedures for dedicated energy crops. Research on short-rotation tree growth and the screening of tree species in small-scale test plots was carried out in several areas of the country. Depending on the geographic location, woody species recommended as energy feedstocks from the test-plot results included hybrid poplars, willow, eucalyptus, black locust, and others. In collaboration with DOE, BERA recommends that the results of these efforts be collected and consolidated with those of the USDAFS efforts on woody biomass production. A plan should also be developed for preserving the large amount of improved woody crop clonal materials produced both by the USDAFS and the university collaborators of DOE. Recommendation 4: Develop an Optimized RD&D Plan BERA recommends that the USDAFS produce a 10-year, strategic RD&D plan that continues the research necessary to obtain the data and information needed for optimization of methods for recovering and removing waste biomass and small-diameter thinnings from forests and the testing of their efficacy on preventing forest fires, to design forest plantations for different regions of North America, including environmental impacts, and to integrate fire prevention methods with forest biomass production. The management, growth, harvesting, storage, and transport to hypothetical processing plants of both the waste and virgin biomass should be included in this work. The resulting system designs should lead to industry cost-shared field projects to demonstrate medium-scale, sustainable, forest biomass production and the removal of residuals in several geographic locations. Considerable progress has been made on the efficient production of short-rotation woody crop and multi-crop systems. In addition, research on tissue culture techniques and the application of genetic engineering methods to low-cost energy crop production have shown promise. This research should continue to be an important part of the R&D plan going forward. Recommendation 5: Support Industry Cost-shared Plantation Projects BERA recommends that industry cost-shared, scale-up projects of at least 1,000 acres in size be installed and operated in different regions of the country as a forerunner to commercial energy plantations in which dedicated energy crops are grown and harvested for use as biomass resources. The results of this work will provide sufficient operating and capital cost data to afford second generation economic data for larger modular systems and to perfect the design of sustainable energy plantations. The scale-up projects should be strategically located and should utilize the advanced woody biomass production methods developed in the research programs. Successful completion of this work will help biomass energy attain its potential by providing the data and information needed to implement the design, construction, and operation of practical forest biomass production methods for sustainable energy plantations that can supply low-cost feedstock for conversion to heat, steam, electric power, liquid and gaseous fuels, and chemicals. During the first year of this program, FY07, site studies can be completed to facilitate the selection of specific areas that are deemed suitable for energy plantation construction, and that installation on at least one site can be started. DOE should be involved in this program where appropriate so that their work on biomass infrastructure can be applied, such as the design and operation of integrated biomass production and conversion systems. Conclusions Expansion of the USDAFS programs as recommended by BERA enables a considerably higher probability of significantly increasing the contribution of biomass to primary U.S. energy demand by displacing more fossil fuel usage and eliminating a national fire hazard. The key to this eventuality is the deployment of technologies for producing and recovering low-cost virgin and waste forest biomass for conversion to cost-competitive supplies of energy, fuels, and chemicals. Forest biomass is the Nation’s and the world’s largest reserve of renewable carbon resources. Without the availability of economically competitive forest biomass feedstocks, the probability of tripling biomass energy consumption in the United States is doubtful. Ultimately, this RD&D program is expected to lead to commercial, sustainable energy plantations that are integrated with biorefineries supplied with forest-based fuels and feedstocks.