Lucas Moves Cellulosic Ethanol Program Through AG Committee

Press Release

LUCAS MOVES CELLULOSIC ETHANOL PROGRAM THROUGH AG COMMITTEE

U.S. Congressman Frank Lucas today moved forward his plans to both encourage the building of cellulosic ethanol refineries and study a possible ethanol pipeline system. He included the provisions from his Rural America Energy Bill in the 2007 Farm Bill, which passed the House Agriculture Committee today.

Lucas' language to revamp the USDA Bioenergy Program to promote cellulosic refineries was accepted by the agriculture committee. The program will encourage the construction of cellulosic refineries by providing payments for cellulosic ethanol production.

"When people think of ethanol they usually think of corn, but the biggest growth industry in this area is in cellulosic ethanol, from plants such as switchgrass," Lucas said. "We know switchgrass could be produced here, because 150 years ago switchgrass was growing naturally from one end of the state to the other. The potential for this ethanol production in Oklahoma is tremendous."

Lucas' energy bill provisions were accepted as part of the full House Agriculture Committee's two-day meeting to consider the 2007 Farm Bill, the comprehensive multi-year agriculture policy legislation.

Lucas also supported the overall Farm Bill legislation, which extends the safety net programs from the 2002 Farm Bill. It increases counter-cyclical payments for wheat, barley, oats, oilseeds, and other crops. It will also continue direct payment support for farmers.

"In the committee we've built on the success of the existing Farm Bill to continue to provide both the security of fixed and counter-cyclical payments, as well as the flexibility to allow producers to make their own production decisions," Lucas said. "But I'm less certain of this legislation's fate when it moves to the full House. I hope we can convince those Members of Congress who aren't involved in the farm community of the importance of passing this Farm Bill."

But Lucas said he expects all three of his Rural America Energy provisions to be non-controversial and supported by the full House.

"I'm working to encourage new forms of energy we can produce in Oklahoma to supplement our traditional oil and gas production," Lucas said. "Taken together we can create more Oklahoma jobs, provide a new crop choice for our landowners, and increase our supply of American energy."

To continue to encourage greater traditional ethanol production, Lucas also secured funding for a federal feasibility study for the construction of an ethanol pipeline system, to move the product from the Midwest to the East and West Coasts. Ethanol cannot be transported in current pipelines because of pipeline corrosion.

"With continued increases in corn ethanol production, and as cellulosic ethanol plants come online, this growth in production will create demand for additional ways to get these products from the Midwest to the East and West Coasts," Lucas said.

A third section of Lucas' Rural Energy bill was also included in the committee language. Lucas ensured that a portion of the money for a renewable farm program is directed to smaller projects. Lucas' language ensured 15 percent of the funding for the Renewable Energy Program goes to projects less than $50,000.

The Renewable Energy Program funds grants and loans to farmers and rural businesspeople that make energy efficiency improvements or purchase renewable energy systems, such as wind, solar, or biomass.

Lucas expects the full House to take up the Farm Bill next week. The Senate has yet to take up Farm Bill legislation.

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