NCGA Asks Congress to Approve Cellulosic Ethanol Funding (1-29-07)

While President George Bush prepares his long-term budget proposals, the National Corn Growers Association (NCGA) is working to ensure important research and development work continues for cellulosic ethanol.

NCGA has written key members of Congress asking for continuing funding on two important cellulosic ethanol programs: the “biorefinery grant” and the “cellulosic ethanol loan guarantee.” Both programs were created by the Energy Policy Act of 2005.

“The biorefinery grant program has been announced at $150 million, and applications for new cellulosic facilities have already been received by (the Department of Energy - DOE),” NCGA said in written comments. “In order to bring cellulosic ethanol production from public and private laboratories into the commercial market, the program needs funding…”

NCGA is also asking Congress to take steps to fund the Title XV and XVII Loan Guarantee Programs. These programs, wrote NCGA, “would provide potential cellulosic ethanol biorefineries with the kind of security private investors need to confidently make cellulosic ethanol production a reality.” The program requires only $7 million at this time, but, according to DOE, Congress must authorize the guarantees in an appropriations act.

“There will be many new ideas developed in this Congress on cellulosic ethanol; however, none will do more to advance commercialization of cellulosic ethanol production than fully funding the biorefinery grant program and the cellulosic ethanol loan guarantee program,” NCGA said.

House and Senate Appropriations Committees are working on extending continuing resolutions for funding before they expire on Feb. 15.

Joining NCGA in signing the letter were the American Coalition for Ethanol, American Farm Bureau Federation, the Environmental and Energy Study Institute, the National Association of Wheat Growers, National Farmers Union and the Renewable Fuels Association. For the complete text of the letter, click here.