FINAL REPORT AND RECOMMENDATIONS

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FINAL REPORT AND
RECOMMENDATIONS



December 12
, 2006






A Call to Action Summit



November 28, 2006

2









November 28, 2006





TABLE OF CONTENTS




Executive Summary



3


Introduction





5


Goals and Expected Outcomes of t
he Summit






6


Recommendations

from the Summit:








7


1.

Research and Development







9

2.

Commercialization








10


3.

Balanc
ing

Food, Feed, and Fuel

Production




13

4.

In
frastructure Development






14

5.

Workforce Developme
nt


Education and Training



14

6.

Sustain
able

Development







15

7.

Consumer Accepta
nce o
f Biorenewable Products




16

8.

D
evelop Rural Communities






16


Next Steps










17

Additional Resources









18



A Call to Action Summit



November 28, 2006

3

A CALL TO ACTION SUMMIT: ENSURING IOWA’S LEADERSHIP IN THE
BIOECONOMY





EXECUTIVE SUMMARY


On November 28, 2006, Iowa State Un
iversity hosted a state
-
wide event, “
A Call to Action
Summit: Ensuring Iowa’s Leadership in the Bioeconomy
” in an effort to engage
Iowa’s elected
officials and legislative leaders, representatives of government agencies, business, industry,
agriculture, an
d academia
--

to find ways in which the state of Iowa can benefit to the
greatest extent possible from the emerging new technologies in biorenewables.
The goal of
the Summit was to generate policy and program recommendations that would help sustain
the vi
ability of

current bioindustries, assure Iowa's continued leadership in renewable fuels
and biobased products, and encourage future bioindustry investment and expansion

in Iowa.


Over four hundred and forty two people attended the Summit and helped generat
e an
extensive list of recommendations for consideration by the state legislature. These
recommendations were organized around eight themes: Research and development;
commercialization; balancing food, feed, and fuel production; infrastructure development
;
workforce development; sustainable development; consumer acceptance; and developing
rural communities. In no sense do these recommendations represent a consensus of the
participants. They should be viewed as ideas that policy makers

and other constitue
ncy and
interest groups

might consider in developing legislation that promote

the bioeconomy
during the 2007 session of the Iowa legislature.


Summit organizers have attempted to develop a few key ideas that summarize and build
upon these several recommend
ations:




Develop a comprehensive, statewide energy policy

to oversee the development of the
Iowa bioeconomy
. The opportunity is too great
and too immediate to risk an
uncoordinated approach
.



Invest
state funds
as leverage

to attract federal and industrial

research contracts to the
Regent Universities in biorenewable resources and technologies. Research is the key to
the emergence of advanced biofuels and biobased products but Iowa does not have the
financial resources to underwrite the costs on its own. H
owever, federal and industrial
research dollars tend to flow to institutions that are already organized to perform the
desired research. State investment in research infrastructure and new faculty who can
expand research capability in biofuels and biobase
d products will help assure Iowa’s
continued leadership in this field.



Institute policies that encourage greater consumer acceptance and use of biofuels. Most
important at this time would be policies that expand the number of flex fuel vehicles in
operati
on in the state and assure access to E
-
85 at fueling stations. If limited to E
-
10
blends, markets for ethanol will soon stop growing.



Incentives for renewable fuels should be based on the energy content or green
-
house gas
reduction potential of candidat
e fuels rather than on their chemical composition. This

A Call to Action Summit



November 28, 2006

4

recognizes that ethanol and biodiesel are not the only possible renewable fuels and will
encourage innovations in renewable fuel markets.



Institute policies that will attract private investment in b
iorefineries in Iowa. Although
this could include revisions in tax laws that are attractive to industry in general,
innovative policies aimed specifically at expanding the bioeconomy could distinguish
Iowa from other states. Among the most intriguing pos
sibilities would be a state policy
on greenhouse gas emissions, which would benefit producers and users of renewable
fuels.



Offer financing or incentives that de
-
risk early investment in biorefineries in Iowa. These
might include grants and low interest lo
ans or “production credits” for biomass
producers and biofuel manufacturers alike.



Develop a state plan for building and maintaining roads, rails, pipelines, and other
infrastructure required to support biorefineries in Iowa.



Develop an agricultural plan t
hat balances the interests of crop and biomass producers,
livestock producers, and biofuel manufacturers. The plan must recognize that new and
existing biofuel incentives, while important to encouraging the emergence of this
industry, in the long run can
distort other agricultural markets.



In cooperation with the K
-
12 education system, the Regent Universities, community
colleges, and private colleges, the state should develop a plan for preparing students to
work in the bioeconomy.



Make sure agricultural

policies are consistent with sustainable land use, which are
essential to the long
-
term viability of the bioeconomy.



Institute policies to

e
nsure state investments are widespread and reach rural and local
communities and strengthen social structures and l
ocal economies.



Upon its release, this report will be distributed to Summit participants, Iowa legislators, and
the general public through an Internet posting. Early in January, Iowa State University will

meet
with interested legislators to
discuss
the
report’s recommendations and specific

legislative actions that might be pursued during the 2007 Iowa Legislative session. Summit
participants and other interested Iowans are encouraged to follow the development of
relevant legislation and to discuss it wi
th their legislators.


A Call to Action Summit



November 28, 2006

5

A CALL TO ACTION SUMMIT: ENSURING IOWA’S LEADERSHIP IN THE
BIOECONOMY





I
NTRODUCTION


With the growing uncertainties in the world supply of crude oil, rising oil prices,
and
concerns over the environmental effects of fossil fuels,

there is considerable interest in
developing renewable and sustainable sources of energy. Biomass
1

is an attractive energy
source, being widely available, and capable of being exploited using moderately capital
-
intensive technologies. Its production an
d consumption are far more benign on the
environment than fossil fuels and provides opportunities for rural growth and development.

The last
twenty
-
five

years have witnessed remarkable
breakthroughs

in biology and medicine
that

have helped unravel the m
olecular mechanisms governing basic biological proc
esses.
It
is believed that technologies and capabilities in the post
-
genomic era hold equal potential to

revolutionize the energy sector. The development of a
sustainable
“bioeconomy”


a
n
economic

syste
m in which biological resources
provide not just food and
feed, but also
fuel,
has the potential, even in the short term, of reducing our dependence on foreign oil sources.
Furthermore, “biofuels” will have positive environmental implications and can help

combat
climate change
.

The U.S. Department of Energy
’s

(DOE) Biomass Program
, whose goal is
to help
develop technology for conversion of biomass (plant
-
deriv
ed material) to fuels,
chemicals and other products, states “…

Biomass is one of our most import
ant energy
resources. The largest U.S. renewable energy source every year since 2000, it also provides
the only renewable alternative for liquid transportation fuel. Biomass use strengthens rural
economies, decreases America's dependence on imported oil, a
voids use of MTBE or other
highly toxic fuel additives, reduces air and water pollution, and reduces greenhouse gas
emissions.”

(DOE
--

EERE;
http
://www1.eere.energy.gov/biomass)

However, the development of a bioeconomy will
pose several

challenges.
Far m
ore research
is required to increase our understanding of
the fundamentals of the
key
m
echanisms of
biomass conversion and address
the
critical

technical challenges that need to be overcome
for
biofuels and
biobased industrial products to be
come

economical
ly viable and
cost
-
effective
.
Significant i
nvestments will be required to foster the development of the next
generation of
advanced technologies, promote
innovation in the biomass processing area
,
and
enable

their commercialization

by mitigating the risk

that private investors would
encounter
. Questions regarding infrastructure, adequate workforce
,

and consumer
acceptance of these new products need to be addressed. Another matter of considerable



1

Biomass is any organic matter, particularly cellulosic or lingo
-
cellulosic ma
tter, which is available on a
renewable or recurring basis

such as
plant
and animal wastes,
fiber

and residue. Biomass can be easily grown,
collected, and can be replenished fairly quickly without permanently depleting the natural resources. In
compariso
n, fossil fuels require millions of years of natural process to be produced. Please refer to NREL’s
website (
http://www.nrel.gov/biomass/
)

for further details.



A Call to Action Summit



November 28, 2006

6

importance is
to make sure that

the development of a bioec
onomy is not done at the
expense of other food and non
-
food crops, feed for livestock, biodiversity,
balanced
ecosystems, and the quality of soil and water. Transitions to a bioeconomy will affect rural
communities
,

and the socio
-
economic
impacts of these

changes should be fully understood
and anticipated.

Although the market system will help provide the incentives needed to guide the transition
to a bioeconomy, there are very large externalities that the market will not be able to fully
capture. Hence
, state support will be necessary to augment private efforts and help manage
the changes to make certain that the transition is successful.


Specifically, w
e need to develop
comprehensive
policies that address
a broad range of

issues: efficiency in the p
roduction of
cellulosic
biofuels using s
ustainable agricultural
methods;

appropriate land management that would ensure conservation of f
arm land for
future generations;

strengthen existing and create new markets and job opp
ortunities in rural
communities;

support research that examine alternate renewable energy sources, increase the
magnitude of the bioenergy potential of various alternatives, and help address overall energy
conservation.




G
OALS AND
E
XPECTED
O
UTCOMES OF THE
S
UMMIT

On November 28, 2006,
Iowa State University hosted a state
-
wide event, “
A Call to Action
Summit: Ensuring Iowa’s Leadership in the Bioeconomy
” in an effort to
engage
Iowa’s elected
officials and legislative leaders, representatives of government agencies, business, industry,
ag
riculture, and academia
--

to find ways in which
the

state
of Iowa can
benefit to the
greatest extent possible from the
emerging
new technologies in biorenewables.

T
he goal of
the Summit was

to generate policy and program recommendations
that would help

s
ustain
the
viability of

current bioindustries, assure Iowa's continued leadership in renewable fuels
and biobased products, and encourage future bioindustry investment and expansion

in Iowa.


Four hundred and forty two people attended the Summit. The firs
t half of the day was
devoted to presentations by ISU’s President Gregory Geoffroy; Ted Crosbie,
Vice President,
Global Plant Breeding, Monsanto Company
and

State of
Iowa’s Chief Technology Officer;

Craig Lang, Presiden
t of the Farm Bureau Federation;

and
ISU’s faculty members, Robert C.
Brown, Director of the Office of Biorenewables Program and Bruce Babcock, Director of
the Center for Agricultural and Rural Development.

These presentations provided an
overview on the
prospects for developing the bioecon
omy,

a description of the technology
underlying the conversion of cellulosic biomass into biofuels and biobased products
2
,
the



2

Plants
convert

solar energy through photosythesis
into storage and structural carbohydrate
s
.
The most
common plant carbohydrate is cellulose
a polymer

of
the
6
-
carbon sugar

glucose.

Like

starch, cellulose can be
broken down into simple sugar by the action of enzymes which in turn can be fermented to ethanol or
biobased pro
ducts. Alternatively, cellulose can be heated in the absence of oxygen to produce a gas mixture
that can be catalyticall y or biocatalytically converted into biofuels or other useful chemicals compounds
(Brown, R.C., Biorenewable Resources: Engineering New

Products from Agriculture, Blackwell Press, 2003).


A Call to Action Summit



November 28, 2006

7

opportunities and challenges
in developing biorefineries, and the kind of investments that

will be required to
make a successful
transition to a sustainable bioeconomy that nurtures
and promotes rural development. President Geoffroy’s key
-
note address conveyed a sense
of urgency in making those investments now so that the advantages that Iowa currently
enjoys can be leveraged to ma
ke it the world’s leader in biorenewables. (The presentations
can be found on ISU’s webpage,
http://www.iastate.edu/~nscentral/news/06/nov/

summitNov28.shtml
)


During the afternoon the
attend
ees participated in

“working sessions”
,

the purpose of
which
wa
s to engage small groups in discussions on a specific topic
3

relating to Iowa’s leadership in
the area of bio
-
fuels and bio
-
based products. Each session
was asked to

identify possible
challeng
es and ways to address them.
Specifically, working sessions were asked to
develop
(1) p
olicy ideas that will sustain the current viability of the grain ethanol and biodiesel
industries while encouraging future investment and expansion of biorefineries b
ased on
cellulosic renewable fuels

and (2) r
esearch and commercialization investment
recommendations that will help ensure Iowa’s continued leadership in renewable fuels and
biobased products.



The re
commendations that emerged from the November 28
th

Summ
it are summarized in
this report.


RECOMMENDATIONS FROM

THE SUMMIT

The afternoon working sessions of the Bioeconomy Summit were organized around eight
themes: Research and development; commercialization; balancing food, feed, and fuel
production; infrastr
ucture development; workforce development; sustainable development;
consumer acceptance; and developing rural communities. The results from these
deliberations are compiled in this section. In no sense do these recommendations represent
a consensus of t
he over 400 participants. They should be viewed as ideas that policy makers
might consider in developing legislation that promote the bioeconomy during the 2007
session of the Iowa legislature.


Summit organizers have attempted to develop a few key ideas
that summarize and build
upon these several recommendations
.


An overarching recommendation from the Summit is that the State of Iowa will develop a
broad and comprehensive bioenergy policy that will demonstrate its commitment and
support for the bioeconom
y and help us make the most of the emerging new technologies to
ensure Iowa’s continued leadership in the area of bioenergy. Such a policy can help Iowa



3

The
working session topics were: (1) Developing a reliable supply of biomass, (2) Growing Iowa’s
biorefineries, (3) Infrastructure and transportation logistics, (4) Assuring environmental sustainability
, (5) Socio
-
economic impact development on rural communities, (6) Ensuring consumer acceptance of biorenewables
products, (7) Balancing food, fuel and feed for optimal growth, and (8) Developing a trained workforce of the
bioeconomy.


A Call to Action Summit



November 28, 2006

8

diversify its energy resource options
; ensure that

biomass, biofuels and bioproducts are
produced in a

sustainable way; promote biofuels and other bio
-
based products that truly
reduce greenhouse gas emissions; encourage consumer acceptance of these products through
education and advocacy; and mitigate any potential negative impacts that such a transition
m
ay entail.


Specifically,



Develop a comprehensive, statewide energy policy
to oversee the development of the
Iowa bioeconomy. The opportunity is too great
and too immediate to risk an
uncoordinated approach



Invest state funds as l
everage

to attract fed
eral and industrial research contracts to the
Regent Universities in biorenewable resources and technologies. Research is the key to
the emergence of advanced biofuels and biobased products but Iowa does not have the
financial resources to underwrite the
costs on its own. However, federal and industrial
research dollars tend to flow to institutions that are already organized to perform the
desired research. State investment in research infrastructure and new faculty who can
expand research capability in b
iofuels and biobased products will help assure Iowa’s
continued leadership in this field.



Incentives for renewable fuels should be based on the energy content or green
-
house gas
reduction potential of candidate fuels rather than on their chemical compositi
on. This
recognizes that ethanol and biodiesel are not the only possible renewable fuels and will
encourage innovations in renewable fuel markets.



Institute policies that encourage greater consumer acceptance and use of biofuels. Most
important at this
time would be policies that expand the number of flex fuel vehicles in
operation in the state and assure access to E
-
85 at fueling stations. If limited to E
-
10
blends, markets for ethanol will soon stop growing.



Institute policies that will attract priv
ate investment in biorefineries in Iowa. Although
this could include revisions in tax laws that are attractive to industry in general,
innovative policies aimed specifically at expanding the bioeconomy could distinguish
Iowa from other states. Among the
most intriguing possibilities would be a state policy
on greenhouse gas emissions, which would benefit producers and users of renewable
fuels.



Offer financing or incentives that de
-
risk early investment in biorefineries in Iowa. These
might include grants
and low interest loans or “production credits” for biomass
producers and biofuel manufacturers alike.



Develop a state plan for building and maintaining roads, rails, pipelines, and other
infrastructure required to support biorefineries in Iowa.



Develop an
agricultural plan that balances the interests of crop and biomass producers,
livestock producers, and biofuel manufacturers. The plan must recognize that new and
existing biofuel incentives, while important to encouraging the emergence of this
industry, i
n the long run can distort other agricultural markets.



In cooperation with the K
-
12 education system, the Regent Universities, community
colleges, and private colleges, the state should develop a plan for preparing students to
work in the bioeconomy.



Mak
e sure agricultural policies are consistent with sustainable land use, which are
essential to the long
-
term viability of the bioeconomy.


A Call to Action Summit



November 28, 2006

9



Ensure state investments are widespread and reach rural and local communities and
strengthen social structures and loca
l economies.




1.

R
ESEARCH AND
D
EVELOPMENT


State support
is required
for basic science and applied research that improve our
understanding of key biological processes
,

promote processing innovations

(including
feedstock logistics from field to plant)
an
d their commercialization
,

promote product
development
that

help
create value
-
added biobased products
,

and evaluate the impact of
such processes and products on the environment.



a)
The State

should

p
rovide support for strategic
research and development o
f advanced
technologies

that will address current
technical
limitations

and
accelerate the
generat
ion of

new
technologies that will help improve
efficiency in the
conversion of cellulosic biomass
into biofuels.

Specifically,
the state should support
resea
rch that addresses

the following:




Improved technologies that will
overcom
e

recalcitrance of cellulosic biomass
by

developing
processes

for converting cellulosic biomass into intermediates that can
subsequently be converted into biobased fuels and biobased

products



Encourage new product development (“beyond ethanol”) that i
mprove the efficiency
and performance of biofuels



high performance and low cost



Product diversification
--

the

production of
other

biobased products that eventually can
increase the
eco
nomic viability

of fuel production in a biorefinery
;



D
evelop value
-
added bio
-
based products that can replace those which are currently
produced from petrochemicals



Improve
production techniques that
particularly

address
water usage for biofuel
production

plants



Technologies that
make

large scale production
of biofuels and biobased products viable


and thereby

help reduce costs



Technologies that can help
integrat
e cellulosic biofuel production

into existing biomass
processing facilities, including starch
ethanol plants, paper mills,
etc.


b) Research that will help increase our understanding of
biomass and
feedstock
logistics

in
order to develop more efficient
and sustainable methods
in the cropping, production,
storage, and transport of feedstock
. Suppor
t research that would:



Improve our u
nderstanding of advanced cropping systems


including
those involving
native grass mixtures



Help identify feedstock (grain and biomass) that is best suited for the production of
biofuels



Use biotechnology to design
adva
nced and dedicated crops

that
are

most efficient in
creating biofuels: feedstock that are suitable for industrial processing, have the potential
for sustainable production,
have low requirements for chemical inputs and enhanced

A Call to Action Summit



November 28, 2006

10

processing,
help maintain la
nd quality, improve carbon sequestration, and are easy and
cost
-
effective to grow in the Midwest




Evaluate the environmental impact of crop residue removal and develop a better
understanding of sustainable residue removal.



E
valuate t
he appropriateness of
feedstock

for various climates, soil types, and inputs



Improve
efficiencies in the pre
-
processing, storage and transport of biomass and
feedstock



S
trategies for integrating feedstock production into existing managed land


c)

Support for research that will

help
increase our understanding of

the
sustainability

and
viability of cellulosic
(and other)
bioenergy and biobased products
:




Evaluate the short
-

and long
-
term i
mpact of biomass crops

and residue
on so
il, water
quality
,

and wildlife



L
ifecycle assessment
s of various

technology and product options



Assess the potential for greenhouse gas mitigation of using biorenewable resources for
fuels and commodity chemicals



Gain

better understand
ing of

the
energy and water

impact
s

of various biofu
el

technologies and
biomass crop production systems

over the entire production cycle



d)
Support for r
esearch that will improve our understanding of the
socio
-
economic impact

of the
b
ioeconomy on the state
of Iowa
,

and rural communities in particular:





Cost
-
benef
it analy
sis

of alternate bioenergy fuels; cost effectiveness of alternate
production processes; implications for scale and scope of production units



Research that will help us assess the “multiplier” effects of the investments in the
bioeconomy
--

e.g.,
how would
the

development

of biobased products
impact new job

creation
,
encourage

exports of
high
-
valued
products and technology
, etc.



Impact of the
b
ioeconomy
on other crops and livestock
,

and consequently their prices



Impact of various state fiscal and monetary p
olicies





2.

C
OMMERCIALIZATION


The State can play a critical role in promoting the production of bioenergy and biobased
products by increasing confidence in these technologies and products through pilot and
demonstration projects; by providing technic
al assistance and financial incentives that
accelerate the adoption of new technologies, support and promote local and small investor
participation; and increase public and encourage private investments in the bioenergy sector.



a)
Support pilot and
demon
stration projects

to promote
the
understanding and adoption
of new

technologies. Priority should be given to projects that can demonstrate:


A Call to Action Summit



November 28, 2006

11






Scale
-
up”
capabilities
of qualifying technologies



Integration into existing

biofuels and biobased products man
ufacturing facilities



The u
se
of
cellulose in novel ways to produce bio
-
based products



The ability to e
xpand the range of value added products from conventional biofuel
facilities



The feasibility and

sustainabil
ity of biomass feedstock supply (this point
is further
developed below)




b)
Support
commercialization

of emerging new bioenergy technologies
; in particular,
provide state support for:



P
rojects
that can demonstrate commercial readiness of new technologies



C
ollaborative efforts
with state agencies
t
o develop and implement ene
rgy crop
demonstration programs



L
ocal governments and communities that
wish
to do

a biomass resource assessment



Encouraging the adoption of bioenergy to replace natural gas and coal in power
production and process heat applicatio
ns (especially at ethanol production facilities)
.


c) Provide
technical assistance

to nascent and emerging bioenergy and biofuels projects:



Develop a database

that
catalog
s

all the

resources
that
are available for those interested
in beginning
biorenewable
s related
projects



Provide funding for feasibility studies



Support collaborative projects where
public agencies and academic institutions work
with businesses and industries to help and mentor

new and emerging firms



Expand

technical assistance capabilitie
s at the state and regional level

through the
State
Department of Agriculture,
University Extension Community Colleges, and
State Energy
Offices.


d) Support biorefineries by making the State “
feedstock ready
.” This will require a
combination of new polic
ies, investments and research programs that will assure a reliable,
year
-
round supply of feedstock for processing facilities. Although corn stover is likely to be
an early source of cellulosic biomass, in the long term multiple plant species should be
dev
eloped for the supply, which will help (a) extend the season beyond the narrow season
provided by the corn crop; (b) diversify the risk of relying on just one crop and increases
resiliency in the face of market and climate changes; and (c) enhance sustaina
bility
--

greater
carbon sequestration, nutrient retention, and water quality from rotating mixed crops in the
system.


To enable this diversity of feedstock species, Iowa can do the following:



A Call to Action Summit



November 28, 2006

12



Farm policies should include incentives for producers for t
heir initial efforts to employ
crop rotations that include cover crops and perennial crops (similar to the current CRP
and CSP programs) until the producer is able to receive a fair rate of return in the market



Greater dissemination of information on best
-
practices that ensure high biomass
production while safeguarding environmental standards



Educational programs to educate producers on alternate crops and cropping systems




e)
State
investments and
financial incentives

will be needed to reduce

the
risk

i
nvolved in
adapting existing and commercializing new technologies,
and
in bringing

new products
to
the
market
.




A comprehensive study that i
nvestigate
s

c
ommodity risk manageme
nt (risk
hedging)
and
can propose

a risk management and mitigation strategy



A
ss
istance in the form of capital cost share, loan guarantees,
low interest loans,
revolving
loan funds,
and Industrial Development Bonds to promote the growth and development
of the entire chain of production (from feedstock to biorefinery production), for
f
easibility studies, and for

projects qualifying as advanced biomass technologies



Producer incentives
(grants,
income tax credits and other
tax exemptions, low interest
loans
, subordinated debt)
for advanced biomass projects in order to encourage
inv
estment

in higher risk projects
.



Tax credits or subsidies directly to biofuel producers (currently, tax credits go to ethanol
blenders and hence producers receive only a fraction of this credit) to buffer them
against foreign oil price fluctuations and to encou
rage investments in the local economy.
Consider linking the value of the tax credit to external oil prices as well as performance
of the unit.



Develop contingency plans for poor production years



Re
-
examine current farm and energy policies to determine whe
ther they support or
hinder the development of a bioeconomy: r
eview e
xisting tax exemptions
and other
incentives
for manufacturers' energy bills
to ensure that it promotes the
use of biomass

and bioenergy; ensure that i
ncentives
support processes and techn
ologies that

promote
the use of cellulosic biomass to replace
traditional
liquid fuels, nat
ural gas, heat, and
electricity; policies encourage overall energy conservation, etc.





f)
Reduce bureaucracy

with respect to regulatory overview:




Create an exped
ited and a more streamlined processes for granting permits



Reduce regulatory barriers for bioenergy
-
related projects to help them get started:
exempt

(or even simplify)

certain

projects
that meet specific criteria
from the
conventional regulatory process,
or provide
regulatory exemptions
for limited
-
time grace
period
.





A Call to Action Summit



November 28, 2006

13

3.

B
ALANCING

F
OOD
,

F
EED AND
F
UEL

P
RODUCTION


Will a large
-
scale production of bioenergy
compete

with land requirements for other
purposes such as food and f
odder
?
Will “fuel crops” reduc
e food production and thereby
drive up food and feed prices? This is a legitimate concern that needs to be carefully
studied. We
do
know enough at this point that
land used to produce feedstock for fuel
need not compete with other uses for the following

reasons:
a
lthough biofuel production is
both land and labor intensive, modern technologies
that use

lignocellulosic biomass

does not
require food
-
based feedstock

but the by
-
products of food and feed
4
.
Improvements in the
design of crops, in farming pra
ctices, and in the technology that separates food, fiber and
residue from crops can expand the capacity for biofuel production.
Production of

“energy
crops’
c
ould
be assigned to lower quality and marginal lands

without affecting the use of
more favorable
land for food crops
.

Hence, it is quite conceivable that we can produce
energy from land without creating serious distortions on its use for other products.
However, this will require
careful management and planning;

it will require

more research
into t
he use of degraded land, better processing methods, greater knowledge on

permaculture
” or sustainable systems that

that allows us to cultivate
multi
-
purpose crops,
so that we can successfully integrate energy crops into agricultural systems to produce foo
d,
energy, feed and fiber.




More r
esearch
is needed
to

help
us
better understand

how to

balance the use
our
resources

for all three purposes
: food, feed, and fuel
. More research is also required on
the following topics:
efficiency
of various

energy crops
;

feed, food safety and utilization;
efficiency, waste, by
-
products

and safety/quality





We need a better assessment of human food needs; more research to increase
understanding of nutrition and diets;
res
earch on DDG products for animal and human
uses



Cre
ate an economic and environme
ntally sound sustainable policy:
reduce or eliminate
inconsistencies between various regulatory requirements
, e
stablish norms and standards
for sustainability, eg.
s
oil fertility




State policies should help view the bioeconomy
industry as a whole and avoid competing
interests
; a
lign tax and subsidy policies with
these
goals



Research and development that will
help
increase crop yields (food crops, grain,
feedstock, and other commercial crops) and
help us understand how different
crops can
be

balanc
ed

to meet all three objectives



State support to help grow an e
nvironmentally acceptable and globally competitive
livestock industry
;



State should
provide appropriate incentives for investments in the livestock industry so
that it is ju
st as competitive as feedstock



Establish
a
livestock consortium for efficient co
-
product use



Research and development that will enable the use of manure as biomass




4

Crops used in the pr
oduction of biofuels
are

dual or multi
-
purpose.

For e.g., e
thanol

production
from corn
grain does not eliminate that grain from the food s
upply; it uses only the starch in the
grain

and t
he rest of the
corn kernel is processed into animal feed and other f
ood products.

In wheat bioethanol production, about a
third of the crop is retained as distillers grain, which is a high quality feed. In oilseed rape biodiesel production,
half the crop is used to produce animal feed. Ref: U.S. Department of Energy Bio
mass Program and National
Farmers Union Online
http://www.nfuonline.com/x9763.xml


A Call to Action Summit



November 28, 2006

14



Address land ownership

issues




The State should review and revise w
ater use policies
so as t
o

help balance feed, food
,

and fuel needs



Provide t
echnical assistance

and training to promote
conservation planning

that will
promote

sustainable development for all three objectives





4.

I
NFRASTRUCTURE
D
EVELOPMENT


Although there is an enormous potent
ial
to develop the bioeconomy in the State of Iowa
,
there

will be tremendous challenges in growing, harvesting, collecting, transporting, storing,
and processing the feedstock supply
.

Overcoming

these

logistical challenges will be a
precursor to the devel
opment of a prosperous bioeconomy. As we move forward,
the State
will need
to develop
the expertise and capabilities
in developing
and managing the
feedstock
supply.




Develop greater understanding of optimal
transportation

and fuels distribution systems:
t
he S
tate needs
to develop a

comprehensive infrastructure plan on
the
logistics of
pipeline transportation.



A better understanding on the optimal
co
-
location of biorefineries
, power plants,
energy
-
crops farmland
, etc.

with respect to

transportati
on, storage

and quality control. For e.g.,
should
e
nergy
c
rops acreage be recruited based on proximity to a proposed or existing
plant designed to use cellulosic biomass
; should we create a
fuels distribution hub in
Iowa
?




State investments to improve infrastructure
: pipelines, railroads, trucks, roads and
bridges



Develop best
-
practices for storage, transportation, and minimizing feedstock
contamination





5.

W
ORKFORCE
D
EVELOPMENT


E
DUCATION AND
T
RAINING


A new generation of workers
will have to

be trained
who w
ill help
build
, manage and
operate
the new bioeconomy. This will require
a
work
force that has an appropriate range of skills in
a broad range of disciplines and in various fields. The
S
tate can foster the development of
the workforce by providing support
at various levels
:





Conduct a workforce needs assessment; use that to estimate the training and education
that would be required at all levels; provide state
-
level coordination to avoid duplication.



W
orkforce development programs that
help develop appropr
iate skills



Programs that
re
-
train and re
-
tool displaced workers
; financial support during the
training process


A Call to Action Summit



November 28, 2006

15



Collaborative training programs

between industry, state government, and educational
institutions.

Provide incentives
to companies
who are will
ing to participate in such
collaborative partnerships.



Curricular development by s
tate
u
niversities,
t
echnical and
c
ommunity
c
olleges,
h
igh
s
chools, and other
s
econdary and
p
ost
-
s
econdary institutions. Emphasize Science,
Technology, Engineering and Math (
STEM) programs at all levels.



Ensure that the curriculum addresses the needs of a diverse population and workforce



Promote stricter educational requirements: articulation across all levels that emphasize
rigor and relevance especially as it relates to the
bioeconomy



Education and training programs offered by University e
xtension

and outreach divisions
,
Resource Conservation and Development Districts, agronomic co
-
ops, soil and water
conservation districts, agribusiness providers and other institutions



Supp
ort for
“L
earning
F
arms


and other practical hands
-
on
program
s



Develop i
n
-
state career marketing campaign

to help graduate retention



Provide support for displaced workers by providing some “a
dult retraining dollars







6.

S
USTAIN
ABLE

D
EVELOPMENT


Bioen
ergy has the potential to mitigate greenhouse gas effects: by replacing fossil fuels it
reduces carbon dioxide emissions, and by providing energy from a carbon
-
dioxide neutral
feedstock
5
. At the same time, an uncontrolled and unmanaged development of biom
ass
energy production has the potential to harm the environment in terms of the impact on soil
and water quality. The
State should promote innovative environmental control strategies
that improve the overall environmental characteristics of the plant
-

in
cluding energy, fossil,
and materials balance.

There should be a
well defined state policy on environmental
sustainability and one that provides appropriate incentives that will s
upport and encourage
programs that:




Provide better understanding of the env
ironmental impacts of a transition to a
bioeconomy



Encourage research that helps develop ways to r
educe the
energy,
carbon
,

and water
-
use
intensity of bi
omass production and conversion



P
romote biomass crops that improve soil
and

water quality



Promote and r
eward environment
-
friendly practices such as carbon sequestration,
landscape diversity, and wildlife preservation so that such practices are profitable



Encourage crop and habitat diversity and alternate systems that minimize nutrient loss



Provide technica
l assistance and public education on soil and water conservation



Practices that link food, fuel and feed production



Encourage alternative ag
ricultural and farming

systems



Adopt c
losed loop
refinery
facilities

for increased effectiveness




5

Bioenergy acts as a
carbon offset by substituting fossil fuels and acts as a carbon sink by sequestering carbon
dioxide through the planting and harvesting of energy crops.

Ref: K. McCormick:
Bioenergy Potentials and
Dynamic Factors
, Proceedings of the Beijing International Renewable Energy Conference, November 8, 2005.


A Call to Action Summit



November 28, 2006

16

7.

C
ONSUMER ACCEPT
ANCE OF BIORENEWABLE
S PRODUCTS


The State
can play a crucial role in raising awareness about, and developing markets for new
bio
-
based products.

High value non
-
energy products can play a key role in improving the
profitability of plants produ
cing biofuel
(similar to the role of
bulk chemicals
that helped
improve the profitability of oil refineries
); hence it is important that bio
-
based products gain
acceptance and use.




Educate the public


consumers
, workers,

small businesses, retailers,
and industry
st
akeholders and help b
uild acceptance for biorenewables product
s
as well as more
broadly
about
the overall
benefits
of

the bioeconomy.



Promote product credibility: e.g., s
tandard testing
and certification
of the product



Develop a m
arket research consortium

for biofuels and biobased products to obtain
information about consumer preference as well as
identify and dispel
misinformation




C
reate

market pul
l”

by expanding state government

and state agencies’

use of biofuels
and
high blend biofuels, such as E
-
85
and B
-
20 where avail
able and appropriate



As part of the 2002 Farm Security and Rural Investment Act, federal agencies are
required to purchase bio
-
based product provided that they are available and near cost
-
competitive with their fossil
-
based equivalent.

States should adopt
similar
bio
-
based
product procurement rules.



Increase
the
availability of biobased products

by ensuring
adequate returns to retailers
and distributors
; create adequate biofuels distribution infrastructure



I
ncentives for the purchase
of energy

from biomass by all consumers and
energy users.



State support to help price biofuels and biobased products competitively until they gain
consumer acceptance



Promote renewable fuels standards
.
Consider
mandating a minimum percentage of
biofuel in

gasoline


it will help
guarantee

price stabilization within the market



Support the

development and production of
high
-
efficiency,
bio
-
fuel
-
powered vehicles.



States should consider joint procurement of high
-
efficiency flex
-
fuel vehicles



R
etail tax ince
ntives that encourage retailers to sell b
iofuels and bio
-
based products. For
e.g., s
tates should provide incentives or standards that increase the number of gas
stations selling biofuels, particularly high blends such as E85 and B20.





8.

D
EVELOP
ING

R
URAL COMMUNITIES


The production of biofuels and biobased products relies on agricultural resources that are
typically located close to the biomass resource. Hence, if managed well, advancements in
the bioeconomy can offer tremendous opportunities for ru
ral regeneration
by creating jobs,
diversifying markets for agricultural products
,

and
improving

the environment and public
health
.
Careful planning will be required to ensure that we
use
the human capital and
resources
that
we have
in our state to maximi
ze

the development of the rural economy
.



a)

Deploy regional community resources
to its maximum potential



A Call to Action Summit



November 28, 2006

17



Encourage community leadership and local decision
-
making regarding local investments
in bioenergy



Help create wealth within communities by encouraging
local investments.
Allow co
-
ops,
municipal utilities, and other local and community
-
owned entities to have bonding
authority to fund biomass projects.



Promote local entrepreneurship
; develop

community
venture capital

fund to finance
entrepreneurial devel
opment



Provide support to help b
uild basic business acumen (apart from technical expertise):

need to develop educational processes/resources to
guide new businesses, help them
understand market
research, consumer
acceptance, distribution methods, etc.




b)

Ensure state investments are widespread and reach rural and local communities

and
strengthen social structures and local economies




Develop policies to e
nsure
that a certain

percentage of
state funds

are

invested
local
ly
.
Public investments should includ
e a preference for the highest level
of local ownership
possible
.




State support

for the Bioeconomy
should
give preference to

projects that have local
ownership,
that

include some promise of local hire, and a commitment to worker
training.



State investme
nts that

extend

infrastructure
development
to rural communities



Promote private and local investments in the rural bioeconomy: educate local financial
institutions about biotechnologies, encourage community venture capital funds



Encourage decentralized d
ecision
-
making process regarding investments in local
communities; i
nvestment
decisions
should
include local community leaders



Provide
crop insurance to producers
who
are not covered by current crop insurance
programs

and
wish
to grow perennial energy crop
s
and
non
-
traditional feedstock



E
ducational and training programs are accessible to rural communities



Clear policies that would protect the environment that protect land, water,

soil, air in
local communities



Develop “bio
-
regionalism”

or multi
-
county leade
rship and enterprise zones
in those
areas that are
economically depressed






NEXT STEPS


Upon its release, this report will be distributed to Summit participants, Iowa legislators, and
the general public through an Internet posting. Early in January, I
owa State University will
organize meetings with interested legislators to get their impressions of the report’s
recommendations and initiate discussions on specific legislative actions that might be
pursued during the 2007 Iowa Legislative session. Summi
t participants and other interested
Iowans are encouraged to follow the development of relevant legislation and to discuss it
with their legislators.



A Call to Action Summit



November 28, 2006

18

ADDITIONAL RESOURCES


1.
Biobased Products and Bioenergy Vision and Roadmap for Iowa
, Iowa State Univers
ity
Extension/Center for Industrial Research and Service

http://www.ciras.iastate.edu/publications/IABioVisionRoadmap.pdf
, 2002.



2.
Biofuels For Transportatio
n: Global Potential and Implications for Sustainable Agriculture and Energy
in the 21st Century
, Worldwatch International

http://www.worldwatch.org/taxonomy/term/445
, June, 2006.



3
.
B
iomass as Feedstock for Bioenergy and Bioproducts Industry: The Technical Feasibility of a Billion
-
Ton
Annual Supply
, U.S. Department of Energy

http://www.biomass.go
vtools.us/pdfs/billion_ton_vision.pdf
, 2005.



4.
Biomass Initiative Newsletter
, U.S. Department of Energy

http://www.biomass.govtools.us/news/Archive.asp
, 2002
-
2006.



5
.
Biosc
iences Path for Development: Economic and Core Competency Analysis
, Battelle Memorial
Institute
http://www.iowalifechanging.com/downloads/iowareport.pdf
, 2004.



6.
Break
ing the Biological Barriers to Cellulosic Ethanol: A Joint Research Agenda
, U.S. DOE
(EERE).
http://genomicsgtl.energy.gov/biofuels/2005workshop/2005low
-
exe
csumm.pdf
,
2005.



7.
Ethanol: the complete energy lifecycle picture
, U.S. Department of Energy,
http://www.biomass.govtools.us/pdfs/2005_ethanol_brochure.pdf
, 2006
.



8.
Growing Energy: How Biofuels Can Help End America's Oil Dependence
, Natural Resources
Defense Council,
http://www.nrdc.org/air/energy/biofuels/contents.asp
, 2005.



9
.
Information on the U.S. DOE
Biomass

Roadmap Update


http://www.biomass.govtools.us/about/roadmap.asp
, 2006.



10.
Vision for Bioenergy and Biobased Products in U.S.

U.S. Depa
rtment of Energy
http://www.biomass.govtools.us/pdfs/BioVision_03_Web.pdf
, 2003.



A Call to Action Summit



November 28, 2006

19

11.
Roadmap for Biomass Technologies in the United States

(December 2002)
--

http://www.biomass.govtools.us/pdfs/FinalBiomassRoadmap.pdf



12.
CARD
-
An Analysis of the Link between Ethanol, Energy and Cr
op Markets

http://www.card.iastate.edu/publications/DBS/PDFFiles/06wp435
.

CARD Biorenewables Policy Division page: http://www.card.iastate.edu/research/bio/



13.
Alternative Transportation Fuels
-

Center for Strategic and International Studies

http://www.csis.org/component/option,com_csis_events/task,view/id,1126/



14.
Database of State Incentives for Renewables and Efficiency

http://www.dsireusa.org/

The Bioeconomy is Bigger than Biofuels


Robert C. Brown’s Testimony to the Senate Comm
ittee

http://www.biorenew.iastate.edu/aboutus/highlight.php?id=17



15.
ISU faculty members and research scientists with interests/expertise in
biorenewables/bioeconomy/biofuels:

http://www.vpresearch.iastate.edu/contact/faculty_scientist_affiliates.html