Promoting Bioenergy and Biobased Products


THE WHITE HOUSE
Office of the Press Secretary


For Immediate Release January 21, 2000



PROMOTING BIOENERGY AND BIOBASED PRODUCTS

The Presidentís FY2001 budget proposal includes a new initiative in research and development in bio-based technologies, which convert crops, trees, and other "biomass" into a vast array of fuels and products. Biobased industries use agricultural, forest, and aquatic resources to make an array of commercial products including fuels, electricity, chemicals, adhesives, lubricants, and building materials.

The initiative provides an increase of more than $93 million over the amounts available for FY 2000, with $49 million directed towards the Department of Energy (DOE) and $44 million for increased R&D efforts at the Department of Agriculture (USDA). In addition to this increase in R&D, the Commodity Credit Corporation will provide $100 million in FY 2000 and up to $150 million in FY 2001 and 2002 in incentive payments to encourage production of biobased fuels.

  FY 2000 ($M) FY 2001 ($M) Percent Increase
U.S. Department of Agriculture 71 115 62%
U.S. Department of Energy 125 174 39%
Total 196 289 47%

Reaching the Presidentís goal would generate billions of dollars of new income for farmers and diversify and strengthen the rural economy,producing 50,000 new, high-technology jobs in small processing plants in rural America and up to 130,000 such jobs in biopower, bioproducts, and biofuels industries. It would also generate 348 million barrels of oil a year, equal to 158 super tankers and would lower the emissions of greenhouse gases by 100 million tons, equal to the amount emitted by 70 million cars.

A major goal of this initiative is making biomass a viable competitor to fossil fuels as an energy source and chemical feedstock while protecting the environment. Continuing advances in forest and farm technology, molecular biology, and other areas make this goal achievable, but capturing the goal will require an unprecedented effort to support research in universities, companies, and our national laboratories. In the past few years, for example, federal research has developed techniques that greatly accelerates the production of sugars and other useful chemicals from materials like corn stover and wood. Creative companies have taken research results from such investments and are making major investments. In the near future we can expect production of loose-fill packaging materials from a combination of plastic resins and natural polymers made from biomass. The research funded under this initiative will ensure a continuing flow of the basic innovations on which such investments can be made.

Many uses for biomass materials are possible in the near future and this initiative will support research concepts on a competitive basis. This will include support for integrated systems capable of processing feedstocks simultaneously into a variety of products such as fuels, chemicals, and electricity. Much like todayís petroleum-based refineries, the mix of products from these facilities will depend on market conditions. The research aims to understand the basic chemistry of cellulose and other materials in biomass, and develop new thermal, chemical, and bio-chemical techniques for converting these materials into useful forms.

The Presidentís August 1999 Executive Order instructs DOE, USDA, NSF, EPA and other agencies, to work closely together in supporting the broad range of needed research and development efforts. The research will support research partnerships linking industry, university, and government research facilities selected on a competitive basis. Key areas of new research activity will include:



What's New - January 2000

African American History Month

Protecting America’s Natural and Historic Treasures

Remarks by Samuel Berger to the National Press Club

The Lowest Unemployment Rate in 30 Years

President Clinton Announces Bioenergy & Bioproducts Tax Incentives January 27, 2000

President Clinton Proposes to Expand the Earned Income Tax Credit

Unprecedented National Effort to Improve Our Nation’s Schools by Dramatically Increasing Accountability and Investment

FY2001 New Opportunity Agenda

FY2001 Budget & New Opportunity Agenda

President Clinton Unveils First Accounts

Major New Increase in Funding to Determine Environmental Causes of Disease

New Public-Private Partnerships to Increase Aviation Safety

President Clinton Unveils Largest Ever National Gun Enforcement Initiative

New Multimillion Dollar Increase to Combat HIV and AIDS

The President Triples His Long-Term Care Tax Credit

Major New Health Insurance Initiative

A New Opportunity Agenda for Higher Education: Making Critical Investments in Education and Training

College Opportunity Tax Cut: Providing Tax Incentives to Make Higher Education More Affordable

Nearly a $3 Billion Increase in 21st Century Research Fund

Promoting Bioenergy and Biobased Products

Information Technology For the 21st Century

Remarks by the President at Event Commemorating End of Ramadan

Remarks by the President At America’s Millennium Gala - The Lincoln Memorial

Clinton-Gore Administration Proposes Record

National Nanotechnology Initiative: Leading to the Next Industrial Revolution

Getting the Job Done for the American People in 2000

Proclamation: Martin Luther King, Jr., Federal Holiday, 2000

President Clinton Announces New Equal Pay Initiative

Largest Ever National Gun Enforcement Initiative, January 18, 2000

New Responsible Fatherhood Initiative to Promote Work and Boost Child Support Payments

2001 Budget Will Pay Down Debt by 2013

President Clinton Proposes State Licenses for Handgun Purchases

The Clinton-Gore Economic Record: Strong and Sustained Economic Growth

Revitalizing America’s Cities

President Clinton Unveils Millennium Initiative to Promote Delivery of Existing Vaccines in Developing Countries and Accelerate Development of New Vaccines


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