US POLICY OUTLOOK 2014: MAKE OR BREAK FOR ADVANCED BIOFUELS AND RENEWABLE CHEMICALS

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1 US POLICY OUTLOOK 2014: MAKE OR BREAK FOR ADVANCED BIOFUELS AND RENEWABLE CHEMICALS Energy and Renewable Chemical Policy in the 2013 Farm Bill Ryan Stroschein Green Capitol, LLC Washington, DC December 10, 2013

2 CURRENT STATUS 2008 Farm Bill Provided almost $1.3B in mandatory money for ag/rural energy programs No mandatory money for FY2012, meaning no baseline for energy programs going into reauthorization Expired on September 30, 2012 Nine month extension enacted on January 1, 2013 No mandatory money for energy programs USDA operating energy programs on left-over money and small appropriations Extension expired on September 30, 2013

3 CURRENT STATUS Farm Bill House of Representatives Passed House on July 11 Conferees appointed on October 12 Reauthorizes all key FB energy programs but provides no mandatory money, only authorizations for appropriated dollars Does not expand renewable chemicals access to key programs

4 CURRENT STATUS Farm Bill Senate Passed Senate on June 10 Conferees appointed on August 1 Reauthorizes and funds all key FB energy programs Provides $900M in mandatory money for energy programs Allows renewable chemicals to qualify for key programs such as Biorefinery Assistance Program and BRDI

5 CURRENT STATUS KEY PROGRAMS Biobased Markets Program ( Biopreferred ) Federal Procurement Preference USDA Certified Labels Biorefinery Assistance Program Loan guarantees for the development, construction, and retrofitting of commercial-scale biorefineries Biomass Research and Development Initiative Feedstock development; Biofuels and biobased products development; and Biofuels development analysis. Biomass Crop Assistance Program Development of new advanced biofuel feedstocks Rural Energy for America (REAP)

6 ENERGY TITLE FUNDING LEVELS IN EACH BILL

7 EFFORTS AG ENERGY COALITION Forged a strong and diverse coalition in support of ag energy Successfully supported efforts to get FB through both chambers Successfully supported of Senate language and inclusion of almost $1B in funding in a very tight budgetary environment Urged House to act so we could get to a conference Working closely with House and Senate allies to support Senate Energy Title funding and language Hill and Administration Meetings Bipartisan Member Letters Broad and Diverse Stakeholder Letters Aggressive Press Outreach Testified before House Ag Committee Continue to support and advocate during the conference process

8 CHALLENGES TO FB SUCCESS IN 2013 Many Democrats thing the FB agriculture subsidies are too generous/lack targeting Many conservatives think the Farm Bill is too expensive both nutrition and agriculture pieces Many conservatives support repealing permanent law but Dems/aggies oppose 1949 underlying law that relies of parity prices E.g., double the price of milk at the grocery store Many conservatives want to permanently decouple nutrition and agriculture functions of the bill AND.

9 CHALLENGES TO FB SUCCESS IN 2013 Food Stamps Now SNAP Senate Bill Cuts <$4B Authorized through 2018 to keep joined with FB aggie provisions House bill Cuts >$39B (Expressly rejected a $20B cut) Contains work requirements unpopular with most Dems Authorized only through 2016 to permanently sever nutrition and aggie provisions

10 POSSIBLE OUTCOMES Possibilities: FB compromise is reached before the end of 2013: Five year bill with robust mandatory money? Five year bill with little/no mandatory money? No deal reached because conference collapses OR conference report rejected on the House/Senate Floor Extension? Very short-term to get FB across the finish line now Intermediate-term e.g., through September 30, 2014 Longer-term beyond 2014 midterms/early 2015

11 CURRENT STATE OF PLAY AND PROGNOSIS Conference committee leadership is optimistic Negotiations may extend beyond December 31 Doesn t appear to be a candidate for inclusion larger budget negotiations House set to adjourn this Friday May need short-term (30 day?) extension due to permanent law Not sure level of funding for Energy Title BUT no philosophic objections to mandatory money

12 CONCLUSION Likely to get a conference report Not sure how much mandatory money for energy programs, but it should have some Will certainly contain authorizations for appropriated money, for what that s worth May be very hard to get through both the House and Senate House may have to pass legislation with Dem votes again IF they extend, no $$ for energy programs in FY14

13 THE END Ryan Stroschein Green Capitol, LLC

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