Uniting Leaders for a Common Energy Goal Oklahoma

Uniting Leaders for a Common Energy Goal Oklahoma Renewable Energy Council November 14, 2007 Oklahoma City, OK Brent Bailey 25 x’ 25 Facilitator

America’s Energy Future Energy Use Projections U. S. imports nearly 65% of our petroleum needs; predicted to only increase

America’s Energy Future U. S. Energy Use Total = 7 Quadrillion Btu Total = 100. 2 Quadrillion Btu 4% Wind Natural Gas 23% Coal 23% 42% Hydroelectric Renewable Energy 7% Nuclear Electric 8% Petroleum 40% Source: From the Energy Information Administration, Annual Energy Review for 2006 5% Geothermal 48% Biomass 1% Solar

America’s Energy Future Oklahoma Energy Consumption by Source, 2003

America’s Energy Future Oklahoma’s Energy Use • Ranked 11 th in the nation for per capita energy consumption and ranked 25 th for total energy consumption, despite being ranked 47 th for per capita income. • Large industrial and transportation use; ~25% of households have electricity as primary heating source; all coal comes from out of state; no nuclear. Source: EIA

America’s Energy Future Southeast Energy Use The 13 Southeastern states use 40% of total energy consumed in the U. S. Texas leads nation in coal, nat gas, and petroleum use Total consumption per capita: 9 of top 15 states are Southeastern states

America’s Energy Future Forbes Green State Rankings • Judged in six categories: carbon footprint, air quality, water quality, hazardous waste management, energy efficiency policy initiatives, and energy consumption. • Botton 10: MO, ND, TN, AR, KY, MS, LA, AL, IN, and WV – “lots of pollution and consumption and no clear plans to do anything about it. ” • Oklahoma - #38 on list

Source: State of Georgia Energy Strategy Development Materials

America’s Energy Future Other Concerns Energy Information Administration has projected costs to increase 4 to 22 percent for natural gas, heating oil, propane, and electricity this winter. The International Energy Agency (IEA) projects a 50 percent increase in worldwide demand for energy between now and 2030.

America’s Energy Future Other Concerns The U. S. Department of Energy (DOE) estimates that America's total energy demand will increase 30 percent by 2030. All the more reasons to strongly support U. S. bioenergy production and use

America’s Energy Future U. S. Oil Addiction • U. S. accounts for 25% of global consumption, but holds 3% of reserves and has 4% of global population. • Demand is nearly equal to supply + global political unrest = volatile prices. • Oil price: $96+/barrel • But…. . what other country has the standard of living that we enjoy? • Drinking water, waste water, mobility, heating/cooling, food production…. . all takes energy!

America’s Energy Future A Look Back on 2006 • Pres. Bush declares America is “addicted to oil” • Cellulosic and biomass on public stage • Venture capital investments set new record while federal funding for renewable energy programs were cut • Biofuel production ahead of RFS • Wind energy surpassed 10 GW • Solar efficiency breakthroughs (>40%) • Prior to end of 109 th Cong. , Cong. passed legislation extending important TCs until 2008 • Congressional leadership shifts

America’s Energy Future 2007…. Thus Far • Pres. Bush issues a new biofuels challenge – “ 20 in 10” • DOE issues $400+M in grants to facilities that will utilize cellulosic ethanol conversion technologies • Venture capital investments in renewable energy continue – here and abroad • House passes Farm Bill and Energy Bill; Senate debating Farm Bill and Senate passed Energy Bill • 25 x’ 25 Action Plan introduced

America’s Energy Future 25 x’ 25 Initiative: Renewable energy initiative born in the ag and forestry sectors; formed in 2004 Seeks to forge consensus on a new energy future Organized to explore agriculture and forestry’s role in energy production

America’s Energy Future 25 x’ 25 Initiative: Four-phase project Create the Vision Tested the Vision/Built an Alliance Created a pathway to the Vision Implement the Vision

America’s Energy Future Our Vision: By the year 2025, America’s farms, ranches and forests will provide 25 percent of the total energy consumed in the U. S. while continuing to produce safe, abundant and affordable food, feed and fiber. 25 x’ 25

America’s Energy Future 25 x’ 25 Today (2006) ~7 Quads Renewable Energy = 7% 100. 2 Quads Total Energy Consumed Goal (2025) 31. 75 Quads Renewable Energy = 25% EIA predicts consumption of 127 Quads by 2025

America’s Energy Future We will meet this goal by: Producing transportation fuels Harnessing wind energy Converting biogas emissions Utilizing geothermal resources Capturing solar energy Providing biomass for generating heat, power, and biofuels (~half of RE needs) Observing the benefits to the environment and increasing energy efficiency

America’s Energy Future Over 600 farm, business, energy and environmental organizations! American Farm Bureau Federation National Corn Growers Association American Soybean Association Forest Landowners Association National Association of State Departments of Agriculture Monsanto Deere & Company “Big 3” Automakers – Ford, Daimler Chrysler, GM American Wind Energy Association Natural Resources Defense Council

America’s Energy Future OK-based farm, business, energy and environmental organizations Oklahoma Farm Bureau Federation

America’s Energy Future 22 Governors MT MN PA IN ND KY IL NM WI GA NE KS MI CA 6 Former Governors FL IA MD NY ID OH VT AL NH VA ID SD TN CO

America’s Energy Future Governors’ Endorsements

America’s Energy Future 12 State Legislatures Colorado Florida Nebraska North Dakota Vermont Georgia Kansas Mississippi Montana Alabama Louisiana California

America’s Energy Future Legislative Endorsements

America’s Energy Future State alliance activity: Formed in CO, KS, LA, MS, FL, SC, KY, NE, TX, NY, OH, PA, WA, OR, ID, and VT Forming in AL, AR, CA, GA, TN, VA, IA, AZ, NM, WY, and MT Action pending in NC, OK, IL, IN, MO, WI, MN, ND, SD, NV, and ME

America’s Energy Future Active Alliances

America’s Energy Future Forming Alliances

America’s Energy Future Alliance Planning Underway

America’s Energy Future Alliance Activity

America’s Energy Future Role of alliances: Ensure grass roots participation and ownership Vehicle to unite state level champions Channel support to national and state initiatives that: • Increase renewable energy production • Expand the renewable energy market

America’s Energy Future Organizing Model Identify primary leaders/share the “vision” Secure commitments Organize state level Steering Committee Identify and recruit partners Form an alliance Develop a state action plan

America’s Energy Future What’s in it for ag and forestry? Increased farm income Added value uses Alternative enterprises More productive uses of marginal lands Assist in resolution of air, water and soil quality problems Reduced reliance on government payments Enhanced rural economies

America’s Energy Future Key to the Future: Cellulosic Bioenergy Development 25 x’ 25’s number one renewable fuel priority The key to reaching our goal Farm Bill and Energy Bill will have significant impacts to research, development, and deployment

America’s Energy Future Solar and Wind Resources in the U. S.

America’s Energy Future U. S. Geothermal Resources

America’s Energy Future States capable of supporting a cellulose ethanol industry

America’s Energy Future

America’s Energy Future Southeast Biomass Resources • • 209 million acres of forestland 86 million acres of traditional cropland 120 million acres of pasture/hayland 8. 5 million acres of CRP land 7. 5 billion head of poultry 43 million head of livestock 151 million tons of municipal solid waste Many other unique biomass resources

America’s Energy Future The Opportunity & Potential Biomass Feedstock - Ded. Energy Crops - Ag and Forest Residues - Hazardous Fuel Treatments - Short Rotation Woody Crops - Wood Waste Conversion Processes – Manufacturing – Co-firing – Combustion – Gasification Fermentation – Enzymatic Fermentation – Acid Hydrolysis/Fermentation – Catalytic Cracking USES Fuels: − Bio/Renewable Diesel − Ethanol Electricity and Heat Biobased Products – Composites – Specialty Products – New Products – Chemicals – Traditional Products

America’s Energy Future Key Steps to Success Feedstocks Collection Conversion Distribution Pricing Harvest Technology Method Availability Storage Efficiency Distance Form Transport Inputs Acceptance Pre. Processing Co-products

America’s Energy Future NREL: Renewable Cost Trends • Cost improvement past 20 years: 57% • Projected improvement next 20 years: 45% • Source: National Renewable Energy Laboratory Energy Analysis Office

America’s Energy Future Univ. of Tennessee Study Objectives • Determine the ability of America’s farms, forests and ranches to provide 25% of U. S. total energy needs in 2025 • Assess the economic impacts of achieving the 25 x’ 25 goal on the ag sector and the overall economy

America’s Energy Future By 2025, America’s farms, forests and ranches can annually produce: 87 billion gallons of biofuels (Assuming that cellulosic technologies will be available and competitive by 2012) 932 billion kwh of electricity 15. 45 quads of energy from biomass (Remainder of renewable energy to come from solar, wind, geothermal, hydro, etc. ) Source: UT Study

America’s Energy Future Impacts on national economy in 2025 Economic Activity $700 billion annually Jobs 5. 1 million All for only an investment equal to 5% of what America spent on imported oil in 2006.

America’s Energy Future By 2025, Oklahoma’s farms, forests and ranches can annually produce: 2. 42 billion gallons of biofuels 43. 3 billion kwhr of electricity (plus 44. 1 bkwh from wind and solar!) While creating 133, 676 new jobs and $13. 6 billion in economic activity (42. 0 million dry tons of cellulosic feedstocks will be needed) Source: UT Study

America’s Energy Future National goal: June 7, 2006 – Bipartisan group of Senators and Representatives introduced concurrent Congressional resolutions calling for a new national renewable energy goal of 25 x’ 25 109 th: 28 Senate; 94 House 110 th: SCR 3 has 34 co-sponsors; HCR 25 has 72 co-sponsors (Rep. Lucas)

America’s Energy Future Why establish this National Goal? Sets a benchmark for our nation Help to unify leaders behind a common goal We think it is achievable

America’s Energy Future Congress has spoken and adopted the 25 x’ 25 vision as a national goal Senate: S. Con. Res. 3 adopted June 15, 2007 House: H. Con. Res. 25 adopted October 15, 2007

America’s Energy Future 25 x’ 25 Action Plan: Charting America’s Energy Future Improving Energy Efficiency and Productivity (policy option of first choice) Increasing Renewable Energy Production Delivering Energy to Markets Expanding Renewable Energy Markets Strengthening Conservation of Natural Resources and the Environment

America’s Energy Future Action Plan calls for: Increased funding for RDD&D Expansion of current production incentives New Feedstock Residue Management Program Exploring a permanent counter-cyclical incentive system for biofuels in relation to oil Incentives to build new transmission lines Mechanism to get to 50% flex-fuel vehicles Expanding conservation and energy programs in the Farm Bill

America’s Energy Future Challenges § Goal vs. mandate questions § Feedstock competition concerns in animal agriculture and forestry sectors § Balancing national and state objectives § Sustainability § Efficient conversion technologies § Subsidy issues

America’s Energy Future 25 x’ 25 Vision Complements Oklahoma’s Activities • Oklahoma Energy Office – provides renewable energy/energy efficiency info • Oklahoma Alternative Fuel Incentives • Private company initiatives (biofuel production; litter gasification; cellulosic conversion) • University and agency Initiatives

America’s Energy Future 25 x’ 25 Activities for 2008 Core Mission: Keep partners connected and informed Maintain momentum and visibility Create and help strengthen state alliances Engage candidates for public office on the need to embrace a 25 x’ 25 energy future

America’s Energy Future 25 x’ 25 Projects for 2008 Woody Biomass Economic Analysis Addressing infrastructure challenges Agriculture and forestry’s role in a reduced carbon economy Defining sustainable production of bioenergy

America’s Energy Future The 25 x’ 25 Vision: Provides a positive impact on the national and rural economies Reduces our reliance on foreign oil and improves national security Creates important environmental benefits

America’s Energy Future We Need Your: Involvement Insight Expertise Leadership skills We invite Oklahoma leaders to endorse the vision and join us in building an alliance and promoting a new strategy for a new energy future.

America’s Energy Future Please join us in bringing the vision of 25 x’ 25 to life. www. 25 x 25. org