Biofuels

Michael Fields Agricultural Institute- East Troy, WI

Renewable and bio-based energy can greatly benefit Wisconsin's natural resources, employment opportunities and energy security.  However, the state needs strong policies to jump start this new economy and assure that it advances with attention to principles of sound environmental stewardship. Michael Fields Agricultural Institute has joined with Clean Wisconsin, Wisconsin Farmers Union, RENEW Wisconsin and other groups to support four initiatives to expand energy and heat production from biomass.  These policies would create more jobs on Wisconsin’s farms and rural communities but also could reduce global warming emissions by 6 to 7 billion tons per year, equivalent to taking 600,000 cars off of Wisconsin’s roads.

These four initiatives are:

  • Biomass Energy Crop Reserve Program
  • Renewable Fuels for Schools and Communities
  • Renewable Energy Buyback Program
  • Low-Carbon Fuel Standard

In addition, MFAI is working to encourage use of federal programs that passed in the 2008 Farm bill that support renewable energy. For more information on these federal programs, go here.

For information and announcements about these and other programs, sign up for our Agricultural Policy Events Notices.

Biomass Energy Crop Reserve Program
While producing biomass energy locally is a win-win for farmers and the environment, this market has a chicken-and-egg problem: farmers don’t want to grow energy crops unless they know they will have a market for them, and entrepreneurs don’t want to build new biomass conversion facilities until they know that farmers will grow energy crops for them. A Biomass Energy crop Reserve Program helps solve this dilemma by supporting farmers to grow biomass energy crops that also have environmental benefits like preventing erosion and runoff.

A state crop reserve program would pay farmers for ten-year contracts in return for native perennial plantings that the farmer can then sell for bioenergy. The state Biomass Energy Crop Reserve Program is mirrored after the federal CRP program, which is expected to lose one-third to one-half of its contracts, because high commodity prices make crop rows more profitable.  By targeting lands coming out of CRP, we are focusing on environmentally sensitive lands that are not in food production, and therefore not competing for land to grow food. In addition, this program has a goal of enrolling 500,000 acres by 2020 and will help sustain the goals of preventing polluted runoff from reaching our waterways and promoting wildlife habitat, all while turning a profit for farmers and developing additional markets for additional renewable resources.

Renewable Fuels for Schools and Communities Program
One of the fastest ways to increase demand for renewable fuel technologies is to show examples of these new technologies in our communities. By helping schools and other community buildings buy the boilers and other equipment needed to use renewable fuels, we are not only showing how easy the transition to renewable fuels can be, we also protect schools from volatile energy markets and build new local markets for farmers.

Seven states currently have a similar program that sets up a small state, educational program and a revolving loan program to provide working capital for the purchase of equipment for biomass systems in schools and government-owned buildings.  On average, Wisconsin schools spend close to $200 million a year on energy, and in most cases, biomass heating will save schools and communities tens of thousands of dollars in heating costs as well as promote homegrown energy.

Renewable Energy Buyback Program: Rewarding Renewable Energy Producers
To meet demands for renewable energy, Wisconsin needs many people, especially in rural areas, to become small-scale renewable energy producers. Many have already done so by installing wind turbines, methane digesters, or solar panels and selling the extra energy back into the grid. However, the amount these small-scale producers get paid varies greatly around the state, depending on their location and the energy utility serving them.

This program would guarantee adequate compensation for small-scale renewable energy producers who generate more energy than they use.  Many farmers are generating surplus energy from biomass, solar, wind and hydroelectricity products, but the rates at which utilities are willing to buy that excess energy makes it unprofitable.  A buyback program would reduce transmission needs and provide conservation incentives among customers who have their own renewable energy system.

Low Carbon Fuel Standard
Instead of deciding what fuels are “good” and what fuels are “bad,” we support a Low Carbon Fuel Standard to compare the carbon footprints of various fuel choices and set the expectation of lowering the carbon component over time. By providing information on the relative impact that various fuels have on global warming, the market turns into a tool for promoting a reduction in carbon emissions.

A Low Carbon Fuel Standard will not dictate the mix of fuels delivered, but is instead performance and market-based. This makes a Low Carbon Fuel Standard profitable for farmers and not overly burdensome for industry.  Two states have already established Low Carbon Fuel Standards, and fifteen other states are exploring or have proposed them.

Michael Fields Agricultural Institute    W2493 County Rd ES PO Box 990 East Troy, WI 53120 Phone: 262-642-3303 mfaiadmin@michaelfieldsaginst.org