25x’25

An economic study of four states released today by the Bipartisan Policy Center (BPC) shows the establishment of a national Renewable Energy Standard of 25 percent by 2025 will drive biomass production and boost farm revenue. The analysis, undertaken by the BPC’s behalf by the University of Tennessee’s Bio-Based Energy Analysis Group (BEAG), examined potential new markets for biomass resources in Colorado, Kansas, Florida and North Carolina. In addition, the researchers evaluated the potential direct employment opportunities that may result from building out new electric generating facilities in these states, as well as the potential for job growth on the farm supported by increased biomass production. The relationship between job creation and RES policy was positive, with more jobs created in scenarios with stronger RES targets, and similarly more jobs created under federal proposals than under state proposals alone.

An RES policy requires utilities to provide a minimum percentage of energy from renewable sources. To date, RES policies to promote renewable energy have now been adopted by 27 states and the District of Columbia, generating growing momentum for a national-level program. The BPC is to be commended for their work in determining significant market opportunities for agriculture if Congress enacts an RES. Their study shows that RES policies are expected to create a large new market for biomass from the agricultural and forestry sectors, and as a result, to have a positive effect on farm income.

The BPC study comes ahead of next month’s release of an in-depth, 25x’25-sponsored analysis, also undertaken by University of Tennessee BEAG researchers, of the impacts on all U.S. agriculture and forestry that would result under a wide variety of climate change policy scenarios, including the House-passed American Clean Energy Security Act of 2009 (ACES). The 25x’25 analysis will look at the interplay between the sometimes opposing forces of carbon incentives provided by climate change policy and input costs driven higher because of that policy in determining potential supply, price, and geographic impacts of biomass feedstocks. Estimates of the net impact of the 25 x ‘25 goals upon biomass’ contribution to total emissions, energy use and net carbon flux also will be reported.

The target audience for the 25x’25 analysis is national agricultural and forest leaders who are attempting to understand and quantify how climate change legislation will impact their sectors. The analysis will also be presented to federal and state policy makers; executive branch agency officials; renewable energy advocates; and national security, environmental and rural development leaders. The analysis is expected to provide critical information for national policy makers as they debate major climate change legislation. The 25x’25 analysis will provide clear and objective data that can guide those who will determine the role of agriculture and forestry in a new climate change regulatory system.

Details of the release of the 25x’25 analysis will be announced next week.

25x'25 Policy/Funding Biomass, green jobs, renewable energy, Research