America’s Energy Future Presented to: Alternative Energy Workshop, Congressman Fortenberry and University of NE America’s Energy Future- Role of Agricultural and Forestry Community Date, Aug 10 th 2006 Lincoln, NE

America’s Energy Future Energy: The Linchpin of Our Economy Fundamental to our prosperity Contributes to our quality of life Historically has been abundant and affordable

America’s Energy Future Contribution by Energy Source to Total U.S. Energy Consumption Source: Congressional Research Service

America’s Energy Future Fossil based energy systems are not sustainable World oil reserves are limited in supply and located in volatile parts of the world Dependence on foreign oil is increasing

America’s Energy Future Emissions from burning of fossil fuels are impacting the environment Costs of oil, natural gas and electricity are skyrocketing

America’s Energy Future From 2002 to 2004, the average residential price for Natural Gas in Nebraska increased 46.6% The average retail price of gasoline in the Midwest on July 31, 2006 was $2.99 per gallon - a 77% increase from the same date one year ago

America’s Energy Future 25x’25 Initiative: Renewable energy initiative born in the ag and forestry sectors Supported by the Energy Future Coalition Seeks to forge consensus on a new energy future Focuses on economic, national security and environmental benefits

America’s Energy Future Formed in Spring 2004 Organized to explore agriculture and forestry’s role in energy production Three-phase project - create a vision - build an energy alliance - construct an implementation strategy

America’s Energy Future Development of a draft vision Core questions: What role can the farm and forestry sectors play? How big a contribution? What has to happen? Phase One:

America’s Energy Future Our Conclusions: Ag and forestry can play a major role in helping the nation achieve energy independence. An enormous and historic opportunity is on the horizon. It is time for the ag and forestry sectors to come together and work collaboratively to capitalize on these opportunities.

America’s Energy Future What about Nebraska? Second in Irrigated U.S. cropland acres Nearly 5 million acres of soybeans Third largest corn producer in the country Huge land area available near transmission lines for potential wind energy development - Nebraska has tremendous potential for bio-diesel, ethanol, and wind energy production

America’s Energy Future

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. Our Vision: 25x’25

America’s Energy Future We will meet this goal by: Producing transportation fuels Harnessing wind energy Converting biogas emissions Capturing solar energy Providing biomass for generating heat and power

America’s Energy Future This is a food, feed, fiber and fuel vision, that is economically viable for our society. With emerging technology we can produce multiple commodities.

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 Economic Opportunities for Rural America Provide 5% of nation’s electricity from wind by 2020 –$60 billion in capitol investment in rural areas –$1.2 billion in annual income to rural landowners –80,000 new jobs, mostly in rural areas Tripling U.S. use of biomass –Increase farm and rural incomes by $20 billion –Increase net farm income by $6 billion 200 million gallon annual increase in biodiesel use over previous year each year until 2010 –Increase cash crop receipts by $5.2 billion –Annual net farm income increase of $300 million / year

America’s Energy Future What’s in it for the Nation? Enhanced national security Improved environment Revitalized economy

America’s Energy Future What’s in it for Nebraska? Air pollution reductions Reduced reliance on volatile fuel markets Economic revitalization of rural Nebraska

America’s Energy Future Spent 2005 testing the vision Building an ag/forestry renewable energy alliance Culminated in Spring 2006 with National Ag/Forestry Renewable Energy Summit in Washington, DC Phase Two:

America’s Energy Future Bringing the vision to life Phase Three:

America’s Energy Future Expand national alliance Establish 25x'25 as a national goal Form state level 25x'25 alliances Construct an implementation plan 2006 objectives:

America’s Energy Future 200+ organizations have endorsed 11 Governors and 4 State Legislatures Now reaching out to: - environmental - conservation - labor - religious - energy and other partners Alliance formation:

America’s Energy Future By election day 2006, over 50% of the U.S. Congress will be on record in support of adopting 25x’25 as a national goal. National goal:

America’s Energy Future By September 1, 2006, state level 25x’25 alliances will be operating in 20 states. State alliances:

America’s Energy Future Ensure grass roots participation and ownership Vehicle to unite state level champions Channel support to national and state initiatives Role of alliances:

America’s Energy Future Process begins in July Guided by “yes—if” principle Endorsing stakeholders will work collaboratively to build the 25x’25 Implementation Plan “Whats” and “hows” to get to 25x’25 Implementation strategy:

America’s Energy Future 25x’25 Building Blocks Enabling Federal and State Policy Research, Development & Demonstration Communications and Education Appropriations Coalitions and Outreach Commercialization of Technology-- new & emerging Access to Capital Infrastructure

America’s Energy Future We have the technology, capacity and leadership to offer new energy solutions. These solutions will enhance farm income and strengthen rural communities. The public is behind us. Why now?

America’s Energy Future. Do you believe this goal is achievable or not achievable? How important is this goal of 25% of our domestic energy needs met by renewable energy sources by the year 2025 for our country? Actually, renewable energy sources contribute 7% to our domestic energy needs today. Some people have suggested that we need to rely more on these renewable energy sources to meet more of our domestic energy needs. One goal is to have 25% of our domestic energy needs met by using renewable energy by the year 2025.

America’s Energy Future Voters say they support a new energy policy even if it costs billions more. The country is facing an energy crisis. Having reliable energy is fundamental to economic prosperity, our national security, and protecting the environment. We need more ambitious and creative thinking behind a new energy policy for the future. There is no energy crisis facing this country. We are meeting our energy needs and prices have stabilized. Radically changing our energy policy would require billions of dollars, and there are simply too many other important priorities right now.

America’s Energy Future Constraints to Exploitation and Integration of Renewable Energies  Lack of technological know-how  Societal tradeoffs  Regulatory & political barriers  Economics compared with fossil fuels  Resource limits  Investment risk  Initial lack of economics of scale  Inertia – Adaptability of communities, households, industries, and public infrastructures to transition to new energy systems

America’s Energy Future We Need Your: Involvement Insight Expertise Leadership skills

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

America’s Energy Future