December 15, 2004

To:                         Hewlett-Governors’ Ethanol Coalition Working Group and Advisory Committee Members

From:                     Hans Detweiler, Governor Blagojevich’s Representative

                              Larry Pearce, Governor Johanns’ Representative

                              David Terry, Project Coordinator

Subject:                  Summary of December 8^th Meeting

            For those of you who were unable to join us in Washington on December 8, the following is an update on the Hewlett-Governors’ Ethanol Coalition Working Group meeting, including an overview and information on next steps.

Meeting Overview

            The purpose of the Working Group’s first meeting on December 8 was to provide information to the group on the status of various ethanol research, environmental, and policy issues, and to facilitate a discussion on the goals of the project. The first half of the day included the following presentations:

Developing Cellulosic Feed Stocks and Research Priorities

• Martha Schlicher, Director, National Corn to Ethanol Research Center. Ms.  Schlicher described some of the advances in ethanol production and research, and discussed the potential to increase productivity through targeted research and process improvements. (PowerPoint presentation at the Coalition website)
• Larry Russo, Biomass Energy Program, U.S. Department of Energy (DOE). Mr. Russo presented an overview of DOE’s Bioenergy research program and discussed, in detail, issues associated with the commercialization of bioenergy technologies. (PowerPoint presentation at the Coalition website)

     The Role of Biomass in America’s Energy Future

• Lee Lynd, Professor of Engineering, Adjunct Professor of Biology, Dartmouth College. Mr. Lynd presented his team’s analysis of the potential for bioenergy production combined with transportation efficiency to significantly reduce dependence on oil use in the transportation sector.  (PowerPoint presentation)

     Petroleum Refining and Transportation Issues

• Peter Lidiak, American Petroleum Institute. Mr. Lidiak told meeting attendees about challenges (e.g., storage) facing the petroleum distribution system in delivering ethanol, particularly in areas where fuel requirements differ among neighboring areas. (PowerPoint presentation)

     U.S. Department of Agriculture (USDA) Energy Policy

• Roger Conway, Director, Office of Energy Policy and New Uses, USDA. Mr. Conway presented information on the variety of USDA bioenergy activities, including descriptions and contacts for each program area. (PowerPoint presentation)

     Federal Legislative Update and Public Policy Challenges

• Aaron Whitesel, Senator Richard Lugar’s Representative. Mr. Whitesel told the group about Senator Lugar’s longstanding commitment to bioenergy and reviewed both past and recent initiatives. He stressed the importance of completing the group’s recommendations as soon as possible.

     Roundtable Discussion Presentations

• David Hallberg, Senator Tom Daschle’s Representative.  Mr. Hallberg stressed the need to set aggressive goals for ethanol production and the need for the expansion of research, demonstration, and deployment funding at the national level.  He also stressed the importance of biofuels to national security.
• Carol Werner, Executive Director, Energy and Environmental Study Institute.  Ms. Werner expressed the importance of educating policy makers and the public about biofuels and the tremendous role they can play in both meeting energy needs and supporting economic development. She said that a collaborative approach among agriculture, environmental, and other interests was key to the group’s success.
• Jeff Fiedler, Natural Resources Defense Council (NRDC). Mr. Fiedler provided an overview of a newly released NRDC report on bioenergy, which was prepared for the National Commission on Energy Policy. He expressed NRDC’s desire for a linkage between potential biofuels incentives and environmentally sustainable fuel production.

         Several of the above presentations were provided in Power Point form and can be accessed at the Governors’ Ethanol Coalition Web site at the following link: http://www.ethanol-gec.org/information/ethanolinfo.htm  

Results and Next Steps

        The second half of the daylong meeting focused on discussion of potential ethanol research and deployment priorities and goals.  The discussion included exchanges on bioenergy issues ranging from environmental sustainability to commercialization challenges to defining terms to the value of setting aggressive goals.  The group decided that a list of potential priorities and issues should be prepared by staff based upon the input from the meeting. The document will be circulated among the Working Group and Advisory Committee members the week of December 27.  The priorities listed in the draft document will be grouped in three major areas: 1) research; 2) incentives; and 3) renewable fuels standard.

        We anticipate this initial draft list will be commented on significantly by Working Group and Advisory Committee members. Staff will revise the document based upon member comment and provide a second version to the group for further comment and discussion in January.

Future Meetings

        As mentioned above, a draft list of priorities will be developed and provided for comment within the next two weeks.  We expect the next meeting of the Working Group to be held in late January or early February, and there may be a need for a conference call to discuss the draft document prior to the next in-person meeting in Washington, DC.  If you have any comments or questions, please contact us.