In his State of the Union speech, President Bill Clinton promoted the increased use of bio-based fuels such as ethanol to stimulate rural America and improve the nation's air quality. "There's another part of our American community in trouble today - our family farmers," Clinton said. "We must work together to strengthen the farm safety net, invest in land conservation and create new markets by expanding our program for bio-based fuels and products."
The President referred to global warming as the greatest environmental challenge of the new century. "New technologies make it possible to cut harmful emissions and provide even more growth," Clinton said, pointing to new automotive technologies that have greatly increased efficiency. "Before you know it, efficient production of biofuels will give us the equivalent of hundreds of miles from a gallon of gas."
The President's FY 2001 Budget Request includes $439 million to fund research and grants to promote the use of bioenergy and bioproducts. Included in the budget is funding through the Commodity Credit Corporation to provide incentive payments to bioenergy or ethanol producers to lower the cost of production. The proposal includes up to $100 million in FY 2000 and up to $150 million in FY 2001 and 2002 in incentive payments, which would be made on a portion of the increase in agricultural commodities purchased for expanded bioenergy production, with smaller and cooperatively-owned facilities receiving higher payment rates.
