Study Highlights Renewable Electricity Standard
Farmers, ranchers, forestland owners would benefit if program implemented on top of renewable fuel standard.
Compiled by staff
Published: Nov 12, 2010
A new study shows benefits for farmers, ranchers and forestland owners if a "properly constructed" Renewable Electricity Standard is implemented on top of the Renewable Fuels Standard. The findings come from a University of Tennessee Bio-based energy Analysis Group study commissioned by 25x'25 and released this week.
The study, Implications of Energy and Carbon Policies for Agriculture and Forestry Sectors, found that an RES could generate $14 billion in accumulated additional revenues for ag and forestry, boosting demand for and production of dedicated energy crops for biomass feedstocks.
While the move would cause shifts to more intensely managed pasture land, University of Tennessee researchers predict that forest residues, thinnings and tree harvest will play a significant role in meeing those feedstock demands. The study notes there would be no significant changes to commodity cropland use, or crop and livestock prices.
The study goes on to show that a Renewable Electricity Standard could create an additional $215 billion of additional economic activity, more than 700,000 jobs, and $84 billion to the nation's GDP.
The study evaluates a 25% RES to be met by 2025. However with exceptions for small power retailers, hydropower sales, municipal solid waste sales and energy efficiency credits, the effective RES is 17 percent by 2025. Issues of grid access and infrastructure needs were not addressed in the study.
"With U.S. energy demand expected to grow by 14 percent by 2035, it is important to examine ways of dealing with that growth that, at the same time, can allow us to reduce our dependency on foreign oil, boost our economy and enhance our environment," says Richard Hahn, former president of National Farmers Company and chairman of the 25x'25 economic analysis work group. "By asking the University of Tennessee to undertake this study, additional information on possible solutions to our energy needs is being brought to the attention of policy makers and stakeholders."
You can read the complete report HERE.
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