SEC. ED SCHAFER: Thank you, Paula, for the very kind introduction. And thank you all for the warm welcome today. We are very pleased that you are here to join us. And you have joined us to discuss one of the most pressing issues of our time, renewable energy. The fact that some of the world's best minds and most prominent leaders in renewable energy development are all in one room here is incredible.

At the beginning of this decade, just seven short years ago, I wonder any of us would have believed that this would be possible.

Who knew then that the Indy Car Series would be racing cars with 100 percent fuel grade ethanol these days? And in 2000 would any of us have predicted that Virgin Atlantic would fly a 747 from London to Amsterdam powered by biofuels?

It would have sounded like science fiction to say that one day we would be making biobased products like hydraulic fluids, roof coatings, beddings, linens and towels from corn and soybeans and other crops. But that's where we are today.

And as the United States Secretary of Agriculture, I am pleased to be hosting this conference. You see, this is the first global conference of this magnitude that recognizes agriculture's importance as a driver of renewable energy.

I am glad that agriculture has a seat at the table now, because agriculture and rural areas are the primary contributors to renewable energy. Renewable energy presents a fantastic opportunity for agriculture, and we are already seeing the benefits of renewables here in the United States.

We're predicting that net cash farm income will reach $96 billion this year and receive record prices for crops using energy production like corn and soybeans. Renewables have clearly boosted our farm economy and have spread positive effects across our broader economy as well. Here in the United States we are fortunate to have a very diversified economy; and the agriculture production, while thriving, accounts for less than 1 percent of our gross domestic product.

For other nations, agriculture has far greater economic importance. In developing countries, agriculture accounts for an average of 11 percent of the GDP. In China, for instance, 12 percent of the GDP comes from agriculture; and in India the number is 14 percent. In some countries, it's much higher. Madagascar's economy takes 30 percent of its total from agriculture, and Ethiopia relies on agriculture for nearly half of its GDP.

So opening markets for agriculture and increasing rural opportunities are even more critical for these countries. The potential benefits are clear: more stable demand for energy crops drive up prices. Higher prices drive up farm income and farmland values, and it's the farmers and the rural residents who stand to benefit.

Renewable energy also offers a completely different paradigm from the way energy distribution worked in the past. Instead of new technologies taking hold in urban centers first and then slowly making their way out to the countryside, renewable energy gives rural areas a chance to hold the power ... literally.

And renewable energy presents a wider array of opportunities to rural areas than simply growing crops. There must be facilities nearby to turn those feedstocks into fuels, and that means jobs and investment and income. All of us know that natural resources are our greatest treasures, but farmers perhaps more than anyone understand the importance of fertile soil, clean water and clean air.

Theodore Roosevelt was the 26th President of the United States and was well-known for his commitment to preserving our environment. He said: "It is a nation's responsibility to treat its natural resources as assets it must turn over to the next generation increased, not impaired, in value."

There is a growing international recognition that the ways in which we use fossil fuels in the 20th century are not sustainable long-term for our environment. Renewable fuels provide a wonderful alternative to those traditional fuels, and they represent a fantastic opportunity for agriculture, but they are not without environmental concerns.

We cannot simply declare ethanol to be the fuel of the future and start sowing all our fields with corn and sugar cane and other potential feedstocks. Developing a productive industry for renewables, while also meeting the existing needs for agriculture products-will take careful planning. And that is why this conference is so important.

We are here to assess the current situation, to identify the challenges ahead and to plan the best path forward. Certainly, creating a sustainable industry can mean different things for different countries. In the United States, a viable renewable industry will require a number of conditions, and I think in some form or another, this will be true for all of the nations represented here.

First, renewable energies must be economically sustainable. And in the U.S., we are committed to free market as drivers for economic growth. If renewables cannot graduate from subsidy support, they will not be viable long-term in our nation. So while we are committed to funding fledgling renewable industries and technologies, it is also important that we help them reach the point where they can stand on their own.

Similarly, they must be produced in a way that is safe for the environment and allows a variety of land uses. For biofuels in particular, we need to balance the demand for renewable energy with the requirements of our food supply. We need to be cognizant of the indirect relationship between rising food prices and greater demand for biofuels.

Lastly, for renewable energy to become a sustainable industry, we need social acceptance. The United States has seen a surge of interest in green technologies, and I believe as long as we continue to implement responsible energy policies and don't focus on short-term gains but over-the-long-term effects, social viability will continue to increase.

These are the issues that will determine if renewable energy is sustainable in the United States. In other countries, different issues will present themselves, and I hope this conference highlights the aspects of long-term viability that you can apply to your own situation. We believe the payoffs from renewable energy will be well worth the effort we must put in to build this industry.

Besides the environmental benefits, we are also excited about the prospect of home-grown energy. For the United States, reducing our imports of foreign oil benefits our national security as well as benefits our economy. We consume a great deal of oil, more than 20 million barrels a day. Redirecting that money to clean, renewable energy produced at home is an exciting possibility.

If we were to redirect only 1 billion barrels of the imported oil to biofuels, it would double the level of farm income from the $ 96 billion we expect to see this year to nearly $200 billion. That would mean generating 42 billion gallons of renewable fuel a year instead of the 9 billion that we expect to produce this year.

Right now less than 6 percent of our energy comes from renewable sources, and we must significantly increase that percentage to lessen our dependence on oil. We are working aggressively toward that goal. In the end of 2007, President Bush signed a new Energy Bill which sets ambitious new renewable fuels standards for our nation. It calls for 36 billion gallons of renewables fuel production in 2022, just 15 years from now. That's a lofty goal, but it's one that we can achieve with a dedicated effort.

And I know that many of the nations represented here have similar goals, whether or not they are in signed policies. To meet these benchmarks I see a number of challenges ahead, first off we need to develop cellulosic ethanol to the point where it can be produced and marketed on a large scale.

Second, we'll need research focused on enhancing productivity of energy crops. USDA has made great strides in this area by helping develop drought-resistant, pest-resistant, and higher yielding corn breeds.

Third, we need to improve the conversion process of feedstocks to energy. USDA scientists are working on this issue now and are collaborating with our university partners on a number of exciting projects to improve the fermentation process for ethanol.

These are just the advances needed for biofuels. There are of course similar technological advances required in the fields of solar, hydro, geothermal and wind energy. The key to these improvements is research.

President Bush's budget proposal for this year reflects the high priority that we must place on renewable energy research. I'll let my fellow cabinet members tell you about the funding in their departments, but I'm very excited that the proposed budget for USDA contains $25 million for research on the modification of plant cell walls and crop residues and, in addition, $19 million for research in bioenergy and biobased fuels.

Today I'm pleased to announce that USDA is joining the Department of Energy in making $18 million in grants for 21 biomass research and development projects. And we're excited about these projects, which include research in how altered plant genetics can improve biofuel production, and in developing solar-thermal chemical reactor systems to convert biomass to gas.

Research like this is exactly what is needed to help advance the renewable energy industry, and it brings us one step closer to having our farms fueling our cities just as our fields feed our people. And I look forward to working toward that goal with all of you.

I hope that you enjoy this conference and make the most of its unique opportunity. Between now and Thursday you'll have a chance to engage in discussions with your peers from around the world. You can view the latest innovations in renewable energy on the Trade Show floor, and you can participate in official site events that will cover a wide spectrum of topics for renewable energy.

And hopefully you will come away from this with a clear idea of how to implement your own renewable energy goals. When the United States stepped forward to host WIREC 2008, we wanted to ensure that it would be a conference that was about action, not just about words

And that's why we made two key take-aways from this event the best practices information tool and the Washington International Action Program, which will be a collection of pledges from the WIREC participants to scale up renewable energy.

Ambassador Negroponte mentioned the importance of those pledges, and to that end we will be collecting the pledges from all participants over the next few days. If you have not already done so, I encourage you to offer a meaningful pledge to increase renewable energy production and use in your country.

Thank you for joining us here today. We are pleased that you have attended the WIREC Conference. And may your time at WIREC be renewably productive. Thank you.

[Applause]