The last decade has been characterized by huge U.S. trade deficits.  In fact, petroleum imports for transportation purposes alone were $50 billion in 1996.  America's dependency on foreign oil (now at 60 percent and rising) is not only an economic issue, but is one of national security, particularly in times of global unrest.  These factors, coupled with environmental concerns regarding the use of fossil fuels and production of CO₂, fostered the expansion of the fuel ethanol industry.  The industry has become an important partner with American agriculture and the USDA estimates that 17,000 jobs are created for every billion gallons of ethanol produced. Similarly, a nascent biodiesel industry has been developing in recent years.  The capacity of the U.S. industry now exceeds 2.1 billion gallons per year.  More than 1.8 billion gallons of ethanol were produced last year in the United States, utilizing 750 million bushels of corn and supporting an estimated 30,000 jobs.  As attractive as ethanol is as an environmentally desirable alternative to imported petroleum, the relatively high cost of ethanol production remains an important constraint on its use as a fuel additive. 

It is of particular importance to note that if the fuel ethanol industry is to expand significantly, as is predicted to result from the recent California legislative rulings regarding the use of ethanol as a gasoline oxygenate in lieu of MTBE, new markets must be found for the resultant major increase in the amount of coproducts from ethanol production. The development of new value-added coproducts will strengthen the economic stability of the fuel ethanol industry, making it less dependent on corn prices and tax policies.  The developed value-added bioproducts will help American agribusiness keep its competitive edge in the global economy, and exert a positive influence on the balance of trade. 

Current use of ethanol and biodiesel as fuel additives or alternative fuels (e.g., E-85 and neat biodiesel) depends on many factors, including political actions, tax policies, agricultural practices, regulatory issues, and international economic trends.  The relatively high cost of ethanol production and the very high cost of biodiesel production, however, remain as important constraints on their use. Removing technical constraints to lowering production costs is the key to a viable biofuel industry of the future.  

A likely market for alternative energies is within agriculture itself.  Low-cost alternative fuels can be used to power farm tractors and small agricultural production and processing facilities within rural communities.  Wind and solar energy, as well as biofuels, may also be used to supply or supplement electrical energy for water pumping, small-scale irrigation systems, and other farmstead needs. 

While the Department of Energy has traditionally concerned itself with processing lignocellulosic materials to make ethanol, there is obvious complementarity with the ARS programs.  The use of marginal farmland to produce biomass involves soil and water conservation research, and crop breeding questions.  Similarly, a likely early user of the lignocellulosic technology is the existing starch to ethanol industry, and the integration of new technologies into a stable, successful operation involves ARS consideration of process technologies and organisms. 

National Program 307 is comprised of four research components: (1) Ethanol, (2) Biodiesel, (3) Energy Alternatives for Rural Practices, and (4) Energy Crops.  These components address research issues related to Bioenergy and Energy Alternatives.  Many ARS projects are associated with more than one National Program because their objectives are broad enough to encompass more than one area, and because National Programs overlap in order to address problems of U.S. agriculture.  Bioenergy is very closely linked to the biobased product research management under the Quality and Utilization of Agricultural Products National Program and programs in the Natural Resources and Sustainable Agricultural Systems Area.  Individual research projects associated with this National Program are listed at the end of this action plan.  As this action plan is implemented specific research areas will be identified, locations and projects involved will be determined, and timelines and milestones for measuring progress toward achieving the goals will be developed.  This approach will result in coordinated, multi-location research, conducted by ARS scientists and their cooperators, to address high priority regional and national research needs.  All projects associated with the Bioenergy and Energry Alternatives National Program were evaluated for scientific quality by an external peer panel in May 2004.

Vision Statement:  
America's energy needs met using renewable sources

Mission Statement:
To create jobs and economic activity in America, reduce the Nation's dependence on foreign oil, and improve the environment by developing alternate energy sources and increasing the use of agricultural crops as feedstocks for biofuels.

Program Objectives:
- Reduce our Nation's dependency on foreign oil
- Decrease environmental pollution
- Enhance farm income
- Create jobs in the rural sector and elsewhere
- Sustainably use renewable agricultural resources 
- Alleviate America's trade imbalance

National Program Workshop - April 15, 1999, Beltsville, MD
This workshop was a critical component of the development of this Action Plan.  In general, the stakeholders supported the ongoing research in ethanol and biodiesel.  One outcome of the workshop was the decision to add Energy Crops research as a component of the Bioenergy and Energy Alternatives National Program.