[Congressional Record (Bound Edition), Volume 148 (2002), Part 1]
[Extensions of Remarks]
[Page 864]
[From the U.S. Government Publishing Office, www.gpo.gov]




             BIOENERGY INVESTMENT AND OPPORTUNITY (BIO) ACT

                                 ______
                                 

                           HON. JOHN R. THUNE

                            of south dakota

                    in the house of representatives

                       Thursday, February 7, 2002

  Mr. THUNE. Mr. Speaker, recently, I hosted two value-added 
agriculture round-table discussions in South Dakota to hear about the 
progress and concerns that farmers are having with value-added 
agriculture. A program that was brought to my attention that has been 
very helpful to ethanol and biodiesel plants is the Bioenergy Program. 
In South Dakota, the Bioenergy Program is currently used by Dakota 
Ethanol of Wentworth, Heartland Grain Fuels of Aberdeen, Broin 
Enterprises of Scotland and JPJ Enterprises of Humboldt.
  The program is important because it stimulates industrial consumption 
of agricultural commodities by promoting their use in bioenergy 
production. Bioenergy producers that increase their consumption of 
eligible commodities receive payments to offset part of the cost of 
buying the additional commodities. According to USDA, the Bioenergy 
Program for FY 2001 resulted in a production increase of 141.3 million 
gallons of ethanol and 6.4 million gallons of biodiesel.
  Today I have introduced the Bioenergy Investment and Opportunity 
(BIO) Act. The bill would authorize and expand the United States 
Department of Agriculture (USDA) Bioenergy Program through FY 2011.
  By authorizing the Bioenergy Program we will promote value-added 
agriculture and increase production of bioenergy, such as ethanol and 
biodiesel, expanding industrial consumption of agricultural 
commodities. The program was initiated by an Executive Order of 
President Clinton and has been continued by President Bush, but it 
expires at the end of FY 2002.
  Under the current program, USDA makes up to $150 million in payments 
annually. The BIO Act expands the payments to $200 million annually. 
The Commodity Credit Corporation (CCC) makes cash payments to bioenergy 
producers by compensating them for a portion of their increased 
commodity purchases made to expand existing production of bioenergy and 
to encourage the construction of new production capacity.
  Mr. Speaker, increased bioenergy production helps strengthen the 
income of soybean, corn, and other producers and lessens U.S. 
dependence on traditional energy sources. As I introduce the BIO Act 
today, I ask for the support of the other Members of this House and the 
Administration in continuing and expanding this important program.

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