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FOR IMMEDIATE RELEASE
May 6, 2008
Contact:  Erin Marsicano
(717) 787-3817
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HARRISBURG – Today the Senate Agriculture and Rural Affairs Committee approved Senator Mike Waugh’s (R-28) Senate Bill 1317, which would establish the Farms to Fuels Initiative to encourage farmers to plant bioenergy crops for use as a source in the production of cellulosic ethanol.

“Planting of such crops is a long term risk that would involve the removal of good cash crops from production,” said Waugh. “Development of bioenergy crops takes between 2-3 years, which can present a difficult decision for farmers that are considering replacing cash crops such as corn or soybeans with bioenergy crops.”

SB 1317 is an expanded version of Senate Bill 41, which was introduced for the special session on energy. That legislation establishes a free-standing act, the Switch Grass to Energy Planting Program (STEPP). Both bills call for an incentive program, but SB 1317 opens the door for crops other than switch grass.

“While switch grass is growing in popularity as an alternative to corn for the use in ethanol production, there are many other crops that are just as suitable and beneficial,” said Waugh. “So, it was important to me to expand the reach of my legislation.”

The Farms to Fuels Initiative would provide farmers with a per-acre subsidy, which would be spread across three years to allow the crop to mature. The subsidy would be $150 per acre for the first year; for the second year, $100 per acre; and for the third year, $50 per acre, with a limit of $100,000 total over the three years.

“Although I have traditionally not been a proponent of subsidies, I believe these are warranted because cellulosic ethanol provides a very real opportunity for our farmers and the Commonwealth,” said Waugh. “If we intend to make Pennsylvania a leader in the production of fuel from these crops within the next few years, then this measure is critical.”

SB 1317 includes a $10 million appropriation for the program to be administered by the state Department of Agriculture. The state’s conservation districts would receive 10 percent of that appropriation, in exchange for providing technical assistance to participants.

The bill also received its first of three required considerations by the full Senate today.