Biobased Products Make the Grade

BIOBASED PRODUCTS MAKE THE GRADE

In Iowa, just about everyone appreciates the huge potential of ethanol and biodiesel, made from our abundant corn and soybean crops. But how many Iowans are aware of the many additional products that can be made from corn, soybeans, and other forms of biomass? Biobased products - ranging from paint to plastics, even home insulation materials - are already available for purchase, and more are on the way.

Still, petroleum-based products dominate the marketplace. Did you know that less than one half of each barrel of oil consumed in the U.S. goes to produce gasoline? Much of the remainder is used to make a wide range of products, such as fuel additives, synthetic clothing and industrial lubricants. Our continuing reliance on imported oil has major negative consequences for the environment, our economy and our relations with the world.

Fortunately, America is beginning to chart a new course. Under the 2002 farm bill, all federal agencies are required to purchase biobased products specified by the U.S. Department of Agriculture (USDA) as long as those products are available, reasonably priced and perform well. This requirement can be a huge benefit to biobased producers because the federal government is the nation's largest consumer, with more than $230 billion in annual purchases.

On January 11, USDA issued guidelines for federal agencies to follow when purchasing biobased products. But before these biobased purchases happen, USDA still must issue a list of approved products. This list is likely to include products such as soy grease, corn-based plastics and industrial cleaners. In addition to those products included on the preference list, USDA will approve a "USDA Certified Biobased Product" label to inform all purchasers, not just the federal government, that the biobased products they are purchasing meet USDA standards.

When the biobased purchasing preference is fully implemented, it will be a boon to Iowa's farmers as well as to manufacturers of biobased products, especially in our rural communities. It will mean higher revenue for farm crops, plus a boost to in new biotechnology-related jobs.

By some estimates, if the United States were to triple its use of biobased products by 2010, farmers and rural communities would realize some $20 billion in new income each year. The Department of Energy predicts the result would be 50,000 new high-tech jobs in small processing plants across rural America and up to 130,000 jobs in the biopower and biofuels industries, i.e. ethanol and biodiesel.

Biobased products are environmentally friendlier than their petroleum counterparts. Their production does not contribute to global warming and growing the biomass they are made from removes carbon dioxide from the atmosphere. Contrast this with petroleum, which releases about 25 percent of its carbon into the atmosphere during the manufacturing process. Consider also that biobased products are biodegradable and you get a clearer picture of the environmental as well as economic promise these products provide.

On several fronts, Iowa is leading the way in developing the new bioeconomy. Iowa State University is working with biobased product manufacturers to participate in the federal purchasing program, and is helping USDA to create the infrastructure necessary to carry it out. A group called BIOWA is spearheading Iowa's leadership role in bioeconomic development in government, academia, and industry. These and other activities complement federal initiatives to bring the bioeconomy into full bloom.

As I've said many times before, just about any product that we now make from oil we can also make from crops grown right here in Iowa. Early in the 20th Century, Henry Ford proved this to be true, making car parts and plastics from soybeans. In the 21st Century we must rededicate ourselves - here in Iowa and in Washington - to seizing the enormous potential of the bioeconomy. This will be good for jobs and economic development. It will be friendly to our environment. And it will be a major step toward energy independence.

http://harkin.senate.gov/column.cfm?id=231186