Grow it Here, Make it Here: Biobased Products Showcased by Senate Committee on Agriculture

On Tuesday, June 17, the Senate Committee on Agriculture, Forestry, and Nutrition held a hearing as well as an industry expo, titled “Grow it Here, Make it Here: Creating Jobs through Bio-Based Manufacturing,” which highlighted the provision’s benefit to local economies, jobs, and the agricultural sector.  The provisions for renewable chemicals were expanded in the 2014 Farm Bill, providing a boost to a growing industry that manufactures an enormous variety of products sourced from biobased materials. The Biorefinery Assistance Program, Section 9003 of the Energy Title, expands eligible end-products to include renewable chemicals sourced from biomass feedstocks, and also includes facilities and equipment which manufacture products sourced from renewable chemicals.

During the hearing, Chairwoman Stabenow enthused about the job creation possible with Farm Bill provisions, stating, … “the Farm Bill is really a jobs bill. One of the biggest ways the farm bill is creating jobs is biobased materials. We recognize the connection between agriculture and manufacturing.  We don’t have an economy unless we grow things and make things.” Her enthusiasm is warranted – while representing only 1 percent of Farm Bill spending, the benefits of U.S. biobased products manufacturing are enormous.  According to a report prepared for the USDA by Nexant, bio-based products could add $775 million dollars to the U.S. economy by 2017 and $3 billion annually by 2022. Additionally, this sector has the power to create 19,000 new jobs by 2022. With federal support, the USDA estimates that up to 20 percent of the petroleum-based plastic and chemicals feedstocks could be replaced with bio-based chemicals and plastics. A 20 percent replacement would not only significantly displace carbon-intensive petroleum products -- it could create over 100,000 U.S. jobs.  

Biobased products were on display at the Senate Biobased Products Expo on the same day – with over 30 companies from around the U.S. showcasing the range of products that can be made from a variety of feedstocks that include agricultural by-products and food waste, forestry residues, and even fungi, yes -- mushrooms! The products themselves range from pharmaceuticals, solvents, lubricants, packaging, foam insulation, construction material, fibers for 3-D printing, car parts, detergents, food additives and flavors, clothing, carpets, cleaning products – the list is endless.  Already, there are more than 3,000 U.S. companies that manufacture biobased products.  Hearing witness David Vitters, General Manager, PlantBottle Innovation Platform from Coca-Cola, spoke to the fact that most biochemicals are sourced from agricultural co-products, wastes and residues, commenting that “for some the growing emergence of renewable chemicals and bio-based products may raise questions regarding the sustainability of using harvested agricultural biomass. As one of the largest buyers of sugars and starches in the world I can assure that any trend with the potential of negatively impacting food and feed supplies would be of significant concern to our company.”  

Tim Colonnese, president and CEO of KTM Industries, commented that the new loan guarantees offered through the Biorefinery Assistance Program will allow his company to build another plant, stating, “this part of the farm bill will be instrumental in us finding the financing to support it … We are a small company. We don’t have deep pockets, and this is the type of legislation that is really going to make a difference with us because we wouldn’t gain access to that kind of financing.”  Further delays in the final announcements of the 2014 Renewable Volume Obligates – which have created uncertainty in the investment community, have undoubtedly slowed the biobased chemicals industry, which relies on biorefineries.   Proposed cuts to mandatory funding in the Farm Bill’s Energy Title, in the House Agriculture Appropriations bill also sow doubt in the industry – not just one that produces ethanol, but small and large manufacturers that produce every type of chemical and product imaginable from sustainably-sourced biomass. 

The primary federal biobased chemical labeling program is the USDA’s BioPreferred Label, which certifies products for procurement through the federal purchasing process, as well as providing a certification label for biobased consumer products.  As of late 2012, 900 products had been certified through the USDA program.  Just imagine, one day the USDA BioPreferred label could reach the star status of its sister label, the USDA Organic label.  Consumers could enjoy a robust array of sustainably sourced products, made here in the United States, reducing our use of imported petroleum, diverting wastes from landfills and supporting a diverse U.S. biobased industry.  While the advancements in biobased products is exciting, policy stability is needed going forward. 

For more information see:

Grow it Here, Make it Here: Creating Jobs through Bio Based Manufacturing, Senate Committee on Agriculture, Nutrition & Forestry

Grow it Here, Make it Here, and Create Jobs, The Hill

Michigan Companies promote their Biobased Products in Washington, The Detroit News 

USDA BioPreferred Program Overview, USDA