America’s Energy Needs and a
Balanced Proposal for Using Wood Fiber
W
hen a US federal subsidy program threatened to consume the entire market for composite wood panel furnish in November 2009, the survival instinct of all affected industries was triggered in a way never witnessed before. The early results were a win for domestic manufacturers of panel products, wood-based decorative surfacing materials, and the finished goods made with them. But the other contenders are still marshalling their forces for a new phase of the war. Beginning in late 2009, considerable industry resources were expended to first, turn off a $500-plus million federally-funded spigot and then to insist that the federal government rethink its rules to ensure that “higher value” use of residual wood materials is not put in jeopardy by a controversial though well-intended energy policy. Though the unintended consequence of the US Department of Agriculture’s (USDA) Biomass Crop Assistance Program (BCAP) was ultimately blunted, we should take a moment to better understand what BCAP actually was – a wake-up call. BCAP took a distant, seemingly innocuous concern and made an impact that was as acute as it was immediate. Realistically, subsidizing $1 for $1 for up to $45 per dry ton of wood in a matching payment program was no more than the federal government tipping its hand to future renewable energy development in this country. According to the Energy Information Administration (EIA), the US consumed more than 94 quadrillion BtU of energy in 2009. To put
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that into perspective, that’s enough power for every individual on earth (more than 6 billion) to each brew 42 pots of coffee per day for an entire year. Of that 94 quadrillion BtU, only 8% was supplied by what are defined as renewable resources (wind, solar, hydropower, geothermal and biomass). Few can reasonably question the need to develop alternative sources of energy. Soaring prices for petroleum and a dependence on foreign entities make compelling cost and national security arguments, respectively. Recent tragedies in Pennsylvania and Chilean coal mines, Gulf of Mexico oil rigs and Japanese nuclear reactors beckon for safer, more environmentally friendly energy. With needs so apparent, one might ask why renewable resources constitute only a small fraction of the current US energy portfolio. Most renewable energy resources are dependent on naturally occurring (not necessarily recurring) phenomenon for successfully harnessing energy. Wind, as an example, is a reliable energy source as long as you are located along a coastline or in Plains states where windy days are abundant. Solar power is reliable in the southwestern US, but less so in the Pacific Northwest where cloudy days are the norm. But beyond issues of geography and geology, renewable technologies are only now emerging and require substantial capital investments. Support by the federal government in the form of subsidies, tax credits and incentives are required to promote the development of renewable energy markets.
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