reinford farm. we came down to washington with our chevy volt. we ran utility of energy and we couldn't find out any outlet to plug it in. a little side kick there. the deciding factor with me for putting the system in play was actually because of the grants i got from reap and also from the local banks. and so i'm a big supporter of this whole technology and i'm kind of running out of time. i just want to say a big thank you for my family. i have another picture. i think you guys got my paper i sent down here. i want to say thank you to my sons publicly. it helps bring the next generation into dairy farmers. i'm not used to running on a time clock here. sorry about that. i'm passionate about this technology and i'm willing to stick my neck out to promote this for future generations and

for agriculture. i think it's an amazing technology. thank you, mr. chairman. >> thank you, mr. reinford, we'll make sure the folks in washington who need to plug in their volt there is a place in pennsylvania where they can get that done. >> mr. haer. >> thank you for the opportunity to testify on the entitlement program, the bio -- bcap it's called.

>> in 2008 we began writing the next chapter, biomass. in 2011 betook a major step forward to form mfa biomass, with the mission of leading the cooperative into this new renewable energy field. for more information about our innovation, please refer to my written testimony. when usda issued the final bcap rule they said, quote, b-cap will address a classic chicken-and-egg challenge. if they're to have sufficient feed stocks established --

[ no audio ] . >> it allowed to us leverage other resources to develop a four-row planter, plant propagation acres and lower the cost of planting. to that end b-cap was essential to bridging the gap with our producers to take that leap of faith. today 225 family farmers have dedicated acres to the new energy crop and we anticipate this number will grow to over 2,000 as our combined projects scale up to maturity at 50,000 acres per region. all of this is occurring on land that had been underutilized or was earning very little.

no other federal program has this broad effect on america's biomass renewable energy industry. b-cap is a game changer but only if it's administered properly and funded consistently. while usda committed resources to fund our first year of a seven-year model, we had to adopt our model and the pace of implementation due to the drastic funding cuts of 2012. despite our significant successes, the absence of a clear direction in federal policy is forcing us to scale back in each of our project areas. we are in a situation where it is impossible to plan six months out, let alone the three to five years necessary to run a business. consistent funding is the story here. expanding our renewable energy industry cannot be done in a laboratory or in theory. farming is advanced by doing.

you cannot ferret out all the complexities of such a unique crop and independently scale up 200,000 acres in four project areas after only one year of funding. a b-cap program funded one day and cut another will ultimately do more harm than good. i strongly support reducing our nation's deficit and tackling the rising debt. in fact, u.s. farmers have led the way, establishing a fiscal record that is unique among federal policies. i understand tight budget constraints will be a major issue in the 2012 farm bill and encourage careful review of all the programs. in doing so i believe you'll find that b-cap is worthy of continuing and should any funding be available, i strongly

request you to district court it toward this program funding. most importantly, usda needs to have the plex eblt to see existing projects through to maturity. in closing we have advanced opportunities for our farmer members and we are overcoming the chickened-and-egg problem by successfully leveraging b-cap the way it was intended. again, i thank you for this opportunity to testify and look forward to any questions. >> thank you, mr. taylor. now recognize the chair for five minutes of testimony, please. >> thank you. on behalf of the national biodiesel board i'm grateful for the opportunity to testify today regarding the farm bill energy title. i'm gary haer, vice president of

sales and marketing for u.s. energy group. our company has biodiesel production facilities in minnesota, texas, iowa, illinois and we're working to reopen biodiesel facilities in louisiana, new mexico and kansas. our focus is on converting natural fats, oils and greases into advanced biofuel. currently i have the privilege of serving as charl of the national biodiesel board and trade association. like diesel fuel, it's used in truck, trains, mining operations and heating oil. it's used in existing diesel engines without modification and it made from a broad diversity of feed stocks, including actual

oil -- there are approximately 200 facilities across the country and produced 1.1 billion gallons of advanced biofuel, breaks the billion gallon mark for the first time in our industry's show history. our trade association, the mbb, works closely with a number of divorce feed stock organizations, including the national renderer's sociassocia, national soy bean association, national canola association and national restaurant association. in fact, 13 of the distinguished members on this subcommittee have at least one plant in your

district,including representatives lucas, peterson, thompson, holdman, stetsman, gibbs, fultz camp, mcentire, walls, owens, ingri, fudge and nome. the other nine members have biodiesel plants located in your states. it's estimated those plants and others like them supported over 39,000 jobs in 2011. this generated household uncome of more than $2.1 billion and created more than $3.8 million in gdp. in addition to creating direct manufacturing jobs, our diversified feed stocks and coal products represent expanding

markets for u.s. farmer, renderer producers and restaurant owners. you can understand why programs supporting dieio diesel of a critical piece of the next farm bill. first, the education program play as vital role in helping expand marketplace and acceptance and use of biodiesel. the industry has conducted market outreach, industry coordination, fleet and trucker outreach, petroleum supply chain education, biodiesel research and we work cooperatively with the petroleum marketing

association and the society of independent gasoline marketers on key infrastructure. engine manufacturers kwaernity their enjis to accept b-5 or b-20. many manufacturers are promoting biodiesel capacity and capability. ford has recently begun featuring a biodiesel vehicle. in fact, many new holland tractors are warranted. we are urging the economy to

reauthorize the program for biofuel. it's helped the industry to maintain a stable manufacturing base as we -- biodiesel is part of the all of the above energy strategy. in. with domestically reduced alternatives to soil oil, we can reduce the a recent gallop poll showed that nearly two third of america support continuing incentives for developing, the conclusion bough is proud that is readily available and accepted across the country. we have both the capacity and available feed stocks to increase production and further

expand markets for agricultural feed stocks and the farm bill programs we've discussed will help our small but growing industry gain a sustainable presence in the u.s. fuels marketplace. again, i appreciate the opportunity to testify on behalf of the u.s. biodiesel industry. we appreciate the support for the growing buyos diesel industry. thank you. >> there were votes called for in the house ament or so ago. my intention is that we'll get through probably about ten minutes of questioning, which will be -- and then we're going to have to recess until after this vote series is over on the house floor. so the plan will be that we will reconvene ten minutes from the start of the last vote on the house floor to give everybody a benchmark. i appreciate everybody's patience on that.

so the chair would like to remind members that they will be recognized for questioning in the order of seniority for members who were here at the start of the hearing. after that they'll be recognized in the order of arrival. i now recognize myself for five minutes. mr. reinford, can you talk about what kind of future applications and opportunities might there be for this energy given your on the field, on-the-ground experience with -- on your farm that you've seen. >> that's good. yeah, i have accessed methane right now. we're looking at compressing it, using it for our trucks, our dump trucks so utilizing that technology. there is a farm out of indiana,

they're hauling north with a compressor. i think we're there was -- if we can bring something else in here, we can be fossil fuel free. that's kind of what we're looking at right now. >> when you're looking at the cng with your trucks, tractor, that type thing, you have really looked at the numbers? is that economically something this works for you in terms of making that conversion? you have the fuel readily available. >> the numbers of br 270 the up thumb --

>> mr. greenwell, you suggested energy programs such as the biobased market programs are fostering innovation and cited a biorefinery in louisiana. can you give me any other examples of how these programs help drive innovation? especially innovation of new technologies? >> certainly. thank you for the question. the newest part of all of this is really the ability to convert cellulose into -- and sugars that can then be distilled into ethanol. we've known hough to take the starch part of the plants and turn it too anything a since e the -- they evolved it into a product to be structural. the problem is how can we use

biotechnology to develop inziems that can break down that material. that's what our companies have succeeded in doing now and that's what we're moving towards commercialization with, the ability to then use -- for farmers to take two jobs, when they sell them the way they ordinarily do. but so to be able to use your corn stocks you don't a little cold, to be able to use all of that on land that might not be that usable for normal agriculturier. this is the advanced biofuels which i think our nation is ultimately, if we succeed at this, going to depend on and will give us all of the independent pouf herd from who ares and a environmentally sustainable way of producing energy. >> mr. taylor, what kind of

policy would you suggest to ensure that b-cap dollars are being spent where they were intended in. >> i think as we all know b-cap got off to a rough start with matching payments and i think that's a testimony to the difficulty of solving this chicken and but the one recommendation we would make, there's a tennessee in the rool to spread the many as far is possibl possible. to see projects through to maturity would be probably the number one recommendation. >> okay, thank you. now recognized for five minutes of questions. >> to set the record straight, mr. greenwood and myself are

proud pennsylvanians ourselves. those of us on this committee who were here in '02 and open 08 are proud of the work that we done the title. but the super committee had no mandatory funding. the united states senate ad committee has 800 million. we are in budget. if we could only fund three programs, what three would you recommend funding and where would you suggest to take the money from. >> mean? brian used to be my neighbor. >> well, i think that's a fair question. it's a difficult question. >> one we're facing, yeah. >> i know you you are. the situation is very difficult, you have to make some tough

decisions. >> i did four in my -- we think that the program have to keep t. we're appreciative of the work the senate was able to do. it's less than the 2008 bill had. it's still a significant investment. we think there are environmental national security and economic benefits to doing this. so we encourage the committee to do that. i don't know that i've got a silver bullet answer for you. we're here to make the case that these are vital programs and we'll work with you to try to find that funding. >> mr. greenwood? >> our priority would be that the refinery assistance program be capped and the biobased markets program. it is certainly one who served

with you for two years i understand the dire straits that this nation is facing in terms of our spending problems and our budget. this farm bill as a whole is a subsidy bill. it's a question of establishing priority. my message to you folks on this committee is to be very visionary in terms of what -- where is the future for our children. and i would argue that the future is going to depend upon our ability to make fuels in ways we haven't been able to before the science has brought us to this point. and shortly the market will take us the rest of the way. what we need from this committee is a bridge. the bridge to enable these entrepreneurs out there to demonstrate the commercial ability of these technologies and we're quite confident once they do with these loan

guarantees and so forth that the commercial bankers will move in and this country will be off to a grand adventure. >> anyone else care to comment? >> yes, thank you. i think the priority are not just amongst the decisions within subcommittee and the programs but as well as national priority. most analysts would predict that what we'll see in global btu or energy cost for the next decade are going to be substantially higher on an average level than we saw in the last decade. so a lot of these programs particularly b cap, a very difficult chicken and egg problem to solve, this has made i think the possibility very successful results more possible because the bar is in essence been lowered because of the price of energy being significantly higher. i think a that's one reason.

the other when we try to set priority that 75% of the oil in this country is transportation fuels. is used as transportation fuels. and that ceil lowsic fuel on the renewable fuel standard could be 36 billion gallons by 2022 is a very important goal. if that's to be achieved we're on the cusp of making breakthroughs we need to make. there's a great deal of activity of entrepreneurial activity to solve these problems. the cut the legs from these programs at this time, traes in my opinion would be bad timing it's all starting to work at this point. >> time is expired. >> i thank -- i ask your patience, we will recess. we'll reconvene for further

questions. ten minutes following the start of the final vote. thank you. >> we will reconvene. i need to apologize for the recess we had to take.

the only good news i can share is that votes are done for the day. so no more votes to interrupt on the floor. so at this time i'm pleased to recognize the gentleman from ohio mr. gibbs for five minutes. >> thank you, mr. chairman, thank you for holding this hearing. i've always been excited about the agriculture being a solution, move towards energy independence. mr. ryanford, a couple questions, on your die gesture when you run your dairy manure through it, what's after it's digested? what's left? what's the by-product? what's the material that's left? >> we ran it through a scoop press and we take all the solids out of it. after the solids are taken we use that for cow bedding. that's one of the biggest

incomes that's coming off this technology now. we're bedding cows with that and getting very good response. we're running around the 120 mark. that's a big plus for the dairy industry. the last three years we've been getting a bonus because of good quality milk. the nutrients it does not change. it doesn't take the nutrients out. it does change a form of nutrients. it's more available in the first year of planning. that's a big plus for us farmers. we actually double crop a lot. our farm has a lot of nutrients. we buy no commercial fertilizer except nitrogen. it's a big plus all around for us guys. >> you said there, i couldn't quite hear you, you said the nutrient part for the first year is a plus because it's more available? >> that's exactly right. it changes the form of nitrogen to a sulfur. it's more available to your crops. that through the penn state university studies.

guys tells me in the first year you use you will use up all your nutrients. we do all no tilling and no conservation tilling. it's a win-win for pennsylvania. >> that's why one of the reasons i've been so excited about this digesting is because it creates energy source and it also enhances the environment. you just said that because let's use foz frous, you're putting on the crops for the first year it's not sitting around there on the bank of the soil and if you have any erosion or wash off it becomes soluble phosphorous. second question, you know, i know there's lots of di gestures over in europe, germany, we're doing some in my area. there's still only about 200 in the country.

what's the -- when you talk to other farmers in the big roadblock for livestock operations to put in di gestures? >> that's a good question, too. the number one thing is for us farmers educating us. i'm on some of the pioneer work i'm training and educating farmers. some of the seminars we actually sold another -- just by seeing the efficiency of the digestion. germany right now they have 6800 last i studied. they have 100 cow dairies. they're telling us we need 800 kous. i disagree with that. >> what do you think would be the initial capital investment for a small one and let's turn to dairy operation, how many cows would make it feasible? >> well, that's a good question.

if you allow us to put food waste in there, we can go down as low as 200 cows, 300 cows. that's the thing that's making it so profitable. we're bringing other food stocks in here like food waste from walmarts and two other food chains that want to come on board with bringing that, but i need more digestures. >> what kind of capital cost do you think it would require? >> mine cost me $1.1 million. that's topnotch. that's everything. that's the whole thing. i think with some of the regulations now with some of the new motors we're talking maybe $1.5 million. improven to it. it can be done. we need more support to keep farmers encouraged. there's some money out there made available to chemothis technology going. it's good stuff. >> a kwib question on the b cap, what can we do to make it better?