the spread. and so they don't necessarily have to wait for law enforcers to act. later, admiral john

richardson talks about navel

operation answers maritime security. next, agriculture secretary tom vilsack talks about the biobased industry and its impact on the economy and talks about how the industry creating jobs for rural america. from the national press club, this is an hour. [ applause ] tom vilsack, a pittsburgh native and former governor of iowa is the only original member of president barack obama's cabinet still serving in the administration and he hasn't been quiet about food or politics. vilsack recently ran for the white house in the 2008 presidential race and was considered by hillary clinton as a potential running mate during election cycle. he endorsed clinton in 2008 and 2016. campaigning for her in the crucial state of iowa. earlier this year, appearing on

nbc's "meet the press," comparing donald trump to bern made off. at the usda, secretary vilsack has a vast portfolio from food safety and secure it to healthy school meal coordination to coordinate the white house efforts to fight heroin use in rural communities. his efforts are generated in part from his own childhood. adopted as an orphan he spoke with his mother's struggle of alcoholism and how it motivated his concern for the less fortune, especially those in rural areas. also efforts to open cuba to exports and thinks biofuels can benefit small towns across the nation. i skipped a line there. act of support of the controversial 12 nation trade

that both donald trump and hillary clinton oppose. he says without this deal the u.s. farmers are competitive disadvantage against china. please give a warm national welcome to secretary vilsack. [ applause ] >> thomas, thank you very much. thank you. thomas, thanks very much. i appreciate the opportunity to return to the press club. it's always an opportunity and privilege to be here representing the department of agriculture and obama administration. i do want to make sure that i am clear about it because my colleague, shawn donovan, wants to remind me that he too is still part of the obama administration. he started with hud and now is b director. i wanted to specifically mention three people at the head table. certainly everyone at the head table is significant but i want to point out, good to see my good friends, krista harden, doing a great job at dupont and

incredibly great job at department of agriculture in a variety of capacities. my chief of staff, the deputy, did a fabulous job and good to see her. very good friend. close friend other johnson who represent a lot of the farmers that we're going to talk about today. people that can benefit from a bioeconomy. roger and the national farmers union have been incredible and people who can afford to expand the bioeconomy. and a tremendous partner with the in ethanol and biofuels is a strong advocate in url community. i'm here today to talk about the biobased economy and specifically the economic impact analysis that we are publishinging today of the u.s. biobased product industry. this is the suh second such study we have with the duke center for sustainability and

the commerce and supply clan chain. this industry add $369 billion impact on our ekpon my, helping to support nearly 4 million jobs throughout the united states. this is an industry about fuel production, but much more than that. it's about chemicals, plastics, cleaning textiles, lubricants, insulation materials and packing materials. virtually touches every aspect of our economy. this year's report suggest this a continues growed growing and growth industry. this report reflect $24 billion increase in the impact that biobased economy is having over

the. it is supporting over 2,000 more jobs than last year at 4.2 million. this is an industry that helped move the unemployment rate in rural america down from the high of over 10% to less than 6% for the first time in approximately ten years. also the industry helping to reverse the job loss that we saw in rural america during the great recession and we're now for the first time in a while beginning to see job growth. it's also one of the reasons we are beginning to see a stability to the rural population. no longer declining. and poverty rate reduction. a significant aspect of the rule economy and one that i think has tremendous opportunities to continue to grow. it's also an industry better for the environment. it's interesting to me that in the ten years of the renewable fuel standard, we have seen a remarkable reduction of admissions equivalent to taking 1 it 4 million off the road. if you're interested in rural

development, interested in a strong american economy, you're interested in greater energy independence. interested in a cleaner environment then you need to be interested in the biowaysed economy. it is one of four what we call pillars at usda, to revise and revap the economy. opportunity to expand local and regional food systems, conservation, not just for the sake of conservation but also as an investment opportunity for regulated industries to satisfy regulatory responsibilities through market and manufacturing returning to america through the biobased economy. as part of the white house rural council, department of energy and department of the navy, came together with the department of agriculture to address the need for our navy to expand and diversify its energy sources. in the past, when the pacific

fleet was doing exercises in the pacific theater they would rely on energy supply answers fuel supplies that came from the middle east. today we are beginning to expand an opportunity for domestically produced biofuels. to fuel our jets, planes, ships. to be able to allow for greater independent. greater flexibility. protecting the brave men and women who sefbness uniform. this is a result of tremendous cooperation between the navy to create a drop in aviation fuel industry. one that did not exist a few years ago. we recently invest fled a bioprocessing facility taking landfill waste, agriculture waste and turning it into a fuel that's not only of interest to navy but also commercial aviation interest. we will have the equivalent of 12,500 flights from lax this

year. basically out lieding a plited fuel and alaska airlines says they were fuelly committed to using biofuels. >> this is an opportunity for us to create a new ipd us try for the united states. this administration has taken a very comprehensive approach. all too often the conversation in this town has been about the rfs. as important as that is, there are other component to support. for example, we have really focused at usda on feed stock development. on moving away from eye alliance on just corn-based food and open up a wide variety opportunity. we have worked for example with nearly a thousand growers across the country. under our bioassistance program. to essentially pay those farmers to produce alternative energy crops on roughly 48 thousand acres. we have made sure that they understand we are puttinging the

full force of by focussing on risk management tool that allow them to have the same crop investment that majority crops have. we have invested over $300 million in research in feed stock and looking at genome research, how to be more creative, and more innovative. one of the reasons we've seen production fa facilities be more ready than in the past. we will give folks the ability to determine in their particular region what kind of food stocks meet the most sense. we have also worked with over 400 companies investing nearly $300 million in 47 states to encourage an expansion of this industry to include energy and fuel production as well as chemicals and textiles add i

said earlier. we've been able to have these 400 companies produce a little over 8.6 billion gallons of fuel. there is about 63 billion killa watts of power. this is incredibly exciting part of our economy. part of the clean energy economy we are now growing and developing in this country. we are also looking at major projects. large scale projects. we have financed six major processing facilities since i've been secretary, about $844 million in loan guarantees establish ped. we have also looked a the opportunities in our forest. biomass for the creation of these fuels and products and hope fund projects in the western part of the united states. we're looking for expanded markets in addition to creating more creative and innovative

feed stocks. looking at ways in which we can process hem more efficiently and effectively. we are also looking at where we can sell these product. we've had the best year of agricultural in buy why fuels anywhere in the country. in 2011 we reached number one year. so we have seen an expansion of exports. we have worked with the commercial aviation industry with the goal of producing 1 billion commercial aeration fools in the very near future. invested almost $1.5 billion in 12,000 businesses across the united states producing these new products from bio-based plant-based materials. we have worked with our commercial aviation industry and even looked at purchasing power of the federal government. ability of our purchasing power as federal agency, we've identified 15,000 products that are in a catalog that agencies

can purchase that are biobase. we have seen a tremendous replacement as a result of these purchases of nearly 6.8 million barrels of oil that would have gone into product we have traditionally purchased. and we want the american consumer to be engaged in this activity as well. we have developed a biobased labelling program. it started out small. just a couple hundred items labelled. now consumers have access to roughly 2700 product they can purchase off the shelf. they see a usda biobased label, it tells them that this is something that is supporting rural america. it is important for us to put in in the context of why all there is important. in addition to the clean energy aspect of this, this is about taking the natural resource advantage that we have in rural america and expanding its

capacity. we relied simile op production agriculture and experts to support the rural economy. it is incredibly more efficient and in my lifetime we have seen 170% increase in agricultural production. on 26% less land and 22 million fewer farmers. the challenge was that our country didn't ask the question as we were becoming more efishent in production agriculture. what are we doing with the 22 million families no longer farming? how can we create opportunities for them if they so desire to stay in their small community in their rural area. how can we create job opportunity for their children and grandchildren in this administration is asking that question and has put together a comprehensive effort. based on the four pillars to create multiple opportunities, seizing and utilizing our natural resource advantage. biobased manufacturing industry is one that holds out tremendous hope for rural america because of the nature of the

bioprocessing that needs to take place. the quantity of biomass that we produce in this country is almost unlimited. and there is a tremendous opportunity here because it's not as if you have one refinery like you do with the oil industry that servicees a multitude of state. the size and bulk of biomass requires that you have processing facilities every 75, 100, 150 miles. so it's an opportunity in virtually multiple locations and every state that has rural counties for us to bring manufacturing back. ability to construct, maintain, and operate these processing facilities can add 20, 50, 100 jobs to a small down. it can have a rippling effect through the economy. that's why it was important for this administration to take a holistic approach. looking not just at promote willing ethanol as important as that is, but expanding horizons. expanding the vision.

understanding that we need to do more research and feed stock. understanding that we needed to help small companies that were in these rural areas helping to produce more of these buy products and co-products. we could in fact meet the need of the defense department for one-half of all of its fuel needs in the navy being met from biofuel. that's tremendous new market opportunity. listening to commercial aviation and satisfying international air mission requirements. opportunity for us to help develop research at a variety of universities looking at natural resource advantage of each area of the united states. and allowing us to do an even better job of dealing with the changing climate that takes place and is changing the way in which agriculture is being approached and in terms of the changing climate and the ability to make sure we are constantly one step ahead of mother nature if you will as we create new opportunities expand on existing

opportunities in rural america. in every speech i give, i often point out the importance of rural america. and i'll finish with this before questions. rural america is the place where most of what we just consumed that wonderful meal came from. by a lot of hardworking farm families. rural america is where most of the water we have at our table today was ineffective. the lights that's on here and electricity transmitting this speech throughout the country. rural america is the place that is disproportionately send sons and daughters into the military. roughly 15% of america's population lives in rural america but nearly 35 to 40% of its military comes from rural america. rural america is also the place that has provided every person in this room and ef person listening to this who is not a farmer to make the decision in their life not to be a farmer.

you see we have either consciously or unconsciously delegated the responsibility of feeding ourselves and our families to countless number of people across the united states. who work hard every single day. to put food on our table. we are capable of producing enough to feed ourselves. we don't have to depend on any other nation in the world to feed our people. hardly anybody in the world can say that. rs and when we walk out of a grocery store, all of us have a little more money in our pocket in percentage to our income compared to every other place in the world because we only spend about 10% of our income on groceries and food. it is a tremendous gift we get every single day from this place called rural america. so it is incumbent on us to make sure that we preserve opportunities and choice for young people who grow up in these small towns and on those farms to live there if they choose.

or for those who have left to come back just earlier today i had the opportunity to visit with six veterans of armed forces representing every branch of the armed forces. they have just begun working for the united states department of agriculture. 1 of 11,000 veterans we've hired since i became secretary. they came us to because they wanted to get close to their roots. they wanted to take advantage to what they have in the military and give something back. it's an exciting new opportunity for the six individuals. and we are opening up that opportunity by creating a more diverse rural economy so that we continue to have young people live, work and raise their families in those rural community so it can continue it contribute to the greatest and strongest nation on earth. that's why we celebrate this report today. because it is an indication that it is a rural economy. there is a plan, strategy, investment and opportunity. i'm excited about that and this

report to the extent we've seen significant growth in just one year should hold out hope for all those concerns about the future of rural america. it's back. and despite the fact we're dealing with low commodity prices, i think the long-term future, long-term prospects and horizons for rural america are very, very positive. i want to thank the press club for giving me this opportunity and i want to take the opportunity to answer any questions that you can read. [ applause ] >> thank you, mr. secretary. let me follow up on the topic of your speech real fast. what kind of job training and education will be needed to kind of transition and improve and boost the biofuel production and what is usda doing to help with that? >> well, i think one of the things that we continue to do is to innovate and create new way to produce biofuels and make them more efish lint produced.

there is a fre mendous amount of entrepreneurship in this industry. and the main source of training is in our community college system. the ability of community college is to look at these new bioprocessing facilities located in their community and asking those who will be owning and operating these facilities what kind of workers do you need. i think it also will put a tremendous premium on those who can construct, those who can weld, those who can put structures together. i was in a small welding facility in lee county iowa not long ago, seeing an expanding small business that interestingly enough just opened up its new solar energy system that is eventually going to reduce its overall operating cost. and very proud they were that innovative. their work force, if you will, connected to the biobased economy. tied very critically to the community college system.

we help community colleges. we help universities through a variety of ways. loan programs and grant programs that help equip those schools and most of our research is funneld through our grant university system. so in way we are helping create the innovative approaches that will help require a new work force. once we send that signal to the marketplace then the marketplace send to community colleges. this is what we need. more welders. more foks who know how to operate these facilities. how to prepare the facility. there are, you know, a tremendous amount of technology and computer technology that's ignored. also it is important. that's why it is important -- we have done that and several projects but we need to make a commitment, i believe, that

everyone has access to high speed broadband. >> you fit a lot into that answer. how expense sieve buy why fuel production compared to traditional fuels. >> i will tell you this. that american consumers are benefitted from biofuels. there are a variety of studies depending on the price of actual at the point in time. but the lowest savings is about 25 cents a gallon on the gallon that you're purchasing at the pump and when gas prices are high it can be as much as a dollar a gallon. it reducing reliance on foreign oil. it has become far more efficient. i think part of the clael is that many of those who have concerns about it are basing those concerns on research that was done or on studies concluded decades ago. this is a much more efficient innovative industry than it has been. there's constant, constant

efforts to improve the efficiency. one of the great things about the industry is not just the fuel it produced but also the buy products. often times you will see one of these facilities providing co2 to a brewery, to a micro brewery. so there are tremendous synergies that occur within an industry like this in a bioprocessing facility. as we learn more about how to convert buy why pass into everything. plastics. everything in the economy can be plant-based and balance our reliance on fossil fuels. so it's very competitive with regularly produced gas and it results in a significant savings to the consuming public at the pump. >> this question notes the agriculture is extremely thankful with the usda economy but is usda disappointed that

the be a you'll crops aren't low carbon and should be regulated as fossil fuels? >> i think part of the challenge of an emerging industry that has a decade or two of history as opposed to one that has a longer history is we have to constantly reeducate and educate folks about advancements made. we're doing that. we're looking forward in the next month or two to putting out a study of land use in terms of biofuel production. i think it's going to surprise people in terms of the efficiencies that have occurred in this ind truss try. and i think it is part of our effort to do our job to make sure that decision makers both at federal and state level are aware of the most up-to-date research. most up-to-date information bp we did a literature search recently that compiled all of the new research that gives a much better picture, that

establishes there is more energy produced for example with a gallon of ethanol than in the past. from our perspective it is more energy efficient, if you will, than a barrel of oil. >> the airline ind us stray large user of fuel. can biofuel be use foed are commercial aircraft? if not, is there ways to adjust that so they can be used. >> not only can they, they are. that's why i mentioned the fact of the equivalent of 12,500 flight from lax are being fueled on blended by alaska airlines making the commitment. here eat challenge, this industry was going to allow your car or truck to use biofuel. we are now in the process of trying to encourage the industry at large to expand access to higher blend of ethanol.