New report just out from the Bipartisan Policy Center (reminder - the group co-founded by Senator Dole) as part of the Agriculture for the 21st Century project.

The report, Projected Impacts of Proposed Federal Renewable Portfolio Standards on the Kansas Economy, looks at both a 20% and 25% RES that generates electricity from wind and co-firing from cattle methane and biomass feedstock. Kansas has all of the above fuels in abundance.

Some of the findings:

- The stronger the RES, the better it is for farm income and job creation in renewables.

- Statewide, the projected 2015 economic activity from operating additional renewable facilities is $5.2 billion. This annual figure is projected to continue through 2025.

- By 2015, positive job growth would come to 95, 741 in direct renewables jobs, and 208,876 jobs total with the multiplier effect (additional jobs created from investment) (Table 12).

- If developed, the annual impacts from dedicated energy crop production and manure collection for co-firing are estimated at $66.9 million. Wind leases could bring in an additional $20.4 million to farmers each year.

- Under a 25% RES, renewables would increase Kansas yearly farm income by an average of $43,229. This amount would vary across the state, from a low of $837 in the Joplin area to a high of $65,735 in Wichita-Winfield. The Salina area ranked just behind Wichita at $58,117. (Appendix D)

- A federal RES has the potential to increase net farm income by nearly $87 million on the 63,800 Kansas farms.

- Under a federal RES, electricity prices will  increase slightly (the projected electricity rate change per kWh is less than one cent per year, see Table 15), but the overall net economic impacts from renewables remain positive. Negative job growth due to the higher prices would result in the loss 1,578 jobs by 2025 under a 25% RES.

Full press release below:

Washington, D.C. – A new economic study conducted by the University of Tennessee's Bio-Based Energy Analysis Group has determined that there are significant market opportunities for agriculture if Congress enacts a national renewable energy standard (RES) policy.

Background. Renewable Electricity Standards provide an efficient mechanism to increase the share of electricity generated by renewable resources nationwide. Technologies that typically qualify for renewable energy standards include solar, wind, landfill/digester gas, geothermal, biomass (agricultural, wood, co-firing, methane recovery/animal waste), and biogas.

An RES policy requires utilities to provide a minimum percentage of energy from renewable sources. To date, RES policies to promote renewable energy have now been adopted by 27 states and the District of Columbia, generating growing momentum for a national-level program.

Findings. RES policies are expected to create a large new market for biomass from the agricultural and forestry sectors, and as a result, to have a positive effect on farm income, according to the study. Under a 25% RES policy in 2025, the study projected that increases in gross receipts range from $9,419 per farm in Florida, $11,283 per farm in Colorado, $16,028 per farm in North Carolina, and $43,229 per farm in Kansas.

“We expect to see a significant increase in farm revenue if an RES policy is implemented,” said study co-author Dr. Daniel De La Torre Ugarte, Professor at the University of Tennessee‟s Institute of Agriculture. “Similarly, we found that the relationship between farm revenue and the stringency of an RES policy was positive, with more revenue generated under scenarios with stronger RES targets.”

Preliminary results from the study also show that the increased demand for biomass feedstock is substantial under all RES policy cases considered. However, the size of the new market will vary by state and by level of the RES target, with higher targets typically resulting in a larger market for biomass.

The focus of the study centered on the impact of RES policy in farm revenue in Colorado, Kansas, Florida and North Carolina. It also examined potential new markets for biomass resources in these states.

In addition, the University of Tennessee researchers evaluated the potential direct employment opportunities that may result from building out new electric generating facilities in these states, as well as the potential for job growth on the farm supported by increased biomass production. The relationship between job creation and RES policy was positive, with more jobs created in scenarios with stronger RES targets, and similarly more jobs created under Federal proposals than under state proposals alone.

“A Federal RES policy has the potential to create thousands of new jobs,” said study co-author Dr. Burton English, Professor at the University of Tennessee's Bio-Based Energy Analysis Group. “And these jobs are diverse, driven not only by the build out of new energy infrastructure, but also are jobs associated with growing the biomass that will fuel power plants.”

The study examined current proposals for Federal renewable energy standards based on legislation introduced in the 111th Congress, as well as state-level renewable energy standards currently in place in Colorado and North Carolina.