Published: May 19, 2007 01:10 am            

Congressman eyes way to boost Oklahoma's status in the energy field

Business is booming for corn producer Steve Cryer.

“Obviously the interest in ethanol, whether it be from corn or milo (sorghum) or cellulosic … all of those I can’t see anything but good for the farmer,” said Cryer, who owns a farm south of Keyes in the Oklahoma Panhandle. “… For years we’ve needed something to prop up our commodity prices. They’re too cheap in my opinion.”

Cryer is one of many corn farmers in the country benefiting from high corn prices boosted by the demand for corn to produce ethanol, an alternative energy source.

U.S. Rep. Frank Lucas, in an attempt to create more booming businesses, proposed House Resolution 2261 in Congress to provide tax credits and incentives to start the production of cellulosic ethanol and harness more wind energy in rural America.

“The primary goal is to make it possible for rural areas to play a bigger role in energy,” said Lucas, a farmer and cattle rancher. “… If we start down this trail with alternative energy I think we will be better off for it.”





Renewable energy buzz words



Ethanol is a national buzz word that is taking on new meaning to Oklahomans. It’s an alcohol generated by renewable resources, such as corn, that can be combined with gasoline to produce fuel for vehicles. There is one ethanol plant in the state and a few others slated to come on board.

Lucas, a Republican from Oklaho-ma’s 3rd Congressional District, said the corn used in ethanol production and as feed for cattle is not what we tend to see on our tables. He said the corn can be eaten, but what we typically choose is a sweet corn.

Corn production is minimal in Oklahoma. In parts of the state, such as the Panhandle, irrigation systems are needed to grow the product. Eastern Oklahoma receives enough moisture to grow crops without irrigation.

At the Cryer farm, 3,000 acres of corn are irrigated, mostly to feed cattle in area feedlots.

But if ethanol plants start popping up the may compete with feedlots for his corn, Cryer said.





Meeting demand on all sides



The demand for corn for ethanol production has spurred higher prices for feed for livestock, something Lucas said he would like to reduce through a push for cellulosic ethanol. This type of ethanol would use non-food plants, like switchgrass and wheat straw, to convert into ethanol.

“Cellulosic ethanol is where Oklahoma will have the advantage,” said Clayton Robinson, energy program manager for Department of Commerce’s Office of Community Development.

Corn takes a lot of water to cultivate, but crops like switchgrass can grow in dry environments and already grow naturally in parts of Oklahoma.

In House Resolution 2261, Lucas is proposing a one-year transitional payment for farmers taking the leap to begin growing cellulosic ethanol products. He wants to set aside $4 million a year for about five years to provide for farmers because it takes about a year and a half to harvest the new crop. He said it is important they are earning money to be able to feed their families while growing a new crop.

The bill also calls for a study by Department of Energy on how to get ethanol through pipelines and out to the customer. He said the current fuel pipelines will corrode if ethanol passes through them.

Lucas, ranking member of the U.S. House Agriculture Subcommittee on Conservation, Credit, Energy and Research, hopes the agriculture portions of his bill will be written in this year’s farm bill. He hopes the remaining points will go in separate bills or as part of other legislation.

Vaughn Clark, director of Office of Community Development at Oklaho-ma Department of Commerce, is confident the idea of alternative energy is here to stay.

“I think with all renewable energy there is a need to build public acceptance and public confidence that these are indeed resources that are equal to the fossil fuels,” he said. “I think the high gas prices have allowed more people to take a look at: ‘Well, if gas is going to stay this high what are my options now?’”





Answer may be blowing in wind



“Wind has pretty much been the driving factor in Oklahoma,” Clark said.

Oklahoma is ranked eighth in the country in wind energy potential, according to the American Wind Energy Association.

The state’s first wind farm was built in Woodward County in northwest Oklahoma in late 2003. Since then, a handful of other wind farms have popped up, including one in neighboring Harper County.

Wind energy now accounts for about 3 percent of the state’s energy resources, Robinson said.

But he believes the opportunities for wind energy are endless.

He said if the wind in western Oklahoma was fully utilized it has the potential to meet the needs of Oklahoma and many parts of the rest of the country, at least big cities surrounding Oklahoma. Robinson said, however, wind is not intended to be the sole provider of energy but to work in conjunction with other sources.

Cost is a factor in getting more wind farms built in the state, as well, as individual wind turbines at homes, farms and small businesses.

Lucas is pushing to provide financial relief to those wanting to invest in wind energy.

In his bill, Lucas aims to extend federal production tax credits of 1.9 cents per kilowatt generated by wind turbines for five-year terms instead of one or two years as in the past.

“It’s a subtle change in the law that I think will dramatically enhance the number who want to participate,” Lucas said.

Stengel said when it comes to federal credits it always is a boom/bust cycle because wind energy business would do well while a tax credit is in effect but once it expired work would come to a halt. He said the tax credits have been effective, but a longer-term credit will provide more certainty.



Houghton is CNHI News Service Oklahoma reporter.