THE WHITE HOUSE

Office of the Press Secretary

August 12, 1999

MEMORANDUM FOR THE SECRETARY OF AGRICULTURE

               THE SECRETARY OF ENERGY
               THE SECRETARY OF THE TREASURY
               THE ADMINISTRATOR OF THE ENVIRONMENTAL
                  PROTECTION AGENCY

SUBJECT: Biobased Products and Bioenergy

Today I issued an Executive Order, "Developing and Promoting Biobased Products and Bioenergy," to further the development of a comprehensive national strategy that includes research, development, and private sector incentives to stimulate the creation and early adoption of technologies needed to make biobased products and bioenergy cost-competitive in national and international markets.

Consistent with the objectives and activities in that order and to ensure that the Nation moves efficiently to exploit the benefits of expanded use of biobased products and bioenergy, I hereby direct as follows:

     (1)  The Secretaries of Agriculture and Energy, in consultation 
          with other appropriate agencies, shall, within 120 days of 
          this memorandum, prepare a report outlining and assessing 
          options for modifying existing respective agency programs in 
          fiscal year 2001 to promote biobased products and bioenergy 
          with a goal of tripling U.S. use of biobased products and 
          bio-energy by 2010.  Programs include, among others, 
          conservation and utility programs within the Department of 
          Agriculture (including the Conservation Reserve Program and 
          the Environmental Quality Incentives Program); technology
          assistance and other small business programs; and education
          and extension programs.  The report also shall include an
          assessment of:  (a) the evidence to determine whether
          modifications to the tax code are a cost-effective policy
          option for review by the Department of the Treasury; and (b)
          the potential to expand use of biobased products and bioenergy
          by Federal agencies including co-firing with biomass at 
          Federal facilities, use of biofuels in Federal vehicles, and 
          Federal procurement of biobased products and bioenergy.  Such 
          expanded use shall be consistent with agency opportunities 
          and the President's budget.

     (2)  In preparing this report, the agencies shall:

          (a) work closely with the Environmental Protection Agency to
          ensure that actions recommended reflect a careful review of 
          the environmental benefits, concerns, and net environmental
          consequences created by expanded use of biobased products and
          bioenergy.  The factors considered should include:

               (i) impact on net emissions of greenhouse gases including
               carbon sequestered by biomass crops, and substituting low
               net-carbon, biobased products, and bioenergy for products
               manufactured from fossil fuels; and

               (ii) emissions of criteria pollutants and air toxics and
               other environmental consequences of production of
               biobased products and bioenergy; and

               (iii) changes in water quality, soil erosion, pesticide
               and fertilizer use, and wildlife habitat as a 
               consequence of changes in land use associated with 
               biomass production; 
          
          and,

          (b) consider the findings and recommendations of the recently
          released National Academy of Sciences report "Biobased
          Industrial Products;" the recommendations contained in
          "Technology Vision 2020:  The U.S. Chemical Industry" by the
          American Chemical Society, American Institute of Chemical
          Engineers, Chemical Manufacturers Association, Council for
          Chemical Research, and the Synthetic Organic Chemical
          Manufacturers Association; the recommendations by the U.S.
          agricultural, forestry, and chemical communities from the
          "Plant/Crop-based Renewable Resources 2020:  A Vision to
          Enhance U.S. Economic Security Through Renewable
          Plant/Crop-Based Resource Use;" and, "Agenda 2020" by the U.S.
          Forest Products Industry; and (c) consider input from other
          sources, including public-private strategic plans developed by
          the Departments of Agriculture and Energy, the Environmental
          Protection Agency, National Science Foundation, Department of
          the Interior, and other agencies bio-energy (power, fuels, and
          heat), commercial and industrial chemicals, and other products
          and materials.

     (3)  The Secretaries of Agriculture and Energy shall, within 120
          days of this memorandum, report on outreach efforts to raise
          the Nation's awareness of the useful applications, benefits,
          and costs of producing bio-based products and bioenergy and
          adopting biobased technologies including workshops on new
          biomass crops and technologies for producing and marketing
          biobased products and bioenergy.

WILLIAM J. CLINTON

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