Kratovil release

Kratovil Backs American Clean Energy and Security Act
June 29, 2009 5:18 PM

Successfully inserts language making Maryland farmers eligible for $1 billion in financial incentives.

Date: 6-26-09 – For Immediate Release
Contact: Kevin Lawlor, 202 225 5311

Washington, DC – Today, Congressman Frank Kratovil joined a bipartisan majority of Congress in passing the American Clean Energy and Security Act, after securing the inclusion of a key amendment that will make Maryland farmers eligible for as much as $1 billion in incentives for reducing emissions. The legislation is designed to revitalize our economy by creating new green jobs, increase national security by reducing dependence on foreign oil, and curb pollution that threatens the health of the Chesapeake Bay.
“When I ran for Congress, I promised that I would work hard to reduce our reliance on foreign oil, increase investments in renewable energy, and take real action to protect the Chesapeake Bay. This bill makes progress towards those goals, and the many amendments made to the agricultural provisions of this bill ensure that Maryland farmers will also be able to enjoy new revenue streams and economic opportunities,” said Congressman Frank Kratovil. “Maryland has been ahead of the curve on these issues for several years already, and this bill is an important step in ensuring that other states will do their part as well. This bill has the potential to spur incredible new innovation and job creation in green energy technologies.”

Kratovil stated that he decided to support the bill only after securing the inclusion of an amendment early Friday morning that would guarantee Maryland farmers the ability to receive allowances in exchange for efforts taken to reduce emissions. The allowances can then be sold on the open market to companies seeking to offset their own emissions, resulting in revenue for the farmers. Based on the projected value of these allowances, the revenue made available to farmers by Kratovil’s amendment is estimated in the neighborhood of $1 billion. Without Kratovil’s amendment, the legislation would have blocked Maryland farmers from acquiring these financial incentives for carbon reductions resulting from efforts to comply with state of federal nutrient management regulations.

“I made it clear to leadership that I would not support a bill that put Maryland’s farmers at a disadvantage to farmers in other states simply because our farmers are already ahead of the curve,” said Kratovil. “It took a lot of negotiating, but I was very pleased that my amendment was finally added to the bill. This will create an entirely new revenue stream for Maryland farmers for years to come. ”

Maryland agricultural leaders expressed optimism that the funding made available through Kratovil’s amendment would offer considerable benefits to Maryland farmers:

“I would like to thank Congressman Kratovil for standing up for Maryland’s farmers”, said Chip Bowling, President of Maryland Grain Producers Association. “Although the bill is not perfect, his work on the Agriculture Committee on the Peterson amendment helped make significant improvements for agricultural interests. However, most importantly, he secured the Kratovil amendment in the final bill, which will set aside approximately $1 billion for farmers, like those in Maryland, who are located in jurisdictions with stricter environmental laws making them unable to participate in offset programs to reduce greenhouse gas emissions or who voluntarily installed best management practices prior to 2001 as part of Bay Restoration efforts.”

“The Kratovil amendment has the potential to really help Maryland’s farmers who have long been on the cutting edge of conservation efforts and environmentally friendly farming,” stated Lee McDaniel, President of the Maryland Association of Soil Conservation Districts. “Since the issue of rewarding farmers for carbon sequestration surfaced, we have been concerned that Maryland’s early adaptors of conservation would be penalized. With passage of the Kratovil amendment these efforts can be recognized to ensure an equal opportunity for Maryland farmers to receive incentives for greenhouse gas emission reductions, which they otherwise may not have been eligible to receive.

Congressman Kratovil has worked tirelessly on behalf of Maryland’s farm and forestry communities to ensure that this legislation will benefit them as much as possible and we offer our thanks.”
Kratovil also praised the inclusion in the bill of an amendment from Rep. Collin Peterson, Chairman of the House Agriculture Committee, on which Kratovil serves. The Peterson Amendment ensures that USDA will retain jurisdiction over the bill’s agricultural offset provisions, and clarified the definition of “biomass” in a manner that preserves the ability of the agricultural and forestry communities to reap the benefits of this bill.

The bill received broad support from members of Congress from all regions of the country and from industry and environmentalists alike. The legislation is backed by a coalition that includes electric utilities, consumer groups, car companies, manufacturers, environmental organizations, agriculture associations, small business, and labor organizations, among many others.

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