Increase the amount of funding available in the region by leveraging funding available through federal programs that are targeted to create and/or increase perennial biomass feedstock supply. Given the current budget constraints of states in the Midwestern region to create newly funded programs to develop perennial biomass supply, interested parties in the Midwest should work together to ensure successful implementation of federal programs that could be leveraged to accomplish policy goals. Two specific programs from the 2008 Federal Farm Bill that hold tremendous potential to provide resources to Midwestern producers to create a perennial biomass supply are the Biomass Crop Assistance Program (BCAP) and Conservation Stewardship Program (CSP). Both of these programs are waiting for USDA to issue draft program rules. The Midwest should focus on gathering input to influence federal rulemaking for both programs to leverage the largest amount of dollars possible. Program descriptions can be found under the “related policies/program in place” section of this document.The American Recovery and Reinvestment Act of 2009 created an $800 million competitive grant program dedicated to the research, development, and demonstration of converting biomass resources to biofuels.
Inventory biomass resources. Conduct an assessment and develop a credible database as a region or as a state to determine how much land is suitable for biomass development and what mechanisms are available to develop the supply. Regional assessments ensure consistent criteria for collection. Use consistent methodologies so data can be compared across state lines.
When developing models and mapping and evaluating the results, criteria should include, but not be limited to:
Change in environmental services of land in context of production scenarios;
Habitat enhancement;
Income; and
Carbon sequestration potentials.
Identify clear sustainability guidelines and best management practices for biomass production and harvest.
Apply best management practices to current row cropping systems that could include inter-planting of perennial crops. Increase the use of perennial crops in riparian buffers.
Develop quality control standards that include sustainable harvesting guidelines and could lead to a certification system.
Identify regional demonstration project opportunities. Potential biomass feedstocks may be grouped for analyses such as food/organic wastes; forest/wood chips; switchgrass/perennial grass; industrial residue; crops (oil seeds and grains) or other crops (corn, soy, sorghum, sugar beet).
Develop regulations for payment protection for producers and some form of pricing mechanisms.
Fund research development at land grant colleges (in collaboration with producers) to identify most effective biomass feedstocks.
Incentivize conservation and production of biomass on appropriate lands. Create programs to provide financial payments to land owners by providing direct assistance to farmers to convert select crop lands and adjacent buffer lands to perennial biomass production. Incentivize production facilities to create a local market for biomass producers.. A two-pronged approach is required to coordinate and connect supply and demand. Methodologies for connecting producers to markets on a local basis would be highly beneficial.
Use biomass production as a means of land restoration. Identify and characterize options, opportunities, and guidelines using modeling to identify areas of highest priority that can be protected by planting of perennial biomass crops.
Encourage conservation easements on lands that do not preclude biomass production. Adjust Conservation Reserve Programs (CRP) to allow for biomass production that does not compromise the original purpose of the reserve.
Related Policies/Programs in Place
There are a plethora of federal, regional and state programs and policies that complement this policy option. The following are examples, not an inclusive list.
2008 Farm Bill includes energy crop incentives for growers and new funding for converting fossil fuel power to biomass.
Biomass Crop Assistance Program (BCAP). This new program directs USDA to establish project areas in which potential biomass producers and a biorefinery or another facility agree to produce and use biomass crops for conversion to advanced biofuels or bioenergy. The program excludes commodity crops, food, wastes, and algae.
Pays producers up to up to 75% of costs for establishing and planting crops, plus annual payments to help compensate for lost opportunity costs until crops are established.
Provides cost-share payments for collection, harvesting, storage, and transportation costs at a rate to match the biomass sale price, up to $45 per dry ton.
Requires that all projects follow conservation or forest stewardship plans.
BCAP selection criteria includes environmental, community ownership and other desirable conditions, and expresses a preference for perennial crops, highly energy efficient annual crops, and preserving natural resources.
Funded with uncapped mandatory funding; at approximately $70 million over five years.
Conservation Stewardship Program (CSP)
CSP is a voluntary conservation program that encourages producers to address resources concerns comprehensively by undertaking additional conservation activities and improving, maintaining, and managing existing conservation activities.
CSP payments will compensate producers for:
Installing and adopting additional conservation activities;
Improving, maintaining, and managing conservation activities in place at time of contract approval;
Engaging in activities related to on-farm conservation research and demonstration activities, and pilot testing of new technologies or innovation conservation practices.
CSP received mandatory funding in the Farm Bill over the next decade and when combined with existing budget carried over from the 2002 Farm Bill, Congressional Budget Office estimates that 13 million acres will be eligible for enrollment nationally on an annual basis.
The USDA will be conducting a rulemaking process for this program. A proposed rule is expected to be issued in June of 2009.
