Maximize funding to the region made available in The American Recovery and Reinvestment Act of 2009 creating an $800 million competitive grant program dedicated to the research, development and demonstration of converting biomass resources to biofuels.
Evaluate the feasibility of converting underutilized or vacant facilities to regional collection and storage centers.
Develop regulations for aggregators and regional collection centers for densification. Such regulations are necessary so there is consistency in product and results. (For example, corn elevators are regulated in every state)
Provide development, direct assistance and technical support to broad array of sustainable and cost-effective transportation modalities. Reduce fees for transportation of biomass.
Build showcases, especially of scalable technology, for the production, harvest, transport and storage of biomass feedstocks.
Implement policies and funding schemes to fill a gap in federal programs for equipment and storage for biomass feedstock production.
Examine innovative loan programs to provide additional financial support to shipping and handling facilities and infrastructure.
Related Policies/Programs in Place
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.
Repowering Assistance. This new program authorizes payments to encourage existing biorefineries to replace fossil fuels used to produce heat or power for operation of the biorefinery. Payments would be made for installation of new systems that use renewable biomass or for new production of energy from renewable biomass.
Mandatory funding of $35 million is available through the Commodity Credit Corporation for FY 2009, until expended.
Authorizes appropriations of $15 million annually FY 2009-2012.
Biorefinery Assistance. This program was first created in the 2002 Farm Bill but no mandatory funding was included in final bill language.
Program authorizes competitive grants to assist development and construction of demonstration-scale biorefineries that convert renewable biomass to advanced biofuels. Grants may not exceed 30% of project cost.
Program authorizes loan guarantees to fund development, construction, and retrofitting of commerican-scale biorefineries. Loan guarantees of up to 90$ of principal and interest may not exceed $250 million and are limited to 80% of project costs.
$75 million in funding for FY 2009 and $245 million in FY 2010 is mandated for loan guarantees until expended.
No mandatory funding specified for grant program, but authorizes appropriations of $150 million aunnually for FY 2009-2012.
Payments are also authorized to encourage existing biorefineries to replace fossil fuels used to produce heat or power. Payments would be made for installation of new systems that use renewable biomass or for new production of energy from renewable biomass. Mandatory funding of $35 million is available.
Energy Policy Act of 2006 – The Renewable Fuel Standard will double the use of ethanol and biodiesel by 2012 and provides that in 2013, 250 million gallons a year of cellulose-derived ethanol be included. This amount will require a conservative estimate of 3.5 million dry tons of biomass, less than 1% of what is available nationally.
USDA, Natural Resources Conservation Service’s Cooperative Conservation Partnership Initiative (CCPI) is a voluntary program established to foster conservation partnerships that focus technical and financial resources on conservation priorities in watersheds and airsheds of special significance. Under CCPI, funds are awarded to State and local governments and agencies; Indian tribes; and non-governmental organizations that have a history of working with agricultural producers. The Upper Midwest could participate as a region.
The Bioeconomy Institute of Iowa State University has addressed the issue of biomass transportation through the HST (Harvest, Transportation and Storage) Consortium. See http://www.biorenew.iastate.edu/research/harvest-storage-and-transportation-of-biomass.html
State of Michigan Public Acts 314, 332 and 334 of 2008 creates tax incentives for the use of agricultural machinery that can harvest both grain and biomass. The tax incentives encourage farmers to invest in equipment that will allow harvest of crops while also collecting biomass residues from the crop or grain that can be used in alternative fuel production.
State of Michigan Public Act 329 of 2008 adds five additional renewable fuels renaissance zones in Michigan, bringing the total to fifteen. Renaissance zones are specific geographic areas designated as tax exempt to encourage economic development. Additionally, the new law requires that five of the state’s renewable fuels renaissance zones be designated for facilities that focus primarily on cellulosic biofuel production.
Missouri Agricultural and Small Business Development Authority, created in 1999. Seven commissioners, appointed by the governor, make capital available through grants, loan, loan guarantees, and tax credits to Missouri farmers, particularly independent projects, agribusiness and small business at competitive interest rates on a scale to make a major impact.
