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Renewable Energy Programs

Renewable Energy Programs. Advancing Investments and Innovation in the Recovery of Renewable Technologies. Expanding Renewable Energy and Efficiency February 22, 2010 Orlando, FL William(Bill) F. Hagy III Director of Alternative Energy Policy- USDA.

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Renewable Energy Programs

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  1. Renewable Energy Programs

  2. Advancing Investments and Innovation in the Recovery of Renewable Technologies Expanding Renewable Energy and Efficiency February 22, 2010 Orlando, FL William(Bill) F. Hagy III Director of Alternative Energy Policy- USDA

  3. President Obama’s Commitment to Renewable Energy “Providing incentives for energy-efficiency and clean energy are the right thing to do for our future -- because the nation that leads the clean energy economy will be the nation that leads the global economy. And America must be that nation.”

  4. “USDA is working to expand energy opportunities by producing alternative forms of energy and fuel, and to ensure that we are doing the research necessary to allow agriculture to transition away from its rather significant dependence on fossil fuels.” Tom Vilsack Agriculture Secretary

  5. Biofuels Interagency Working Group On May 5, 2009, President Obama signed the directive establishing a new working group to be chaired by the Secretaries of Energy and Agriculture and the Administrator of the EPA. The group will work with the National Biomass Research and Development Board on: Creating a biofuel market development program to boostnext-generation biofuels, increase use of flex-fuel vehicles,and assist retail market development Coordinating infrastructure policies

  6. President’s Steps to Boost Biofuels • Comprehensive Strategy • Enhance American Energy Independence • Foundation for New Clean Economy • New industries and jobs

  7. President’s Steps to Boost Biofuels Biofuels Working Group Report (Growing America’s Fuel) Roadmap for accomplishing 36 billion gallon by 2022 Leveraging resources to support 1st,2nd and 3rd generation renewable fuels Reduce financial risk to farmer, ranchers, and forest land owners to invest (BCAP proposed rule)

  8. USDA’s Other Clean Energy Initiatives and Investments FY 10 and FY 11 President’s Budget Support for other Renewable Energy/Energy Efficiency Investments Marketing and Outreach Evaluation of Program Delivery Coordination/collaboration with other Departments

  9. Overview Food, Conservation, and Energy Act of 2008 (Farm Bill) Titles VI and IX

  10. Farm Bill Title VI- Rural Development • Business and Industry Loan Guarantee Program ( B&I) • Rural Microentrepreneur Assistance Program (RMAP)

  11. Farm Bill-Title VI Business and Industry (B&I) Guaranteed Loan Program • Eligibility: Individuals; corporations, cooperatives, partnerships, and other legal entities, public and private, organized and operated on a profit or nonprofit basis; and Federally recognized Indian tribal groups. • Purposes: Loan proceeds may be used for working capital, machinery and equipment, buildings and real estate, and certain types of debt refinancing. The primary purpose is to create and maintain employment and improve the economic climate in rural communities.

  12. Farm Bill-Title VIRural Microentreprenuer Program Loans • Provide loans and grants to microenterprises that are unable to obtain other financial assistance. • Microloan: Not more than $50,000 • Rural microenterprise: A sole proprietorship or business entity with no more than 10 full-time equivalent employees located in a rural area • Provides mandatory funding of: -$4 million in FY 2009 thru 2011 -$3 million in FY 2012 -and the authorization of $40 million in FYs 2009-2012

  13. Farm Bill-Title IX-Energy • Biomass Crop Assistance Program (BCAP) • Biorefinery Assistance Loan Guarantee Program • Repowering Assistance Program • Bioenergy Program for Advanced Biofuels • Rural Energy for America Program (REAP) • Biomass Research and Development

  14. BCAP Current Status A Notice of Funds Availability (NOFA) was published in the Federal Register June 11, 2009 with comments collected until August 10, 2009. This NOFA provides policies and procedures for the current BCAP Matching Payment Program. A Proposed Federal Rule was published on February 3, 2010.

  15. Biomass Crop Assistance Program (BCAP) Overview Authorized by Section 9011 of the 2008 Farm Bill. Program Purpose: Support the establishment and production of crops for conversion to bio-energy in project areas and to assist with the collection, harvest, storage and transportation (CHST) of eligible material for use in biomass conversion facilities.

  16. BCAP Overview BCAP has 2 sub-program components: BCAP’s Matching Payment Program which currently provides eligible biomass owners matching payments for the sale and delivery of eligible biomass to qualified biomass conversion facilities. These payments are be available to eligible owners at the rate of $1 for each $1 per dry ton paid by facility; limited to a maximum of $45 per dry ton and limited to a 2-year payment duration. BCAP’s Project Area Program which, (when implemented), will support establishment and production of dedicated energy crops on agricultural and forest land for the conversion to bioenergy in project areas through contracts on land of up to 5 years for annual/perennial crops or up to 15 years for woody biomass crops. Both annual payments for the land enrolled and energy crop establishment payments are authorized under this sub-program.

  17. BCAP Current Status Under the current Matching Payment Program FSA has already qualified over 400 facilities. The official list of facilities is posted at: http://www.fsa.usda.gov/Internet/FSA_File/bcapfacilitieslist.pdf

  18. Matching Payment Program Steps • Steps • Qualification of biomass conversion facilities through State FSA offices. • Eligible material owner’s enter into sales contracts with qualified facilities. • Owner’s apply for matching payment at County FSA offices • Owners then deliver and eligible biomass to the facility. • Owners complete applications for matching payment with supporting Documents at County FSA offices. • County office issues matching payment to owners. 4

  19. BCAP Contact Contact Mike Linsenbigler (CEPD Deputy Director) at (202) 720-6221 for more information. The BCAP public website is at: http://www.fsa.usda.gov/energy

  20. Food, Conservation, and Energy Act of 2008 and USDA Rural Development Funding Section 9003 Biorefinery Assistance Program Section 9004 Repowering Assistance Section 9005 Bioenergy Program for Advanced Biofuels Section 9007 Rural Energy for America Program Section 9008 Biomass Research and Development

  21. 2008 Farm Bill Title IX and USDA Rural DevelopmentAdvanced Biofuels Programs • Section 9003:Biorefinery Assistance Program – • Provides loan guarantees of up to $250 million for the development, construction and retrofitting of commercial-scale bio-refineries • Section 9004: Repowering Assistance – • Provides payments to existing bio-refineries to replace fossil fuels used to produce heat or power to operate the bio-refineries with renewable biomass. • Five applications under review, ~ $13.5 million • Section 9005: Bioenergy Program for Advanced Biofuels – • Provides payments to eligible agricultural producers to support and ensure an expanding production of advanced bio-fuels • Payments of $14.5 million awarded to 136 producers

  22. Section 9003 Biorefinery Assistance Summary details 3 Awards Range Fuels Inc., Soperton, Georgia for $80 million, 1/16/09 SoyMor, LLC, Albert Lea, Minnesota for $25 million, 6/30/09 Sapphire Energy, Columbus, New Mexico, $54.5 million, 12/4/09 17 applications received Technologies: Cellulosic ethanol (4) Biodiesel (6) Green diesel from pulpwood (paper mill) Anaerobic digesters (3) Other (4) Anhydrous ammonia

  23. Section 9007 -- Rural Energy for America Program (REAP) • Formerly Section 9006 – Renewable Energy Systems and Energy Efficiency Improvements Program (Established in ‘02 Farm Bill) • Provides grants and loan guarantees to assist agriculture producers and rural small businesses in purchasing renewable energy systems and making energy efficiency improvements • Grants up to $500,000 or 25% of total project costs • Loan guarantees up to $25 million • Establishes a grant program for energy audits, renewable energy development assistance, and feasibility studies

  24. Renewable Energy Investments, 2003 - 09 Renewable Energy Systems and Energy Efficiency Conversion Projects EA/REDA – Energy Audits/Renewable Energy Development Assistance

  25. Farm Bill – Energy Title • Section 9008- Biomass Research and Development • Purpose: • Support of research, development and demonstration on biobased products, biofuels, and biopower. • Eligible Recipients: • Institutions of Higher Learning; National Laboratory; • Federal Research Agency; State Research Agency; Private Sector Entities and Nonprofit Organizations or a consortium of two or more of entities described above.

  26. Program Delivery • National Offices • 47 State Offices • Area/Local Offices

  27. How to Learn More About USDA Contact Your State Rural Development Office www.rurdev.usda.gov

  28. Any Questions?

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