Renewable Energy ProgramsRenewable Energy Programs

Advancing Investments and Innovation in the Recovery of

Renewable TechnologiesExpanding Renewable Energy and Efficiency

February 22, 2010

Orlando, FL

William(Bill) F. Hagy III

Director of Alternative Energy Policy- USDA

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.”

“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

Biofuels Interagency Working GroupBiofuels Interagency Working Group

On May 5, 2009, President Obama signed the directive On May 5, 2009, President Obama signed the directive establishing a new working group to be chaired by the Secretaries establishing a new working group to be chaired by the Secretaries of Energy and Agriculture and the Administrator of the EPA.of Energy and Agriculture and the Administrator of the EPA.

The group will work with the National Biomass Research and The group will work with the National Biomass Research and Development Board on:Development Board on:

Creating a Creating a biofuel market development programbiofuel market development program to boost to boostnext-generation biofuels, increase use of flex-fuel vehicles,next-generation biofuels, increase use of flex-fuel vehicles,and assist retail market developmentand assist retail market development

Coordinating infrastructure policiesCoordinating infrastructure policies

Comprehensive Strategy Comprehensive Strategy Enhance American Energy IndependenceEnhance American Energy Independence Foundation for New Clean EconomyFoundation for New Clean Economy New industries and jobsNew industries and jobs

President’s Steps to Boost Biofuels

President’s Steps to President’s Steps to Boost BiofuelsBoost Biofuels Biofuels Working Group Report (Growing Biofuels Working Group Report (Growing

America’s Fuel)America’s Fuel) Roadmap for accomplishing 36 billion gallon Roadmap for accomplishing 36 billion gallon

by 2022by 2022 Leveraging resources to support 1Leveraging resources to support 1stst,2,2ndnd and 3 and 3rdrd

generation renewable fuelsgeneration renewable fuels Reduce financial risk to farmer, ranchers, Reduce financial risk to farmer, ranchers,

and forest land owners to invest (BCAP and forest land owners to invest (BCAP proposed rule) proposed rule)

USDA’s Other Clean USDA’s Other Clean Energy Initiatives and Energy Initiatives and InvestmentsInvestments

FY 10 and FY 11 President’s BudgetFY 10 and FY 11 President’s Budget Support for other Renewable Support for other Renewable

Energy/Energy Efficiency InvestmentsEnergy/Energy Efficiency Investments Marketing and OutreachMarketing and Outreach Evaluation of Program DeliveryEvaluation of Program Delivery Coordination/collaboration with other Coordination/collaboration with other

DepartmentsDepartments

OverviewOverview

Food, Conservation, and Energy Act of Food, Conservation, and Energy Act of 2008 (Farm Bill) 2008 (Farm Bill) Titles VI and IXTitles VI and IX

Farm Bill Title VI- Rural Development

• Business and Industry Loan Guarantee Program ( B&I)

• Rural Microentrepreneur Assistance Program (RMAP)

Farm Bill-Title VIFarm Bill-Title VI

Business and Industry (B&I)Business and Industry (B&I)

Guaranteed Loan ProgramGuaranteed Loan Program

• • Eligibility: Individuals; corporations, cooperatives, partnerships, and Eligibility: Individuals; corporations, cooperatives, partnerships, and other legal entities, public and private, organized and operated on a other legal entities, public and private, organized and operated on a profit or nonprofit basis; and Federally recognized Indian tribal profit or nonprofit basis; and Federally recognized Indian tribal groups.groups.

Purposes: Loan proceeds may be used for working capital, Purposes: Loan proceeds may be used for working capital, machinery and equipment, buildings and real estate, and certain machinery and equipment, buildings and real estate, and certain types of debt refinancing. The primary purpose is to create and types of debt refinancing. The primary purpose is to create and maintain employment and improve the economic climate in rural maintain employment and improve the economic climate in rural communities. communities.

Farm Bill-Title VIFarm Bill-Title VIRural Microentreprenuer Program Rural Microentreprenuer Program LoansLoans

Provide loans and grants to microenterprises that are unable to obtain other Provide loans and grants to microenterprises that are unable to obtain other financial assistance.financial assistance.

Microloan: Not more than $50,000Microloan: Not more than $50,000 Rural microenterprise: A sole proprietorship or business entity with no more than Rural microenterprise: A sole proprietorship or business entity with no more than

10 full-time equivalent employees located in a rural area10 full-time equivalent employees located in a rural area Provides mandatory funding of:Provides mandatory funding of:

-$4 million in FY 2009 thru 2011-$4 million in FY 2009 thru 2011 -$3 million in FY 2012-$3 million in FY 2012-and the authorization of $40 million in FYs 2009-2012-and the authorization of $40 million in FYs 2009-2012

Farm Bill-Title IX-EnergyFarm Bill-Title IX-Energy

Biomass Crop Assistance Program (BCAP)Biomass Crop Assistance Program (BCAP) Biorefinery Assistance Loan Guarantee Biorefinery Assistance Loan Guarantee

Program Program Repowering Assistance Program Repowering Assistance Program Bioenergy Program for Advanced BiofuelsBioenergy Program for Advanced Biofuels Rural Energy for America Program (REAP)Rural Energy for America Program (REAP) Biomass Research and DevelopmentBiomass Research and Development

BCAP Current StatusBCAP Current Status

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

A Proposed Federal Rule was published on February 3, 2010.A Proposed Federal Rule was published on February 3, 2010.

Biomass Crop Assistance Biomass Crop Assistance Program (BCAP) OverviewProgram (BCAP) Overview

Authorized by Section 9011 of the 2008 Authorized by Section 9011 of the 2008 Farm Bill.Farm Bill.

Program Purpose: Support the Program Purpose: Support the establishment and production of crops for establishment and production of crops for conversion to bio-energy in project areas conversion to bio-energy in project areas and to assist with the collection, harvest, and to assist with the collection, harvest, storage and transportation (CHST) of storage and transportation (CHST) of eligible material for use in biomass eligible material for use in biomass conversion facilities. conversion facilities.

BCAP OverviewBCAP OverviewBCAP has 2 sub-program components:BCAP has 2 sub-program components: BCAP’s BCAP’s Matching Payment ProgramMatching Payment Program which currently which currently provides eligible provides eligible

biomass owners matching payments for the sale and delivery of eligible biomass biomass owners matching payments for the sale and delivery of eligible biomass to qualified biomass conversion facilities. These payments are be available to 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 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.maximum of $45 per dry ton and limited to a 2-year payment duration.

BCAP’s BCAP’s Project Area ProgramProject Area Program which, (when implemented), will support which, (when implemented), will support establishment and production of dedicated energy crops on agricultural and forest 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 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 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 crops. Both annual payments for the land enrolled and energy crop establishment payments are authorized under this sub-program.payments are authorized under this sub-program.

BCAP Current StatusBCAP Current Status

Under the current Matching Payment Program FSA has Under the current Matching Payment Program FSA has already qualified over 400 facilities. The official list of already qualified over 400 facilities. The official list of facilities is posted at:facilities is posted at:

http://www.fsa.usda.gov/Internet/FSA_File/bcapfacilitieslist.pdf

Matching Payment Program Matching Payment Program StepsSteps

USDA/FSAWashington D.C.

CHST-Qualified BCF

Eligible Material Owner

County FSA Office

State FSA Office

4

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.

BCAP ContactBCAP Contact

Contact Mike Linsenbigler (CEPD Deputy Contact Mike Linsenbigler (CEPD Deputy Director) at (202) 720-6221 for more Director) at (202) 720-6221 for more information. information.

The BCAP public website is at: The BCAP public website is at: http://www.fsa.usda.gov/energy

Food, Conservation, and Energy Act of Food, Conservation, and Energy Act of 2008 and USDA Rural Development 2008 and USDA Rural Development

FundingFunding

Section 9003 Biorefinery Assistance ProgramSection 9003 Biorefinery Assistance Program

Section 9004 Repowering Assistance Section 9004 Repowering Assistance

Section 9005 Bioenergy Program for Advanced BiofuelsSection 9005 Bioenergy Program for Advanced Biofuels

Section 9007 Rural Energy for America ProgramSection 9007 Rural Energy for America Program

Section 9008 Biomass Research and Development Section 9008 Biomass Research and Development

2008 Farm Bill Title IX and 2008 Farm Bill Title IX and USDA Rural DevelopmentUSDA Rural DevelopmentAdvanced Biofuels ProgramsAdvanced Biofuels Programs

Section 9003:Section 9003: Biorefinery Assistance Program –Biorefinery Assistance Program – Provides Provides loan guaranteesloan guarantees of up to $250 million for the development, of up to $250 million for the development,

construction and retrofitting of commercial-scale bio-refineriesconstruction and retrofitting of commercial-scale bio-refineries

Section 9004: Repowering Assistance – Section 9004: Repowering Assistance – Provides Provides paymentspayments to existing bio-refineries to replace fossil fuels used to to existing bio-refineries to replace fossil fuels used to

produce heat or power to operate the bio-refineries with renewable biomass.produce heat or power to operate the bio-refineries with renewable biomass. Five applications under review, ~ $13.5 million Five applications under review, ~ $13.5 million

Section 9005: Bioenergy Program for Advanced Biofuels – Section 9005: Bioenergy Program for Advanced Biofuels – Provides Provides paymentspayments to eligible agricultural producers to support and ensure to eligible agricultural producers to support and ensure

an expanding production of advanced bio-fuelsan expanding production of advanced bio-fuels Payments of $14.5 million awarded to 136 producersPayments of $14.5 million awarded to 136 producers

Section 9003 Biorefinery Assistance Section 9003 Biorefinery Assistance Summary detailsSummary details 3 Awards 3 Awards

Range Fuels Inc., Soperton, Georgia for $80 million, 1/16/09Range Fuels Inc., Soperton, Georgia for $80 million, 1/16/09 SoyMor, LLC, Albert Lea, Minnesota for $25 million, 6/30/09SoyMor, LLC, Albert Lea, Minnesota for $25 million, 6/30/09 Sapphire Energy, Columbus, New Mexico, $54.5 million, 12/4/09Sapphire Energy, Columbus, New Mexico, $54.5 million, 12/4/09

17 applications received 17 applications received

Technologies: Technologies: Cellulosic ethanol (4)Cellulosic ethanol (4) Biodiesel (6)Biodiesel (6)

Green diesel from pulpwood (paper mill)Green diesel from pulpwood (paper mill) Anaerobic digesters (3)Anaerobic digesters (3) Other (4)Other (4)

Anhydrous ammonia Anhydrous ammonia

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

Renewable Energy Investments, 2003 - 09 Renewable Energy Investments, 2003 - 09 Renewable Energy Systems and Energy Efficiency Conversion Renewable Energy Systems and Energy Efficiency Conversion Projects Projects

TechnologyNumber of Projects

Grants, Loans, & Combos Amount

Amount Leveraged

Biomass 320 89,993,200 380,365,833Wind 361 73,651,189 641,098,744Solar 274 14,077,343 37,930,249Geothermal 99 3,080,395 8,374,339Hybrid 22 2,935,648 86,720,575Hydropower 4 1,064,432 2,475,253

Subtotal 1,080 184,802,207 1,156,964,993

Energy Efficiency 2,428 80,566,465 192,211,677EA/REDA 22 2,173,631Feasibility Study 50 1,244,600

Combined Funding Activities 3,580 268,786,903 1,349,176,670

EA/REDA – Energy Audits/Renewable Energy Development Assistance

Farm Bill – Energy TitleSection 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.

Program DeliveryProgram Delivery

National OfficesNational Offices 47 State Offices47 State Offices Area/Local OfficesArea/Local Offices

How to Learn More About How to Learn More About USDAUSDA

Contact Your State Contact Your State

Rural Development OfficeRural Development Office

www.rurdev.usda.govwww.rurdev.usda.gov

Any Questions?Any Questions?