Food, Conservation and Energy Act of 2008 The Farm Bill

Transcription

1 Food, Conservation and Energy Act of 2008 The Farm Bill

2 Rural Business and Cooperative Programs (RBS) 1. Business & Industry Loan Guarantees 2. Rural Business Enterprise Program 3. Intermediary Relending Program 4. Rural Economic Development Loans & Grants 5. Rural Cooperative Development Grants 6. Rural Business Opportunity Program 7. Value-Added Producers Grants 8. Renewable Energy & Energy Efficiency Program 9. Biomass Research and Development Initiative 10. Small Minority Producer Grants

3 Title VI: Rural Development

4 Title IX: Energy

5 Section 9003 Biorefinery Assistance for biorefineries producing commercial-scale advanced biofuels (non-corn starch based): loan guarantee up to 80%: commercial scale grant of up to 30%: demonstration scale $320 million mandatory for loan guarantees $150 million discretionary for each of FY09-FY12

6 Repowering Assistance Section 9004

7 Section 9004 Repowering Assistance Payments for existing biorefineries used to produce heat and power and already in existence to retrofit to reduce or eliminate their use of fossil fuels $35 million mandatory funding for FY09 $15 million discretionary for each of FY09-FY12

8 Section 9004 Payments to assist existing biorefineries in replacing fossil fuels with renewable biomass. Eligible uses will provide heat and power from biomass instead of fossil fuels. Existing biorefineries include ethanol and biodiesel plants which use electricity generated from coal or natural gas and rely on natural gas and coal in their fermentation process.

9 Section 9004 The quantity and percentage of fossil fuel reduction archived along with the cost and cost effectiveness of the project specifics are the designated criteria for the selection process. The working group is defining questions and issues for public comment in a public meeting planned for September 2008.

10 Section 9005 Bioenergy Program for Advanced Biofuels. Biorefinery Loan Guarantees Payments to eligible producers of advanced biofuels to support and ensure an expanding production. To be linked to Section $300 million mandatory funding $25 million discretionary for each of FY09-FY12

11 Section 9005 Advanced Biofuel includes biofuel derived from: Cellulose, hemicellulose, or lignin Starch and sugar (other than ethanol derived from corn kernel starch) Waste material including crop residue, vegetative waste material, animal waste, food waste, yard waste Diesel equivalent waste fuel derived from renewable biomass, including vegetable oil and animal fat Biogas (including landfill gas & sewage waste) produced through conversion of organic matter from renewable biomass Butanol or other alcohols Other fuel derived from cellulosic biomass

12 Section 9005 Payments to Eligible Producers based on quantity & Duration of Advanced Biofuel Eligible producer must meet any other requirement of Federal & State law applicable to the production of advanced biofuel

13 Section 9005 Mandatory Funding A) $55,000,000 FY 2009 B) $55,000,000 FY 2010 C) $85,000,000 FY 2011 D) $ 105,000,000 FY 2012 Discretionary Funding $25,000,000 each FY

14 Section 9007 Rural Energy for America Program (REAP): Re-titled from Section Formerly called the Renewable Energy Systems and Energy Efficiency Improvements Program.

15 Section 9008 Biomass Research and Development: USDA/DOE program provides grants of up to 50% - 80% for biofuels and bioproducts feedstock development, R&D, demonstration projects and impact analysis.

16 Section 9008 Eligibility: Institutions of higher education National Laboratory Federal research agency State research agency Private sector entity Nonprofit R&D organization Consortium of two entities listed above

17 Section 9008 Three technical areas: 1. Feedstock development - R&D regarding feedstock development, logistics (harvest, handling, transport, preprocessing, & storage) relevant to production of raw materials for conversion to biofuels and biobased products

18 Section Biofuels and biobased Products Development: RD&D of cost effective technologies for cellulosic biomass in production of biofuel & biobased products Diversification of technology relevant to production of bioproducts (chemicals, animal feed, cogenerated power) to increase feasibility of fuel production in a biorefinery

19 Section Biofuels Development Analysis Strategic Guidance Energy &Environmental Impact Assessment of Federal Lands

20 Section 9008 Mandatory Funding ($118 total): A). $20,000,000 FY 2009 B). $28,000,000 FY 2010 C). $30,000,000 FY 2011 D). $40,000,000 FY 2012 Discretionary Funding : $35,000,000 each FY

21 Section 9008 Examples: In 2005, the University of Minnesota at Morris received a $1,896,493 grant for a comprehensive demonstration of a community-scale biomasss gasification energy system. In 2004, the University of Minnesota received a $397,711 grant to develop existing biomass resources through education of key supply bottlenecks. In 2003, the engineering firm Sebesta, Blomberg & Associates, Inc. received a $2 million grant to design a biomass cogeneration demonstration plant at Central Minnesota Ethanol Cooperative. In 2003, Cargill, Inc. in Minneapolis received a $1,877,176 grant to develop platform chemicals from an oilseed biorefinery.

22 Section 9008 More information:

23 Section 9009 Rural Energy Self-Sufficiency Initiative: Grants of up to 50% to rural communities for audits, assessments and installation of energy efficiency and renewable energy systems to increase their energy selfsufficiency. $5 million discretionary for each of FY09-FY12

24 Section 9009 Grant assistance for the purpose of enabling eligible rural communities to substantially increase the energy selfsufficiency of the eligible rural communities. Use of Grant Funds: - Conduct an energy assessment that assesses the total energy use of all energy users in the eligible rural communities. - Formulate and analyze ideas for reducing energy usage by the eligible rural community from conventional sources. - Develop and install an integrated renewable energy system.

25 Section 9009 Preference will be given to those applications that propose to carry out an activity in coordination with the following: - Institutions of higher education or nonprofit foundations of institutions of higher education - Federal, State, or local government agencies - Public or private power generation entities - Government entities with responsibility for water or natural resources Authorized Funding: - $5 Million for each year of fiscal years 2009 through 2012

26 Further Information General information: Program regulations: rdinit.usda.gov/regs/regs_toc.html Minnesota web site: E-forms:

27 Contacts David Gaffaney: Lisa Noty: , ext. 120 Cheryl Seanoa: Denise Chapeau: ;