CHRIS CASSIDY USDA, Renewable Energy Advisor National Association of State Energy Officials Conference

CHRIS CASSIDY USDA, Renewable Energy Advisor National Association of State Energy Officials Conference

REAP FY 2014 Deadline7/7/14 Grants $12 million Loan guarantees $58 Grants 25% Loan Guarantees 75% Combo 75% of total project cost Renewable Systems $2,500- $25 million Energy efficiency improvements $1,500- $25 million Loan guarantees $5,000-$25 million

National Association of State Energy Officials Conference Sacramento, California June 17, 2014 1

Rural and Ag Energy Initiatives Energy Title of Farm Bill 2014 2

Overview of Energy Programs Update on Energy Programs Funding Identify changes from Farm Bill Loan guarantees Grants Payment programs

Sustainable Supply Chain

Research and Development Bench scale Pilot scale Integrated Demonstration Unit First of Kind Commercial technology Commercial replication 6

Agriculture Act of 2014 Title IX Appropriations, Fiscal Years 2014-18 Program Name Mandatory Funding ($M) Availability Biobased Markets Program $3 Annually Biorefinery Assistance Program* $200 Until expended Repowering Assistance Program $12 Until expended Bioenergy Program for Advanced Biofuels $15 Annually Rural Energy for America Program $50 Annually Biomass Research and Development Initiative $3 Annually Biomass Crop Assistance Program $20 Annually

2014 Farm Bill Title IX Advanced biofuels and renewable energy programs administered by USDA Rural Development Biorefinery Assistance Program Repowering Assistance Program Advanced Biofuels Payment Program Rural Energy for America Program (REAP)

Biorefinery Assistance Program FIRST OF ITS KIND

9003 Biorefinery Assistance Program Overview Provides loan guarantees of up to $250 million for the construction and retrofitting of commercial scale biorefineries that produce advanced biofuels 2008 FB provided Mandatory Funding (available until expended): FY 2009 - $75 Million FY 2010 - $245 Million

Section 9003 Biorefinery Assistance Program Summary of 32 applications received, 2009 to 2012 Number Technology Feedstock Advanced Biofuel 3 Anaerobic digestion Animal manure, Municipal solid and food wastes 5 Thermo-chemical (F-T and similar processes) 6 Biochemical (Enzymatic and steam hydrolysis) 3 Thermo-chemical/ Bio-chemical hybrids 3 Lipid Hydro-cracking (UOP process) Woody Biomass, Municipal solid waste Woody Biomass, Energy grasses, Crop residues Woody Biomass, Municipal solid waste Algae oil, non-food oilseeds (Camelina, high stearic canola), yellow grease, waste food oil Natural gas/electricity (2008 FB definition) Green diesel, Green gasoline, Aviation Fuel, F-T waxes Cellulosic ethanol Cellulosic ethanol Hydro-treated Jet (HRJ), Hydro-treated Diesel HRD), Naphtha 5 Traditional (methyl ester) biodiesel Soy oil, yellow grease, waste food oils, reclaimed corn oil (ethanol distillers syrup) Biodiesel 7 Others Various Anhydrous ammonia

Section 9003 - Biorefinery Assistance Program Investments in First of its kind commercial production Loan Note Guarantees issued: Sapphire Energy, Inc., New Mexico, $54.5 million INEOS New Planet BioEnergy, Florida, $75 million Fremont Community Digester, Michigan, $12.8 million Conditional Commitments awarded: Zeachem, Oregon, $232.5 million Fiberight, Iowa, $25 million Fulcrum Sierra Biofuels, Nevada, $105 million Chemtex, North Carolina, $99 million

Fremont Community Digester Fremont, Michigan $12,825,000 Guaranteed Loan Complete Mix Anaerobic Digester 2.86 Megawatts electricity 300 tons/day industrial food waste Partnership with leading Western Michigan businesses Fall 2012 completion/operational late fall 2012

ZeaChem Boardman Biorefinery, LLC, Boardman, Oregon $232,500,000 Guaranteed Loan 25MMG cellulosic ethanol facility Feedstock 70% Woody Biomass (hybrid poplar) 30% agriculture residue (wheat straw, corn stover) 250,000 gallon demonstration facility completed Strong Federal support: US DOE $25M IBR grant USDA NIFA AFRI $12 million for demo USDA BCAP award to assist with feedstock establishment

Fulcrum Sierra Biofuels, McCarran, Nevada $105 million loan guarantee 10.5 MGY MSW and agricultural residues to SPK biojet facility Relieve pressure on existing and future landfills Stimulates economic growth and creates 53 permanent FT jobs in Northern Nevada

FY 2014 Biorefinery Assistance Applications NOFA closed January 30, 2014. 8 applications received; $510 million in loan guarantee authority requested; 4 States Texas, Louisiana, Georgia, North Carolina; 5 Technologies: 2 Green gasoline, diesel, and advanced aviation from woody biomass; Cellulosic ethanol from algae; 2 Anaerobic digesters using swine manure as principle feedstock; Solid fuel pellets from woody biomass; and 2 Biodiesel from waste greases and oils.

Section 9003 Biorefinery Assistance Program 2014 Farm Bill Changes Name Section 9003 Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program Purpose -- Of the total amount of funds made available for fiscal years 2014 and 2015 under subparagraph (A), the Secretary may use for the cost of loan guarantees under this section not more than 15 percent of such funds to promote biobased product manufacturing.

Section 9003 Biorefinery Assistance Program 2014 Farm Bill Funding Mandatory Funding (available until expended): FY 2014 - $100 Million FY 2015 - $50 Million FY 2016 - $50 Million Regulation changes to 7 CFR 4279-C are required before a new Notice. Application Guide Available (changes will be required with changes to regulation).

Energy Assistance Programs PAYMENTS

Section 9004 -- Repowering Assistance Program Overview Provides payments to eligible biorefineries in existence prior to June 18, 2008, to replace fossil fuels used to produce heat or power with renewable biomass. Provided $35 million under FY 2008 that remained available until funds were expended. ($28 million rescinded by 2013 Appropriations) Governed by 7 CFR 4288-A

Section 9004 -- Repowering Assistance Program Overview Two awards to date: Lincolnway Energy, LLC (ethanol), Nevada, Iowa, $1,995,272. Anticipated completion May 2015. Uses lignin from co-located DuPont Cellulosic Plant. Western Plains Energy, Oakley, Kansas, $5,000,000. Operational since summer of 2012. Producing biogas, ramping up to full potential.

Section 9005 Advanced Biofuel Payment Program Overview Provides payments to eligible producers to support and ensure an expanding production of advanced biofuels. Provides payment assistance to existing production and awards new production (incremental). 2008 FB provided Mandatory Funding (available until expended): $55 million in FYs 2009 and 2010; $85 million in FY 2011; and $105 million in FY 2012. $19.6 million rescinded/sequestered/etc.

Advanced Biofuel Payments, 2009-2013 Producer 2009-10 2011 2012 2013 All BIOMASS BASED DIESEL $12,084,817 $88,735,811 $22,949,899 $31,012,779 $154,783,306 ETHANOL (Non-Corn Kernel Starch) $4,749,375 $34,873,480 $9,019,389 $12,188,129 $60,830,373 SOLID FUEL (PELLETS) $1,523,789 $11,188,805 $2,893,780 $3,910,438 $19,516,812 ANAEROBIC DIGESTERS $180,655 $1,326,506 $343,077 $463,608 $2,313,846 Total $18,538,636 $136,124,602 $35,206,145 $47,574,956 $237,444,338

Rural Energy for America Program FLAGSHIP

Section 9007 Rural Energy for America Program Overview Establishes a grant and loan guarantee program to assist agricultural producers and rural small businesses in purchasing and installing renewable energy systems and making energy efficiency improvements. Establishes a grant program for energy audits and renewable energy development assistance. Mandatory Funding: FY 09 - $55 Million + $5 million discretionary FY 10 - $60 Million + $39 million discretionary FY 11 - $70 Million + $5 million discretionary FY 12 - $70 Million (Actual $22M mandatory + $2.5 M discretionary) FY 13 - $44.3 Million + $3.1 million discretionary

Section 9007 Rural Energy for America Program Performance Measures Energy Saved/Generated Jobs Saved/Created Business Assisted Small Business Agricultural Producer

Rural Energy for America Program Investments, 2003-13 Year Number of Projects Grant Amount Loan Guarantee Amount Leverage Total Project Cost 2003 114 $21,707,373 $0 $545,381,487 $567,088,860 2004 167 $22,812,049 $0 $136,984,587 $159,796,636 2005 156 $22,237,268 $10,100,000 $193,511,453 $225,848,721 2006 395 $21,209,435 $24,158,862 $190,332,768 $235,701,065 2007 436 $19,123,191 $57,270,743 $243,396,339 $319,790,273 2008 764 $34,239,666 $15,566,169 $158,032,939 $207,838,774 2009 1,559 $54,409,524 $57,569,031 $167,381,847 $279,313,511 2010 2402 $86,332,404 $73,799,918 $299,373,011 $459,424,426 2011 2,012 $62,519,999 $34,577,549 $331,529,788 $428,122,603 2012 872 $21,634,127 $14,278,112 $124,560,958 $160,473,196 2013 1,422 $40,082,065 $32,557,550 $250,715,746 $323,355,361 Total 10,299 $405,815,033 $320,668,933 $2,641,200,922 $3,366,261,359

REAP Investments by Technology, 2003-13 Technology Number of Projects Grant Amount Loan Guarantee Amount Leverage Amount Total Project Cost BIOMASS 508 $96,072,846 $169,512,842 $1,149,248,561 $1,414,967,817 ENERGY EFFICIENCY 6,733 $151,936,387 $52,602,860 $435,485,686 $638,996,535 FLEXIBLE FUEL PUMP 98 $5,435,448 $0 $21,761,200 $27,196,648 GEOTHERMAL 282 $6,442,431 $1,136,443 $27,051,591 $34,630,466 HYBRID 38.5 $1,863,460 $328,459 $7,387,842 $9,559,761 HYDROELECTRIC 33.5 $2,994,570 $19,704,500 $43,353,508 $66,302,579 SOLAR 1711.5 $59,280,144 $31,960,953 $302,999,452 $394,149,081 WIND 647 $69,640,803 $45,422,876 $627,575,736 $741,972,182 10,051 $393,666,089 $320,668,933 $2,614,863,577 $3,327,775,069 EA/REDA 85 $7,998,559 $5,089,011 $13,087,570 FEASIBILITY STUDY 163 $4,150,386 0 $14,698,370 $18,848,755 248 12,148,945 0 26,337,346 38,486,290 * Flexible fuel pump projects and Feasibility Study grants are no longer eligible under REAP.

Best Practices Conducting effective outreach Creating effective partnerships Building experience and capacity Program administration: State, Regional & National

Conducting Effective Outreach Resources Regional Energy Coordinators State and Area Office Personnel REAP Funding ($50 million per year) Renewable Energy Development Assistance Grants Renewable system technologies Energy efficiency needs Projects with the greatest impact

Key Stake Holders Partnerships Cooperative Development Centers Lenders Technical Assistance Providers Auditors, grant writers, consultants, packagers Potential Applicants Ag producer groups Rural small business associations

Building Experience and Capacity Partnering and Stakeholder involvement NIFA ARS FSA BCAP NRCS Anaerobic Digesters Applicant meets with NRCS and RD to discuss Project and Funding

Several USDA programs can help fund elements of a digester system. Manure Solids (e.g., animal bedding, soil amendment) RD-VAPG Liquid Digestate (fertilizer, nutrient removal) NRCS-EQIP FSA-CL Other Organic Material FSA- BCAP RD-REAP RD-VAPG Other Biogas Uses (e.g., offset propane or natural gas, pipeline upgrade, vehicle fuel)

Thank You chris.cassidy@wdc.usda.gov 202.841.6097 34