Biomass Crop Assistance to Spur Renewable Energy Production
The USDA proposed new regulations for the Biomass Crop Assistance Program (BCAP), designed to boost production of non-food biomass crops for renewable energy.
Authorized in 2008 by the Food, Conservation, and Energy Act, BCAP provides incentive payments for investments in first-generation energy crops that displace fossil fuels. The BCAP program has begun to provide matching payments for the collection, harvest, storage, and transportation of biomass to eligible biomass conversion facilities. The proposed rule terminates those payments and as of February 8, the USDA is no longer accepting applications for matching payments. The program will start up again when the final rule is in place.
BCAP funds two main activities, one of which provides up to two years of matching payments for eligible biomass materials sold to qualified biomass conversion facilities that produce heat, power, biobased products, or advanced biofuels. The new rule offers three potential options for structuring payments, all of which are aimed at reducing payments to facilities that already use biomass and providing incentives for new uses of biomass (see page 6285 of the Federal Register, or page 23 of the PDF file).
BCAP will also provide payments to producers of eligible biomass crops for up to 75% of the cost of establishing the perennial crops, followed by annual payments for up to 15 years of crop production. These crops must be located in designated project areas, which can be proposed by biomass conversion facilities or by groups of biomass producers. Annual payments are limited to five years for annual crops and non-woody perennial crops.
The USDA intends to cap the cost of the BCAP program at $2.6 billion, including $2.1 billion for matching payments for biomass materials over the next four years, $306 million for crop establishment over the next three years, and $219 million for annual payments over the next 17 years. The funds come via the Commodity Credit Corporation, a government-owned and operated entity that was created to stabilize, support, and protect farm income and prices. The proposed rule was published in the Federal Register on February 8 and is open to public comment until April 9. See the USDA press release, the BCAP Web site, the CCC Web site, and the proposed rule (PDF 185 KB).
U.S. Wind Energy Industry Installed Nearly 10,000 MW in 2009
The U.S. wind industry installed nearly 10,000 MW of new wind turbines in 2009, increasing its generating capacity by 39%, according to the American Wind Energy Association (AWEA). The industry group credited the Recovery Act for the record-breaking year, which topped 2008 by nearly 19%. AWEA's fourth quarter report, released on January 26, places wind power neck-and-neck with natural gas as the leading source of new electricity generation for the country. Together, the two account for about 80% of new capacity added last year. The new wind capacity is enough to serve more than 2.4 million homes.
