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2/24/2010
Latest proposed rules for BCAP released |
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The U.S. Department of Agriculture (USDA) released the new proposed rules for the Biomass Crop Assistance Program (BCAP) earlier this month. BCAP will provide financial assistance to producers who deliver eligible material to approved biomass conversion facilities and the Farm Services Agency (FSA) will provide assistance with the Collection, Harvest, Storage &Transport payment process. The program is part of the 2009 "Presidential Directive to USDA to Expand Access to Biofuels". The directive's mission is to increase the availability of renewable biomass to the renewable energy market.
BCAP includes two different phases or sub-programs: Collection, Harvest, Storage & Transport (CHST) program and the Establishment & Annual Payment (EAP) program. The CHST program involves annual payments to "eligible material owners", who are the companies (who are usually loggers or wood suppliers) that sell the biomass to the qualified energy conversion facility. In the newly proposed rule, Tree Farm, Sustainable Forestry Initiative (SFI) and other best management program plans will be acceptable in the place of a stewardship plan, which was part of the original rule. FSA has proposed that mill residues not be allowed if they can be used for higher value products.
The EAP program involves payments directly to landowners for the establishment of biomass crops and annual payments to landowners based on acreage used to grow biomass crops. In order for this program to begin, a project sponsor must submit a proposal to FSA for acceptance. This proposal must include a description of the land, a description of the biomass crop the producer will grow, a letter of commitment from the biomass conversion facility, evidence that the facility can operate in the future and a description of the forest management plans that the producers will use.
Other points about the EAP program:
- The project must demonstrate long-term viability.
- Projects must have specific geographic boundaries.
- Project sponsors can be a producer, a group of landowners or a biomass energy facility.
- Producers must enter into 15 year contracts for the biomass crop.
- Lands owned by "corporations whose stocks are publicly traded or legal entities principally engaged in the production of wood products" and government-owned lands are excluded.
A 60 day comment period for the proposed rules is currently underway. A copy of the rules can be found
on the Farm Service Agency's website. Comments can be submitted to cepdmail@wdc.usda.gov.
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