USDA launches new BCAP rules, EPA launches new RFS2 rules

In Washington, the U.S. Department of Agriculture today issued a proposed rule for the new Biomass Crop Assistance Program (BCAP) that intends to spur the expansion of dedicated non-food crops for renewable energy and biofuel production. A public comment period will continue for 60 days after the rule is published in the Federal Register. Authorized in the Food, Conservation, and Energy Act of 2008, BCAP is intended to reduce the financial risk for farmers, ranchers and forest landowners by providing incentive payments to those who invest in the production, harvest, storage and transportation of new first-generation energy crops that displace hydrocarbon-based materials now used for heat, power and vehicle fuel.

In a press conference yesterday, Secretary of Agriculture Tom Vilsack said that matching payments will be targeted to increase biomass, not switch production from other uses, and that feedstock neutrality is addressed in rule. “BCAP must reduce risk for farmers, and address a chicken or egg dilemma in biofuels development.”

BCAP is authorized to fund two main types of activities. First, it provides funding for agriculture and forest land owners and operators to receive matching payments for eligible biomass materials sold to qualified biomass conversion facilities for the production of heat, power, bio-based products or advanced biofuels. The payment rate is intended to assist producers with the cost of collection, harvest, storage and transportation of the biomass to the facility, for up to two years.

Additionally, BCAP will provide funding for producers of eligible renewable crops within a select geographical area to receive payments up to 75 percent of the cost of establishing the crop and annual payments for up to 15 years for crop production.

A copy of the proposed rule is available online here . Comments on the proposed rule to cepdmail@wdc.usda.gov, or through the Federal e-rulemaking portal here.

In Washington, the EPA has finalized a rule implementing the long-term renewable fuels mandate of 36 billion gallons by 2022 established by Congress. The Renewable Fuels Standard requires biofuels production to grow from last year’s 11.1 billion gallons to 36 billion gallons in 2022, with 21 billion gallons to come from advanced biofuels. The EPA’s RFS2 rule is here

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