Farm Energy

Jim Byrum, President of the Michigan Agri-Business Association, appeared in the Detroit Free Press as a guest commentator. He discussed the need to continue the Farm Bill Energy Title, which encourages renewable energy on farms in Michigan and elsewhere as a way to provide farmers with additional opportunities for income and which helps reduce our dependance on foreign oil.

They said:

Here are some agricultural priorities that should be included as Congress proceeds:

Including:

Continuing the energy title in the 2005 Farm Bill, which encourages renewable energy on farms in Michigan as a way to provide farmers with additional opportunities for income and helps reduce our dependence on imported oil.

For more, read the commentary.

(October 7) Earlier this week, Indiana Republican Senator Richard Lugar and Indiana Republican Representative Marlin Stutzman (R-3rd) introduced Farm Bill reauthorization legislation, the Rural Economic Farm and Ranch Sustainability and Hunger Act (REFRESH).  It contains significant energy investments while assertedly saving taxpayers more than $40 billion over its five year life.  In particular, REFRESH includes key components of the existing Farm Bill Energy Title, including the Rural Energy for America Program (REAP) and the Biomass Crop Assistance Programs (BCAP).

(ALERT: While REFRESH is a positive step in the longer term, an immediate priority is next year’s budget. Please add your voice now to those opposing unfair cuts to REAP and BCAP. Time is of the essence – Congress may take further action very soon. Thank you.)

REFRESH provides nearly $1.3 billion in mandatory appropriations for five different clean energy programs with significant additional discretionary funding authorizations.  In particular, REFRESH includes annual funding of $70 million for the REAP program and an additional $80 million annually in discretionary funds.  The legislation also extends REAP to assist our nation’s rural schools with energy efficiency programs.

The legislation also supports the development of energy crops with the BCAP program.  REFRESH proposes to fund BCAP at $55 million dollars a year, with an additional $150 million a year in discretionary funding, while working to improve the program in several important respects. REFRESH includes complementary loan guarantee financing for biorefineries by continuing the Biorefinery Assistance Program for two more years.

REFRESH also adds a new Rural Energy Savings Program for rural electric cooperatives and others to help their customers save energy and money. REFRESH also extends the Biobased markets program.

Without reserving comment on the merits of the entire proposal, we applaud Senator Lugar and Representative Stutzman for recognizing that America’s the great potential for renewable energy from the heartland.  REFRESH affirms the value of energy for rural America, and the win-win of clean energy for rural economic development, energy security and environmental quality.

**This briefing will be held twice on the same day **

Tuesday, July 19, 2011
10:00 – 11:30 a.m.
1302 Longworth House Office Building

Tuesday, July 19, 2011
2:00 – 3:30 p.m.
188 Russell Senate Office Building

The Environmental Law and Policy Center (ELPC) and Environmental and Energy Study Institute (EESI) invite you to a briefing on the energy title of the farm bill, with a special focus on the Rural Energy for America Program. (more…)

(Feb 28, 2011) USDA recently issued interim final rules for two Energy Title programs in the 2008 Farm Bill: Repowering Assistance Payments to Eligible Biorefineries, and the Advanced Biofuel Payment Program.

USDA is accepting comments on the rules through April 12, 2011. However, by issuing the rules as “interim final rules” rather than “proposed rules,” the Department can implement the regulations now, and then adjust them as necessary after receiving comments.

Repowering Assistance for Eligible Biorefineries

This program implements Section 9004 of the 2008 Farm Bill, Repowering Assistance. Its purpose is to help to “green” ethanol plants with funding for existing facilities to convert their on-site power plants from fossil fuel to renewable biomass. The carbon savings can be significant, with larger plants reducing greenhouse gases by 100,000 tons or more annually. The 2008 Farm Bill committed $35 million in funding for Repowering Assistance.

ELPC commented extensively on USDA’s first proposal for Repowering Assistance, and we are pleased that the Department has agreed in whole or in part with most of our recommendations. For example, the rule largely drops the “rural restriction” requirement that plants had to be located in rural areas.

However, we remain concerned that the program does not sufficiently reward the greatest carbon reductions in funding proposals, so we will comment on the interim final rule as well.

The Interim final Rule is available here, and comments are due April 12, 2011. Please feel free to contact Andy Olsen at ELPC if you have any questions about the Repowering Assistance Program.

Advanced Biofuel Payment Program

This program implements Section 9005 of the 2008 Farm Bill, the Bioenergy Program for Advanced Biofuels. Its purpose is to encourage production of lower-carbon biodiesel and cellulosic ethanol. Corn starch ethanol is not eligible. It offers production payments for biofuels based on several factors, and we expect that most of this funding will be used for soy biodiesel in the first several years of the new Farm Bill, along with some funding for other oilseed crops. The 2008 Farm Bill included $300 million in mandatory funding for this program.

Key points in the Interim Final Rule include:

• Two-tier payments for both total annual production and yearly increases, with the incentive first prioritizing total production and then, by 2013, equally dividing the incentive payments between total and incremental production.
• Discouraging use of forest biomass in several ways, notably by limiting payments for fuels produced from forest biomass to only 5 percent of total annual funding.
• Encouraging carbon savings with a “BTU bonus” for biofuels that meet U.S. EPA renewable fuels standard (RFS) requirements.

 The Interim final Rule is available here, and comments are due April 12, 2011.

(February 8) On February 8, 2010, USDA issued its proposed rule to implement the 2008 Farm Bill’s Biomass Crop Assistance Program (BCAP).  In the same proposal USDA also terminated an interim funding program under BCAP which has cost the government far more than expected.

USDA is accepting public comments on its BCAP proposal through April 9, 2010. Here is a copy of the proposal (opens in new window); otherwise, read on for more information on the proposal. (more…)

Overview

Today, June 11, USDA issued a Notice of Funds for Availability (NOFA) for the Collection, Harvest, Storage and Transportation (CHST) portion of the Biomass Crop Assistance Program (BCAP).  You can read the official notice here. Funding for the remaining components of BCAP (annual and establishment payments) will be announced in the final rule at a later date.

This NOFA is being rolled out as USDA completes a set of 6 public hearings around the country on the Programmatic Environmental Impact Statement (EIS) being conducted for BCAP.  BCAP advances sustainable energy crops — a global warming solution that provides new income opportunities for farmers.

(more…)