Post on 07-Sep-2018
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-$25 million
Overview of Energy Programs
• Update on Energy Programs Funding
• Identify changes from Farm Bill
• Loan guarantees
• Grants
• Payment programs
• Research and Development
• Bench scale
• Pilot scale
• Integrated Demonstration Unit
• First of Kind
• Commercial technology
• Commercial replication
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Agriculture Act of 2014 Title IX Appropriations, Fiscal Years 2014-18
Program Name
Mandatory
Funding
($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)
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
Natural gas/Electricity (2008 FB definition)
5 Thermo-chemical (F-T and similar processes)
Woody Biomass, Municipal solid waste Green diesel, Green gasoline, Aviation Fuel, F-T waxes
6 Biochemical (Enzymatic and steam hydrolysis)
Woody Biomass, Energy grasses, Crop residues
Cellulosic ethanol
3 Thermo-chemical/ Bio-chemical hybrids
Woody Biomass, Municipal solid waste Cellulosic ethanol
3 Lipid Hydro-cracking (UOP process)
Algae oil, non-food oilseeds (Camelina, high stearic canola), yellow grease,
waste food oil
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
• $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
Fremont Community Digester
Fremont, Michigan
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).
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
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
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
Rural Energy for America Program Investments, 2003-13
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
Other Organic Material
Manure Solids (e.g., animal bedding,
soil amendment)
Liquid Digestate (fertilizer, nutrient removal)
Other Biogas Uses (e.g., offset propane or
natural gas, pipeline upgrade, vehicle fuel)
NRCS-EQIP
FSA-CL FSA-
BCAP
RD-REAP
RD-VAPG
RD-VAPG Several USDA
programs can help
fund elements of a
digester system.
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Thank You
chris.cassidy@wdc.usda.gov
202.841.6097