Biomass Magazine - April 2010

Page 49

POLICY

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BOILER

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Establishment payments would cover up to 75 percent of the cost of establishing dedicated energy crops such as miscanthus.

percent of the cost of establishing eligible woody and nonwoody perennial crops, with annual payments for up to 15 years. To be eligible for these payments, production activities must take place in designated project areas—areas which may be proposed by BCFs or by groups of producers. Qualifying for establishment or annual payments requires a producer to provide a description of the eligible land and eligible crops to be grown there, including maps to show current land use, roads, railroads, rivers, barge access, cost of land preparation, and evidence of a need for sufficient equity. A letter of intent from a BCF indicating the facility intends to utilize the crops grown on the eligible land must also be provided, as well as solid evidence that the biomass conversion facility has enough equity to operate in the future if it isn’t in operation at the time of the proposal.

Although not definitive, BCAP does have an estimated cap. The USDA reported it 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 public comment period for the proposed ruling ends at the beginning of April, and the USDA is confident the kinks will be worked out in the long term. “It will take some time, there will be some hills, valleys and bumps in the road,” Politsch says. “People are going to get upset along the way, but it will settle down and be a very successful program.” BIO

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Anna Austin is a Biomass Magazine associate editor. Reach her at aaustin@ bbiinternational.com or (701) 738-4968.

4|2010 BIOMASS MAGAZINE 49


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