CHRIS CASSIDY USDA, Renewable Energy Advisor … · CHRIS CASSIDY USDA, Renewable Energy Advisor...

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CHRIS CASSIDY USDA, Renewable Energy Advisor National Association of State Energy Officials Conference

Transcript of CHRIS CASSIDY USDA, Renewable Energy Advisor … · CHRIS CASSIDY USDA, Renewable Energy Advisor...

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

National Association of State Energy Officials Conference

Sacramento, California

June 17, 2014

1

Rural and Ag Energy Initiatives

Energy Title of Farm Bill 2014

2

Overview of Energy Programs

• Update on Energy Programs Funding

• Identify changes from Farm Bill

• Loan guarantees

• Grants

• Payment programs

Sustainable Supply Chain

• Research and Development

• Bench scale

• Pilot scale

• Integrated Demonstration Unit

• First of Kind

• Commercial technology

• Commercial replication

6

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)

FIRST OF ITS KIND

Biorefinery Assistance Program

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).

PAYMENTS

Energy Assistance Programs

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

FLAGSHIP

Rural Energy for America Program

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.