On September 29, 2014, the U.S. Department of Agriculture (USDA) issued an initial notice announcing the timeframes to submit applications for participation in the Advanced Biofuels Payment Program. Applications for participation in fiscal year 2015 will be accepted between October 1, 2014, and October 31, 2014. The Federal Register notice is available online....
Archives
September 12, 2014
USDA Awards Fulcrum Sierra Biofuels, LLC $105 Million Loan Guarantee
The U.S. Department of Agriculture (USDA) has guaranteed a $105 million loan through Bank of America, N.A. to help Fulcrum Sierra Biofuels build a plant in McCarran, Nevada that would convert municipal waste into renewable jet fuel. The total project cost is expected to be $266 million and the plant is predicted to produce 11 million gallons of fuel per year. This loan was guaranteed as part of the Biorefinery Assistance Program that is included...
On August 19, 2014, the U.S. Department of Agriculture (USDA) announced that the Agency is investing $25 million to support 247 businesses throughout the country under the Value-Added Producer Grant program (the program). The program was reauthorized under the 2014 Farm Bill. It is designed to "[help] agricultural producers grow their businesses by turning raw commodities into value-added products, expanding marketing opportunities and developing new uses for existing products."...
On August 1, 2014, the U.S. Department of Agriculture (USDA) issued a final rule on "Guidelines for Designating Biobased Products for Federal Procurement." A copy of the rule is available online. The rule is effective on September 2, 2014. Under the rule, wood products will become eligible under USDA's BioPreferred Program, which was created under the 2002 Farm Bill. The rule removes language that excluded mature markets from the program. This change will open up...
August 1, 2014
DOE Joins “Farm To Fly” Initiative
DOE will reportedly join the U.S. Department of Agriculture's (USDA) "Farm to Fly" initiative to help promote the development and use of sustainable aviation biofuels. Under the initiative, USDA, Boeing, and the Air Transport Association of America are working together to accelerate the availability of commercially viable and sustainable aviation biofuels in the United States to increase domestic energy security, establish regional supply chains, and support rural development. The...
July 18, 2014
USDA Awards Funds To Promote Development Of Rural Wood-To-Energy Projects — 15 States To Benefit
On July 15, 2014, Agriculture Secretary Tom Vilsack announced grant awards to support the development of wood energy projects. According to the press release, the federal funds will leverage more than $4.5 million in investments from U.S. Department of Agriculture (USDA) partners. Under the terms of the agreements, private, state, and federal organizations will work together to stimulate the development of additional wood energy projects in their states. Activities may include workshops that...
June 23, 2014
Presidential Memorandum Creates Federal Strategy to Promote Health of Honey Bees and Other Pollinators
On June 20, 2014, President Obama issued a Presidential memorandum entitled “Creating a Federal Strategy to Promote the Health of Honey Bees and Other Pollinators.” The memorandum creates a Pollinator Health Task Force, which will be co-chaired by the U.S. Department of Agriculture (USDA) and U.S. Environmental Protection Agency (EPA). The Task Force will develop a National Pollinator Health Strategy, which includes a Pollinator Research Action Plan, Public Education Plan, and public-private...
On Friday, May 23, 2014, the U.S. Department of Agriculture (USDA) released its semi-annual regulatory agenda (Agenda) indicating its intended actions and priorities for the remainder of the year. A copy of USDA's Agenda is available online. According to the Agenda, USDA intends to issue its final rule addressing how its BioPreferred® Program will designate complex products and intermediate materials and feedstocks in July 2014. USDA published its proposed rule on this matter in the...
May 23, 2014
House Agriculture Appropriations Bill Would Make Significant Cuts To Mandatory Funding For Farm Bill
On May 20, 2014, the House Committee on Appropriations' Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies (House Agriculture Appropriations Subcommittee) and the Senate Committee on Appropriations' Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies (Senate Agriculture Appropriations Subcommittee) marked up and passed their separate versions of a Fiscal Year (FY) 2015 spending bill for USDA. A...
On April 3, 2014, the U.S. Department of Agriculture (USDA) announced that it has launched a website that provides details on Farm Bill implementation. The website provides useful information on USDA's implementation of the Farm Bill and includes information on the economic implications of the bill's implementation prepared by the Economic Research Service....
December 13, 2013
Navy Announces Funding For Military Biofuels
On December 11, 2013, the U.S. Departments of Agriculture (USDA) and Navy announced that as part of their joint "Farm-to-Fleet" initiative, the acquisition of biofuel blends will be included into regular Department of Defense domestic solicitations for jet engine and marine diesel fuels. The Navy will seek to purchase JP-5 and F-76 advanced drop-in biofuels blended from 10 to 50 percent with conventional fuels. Funds from USDA's Commodity Credit Corporation will assist the effort....
This week could determine whether Congress will be able to pass its next five-year Farm Bill by the end of this year. Congress is expected to adjourn for its Thanksgiving recess at the end of this week, and the House of Representatives is expected to adjourn for the year on December 13, 2013. With the little time remaining to conduct official Congressional business this year, two of the four principal Farm Bill conferees working to...
Last week, part of EPA's much anticipated 2014 proposed RFS rule, or at least a draft of the rule, was leaked and widely disseminated. If the text of the leaked proposed rule is representative of the actual proposed rule, the oil and gas industry would likely view it more favorably than would the biofuels industry. In the leaked version of the proposal, EPA would use its authority under the RFS to adjust downward the cellulosic,...
On September 30, 2013, the U.S. Department of Agriculture (USDA) announced it had completed its second sale of sugar under the Food, Conservation and Energy Act of 2008 (the 2008 Farm Bill) Feedstock Flexibility Program (FFP). Reportedly, USDA purchased the sugar for $65.9 million and sold it immediately for $12.6 million, a $53.3 million loss. Currently, no information is available about the sale on USDA's website because the website is suspended during the government shutdown....
Not only did the U.S. government shut down at midnight on Monday, but so did the nine month extension of the 2008 Farm Bill. With no new five-year Farm Bill, the future is uncertain for rural energy programs supported by the U.S. Department of Agriculture (USDA), including the Biorefinery Assistance Program that promotes the development of biorefineries in the U.S. As we have reported earlier this year, the U.S. Senate passed its version of the...
September 27, 2013
USDA To Buy More Sugar For Biofuels Production
Last week, the U.S. Department of Agriculture (USDA) announced that it is seeking bids from bioenergy producers to purchase sugar from the Department as part of the Food, Conservation and Energy Act of 2008 (the 2008 Farm Bill) Feedstock Flexibility Program (FFP). This will be the second time that USDA will utilize the FFP. The 2008 Farm Bill directs USDA to keep sugar prices at or above certain levels, and authorizes USDA to either acquire...
September 19, 2013
USDA Announces Funding For Advanced Biofuels
USDA is continuing its work to promote the U.S. biofuels industry, which USDA Secretary Tom Vilsack believes helps bolster the U.S. agriculture sector and rural economy. On September 12, 2013, USDA announced that it will provide a total of $15.5 million to 188 advanced biofuel producers under USDA's Advanced Biofuel Payment Program, which was created under the 2008 Farm Bill (P.L. 110-234, the "Food, Conservation and Energy Act of 2008"). It is reported that through...
The Federal Aviation Administration (FAA) has announced that it will provide $40 million for a Center of Excellence (COE) on sustainable aviation fuel and the environment. The funds will be distributed in $4 million increments each year for the next ten years. Washington State University and the Massachusetts Institute of Technology will be leading the effort, and several other universities will be involved. For a full list of participants and more information on the initiative,...
September 13, 2013
National Advanced Biofuels Conference and Expo
This week, the National Advanced Biofuels Conference and Expo was held in Omaha, Nebraska. During the three-day conference, industry leaders presented on and discussed major issues facing the industry, from legal considerations to advancing the aviation biofuels industry, supply, and feedstock successes and challenges. During the conference, Michael McAdams, President of the Advanced Biofuels Association, and Joe Jobe, CEO of the National Biodiesel Board, discussed some of their current federal...
Congress returned from its August recess this week, and, as expected, the Republican leadership of the U.S. House of Representatives is looking toward passing legislation on the remaining nutrition portion of the Farm Bill, including $40 billion in cuts to food stamp programs over the next ten years. The bill could come up for a vote next week. House Republican leaders, including House Committee on Agriculture Chair Frank Lucas (R-OK), have stated they do not...