Biomass Crop Assistance Program Update

From the October 2010 Forest2Fuel newsletter.

On October 5, Doug Duncan, the Executive Director of the North Carolina Association of Professional Loggers spoke with Kelly Novak, Biomass Crop Assistance Program Specialist for the USDA about the new rules for the program. While Novak was unable to share specifics about subsidy rates and ceilings, she did offer insight into the definitions and processes that will be used to implement the program going forward. For the matching payments program:

• The definitions of both biomass conversion facility and eligible biomass will remain consistent with those outlined in the 2008 Farm Bill.
• All conversion facilities will have to reapply for eligibility, however, and the process will be much slower than it was under previous program rules. Conversion facilities should expect qualification to take 3 months.
• The USDA received a total of 24,008 comments covering more than 370 areas of concern. Most of these comments addressed issues of sustainability, loss of wildlife habitat, loss of soil fertility and water quality. As a result, in order to be eligible for matching payments under the new rules, the following requirements will need to be met:
  • Biomass must be harvested under a biomass harvesting plan
  • An environmental impact review must be conducted
• These requirements are likely to be administered by state forestry or environmental agencies and the National Resources Conservation Service (part of the USDA). Sources of funding to implement these new requirements were not specified.

Kelly said that the final rule is now be evaluated by the Office of Budget and Management at the White House. She expects the new rules to be released in October. In addition, she said that the agency has requested that the 60-day Congressional review period be waived, which would allow for earlier implementation.

Visit NC Association of Professional Loggers for more information on Duncan’s BCAP conversation with Novak and on BCAP in general.

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