By ANDREA McCANN
Indiana Correspondent

INDIANAPOLIS, Ind. — The Biomass Crop Assistance Program (BCAP) announced last month will provide far-reaching benefits, according to Indiana’s Farm Service Agency (FSA) Director Julia Wickard.

“This program will benefit producers, the developing biomass industry, the general public and the environment as we continue working to expand production and availability of renewable energy,” Wickard said. “Owners of eligible material can receive financial assistance for delivering qualified biomass to conversion facilities that use biomass for heat, power, biobased products or advanced biofuels.”

A list of eligible materials is posted at www.fsa.usda.gov but in Indiana, wood chips, switchgrass and cornstalks are the primary biomass materials that qualify, according to Indiana FSA program specialist Gail Peas.

To be eligible, material must be a renewable biological product and cannot be a harvested grain, fiber or other commodity eligible to receive payments under Title I of the 2008 farm bill. It also cannot be an animal waste or byproduct, food or yard waste or algae.
Producers or entities delivering qualified biomass materials to certified facilities can apply for matching payments, which are intended to offset delivery costs, under the collection, harvest, storage and transportation (CHST) component of BCAP. CHST payments are made at a rate of $1 for $1 per dry ton equivalent, not to exceed $45 per dry ton equivalent. Biomass producers are eligible to receive payments for two years.

Facilities accepting the biomass must go through a certification process, according to Peas. To be eligible, she said, facilities must use the material to produce energy or to convert the biomass into a useable energy form, such as pellets. It cannot be a facility that produces ethanol or biodiesel, for example, from Title I crops.
Peas said there’s been some interest from Indiana facilities, but so far none have submitted applications.

“It’s the same for Illinois,” she said, “but I’m not sure about other surrounding states. I haven’t had a chance to talk to them yet. It’s not expensive. It’s just a memorandum of understanding. There’s no cost.”

As part of the memorandum, she explained, facilities must agree to environmental guidelines, account handling and other requirements. While the environmental guidelines, for example, should adhere to state guidelines already in effect, there could be some cost incurred to bring a facility up to par if it’s not already in compliance.

“There’s a benefit to the facility, but there’s no payment issued,” Peas said. “There’s a benefit to the facility because, potentially, they could reduce what they pay for biomass if their producers participate.”

To certify a facility, managers may simply fill out an online application at the FSA website. Peas said some additional information may have to be mailed to the applicable state office.
Producers who wish to participate must initiate the process at their local FSA service center, she said. Signups began in August.