Biorefinery Assistance

The program provide loan guarantees for the development, construction, and retrofitting of commercial-scale biorefineries as well as biobased product manufacturing facilities.




Related Programs10.866 Repowering Assistance ; 10.867 Bioenergy Program for Advanced Biofuels

Agency - Department of Agriculture

Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.

Office - See Regional Agency Offices.

Regional Agency Offices: http://www.rd.usda.gov/contact-us/state-offices.



Program Accomplishments

Not Applicable.

Uses and Use Restrictions

Loan guarantees are made to fund the development, construction, and retrofitting of commercial-scale biorefineries as well as biobased product manufacturing facilities using eligible technology.

The maximum loan guarantee is $250 million.

Mandatory funding of $100 million is available in Fiscal Year (FY) 2014, and $50 million each in FY 2015 and FY 2016, until expended, Diversity of projects, approaches and technologies will be a factor in considering applications.

Discretionary funding of $75 million may be available in each FY 2014 through FY 2018.

As of this update, the budget has not been approved.

Loan guarantees are made to fund the development, construction, and retrofitting of commercial-scale biorefineries using eligible technology.

Discretionary funding may be available on a annual basis.

The maximum loan guarantee is $250 million.

Eligibility Requirements

Applicant Eligibility

Eligible entities under the program include: individuals, entities, Indian tribes, or units of State or local government, corporations, farm cooperatives, farmer cooperative organizations, associations of agricultural producers, National Laboratories, institutions of higher education, rural electric cooperatives, public power entities, or consortia of any of those entities.

Beneficiary Eligibility

see above.

Credentials/Documentation

Application for Federal Guarantee, feasibility Study, lender analysis and other applicable and required information as outlined in application and regulations. OMB Circular No. A-87 applies to this program. 2 CFR 200, Subpart E - Cost Principles applies to this program.

Aplication and Award Process

Preapplication Coordination

This program is subject to environmental review pursuant to the National Environmental Policy Act (NEPA) of 1969.

An environmental impact assessment is required for this program.

An environmental impact assessment is required for this program.

This program is eligible for coverage under E.O.

12372, 'Intergovernmental Review of Federal Programs.' An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedures

2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Submit an original completed application with two copies to USDA?s Rural Development National Office: Energy Branch, Attention: Biorefinery Assistance Program, 1400 Independence Avenue, SW, STOP 3225, Washington, DC, 20250-3225.

Award Procedures

Based on a review of the application, the project must be eligible and have technical merit. Projects determined by the Agency to be without technical merit will not be selected for funding. The Agency will score each application in order to prioritize each proposed project.

Deadlines

Sep 01, 2015 to Oct 01, 2015: There are two application cycles each fiscal year. Applications may be submitted at any time. Letter of Intent deadlines are September 1 and March 2. Application deadlines are October 1 and April 1. A notice published in the Federal Register will provide established dates and deadlines for application acceptance.

Authorization

Title IX of the Farm Security and Rural Investment Act of 2002 is amended by the Food, Conservation, and Energy Act of 2008, and the Agricultural Act of 2014, Public Law 113-79, Title IX, Section 9003, 7 U,S,C, 8103., Title IX, Section 9003, 9 U.S.C 9003.

Range of Approval/Disapproval Time

Approval is subject to the completion of all requirements identified in the 7 CFR part 4279, subpart C.

Appeals

An applicant may have review or appeal rights in accordance with 7 CFR Part 11.

Renewals

Not Applicable.

Assistance Considerations

Formula and Matching Requirements

Statutory Formula: Statute limits maximum Federal program participation to 80% of project cost. Matching Requirements: Applicants must identify all sources, amounts, and status of matching funds. Borrowers shall demonstrate evidence of cash equity injection in the project of not less than 20 percent of eligible project costs. MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

Depends on number of applications submitted and complexity of the project. Method of awarding/releasing assistance: lump sum.

Post Assistance Requirements

Reports

The lender must provide the Agency monthly reports from the borrower during construction.

Once the project has been constructed, periodic reports for the life of the guaranteed loan.

The borrower?s reports will include, but not be limited to, the information specified in the following paragraphs, as applicable.

1.

The actual amount of advanced biofuels produced to assess whether project goals are being met.

2.

If applicable, documentation that identified health and/or sanitation problem has been solved.

3.

A summary of the cost of operating and maintaining the facility.

4.

Description of any maintenance or operational problems associated with the facility.

5.

Demonstration that the project is and has been in compliance with all applicable State and Federal environmental laws and regulations.

6.

The number of jobs created.

7.

A description on the status of the project?s feedstock including, but not limited to, the feedstock being used, outstanding feedstock contracts, feedstock changes and interruptions, and quality of the feedstock.

Cash reports are not applicable.

Lenders must forward periodic financial statements and progress reports.

Expenditure reports are required as outlined below and in Loan Agreement and program Regulations.

Performance monitoring is required.

Regulations are contained in 7 CFR Part 4279, subpart C and in 7 CFR Part 4287, subpart D.

Regulations will be updated to incorporate statutory changes required by the Agricultural Act of 2014, Public Law 113-79, effecting Section 9003.

Performance monitoring is required as outlined below and in Loan Agreement and program Regulations. Once the project has been constructed, the lender must provide the Agency periodic reports from the borrower commencing the first full calendar year following the year in which project construction was completed and continuing for the life of the guaranteed loan.

The borrower?s reports will include, but not be limited to, the information specified in the following paragraphs, as applicable. (i) The actual amount of advanced biofuels produced to assess whether project goals are being met. (ii) If applicable, documentation that identified health and/or sanitation problem has been solved. (iii) A summary of the cost of operating and maintaining the facility. (iv) Description of any maintenance or operational problems associated with the facility. (v) Demonstration that the project is and has been in compliance with all applicable State and Federal environmental laws and regulations. (vi) The number of jobs created. (vii) A description on the status of the project?s feedstock including, but not limited to, the feedstock being used, outstanding feedstock contracts, feedstock changes and interruptions, and quality of the feedstock. The lender must submit to the Agency quarterly financial statements within 45 days of the end of each quarter.

Audits

No audits are required for this program.

Records

The borrower must permit representatives of the Agency (or other agencies of the U.S.) to inspect and make copies of any records pertaining to any Agency guaranteed loan during regular office hours of the borrower or at any other time upon agreement between the borrower and the Agency, as appropriate.

Financial Information

Account Identification

12-3106-0-1-452.

Obigations

(Direct Payments for Specified Use) FY 16 Not Available; FY 17 est $0; and FY 18 est $0 - Budget has not been approved as of this update. Contact office for more information.

Range and Average of Financial Assistance

Maximum loan guarantee cannot exceed $250 million.

Regulations, Guidelines, and Literature

See solicitation for details

Information Contacts

Regional or Local Office

See Regional Agency Offices. Regional Agency Offices: http://www.rd.usda.gov/contact-us/state-offices.

Headquarters Office

Todd Hubbell U.S Department of Agriculture Rural Development, Business Programs, Energy Branch 1400 Independence Avenue, SW , Washington, District of Columbia 20250 Email: Todd.Hubbell@wdc.usda.gov Phone: 202-690-2516

Criteria for Selecting Proposals

The Agency will score projects based on markets for the advanced biofuel, renewable chemicals, the potential for biobased manufacturing, and the diversity of project approaches, technologies and products. In general, the Agency may consider among other factors, whether the area in which the borrower proposes to place the biorefinery has other similar advanced biofuel facilities. Whether the borrower is proposing to use a feedstock not previously used in the production of advanced biofuels. Whether the borrower is proposing to work with producer associations or cooperatives. The level of financial participation by the borrower, including support from non-Federal and private sources. Whether the borrower has established that the adoption of the process proposed in the application will have a positive impact on resource conservation, public health, and the environment. Whether the borrower can establish that, if adopted, the biofuels production technology proposed in the application will not have any significant negative impacts on existing manufacturing plants or other facilities that use similar feedstocks. The potential for rural economic development, including the number of local jobs created and inclusion of local banks or other capital sources in any proposed debt syndication. The level of local ownership proposed in the application. Whether the project can be replicated. Whether the project is a first-of-a-kind technology, system, or process.



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