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Biomass Crop Assistance Program for Tennessee

12/07/2009 -


The following is a summary of the Biomass Crop Assistance Program (BCAP) that looks to be very beneficial for many of our forest products facilities and suppliers in the state of Tennessee. This is a simplified overview and is meant to be an introduction only; all the details, forms and information are available on the USDA Farm Services Agency website:
BCAP provides financial assistance to producers or entities that deliver eligible biomass material to designated biomass conversion facilities for use as heat, power, biobased products or biofuels. Initial assistance will be for the Collection, Harvest, Storage and Transportation (CHST) costs associated with the delivery of eligible materials.
The program currently includes forest products facilities that are burning biomass materials in boilers for process steam or steam for drying lumber. The matching payment is made to the supplier and not the Biomass Conversion Facility (BCF) and equals a dollar for dollar payment for the cost of biomass material up to $45 per dry ton. 
The first step is for a using facility (BCF) to apply and agree to be included as a facility participating in the Biomass Crop Assistance Program’s Collection, Harvest, Storage and Transportation component. The suppliers that are selling the BCF sawdust, bark and other biomass must have some type of purchase agreement from the BCF to take to their county office of the Farm Services Agency (FSA) to apply for a CHST matching payment before delivery of any material. The supplier submits a “Request for Payment” to the county FSA office after material has been delivered to the BCF and is then paid for the delivered material. 
For example: A paper mill such as Temple Inland (Facility ID 4708501) makes application to be a BCF and is accepted and issued a BCF number. A sawmill that is taking their sawdust to Temple goes to the FSA office in Montgomery County with their purchase agreement from Temple and applies for a CHST matching payment. When the sawmill delivers loads of sawdust to Temple, they take their original scale tickets, invoices or payments made and conversion from green to dry tons to the county office for matching payment. A smaller lumber facility that is buying biomass for their boiler to dry lumber would have to go through the same process. An entity cannot be both a BCF and a supplier.
As of this date there are two BCFs in Tennessee:
ID 4708501, Temple Inland Inc., New Johnsonville Mill, (931) 535-2161,
ID 4707101, Packaging Corporation of America, Counce Mill, (731) 689-1220,
All the forms and more detailed directions are on the FSA website. If you have questions after reading the materials, you can call or email:
Doug Schnabel, TN Division of Forestry, 615 837 5430,
Dana Howard, TN Forestry Association, 615 883 3832,
Pat Gibson, Farm Services Agency, 615 277 2617,