Modifications made to BCAP program
USDA made significant changes to the Biomass Crop Assistance Program in its final rule, many involving woody biomass utilization, but the jury is still out on how the changes will be implemented.
By: Anna Austin
Biomass Power & Thermal
Critics of USDA’s Biomass Crop Assistance Program, a federal program designed to jump-start the use of biomass for bioenergy production, caught the attention of USDA officials when they questioned whether certain woody biomass should be included as eligible material in the program.
Their criticism proved to be true when, after the original Notice of Funding Availability in April 2009, some woody biomass suppliers sold their materials to eligible biomass-based heat, power, fuel or chemical producers allowing them to receive matching BCAP payments, rather than selling to their traditional customers. In most cases, that led to higher prices for customers who weren’t eligible to participate in BCAP, such as particleboard makers, and therefore distorted established markets. This caused a suspension of the program so the federal agency could make necessary modifications.
