Department of Agriculture, Department of Energy Invest $18.4 Million in Support of Biomass Energy Research and Demonstration Projects

On March 4, 2008, the U.S. Department of Energy (DOE) and the U.S. Department of Agriculture (USDA) announced the winners of 21 awards for research and demonstration projects that aim to overcome key hurdles to cost-effective production of renewable fuels and products made from cellulosic biomass. Grant recipients are required to provide a minimum of 20 percent matching funds for R&D projects and 50 percent matching funds for demonstration projects. The awards total $18.4 million, to be distributed over three years. Of this, $13.2 million will come from USDA and $5.2 million will come from DOE. The award recipients are both universities and private companies from across the country, including Rutgers University, the University of Florida, Ceres, The University of Colorado, Agrivida, Packer Engineering, and Cornell University. Despite the enthusiasm surrounding this program, the administration requested no funding for it in its FY2009 budget request.

USDA Press Release (Includes a List of Award Winners)

Department of Agriculture Accepting Grant Applications for Renewable Energy Systems and Energy Efficiency Improvements (Sec. 9006)

On March 6, 2008, the Rural Business-Cooperative Service (RBS), an agency within the U.S. Department of Agriculture (USDA), published a notice in the Federal Register announcing that it will begin taking applications from agriculture producers and rural small businesses in eligible rural areas needing assistance for the purchase of renewable energy systems and improvements in energy efficiency (Sec. 9006). For FY 2008, a total of $220,841,560 has been made available for the grant and loan program: $15,888,000 for grants and $204, 953,560 for loan guarantees. In addition to stand-alone grants and loans, applicants may apply for combined grant and loan funding. Individual grants will range between $2,500 and $500,000 for renewable energy systems and between $1,500 and $250,000 for energy efficiency improvements. The maximum amount for a loan guarantee will be $10 million.

Grant applications will be accepted during two windows; the first round closes by April 15, 2008 and the second closes June 16, 2008. Applications for loan guarantees and combined grant-and-loan applications are due June 16, 2008.
Instructions for submission of applications can be found at http://www.Grants.gov.

Notice in the Federal Register (.PDF)

Department of Agriculture Awards More Than $4.1 Million for Woody Biomass Development

On March 7, 2008, the U.S. Department of Agriculture (USDA) awarded of $4.1 million 17 small businesses and community organizations finding innovative uses for woody biomass coming from National Forests in products and renewable energy. The U.S. Forest Service, on behalf on USDA, selected 17 projects across the western states to receive grants intended to help create markets for small-diameter woody material, damaged and other low-valued trees removed to reduce the risk of fire hazard, insect infestation or disease. Recipients include the Nevada Division of Forestry, the Coquille Tribe of Oregon, Northridge Forests Products (New Mexico), the Kootenai Business Park Industrial District (Montana), and others. Grants ranged from $170,000 to $250,000.

USDA Press Release

Link to this EESI Release (.PDF)

If you have questions, please contact Jetta Wong at jwong [at] eesi.org or (202) 662-1885.