Implementation of the Biomass Crop Assistance Program

Abstract

The purpose of this paper is to provide insight into the strengths and weaknesses of the Biomass Crop Assistance Program (BCAP) as it was implemented according to Sect. 9011 of the 2008 Farm Bill and to provide insight into the challenges of increasing the production of second-generation bioenergy within the U.S. The purpose of the BCAP is to increase the availability of cellulosic (2nd generation) feedstocks for conversion to bioenergy; the program offers two forms of financial assistance to eligible producers of such feedstocks: 1) establishment and annual payments for establishing new bioenergy feedstocks within selected project areas and 2) matching payments for existing bioenergy feedstocks. The first part of the paper discusses the market interactions and impacts to natural resources and livelihoods associated with increasing bioenergy production within the United States. The second part of the paper analyzes the issue network, legislative history, and implementation challenges of the BCAP. An extensive literature review was conducted to cover the peer-reviewed literature related to the market interactions and impacts of bioenergy production. The BCAP is the first large-scale program to encourage increased production and availability of cellulosic feedstocks for conversion to bioenergy. Subsequently, analogous programs were reviewed to identify potential impacts to natural resources, such as the global carbon cycle, and livelihoods that could arise as a consequence of the BCAP. The issue network and legislative history are intended to aid future policy makers with the re-authorization of the 2012 Farm Bill and were compiled through interviews with primary sources at the Farm Service Agency and the Library of Congress’s THOMAS site. The issue network identifies stakeholders with a wide range of interests from both the public and private sectors. The legislative history shows the political road map taken to create the BCAP in the 2008 Farm Bill and should serve as a useful tool for reauthorizing the program in future Farm Bill’s. The analysis of key provisions in the BCAP Final Rule provides representative examples of the barriers faced to increasing domestic bioenergy production within the U.S. at this point in time. The analysis of program implementation was conducted through interviews with primary sources within FSA. Over twenty-four thousand public comments were received in response to the Proposed Rule. The public comments discussed numerous issues and several provisions were altered or added to address the comments. Four issues, vertical integration, additionality, conservation, and disrupting existing markets, highlighted some of the current challenges the bioenergy industry faces to increasing domestic production.