[Federal Register Volume 75, Number 87 (Thursday, May 6, 2010)]
[Notices]
[Pages 24865-24873]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-10247]
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Notices
Federal Register
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Federal Register / Vol. 75, No. 87 / Thursday, May 6, 2010 /
Notices
[[Page 24865]]
DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Notice of Contract Proposal (NOCP) for Payments to Eligible
Advanced Biofuel Producers
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Notice.
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SUMMARY: This Notice announces the acceptance of applications to enter
into Contracts to make payments to Eligible Advanced Biofuel Producers
under the Bioenergy Program for Advanced Biofuels to support and ensure
an expanding production of Advanced Biofuels. Under this Notice,
applications will be accepted for Biorefineries that produce
transportation fuels that meet the Renewable Fuel Standard or are
currently undergoing an appeal to the U.S. Environmental Protection
Agency for inclusion in the Renewable Fuel Standard, or that produce
non-transportation renewable energy that results in a reduction in
greenhouse gases. The Agency will authorize up to $40 million in
funding for this program for fiscal year (FY) 2010.
DATES: Applications for participating in this program for Fiscal Year
2010 must be received between May 6, 2010 and July 6, 2010.
ADDRESSES: Application materials may be obtained by contacting the
USDA, Rural Development State Office, Renewable Energy Coordinator.
Submit applications to the Rural Development State Office in the State
in which the applicant's principal office is located.
USDA Rural Development State Renewable Energy Coordinators
Note: Telephone numbers listed are not toll-free.
Alabama
Quinton Harris, USDA Rural Development, Sterling Centre, Suite 601,
4121 Carmichael Road, Montgomery, AL 36106-3683, (334) 279-3623,
[email protected].
Alaska
Dean Stewart, USDA Rural Development, 800 West Evergreen, Suite 201,
Palmer, AK 99645-6539, (907) 761-7722, [email protected].
Arizona
Alan Watt, USDA Rural Development, 230 North First Avenue, Suite 206,
Phoenix, AZ 85003-1706, (602) 280-8769, [email protected].
Arkansas
Tim Smith, USDA Rural Development, 700 West Capitol Avenue, Room 3416,
Little Rock, AR 72201-3225, (501) 301-3280, [email protected].
California
Philip Brown, USDA Rural Development, 430 G Street, 4169,
Davis, CA 95616, (530) 792-5811, [email protected].
Colorado
April Dahlager, USDA Rural Development, 655 Parfet Street, Room E-100,
Lakewood, CO 80215, (720) 544-2909, [email protected].
Connecticut
Charles W. Dubuc, USDA Rural Development, 451 West Street, Suite 2,
Amherst, MA 01002, (401) 826-0842 X 306, [email protected].
Delaware
Bruce Weaver, USDA Rural Development, 1221 College Park Drive, Suite
200, Dover, DE 19904, (302) 857-3626, [email protected].
Federated States of Micronesia
Tim O'Connell, USDA Rural Development, Federal Building, Room 311, 154
Waianuenue Avenue, Hilo, HI 96720, (808) 933-8313,
[email protected].
Florida
Joe Mueller, USDA Rural Development, 4440 NW. 25th Place, Gainesville,
FL 32606, (352) 338-3482, [email protected].
Georgia
J. Craig Scroggs, USDA Rural Development, 111 E. Spring St., Suite B,
Monroe, GA 30655, Phone 770-267-1413 ext. 113,
[email protected].
Guam
Tim O'Connell, USDA Rural Development, Federal Building, Room 311, 154
Waianuenue Avenue, Hilo, HI 96720, (808) 933-8313,
[email protected].
Hawaii
Tim O'Connell, USDA Rural Development, Federal Building, Room 311, 154
Waianuenue Avenue, Hilo, HI 96720, (808) 933-8313,
[email protected].
Idaho
Brian Buch, USDA Rural Development, 9173 W. Barnes Drive, Suite A1,
Boise, ID 83709, (208) 378-5623, [email protected].
Illinois
Molly Hammond, USDA Rural Development, 2118 West Park Court, Suite A,
Champaign, IL 61821, (217) 403-6210, [email protected].
Indiana
Jerry Hay, USDA Rural Development, 2411 N. 1250 W., Deputy, IN 47230,
(812) 873-1100, [email protected].
Iowa
Teresa Bomhoff, USDA Rural Development, 873 Federal Building, 210
Walnut Street, Des Moines, IA 50309, (515) 284-4447,
[email protected].
Kansas
David Kramer, USDA Rural Development, 1303 SW First American Place,
Suite 100, Topeka, KS 66604-4040, (785) 271-2744,
[email protected].
Kentucky
Scott Maas, USDA Rural Development, 771 Corporate Drive, Suite 200,
[[Page 24866]]
Lexington, KY 40503, (859) 224-7435, [email protected].
Louisiana
Kevin Boone, USDA Rural Development, 905 Jefferson Street, Suite
320, Lafayette, LA 70501, (337) 262-6601, Ext. 133,
[email protected].
Maine
John F. Sheehan, USDA Rural Development, 967 Illinois Avenue, Suite
4, P.O. Box 405, Bangor, ME 04402-0405, (207) 990-9168,
[email protected].
Maryland
Bruce Weaver, USDA Rural Development, 1221 College Park Drive,
Suite 200, Dover, DE 19904, (302) 857-3626, [email protected].
Massachusetts
Charles W. Dubuc, USDA Rural Development, 451 West Street, Suite 2,
Amherst, MA 01002, (401) 826-0842 X 306, [email protected].
Michigan
Traci J. Smith, USDA Rural Development, 3001 Coolidge Road, Suite
200, East Lansing, MI 48823, (517) 324-5157, [email protected].
Minnesota
Lisa L. Noty, USDA Rural Development, 1400 West Main Street, Albert
Lea, MN 56007, (507) 373-7960 Ext. 120, [email protected].
Mississippi
G. Gary Jones, USDA Rural Development, Federal Building, Suite 831,
100 West Capitol Street, Jackson, MS 39269, (601) 965-5457,
[email protected].
Missouri
Matt Moore, USDA Rural Development, 601 Business Loop 70 West,
Parkade Center, Suite 235, Columbia, MO 65203, (573) 876-9321,
[email protected].
Montana
John Guthmiller, USDA Rural Development, 900 Technology Blvd., Unit
1, Suite B, P.O. Box 850, Bozeman, MT 59771, (406) 585-2540,
[email protected].
Nebraska
Debra Yocum, USDA Rural Development, 100 Centennial Mall North,
Room 152, Federal Building, Lincoln, NE 68508, (402) 437-5554,
[email protected].
Nevada
Herb Shedd, USDA Rural Development, 1390 South Curry Street, Carson
City, NV 89703, (775) 887-1222, [email protected].
New Hampshire
Cheryl Ducharme, USDA Rural Development, 89 Main Street, 3rd Floor,
Montpelier, VT 05602, 802-828-6083, [email protected].
New Jersey
Victoria Fekete, USDA Rural Development, 8000 Midlantic Drive, 5th
Floor North, Suite 500, Mt. Laurel, NJ 08054, (856) 787-7752,
[email protected].
New Mexico
Jesse Bopp, USDA Rural Development, 6200 Jefferson Street, NE.,
Room 255, Albuquerque, NM 87109, (505) 761-4952,
[email protected].
New York
Scott Collins, USDA Rural Development, 9025 River Road, Marcy, NY
13403, (315) 736-3316, Ext. 4, [email protected].
North Carolina
David Thigpen, USDA Rural Development, 4405 Bland Rd. Suite 260,
Raleigh, NC 27609, 919-873-2065, [email protected].
North Dakota
Dennis Rodin, USDA Rural Development, Federal Building, Room 208,
220 East Rosser Avenue, P.O. Box 1737, Bismarck, ND 58502-1737, (701)
530-2068, [email protected].
Ohio
Randy Monhemius, USDA Rural Development, Federal Building, Room
507, 200 North High Street, Columbus, OH 43215-2418, (614) 255-2424,
[email protected].
Oklahoma
Jody Harris, USDA Rural Development, 100 USDA, Suite 108,
Stillwater, OK 74074-2654, (405) 742-1036, [email protected].
Oregon
Don Hollis, USDA Rural Development, 1229 SE Third Street, Suite A,
Pendleton, OR 97801-4198, (541) 278-8049, Ext. 129,
[email protected].
Pennsylvania
Bernard Linn, USDA Rural Development, One Credit Union Place, Suite
330, Harrisburg, PA 17110-2996, (717) 237-2182,
[email protected].
Puerto Rico
Luis Garcia, USDA Rural Development, IBM Building, 654 Munoz Rivera
Avenue, Suite 601, Hato Rey, PR 00918-6106, (787) 766-5091, Ext. 251,
[email protected].
Republic of Palau
Tim O'Connell, USDA Rural Development, Federal Building, Room 311,
154 Waianuenue Avenue, Hilo, HI 96720, (808) 933-8313,
[email protected].
Republic of the Marshall Islands
Tim O'Connell, USDA Rural Development, Federal Building, Room 311,
154 Waianuenue Avenue, Hilo, HI 96720, (808) 933-8313,
[email protected].
Rhode Island
Charles W. Dubuc, USDA Rural Development, 451 West Street, Suite 2,
Amherst, MA 01002, (401) 826-0842 X 306, [email protected].
South Carolina
Shannon Legree, USDA Rural Development, Strom Thurmond Federal
Building, 1835 Assembly Street, Room 1007, Columbia, SC 29201, (803)
253-3150, [email protected].
South Dakota
Douglas Roehl, USDA Rural Development, Federal Building, Room 210,
200 4th Street, SW., Huron, SD 57350, (605) 352-1145,
[email protected].
Tennessee
Will Dodson, USDA Rural Development, 3322 West End Avenue, Suite
300, Nashville, TN 37203-1084, (615) 783-1350, [email protected].
Texas
Daniel Torres, USDA Rural Development, Federal Building, Suite 102,
101 South Main Street, Temple, TX 76501, (254) 742-9756,
[email protected].
Utah
Roger Koon, USDA Rural Development, Wallace F. Bennett Federal
Building, 125 South State Street, Room 4311, Salt Lake City, UT 84138,
(801) 524-4301, [email protected].
Vermont
Cheryl Ducharme, USDA Rural Development, 89 Main Street, 3rd Floor,
[[Page 24867]]
Montpelier, VT 05602, 802-828-6083, [email protected].
Virginia
Laurette Tucker, USDA Rural Development, Culpeper Building, Suite
238, 1606 Santa Rosa Road, Richmond, VA 23229, (804) 287-1594,
[email protected].
Virgin Islands
Joe Mueller, USDA Rural Development, 4440 NW. 25th Place,
Gainesville, FL 32606, (352) 338-3482, [email protected].
Washington
Mary Traxler, USDA Rural Development, 1835 Black Lake Blvd. SW.,
Suite B, Olympia, WA 98512, (360) 704-7762, [email protected].
West Virginia
Richard E. Satterfield, USDA Rural Development, 75 High Street,
Room 320, Morgantown, WV 26505-7500, (304) 284-4874,
[email protected].
Wisconsin
Brenda Heinen, USDA Rural Development, 4949 Kirschling Court,
Stevens Point, WI 54481, (715) 345-7615, Ext. 139,
[email protected].
Wyoming
Jon Crabtree, USDA Rural Development, Dick Cheney Federal Building,
100 East B Street, Room 1005, P.O. Box 11005, Casper, WY 82602, (307)
233-6719, [email protected].
FOR FURTHER INFORMATION CONTACT: For further information on this
program, please contact the USDA Rural Development State Renewable
Energy Coordinator for your respective State, as provided in the
Addresses section of this Notice.
SUPPLEMENTARY INFORMATION: On June 12, 2009, the Agency published a
Notice of Contract Proposals (NOCP) and Solicitation of Applications in
the Federal Register announcing policy and application procedures for
the Bioenergy Program for Advanced Biofuels. In a Notice published
March 12, 2010, the Agency notified applicants from the prior Notice of
the availability an additional payment for all applicants determined
eligible.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act, the paperwork
burden associated with this Notice of Contract for Proposal (Notice)
has been approved by the Office of Management and Budget (OMB) under
OMB Control Number 0570-0057.
The PRA burden associated with the original Notice, published on
June 12, 2009, was approved by OMB, with an opportunity to comment on
the burden associated with the program.
Advanced Biofuel Producers seeking funding under this Notice have
to submit applications that include specified information,
certifications, and agreements. All of the forms, information,
certifications, and agreements required to apply for payments under
this Notice have been authorized under OMB Control Number 0570-0057.
Overview Information
Federal Agency Name. Rural Business-Cooperative Service.
Contract Proposal Title. Advanced Biofuels Producer Payment
Program.
Announcement Type. Initial announcement.
OMB Control Number: 0570-0057.
Catalog of Federal Domestic Assistance (CFDA) Number. The CFDA
number for this Notice is 10.078.
Dates. The Advanced Biofuels Program Sign-up Period for Fiscal Year
2010 is May 6, 2010 and July 6, 2010.
Availability of Notice. This Notice is available on the USDA Rural
Development Web site at http://www.rurdev.usda.gov/rbs/busp/9005Biofuels.htm.
I. Funding Opportunity Description
A. Purpose of the Program. The purpose of this program is to
support and ensure an expanding production of Advanced Biofuels by
providing payments to Eligible Advanced Biofuel Producers. Implementing
this program not only promotes the Agency's mission for promoting
sustainable economic development in rural America, but is an important
part of achieving the Administration's goals for increased biofuel
production and use by providing economic incentives for the production
of advanced biofuels.
B. Statutory Authority. This program is authorized under Title IX,
Section 9001, of the Food, Conservation, and Energy Act of 2008 (Pub.
L. 110-234).
C. Definition of Terms. The following definitions are applicable to
this Notice.
Advanced biofuel. Fuel derived from Renewable Biomass, other than
corn kernel starch, to include:
(i) Biofuel derived from cellulose, hemicellulose, or lignin;
(ii) Biofuel derived from sugar and starch (other than Ethanol
derived from corn kernel starch);
(iii) Biofuel derived from waste material, including crop residue,
other vegetative waste material, animal waste, food waste, and yard
waste;
(iv) Diesel-equivalent fuel derived from Renewable Biomass,
including vegetable oil and animal fat;
(v) Biogas (including landfill gas and sewage waste treatment gas)
produced through the conversion of organic matter from Renewable
Biomass;
(vi) Butanol or other Alcohols produced through the conversion of
organic matter from Renewable Biomass; and
(vi) Other fuel derived from cellulosic biomass.
Advanced biofuel producer. An individual or legal entity,
including, but not limited to, a corporation, company, foundation,
association, labor organization, firm, partnership, society, joint
stock company, group of organizations, or non-profit entity that
produces an Advanced Biofuel.
Agency. The Rural Business and Cooperative Service on behalf of the
U.S. Department of Agriculture.
Alcohol. Anhydrous ethyl Alcohol manufactured in the United States
and its territories and sold either:
(i) For fuel use, rendered unfit for beverage use, produced at a
Biorefinery and in a manner approved by the Bureau of Alcohol, Tobacco,
Firearms, and Explosives of the United States Department of Justice
(ATF) for the production of Alcohol for fuel; or
(ii) As denatured Alcohol used by blenders and refiners and
rendered unfit for beverage use.
Alcohol producer. An individual or legal entity, including, but not
limited to, a corporation, company, foundation, association, labor
organization, firm, partnership, society, joint stock company, group of
organizations, or non-profit entity that is authorized by ATF to
produce Alcohol.
Base production. The quantity of Eligible Advanced Biofuels
produced at an Advanced Biofuel Biorefinery as determined by the Agency
under paragraphs (1) through (3), as applicable. An Advanced Biofuel
Biorefinery's Base Production cannot be transferred to another Advanced
Biofuel Biorefinery.
(1) If the Biorefinery has been in existence for 12 months or more
prior to May 6, 2010, the Biorefinery's Base Production for FY 2010
will be equal to the actual amount of Biofuel produced over that 12
month period.
(2) If the Biorefinery has been in existence less than 12 months
prior to May 6, 2010, the Biorefinery's Base Production for the sign-up
fiscal year will be equal to the quantity projected to be produced by
the biorefinery's producer as reported in Form RD 9005-
[[Page 24868]]
1, ``Advanced Biofuel Payment Program Application.''
(3) If the Advanced Biofuel Biorefinery will begin producing after
May 6, 2010, the Biorefinery's Base Production for FY 2010 will be
equal to the quantity projected to be produced by the Biorefinery's
producer as reported in Form RD 9005-1.
Biodiesel. A mono alkyl ester, manufactured in the United States
and its territories, that meets the requirements of the appropriate
American Society for Testing and Materials Standard (ASTM).
Biofuel. Fuel derived from Renewable Biomass.
Biorefinery. A facility (including equipment and processes) that
converts Renewable Biomass into Biofuels and biobased products and may
produce electricity.
Certificate of Analysis. A document approved by the Agency that
certifies the quality and purity of the Advanced Biofuel being
produced. The document must be from a qualified, independent third
party.
Contract. The Advanced Biofuels Program Contract, or other form
prescribed by the Agency.
Eligible advanced biofuel producer. A producer of Advanced Biofuels
that meets all requirements for program payments.
Eligible renewable biomass. Renewable Biomass excluding corn kernel
starch.
Eligible renewable energy content. That portion of an Advanced
Biofuel's energy content derived from eligible Renewable Biomass
feedstock. The energy content from any portion of the Biofuel, whether
from, for example, blending with another fuel or a denaturant, that is
derived from a non-Eligible Renewable Biomass feedstock (e.g., corn
kernel starch) is not eligible for payment under this program.
Ethanol. Anhydrous ethyl Alcohol manufactured in the United States
and its territories and sold either:
(i) For fuel use, and which has been rendered unfit for beverage
use and produced at a biofinery approved by the ATF for the production
of Ethanol for fuel, or
(ii) As denatured Ethanol used by blenders and energy refiners,
which has been rendered unfit for beverage use.
Ethanol producer. An individual or legal entity, including but is
not limited to, a corporation, company, foundation, association, labor
organization, firm, partnership, society, joint stock company, group of
organizations, or non-profit entity that is authorized by ATF to
produce ethanol.
Fiscal Year (FY). A 12 month period beginning each October 1 and
ending September 30 of the following calendar year.
Incremental production. The quantity of Eligible Advanced Biofuel
produced at an Advanced Biofuel Biorefinery that is in excess of that
Biorefinery's Base Production, except that for Advanced Biofuel
Biorefineries that begin producing Eligible Advanced Biofuels after May
6, 2010. For such Biorefineries, production in excess of Base
Production, as determined under paragraph (3) under the definition of
Base Production, will not be treated as Incremental Production.
Larger producer. Eligible producers with a refining capacity
exceeding 150,000,000 gallons of Advanced Biofuel per year.
Payment application. Form RD 9005-3, ``Advanced Biofuel Payment
Program--Payment Request,'' which is required in order to receive
payments under this program.
Quarter. The federal fiscal time period for any fiscal year as
follows:
(i) 1st Quarter: October 1 through December 31;
(ii) 2nd Quarter: January 1 through March 31;
(iii) 3rd Quarter: April 1 through June 30; and
(iv) 4th Quarter: July 1 through September 30.
Renewable Biomass.
(i) Materials, pre-commercial thinnings, or invasive species from
National Forest System land and public lands (as defined in section 103
of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702))
that:
(A) Are byproducts of preventive treatments that are removed to
reduce hazardous fuels; to reduce or contain disease or insect
infestation; or to restore ecosystem health;
(B) Would not otherwise be used for higher-value products; and
(C) Are harvested in accordance with applicable law and land
management plans and the requirements for old-growth maintenance,
restoration, and management direction of paragraphs (e)(2), (e)(3), and
(e)(4) and large-tree retention of paragraph (f) of section 102 of the
Healthy Forests Restoration Act of 2003 (16 U.S.C. 6512); or
(ii) Any organic matter that is available on a renewable or
recurring basis from non-Federal land or land belonging to an Indian or
Indian tribe that is held in trust by the United States or subject to a
restriction against alienation imposed by the United States, including:
(A) Renewable plant material, including feed grains; other
agricultural commodities; other plants and trees; and algae; and
(B) Waste material, including crop residue; other vegetative waste
material (including wood waste and wood residues); animal waste and
byproducts (including fats, oils, greases, and manure); and food waste
and yard waste.
Rural or rural area. Any area of a State not in a city or town that
has a population of more than 50,000 inhabitants, according to the
latest decennial census of the United States, and the contiguous and
adjacent urbanized area, and any area that has been determined to be
``rural in character'' by the Under Secretary for Rural Development, or
as otherwise identified in this definition. In determining which census
blocks in an urbanized area are not in a Rural Area, the Agency will
exclude any cluster of census blocks that would otherwise be considered
not in a Rural Area only because the cluster is adjacent to not more
than two census blocks that are otherwise considered not in a Rural
Area under this definition.
(i) For the purposes of this definition, cities and towns are
incorporated population centers with definite boundaries, local self
government, and legal powers set forth in a charter granted by the
State.
(ii) For the Commonwealth of Puerto Rico, the island is considered
rural and eligible for Business Programs assistance, except for the San
Juan Census Designated Place (CDP) and any other CDP with greater than
50,000 inhabitants. CDPs with greater than 50,000 inhabitants, other
than the San Juan CDP, may be determined to be eligible if they are
``not urban in character.'' Any such requests must be forwarded to the
National Office, Business and Industry Division, with supporting
documentation as to why the area is ``not urban in character'' for
review, analysis, and decision by the Administrator, Business and
Cooperative Programs.
(iii) For the State of Hawaii, all areas within the State are
considered rural and eligible for Business Programs assistance, except
for the Honolulu CDP within the County of Honolulu.
(iv) For the purpose of defining a Rural Area in the Republic of
Palau, the Federated States of Micronesia, and the Republic of the
Marshall Islands, the Agency shall determine what constitutes Rural and
Rural Area based on available population data.
(v) The determination that an area is ``rural in character'' under
this definition will be to areas that are within:
[[Page 24869]]
(A) An urbanized area that has two points on its boundary that are
at least 40 miles apart, which is not contiguous or adjacent to a city
or town that has a population of greater than 150,000 inhabitants or
the urbanized area of such a city town; or
(B) An urbanized area contiguous and adjacent to a city or town of
greater than 50,000 population that is within one-quarter mile of a
rural area.
Sign-up period. The time period announced by the Agency in this
Notice during which the Agency will accept program Contracts.
Smaller producer. Eligible producers with a refining capacity of
150,000,000 gallons or less of Advanced Biofuel per year.
State. Any of the 50 states of the United States, the Commonwealth
of Puerto Rico, the District of Columbia, the U.S. Virgin Islands,
Guam, American Samoa, the Commonwealth of the Northern Mariana Islands,
the Republic of Palau, the Federated States of Micronesia, and the
Republic of the Marshall Islands.
USDA. The United States Department of Agriculture.
II. Funding Information
A. Available Funds. Congress appropriated mandatory budget
authority to this program as follows: $55 million for FY 2009 and $55
million for FY 2010. However, in FY 2009, the program was allotted $30
million. The remaining FY 2009 funding of $25 million will be used in
FY 2010, and $15 million of new funding from FY 2010. The Agency,
therefore, will authorize up to $40 million in budget authority for
this program for fiscal year (FY) 2010.
B. Number of Payments. Under this notice, payments to participating
Advanced Biofuel Producers will be made as follows for:
(1) Actual production produced from October 1, 2009 to June 30,
2010; and
(2) Actual production from July 1, 2010 through September 30, 2010.
The amount of payments made will depend on the number of eligible
participating Advanced Biofuel Producers.
C. Range of Amounts of Each Payment. The amount of each payment
will depend on the number of Eligible Advanced Biofuel Producers
participating in the program, the amount of Advanced Biofuels being
produced by such Advanced Biofuel Producers, and the amount of funds
available.
D. Contract period. October 1, 2009 through September 30, 2010.
E. Type of Instrument. Payment.
III. Eligibility Information
This Notice contains eligibility requirements for Advanced Biofuel
Producers seeking payments under this program.
A. Applicant Eligibility
To be eligible for this program, the applicant must be an Eligible
Advanced Biofuel Producer, which is defined in this Notice as a
producer of Advanced Biofuels who meets all requirements for program
payments, and must meet the citizenship requirement specified in
paragraph (1) or (2), as applicable, of this section.
(1) If the applicant is an individual, the applicant must be a
citizen or national of the United States (U.S.), the Republic of Palau,
the Federated States of Micronesia, the Republic of the Marshall
Islands, or American Samoa, or must reside in the U.S. after legal
admittance for permanent residence.
(2) If the applicant is an entity other than an individual, the
applicant must be at least 51 percent owned by persons who are either
citizens or nationals of the United States (U.S.), the Republic of
Palau, the Federated States of Micronesia, the Republic of the Marshall
Islands, or American Samoa, or legally admitted permanent residents
residing in the U.S. When an entity owns an interest in the applicant,
its citizenship will be determined by the citizenship of the
individuals who own an interest in the entity or any sub-entity based
on their ownership interest.
(3) The Agency will determine an applicant's eligibility for
participation in this program.
(4) If an applicant's original submittal is not sufficient to
verify an applicant's eligibility, the Agency will notify the Advanced
Biofuel Producer, in writing, as soon as practicable. This notification
will identify, at a minimum, the additional information being requested
to enable the Agency to determine the applicant's eligibility and a
timeframe in which to supply the information.
(5) An otherwise Eligible Advanced Biofuel Producer will be
determined to be ineligible if the Advanced Biofuel Producer:
(i) Refuses to allow the Agency to verify any information provided
by the Advanced Biofuel Producer under this program, including
information for determining applicant eligibility, Advanced Biofuel
eligibility, and application payments; or
(ii) Fails to meet any of the conditions set out in this Notice, in
the Contract, or in other program documents; or
(iii) Fails to comply with all applicable Federal, State, or local
laws.
B. Biorefinery Eligibility Requirements
To be eligible for program payments under this Notice, an otherwise
Eligible Advanced Biofuel must:
(1) Be either a transportation fuel that meets the Renewable Fuel
Standard or are currently undergoing an appeal to the U.S.
Environmental Protection Agency for inclusion in the Renewable Fuel
Standard, or non-transportation renewable energy that results in a
reduction in greenhouse gases;
(2) Be produced at an Advanced Biofuel Biorefinery located in a
Rural Area; and
(3) If the biofuel is used on-site, there must be an Agency-
approved system to verify the quantity of biofuel used on-site.
In the case where an Agency receives an application that is
undergoing an appeal before the U.S. Environmental Protection Agency
for inclusion in the Renewable Fuel Standard, the Agency will be unable
to finalize processing of the application until the appeal has been
completed.
C. Payment Eligibility
To be eligible for program payments, an Advanced Biofuel Producer
must maintain adequate records for FY 2010, quantifying:
(1) Feedstock usage and Advanced Biofuel production for each
Advanced Biofuel Biorefinery, and
(2) All other records required to establish program eligibility and
compliance.
IV. Application and Submission Information
A. Address To Request Applications
Contract and Payment Application forms are available from the USDA,
Rural Development State Office, Renewable Energy Coordinator. The list
of Renewable Energy Coordinators is provided in the ADDRESSES section
of this Notice.
B. Content and Form of Submission
Applicants must submit an original, signed hard copy of the Form RD
9005-1, ``Advanced Biofuel Payment Program Annual Application,''
required in this section to the Rural Development State Renewable
Energy Coordinators in the State in which the Advanced Biofuel
Producer's principal office is located. A list of the Rural Development
State Renewable Energy Coordinators is provided in the ADDRESSES
section of this Notice. Applicants must submit to the Agency the
following:
(1) Form RD 9005-1, ``Advanced Biofuel Payment Program
Application.'' This form requires an Advanced Biofuel
[[Page 24870]]
Producer seeking to participate in this program to provide information
on the Advanced Biofuel Producer; the Advanced Biofuel Producer's
Biorefineries at which the Advanced Biofuels are produced, including
location and quantities produced; and the types and quantities of
Renewable Biomass feedstock being used to produce the Advanced
Biofuels. The form also requires the Advanced Biofuel Producer to
certify the information provided, including that the Advanced Biofuels
are Eligible Advanced Biofuels and that the Renewable Biomass feedstock
used to produce the Advanced Biofuels are eligible biomass feedstock.
(i) Producers must submit authoritative evidence (as specified in
paragraph B(2) below) documenting production of Advanced Biofuels, and
the eligibility of the Advanced Biofuels, between October 1, 2008, and
September 30, 2009. Advanced Biofuel production must be certified as
stated elsewhere in this notice in order to be eligible for payment,
including determining Base and Incremental Production amounts.
(ii) Applicants may submit this form for an Advanced Biofuel
Biorefinery that is scheduled to begin producing Eligible Advanced
Biofuels after the application period for FY 2010 closes and before the
end of FY 2010.
(iii) Please note that applicants are required to have a Dun and
Bradstreet Universal Numbering System (DUNS) number (unless the
applicant is an individual). The DUNS number is a nine-digit
identification number, which uniquely identifies business entities. A
DUNS number can be obtained at no cost via a toll-free request line at
1-866-705-5711 or online at http://fedgov.dnb.com/webform.
(2) Certifications. The Advanced Biofuel Producer must furnish the
Agency all required certifications identified in paragraphs (B)(2)(i)
and (ii), as applicable, before acceptance into the program, and
furnish access to the Advanced Biofuel Producer's records required by
the Agency to verify compliance with program provisions. The required
certifications depend on the type of Biofuel produced. Certifications
are to be completed and provided by an accredited independent, third-
party.
(i) Alcohol. For Alcohol Producers with authority from ATF to
produce Alcohol, copies of either:
(A) The Alcohol Fuel Producers Permit (ATF F 5110.74) or
(B) The registration of Distilled Spirits Plant (ATF F 5110.41) and
Operating Permit (ATF F 5110.23).
(ii) Hydrous ethanol. If the Advanced Biofuel Producer entering
into this agreement is:
(A) The hydrous Ethanol Producer, then the Advanced Biofuel
Producer shall include with the Contract an affidavit, acceptable to
the Agency, from the distiller stating that the:
(1) Applicable hydrous Ethanol produced is distilled and denatured
for fuel use according to ATF requirements, and
(2) Distiller will not include the applicable Ethanol in any
payment requests that the distiller may make under this program.
(B) The distiller that upgrades hydrous Ethanol to anhydrous ethyl
Alcohol, then the Advanced Biofuel Producer shall include with the
Contract an affidavit, acceptable to the Agency, from the hydrous
Ethanol Producer stating that the hydrous Ethanol Producer will not
include the applicable Ethanol in any payment requests that may be made
under this program.
Note: The Agency may pay the first applicant to the exclusion of
other possible applicants. Or, the Agency may require an agreement
as to payment before paying either. Alternatively, the Agency may
designate whether the distiller or the hydrous Ethanol Producer will
be the payee where needed to ensure program integrity.
(C) Biodiesel, biomass-based diesel, and liquid hydrocarbons
derived from biomass. For these fuels, the Advanced Biofuel Producer
shall self-certify that the producer, the Advanced Biofuel Biorefinery,
and the Biofuel meet the definition, registration requirements as
applicable under Energy Independence and Security Act, Clean Air Act,
Environmental Protection Agency, Internal Revenue Service, and quality
requirements per applicable ASTM International standards and
commercially acceptable quality standards of the local market.
(D) Gaseous Advanced Biofuel. For gaseous Advanced Biofuel
Producers, third party certification that the Biofuel meets
commercially acceptable pipeline quality standards of the local market.
(3) RD Instruction 1940-Q, Exhibit A-1, ``Restriction on Lobbying
(if over $100,000).''
(4) SF-LLL, ``Disclosure of Lobbying Activities.''
(5) RD 400-4, ``Assurance Agreement.''
(6) Each participating advanced biofuel producer that is projecting
an increase in production from the previous fiscal year and each new
applicant must submit documentation to support the production estimates
reported in the enrollment application. Such documentation includes,
but is not limited to:
(i) Historical production data;
(ii) Production capacity of the biorefinery; and
(iii) Evidence of ability to distribute final product, including
distribution networks and contracts for purchase of final product.
(7) Each participating advanced biofuel producer must provide
documentation from an Agency-approved recognized published source
quantifying the reduction in greenhouse gas emissions that result from
the displacement of fossil fuel.
C. Submission Dates and Times
(1) Enrollment. Advanced Biofuel Producers who expect to have
eligible production at any time during FY 2010 must enroll in the
program between May 6, 2010 and July 6, 2010.
(2) Payment applications. Advanced Biofuel Producers must submit
Form RD 9005-3 by 4:30 p.m. local time November 2, 2010. Payment will
be made for the time period October 1, 2009 through September 30, 2010.
D. Intergovernmental Review
This program is not subject to Executive Order 12372--
Intergovernmental Review of Federal Programs because the Government is
not providing financial assistance for the development of advanced
biofuel biorefineries.
E. Funding Restrictions
For a FY, not more than five percent of the funds shall be made
available to eligible producers with a refining capacity exceeding
150,000,000 gallons of Advanced Biofuel per year. In calculating
whether a producer meets the 150,000,000 capacity, production of all
Advanced Biofuel Biorefineries owned or operated by the producer will
be totaled.
V. Program Payment Provisions
This section of the Notice identifies the process and procedures
the Agency will use to make payments to Eligible Advanced Biofuel
Producers.
As noted previously in this Notice, Form RD 9005-1, ``Advanced
Biofuel Payment Program Annual Application,'' will be used by Advanced
Biofuels producers to apply for participation in this program. When a
producer submits Form RD 9005-1, the Agency will make its determination
as to whether or not the producer is eligible to participate. If an
Advanced Biofuel Producer is determined to be ineligible, the Agency
will notify the producer, in writing, of its determination.
[[Page 24871]]
If an Advanced Biofuel Producer is determined eligible to receive
payments, the Eligible Advanced Biofuel Producer must then enter into a
Contract with the Agency using Form RD 9005-2, ``Advanced Biofuel
Payment Program Contract,'' in order to participate in this program.
The Agency will forward Form RD 9005-2 to the Advanced Biofuel
Producer. The Advanced Biofuel Producer must agree to the terms and
conditions of the Contract, sign, date, and return it to the Agency
within the time provided by the Agency. Each contract issued under this
notice will be for FY 2010.
Once the Eligible Advanced Biofuel Producer has entered into a
valid Contract with the Agency, the Advanced Biofuel Producer will be
required to submit Form RD 9005-3, ``Advanced Biofuel Payment Program--
Payment Request,'' in order to receive payments under this program.
This form requires the Advanced Biofuel Producer to provide information
on the types and quantities of Advanced Biofuels produced in a Quarter
and on the types and quantities of renewable feedstock used to produce
those Advanced Biofuels. In addition, the Advanced Biofuel Producer
will report cumulative production of Advanced Biofuels and the use of
Renewable Biomass feedstock for all Advanced Biofuel Biorefineries. The
information for each Advanced Biofuel Biorefinery is to be provided
cumulatively and on an individual Advanced Biofuel Biorefinery basis.
(a) Payment applications. To request payments under this program,
an Eligible Advanced Biofuel Producer must:
(1) Submit Form RD 9005-3, ``Advanced Biofuel Program Payments
Application,'' within 30 days after the end of each periods in B (1)
and (2);
(2) Certify that the request is accurate;
(3) Furnish the Agency such certification, and access to such
records, as the Agency considers necessary to verify compliance with
program provisions; and
(4) Provide documentation as requested by the Agency regarding the
net production of Advanced Biofuel at all Advanced Biofuel
Biorefineries during FY 2010.
(b) Additional documentation. After a Payment Application is
submitted, Eligible Advanced Biofuel Producers may be required to
submit additional clarification if their original submittal is not
sufficient to verify eligibility for payment or quantity of the
Advanced Biofuel product.
(c) Notification. The Agency will notify the Advanced Biofuel
Producer, in writing, whenever the Agency determines that a Payment
Application is ineligible and why the application was determined
ineligible.
(d) Payment provisions. Determination of payments to Eligible
Advanced Biofuel Producers will be made in accordance with the
provisions of this paragraph. As stated previously, making these
payments promotes the Agency's mission for promoting sustainable
economic development in rural America and is an important part of
achieving the Administration's goals for increased biofuel production
and use by providing economic incentives for the production of advanced
biofuels.
(1) Determination of payment rate. The Agency will establish
payment rates for both Base and Incremental Production of Eligible
Advanced Biofuels for both Smaller Producers and Larger Producers using
the procedures specified in paragraphs (d)(1)(i) through (v). These
rates will be applied to the actual quantity of Eligible Advanced
Biofuel produced when making payments to Eligible Advanced Biofuel
Producers, as described below.
(i) Based on the information provided in each eligible Form RD
9005-1, when applicable, the Agency will determine Base and Incremental
Eligible Advanced Biofuel Production being projected for the FY for
both Smaller Producers and Larger Producers. Thus, the Agency will
determine the Base Production quantity for Smaller Producers, the
Incremental Production quantity for Smaller Producers, the Base
Production quantity for Larger Producers, and the Incremental
Production quantity for Larger Producers.
(ii) If an applicant is blending its Advanced Biofuel using
ineligible feedstocks (e.g., fossil gasoline or methanol, corn kernel
starch), only the quantity of Advanced Biofuel being produced from
eligible feedstocks will be used in determining the payment rates and
for which payments will be made.
(iii) For each combination of production type (base, incremental)
and producer size (smaller, larger--over 150 million equivalent gallons
of production), the Agency will convert the projected Base and
Incremental Production determined to be eligible under paragraph
(d)(1)(i) into British Thermal Unit (BTU) equivalent using factors
published by the Energy Information Administration (or successor
organization). If the Energy Information Administration (or successor
organization) does not publish such conversion factor for a specific
type of Advanced Biofuel, the Agency will establish and use a
conversion formula as appropriate until such time as the Energy
Information Administration (or successor organization) publishes a
conversion factor for said Advanced Biofuel. The Agency will then
calculate the total eligible BTUs across all eligible applications.
(iv) The Agency will determine the amount of program funds
available to Smaller Producers and to Larger Producers in the FY.
(v) The Agency will then determine the Base Production and
Incremental Production payment rates ($/Btu) for Smaller Producers and
for Larger Producers. For both Small Producers and Larger Producers,
the Incremental Production payment rate will be 3 times higher than
their respective Base Production payment rate. These rates will be
calculated such that all of the funds allocated will be distributed in
the FY.
(2) Contract Value. Using the payment rates established under
paragraph (d)(1) and the projected Base and Incremental Production for
each Advanced Biofuel Biorefinery, the Agency will calculate a value
for each Eligible Advanced Biofuel Producer's Contract for FY 2010
using Equation 4:
[GRAPHIC] [TIFF OMITTED] TN06MY10.000
Where:
CV2010 = Contract value for FY 2010
BPPR = Base Production payment rate, $/million BTU
BP = projected eligible Base Production, million BTUs
IPPR = Incremental Production payment rate, $/million BTU
IP = projected eligible Incremental Production, million BTUs
(3) Payment Amount. Each eligible Advanced Biofuel Producer will be
paid for the actual amount of BTUs produced from Eligible Advanced
Biofuels produced in FY 2010. Except as provided under paragraph
(d)(4), the Agency will not pay a producer more than the Contract value
established under paragraph (d)(2).
[[Page 24872]]
(4) Remaining funds. If available funds remain at the end of FY
2010 (e.g., due to underproduction of Eligible Advanced Biofuels), the
Agency will carry the funds over to FY 2011.
(5) Other payment provisions. The following provisions apply.
(i) Advanced Biofuel Producers will be paid on the basis of the
amount of Eligible Renewable Energy Content of the Advanced Biofuels
only if the producer provides documentation sufficient, including a
Certificate of Analysis, for the Agency to determine the Eligible
Renewable Energy Content for which payment is being requested, and
quantity produced through such documentation as, but not limited to,
records of sale and calibrated flow meter records.
(ii) There shall only be one Eligible Advanced Biofuel Producer per
Advanced Biofuel Biorefinery. If needed, the Agency may treat Advanced
Biofuel Producers with common interests, common ownership, or common
Advanced Biofuel Biorefineries or arrangements as the same Advanced
Biofuel Producer.
(iii) Hydrous Ethanol that is upgraded by another distiller to
anhydrous ethyl Alcohol is eligible for payment only once; that is, the
Agency will make payment either to the Advanced Biofuel Producer of the
hydrous ethanol or to the Advanced Biofuel Producer who distills the
hydrous Ethanol to anhydrous ethyl Alcohol.
(iv) Subject to other provisions of this section, Advanced Biofuel
Producers shall be paid any sum due for the payment period, subject to
the requirements and refund provisions of this Notice.
(e) Payment Adjustments. The Agency will adjust the payment
otherwise payable to an Advanced Biofuel Producer if there is a
difference between the amount actually produced and the amount
determined by the Agency to be eligible for payment.
(f) Payment liability. Any payment, or portion thereof, made under
this program shall be made without regard to questions of title under
State law and without regard to any claim or lien against the Advanced
Biofuel, or proceeds thereof, in favor of the owner or any other
creditor except agencies of the U.S. Government.
(g) Verification. The Agency reserves the right to verify all
payment requests and subsequent payments made under this program, as
frequently as necessary to ensure the integrity of the program. The
Agency will conduct site visits to review producer records in order to
verify information submitted in Forms RD 9005-1 and RD 9005-3.
(1) Production and feedstock verification. The Agency will review
producer records that the type and amount of biofuel produced and the
type and amount of feedstocks used.
(2) Blending verification. The Agency will review the producer's
certificates of analysis and feedstock records to verify the portion of
the advanced biofuel eligible for payment.
(3) Certificate of Analysis. The Agency will review the producer
records to ensure that each certificate of analysis has been issued by
a qualified, independent third party.
(h) Refunds and interest payments. An Eligible Advanced Biofuel
Producer who receives payments under this program may be required to
refund such payments as specified in this paragraph. If the Agency
suspects fraudulent representation through its site visits and records
inspections under paragraph (g) of this section, it will be referred to
the Office of Inspector General for appropriate action.
(1) An Eligible Advanced Biofuel Producer receiving payments under
this program shall become ineligible if the Agency determines the
Advanced Biofuel Producer has:
(i) Made any fraudulent representation; or
(ii) Misrepresented any material fact affecting a program
determination.
(2) All payments made to an entity determined by the Agency to be
ineligible shall be refunded to the Agency with interest and other such
sums as may become due, including, but not limited to, any interest,
penalties, and administrative costs as determined appropriate under 7
CFR 901.9.
(3) When a refund is due, it shall be paid promptly. If a refund is
not made promptly, the Agency may use all remedies available to it,
including Treasury offset under the Debt Collection Improvement Act of
1996, financial judgment against the producer, and sharing information
with the Department of Justice.
(4) Late payment interest shall be assessed on each refund in
accordance with the provisions and rates established by the United
States Treasury.
(i) Interest charged by the Agency under this Notice shall be
established by the United States Treasury. Such interest shall accrue
from the date such payments were made to the date of repayment.
(ii) The Agency may waive the accrual of interest or damages if the
Agency determines that the cause of the erroneous determination was not
due to any action of the Advanced Biofuel Producer.
(5) Any Advanced Biofuel Producer or person engaged in an act
prohibited by this section and any Advanced Biofuel Producer or person
receiving payment under this Notice shall be jointly and severally
liable for any refund due under this Notice and for related charges.
VI. Administration Information
A. Notice of eligibility
If an applicant is determined by the Agency to be eligible for
participation, the Agency will notify the applicant, in writing, and
will assign the applicant a Contract number. If an applicant is
determined by the Agency to be ineligible, the Agency will notify the
applicant, in writing, as to the reason(s) the applicant was rejected.
Such applicant will have appeal rights as specified in this Notice.
B. Administrative and National Policy Requirements
(1) Review or appeal rights. A person may seek a review of an
Agency decision under this Notice from the appropriate Agency official
that oversees the program in question or appeal to the National Appeals
Division in accordance with 7 CFR part 11 of this title.
(2) Remedies. If the Agency has determined that a producer has
misrepresented the information or defrauded the Government, the Agency
will take one of the following steps in accordance to 7 CFR 3017,
Government-wide Debarment and Suspension:
(i) Suspend payments on the Contract until the violation has been
reconciled;
(ii) Terminate the Contract; or
(iii) Debarment to participate in any Federal Government program.
(3) Records. For the purpose of verifying compliance with the
requirements of this Notice, each Eligible Advanced Biofuel Producer
shall make available at one place at all reasonable times for
examination by representatives of USDA, all books, papers, records,
Contracts, scale tickets, settlement sheets, invoices, written price
quotations, and other documents related to the program that is within
the control of such Advanced Biofuel Producer for not less than three
years from each payment date.
(4) Succession and control of biorefineries and production. An
entity who becomes the Eligible Advanced Biofuel Producer for a
Biorefinery that is under Contract under this Notice must request
permission from the Agency to succeed to the program Contract and the
Agency may grant such request if it is determined that the entity
[[Page 24873]]
is an eligible producer and permitting such succession would serve the
purposes of the program. If appropriate, the Agency may require the
consent of the previous Eligible Advanced Biofuel Producer to such
succession.
Payments will be made only to an eligible Advanced Biofuel Producer
with a valid Contract and for Biorefineries owned or controlled by said
Producer. If payments are made to an Advanced Biofuel Producer for
production at a Biorefinery no longer owned or controlled by said
Producer or to an otherwise ineligible Advanced Biofuel Producer, the
Agency will demand full refund of all such payments.
C. Environmental Review
All recipients under this Notice are subject to the requirements of
subpart G of part 1940 of title 7 of the CFR. However, 7 CFR
1940.310(c)(1) excludes this activity. In accordance with Sec.
1940.310(c)(1), General Exclusions, if a program provides assistance
that is not related to the development of a specific site, it is
excluded from conducting an environmental review. RD's compliance with
the National Environmental Policy Act of 1969 (NEPA) is implemented in
its regulations at 7 CFR 1940 subpart G. Applicants whose proposal
involves additional facility construction should provide RD Form 1940-
20 as part of this application. RD will then determine whether the
approval falls under Section 1940.310(c)(1), which categorically
excludes the action from NEPA compliance.
VII. Agency Contacts
Assistance. For assistance on this payment program, please contact
a USDA Rural Development State Renewable Energy Coordinator, as
provided in the Addresses section of this Notice.
VIII. Non-Discrimination Statement
USDA prohibits discrimination in all its programs and activities on
the basis of race, color, national origin, age, disability, and where
applicable, sex, marital status, familial status, parental status,
religion, sexual orientation, genetic information, political beliefs,
reprisal, or because all or part of an individual's income is derived
from any public assistance programs. (Not all prohibited bases apply to
all programs.) Persons with disabilities who require alternative means
for communication of program information (braille, large print,
audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600
(voice and TDD). To file a complaint of discrimination, write to USDA,
Director, Office of Civil Rights, 1400 Independence Avenue, SW.,
Washington, DC, 20250-9410, or call (800) 795-3272 (voice) or (202)
720-6382 (TDD). USDA is an equal opportunity provider and employer.
Dated: April 27, 2010.
Judith A. Canales,
Administrator, Rural Development, Business and Cooperative Programs.
[FR Doc. 2010-10247 Filed 5-5-10; 8:45 am]
BILLING CODE 3410-XY-P