FSA suspends new applications for BCAP biomass suppliers

LOST RIVER, WV, Feb. 5, 2010 (RISI) - The USDA Farm Service Agency imposed a moratorium on new biomass supplier contracts through the Biomass Crop Assistance Program (BCAP) since posting a proposed rule for the program this week. BCAP had been administered through a NOFA (notice of funding availability).

An FSA source said while new CHST (collection, harvest, storage and transportation) applications will not be considered until after a final rule is approved, those suppliers already approved are eligible to continue receiving matching payments for biomass deliveries. It is unclear whether FSA will continue the approval process for consuming mills (with over 400 already approved nationwide).

The proposed rule is now in a 60-day comment period. "We can't anticipate a timeline" for a final rule, the source added.

BCAP is funded through March 31 at a level of over $517 million.

The proposed rule may be found here: http://www.fsa.usda.gov/Internet/FSA_File/bcap_prm_on_public_display_ofr.pdf

BCAP's original NOFA may be found here: http://www.fsa.usda.gov/Internet/FSA_Federal_Notices/bcap.pdf

The current list of approved facilities may be found here: http://www.fsa.usda.gov/Internet/FSA_File/bcapfacilitieslist.pdf