Todd Campbell Policy Advisor, USDA Establishing a Repository for Feedstock Readiness Level Evaluations with Farm to Fly 2.0 Todd Campbell Policy Advisor, USDA Advanced Bioeconomy Feedstock Conference June 10th, 2015

Bioeconomy Definition The bioeconomy is defined as: The global industrial transition of sustainably utilizing renewable aquatic and terrestrial biomass resources in energy, intermediate, and final products for economic, environmental, social, and national security benefits. --From 2014 Report commissioned by USDA BioPreferred: Why Biobased? Opportunities in the Emerging Bioeconomy

The Bioeconomy Concept Revenue and economic growth Broad spectrum of new jobs Rural development Advanced technologies and manufacturing Reduced emissions and Environmental Sustainability Export potential of technology and products Positive societal changes Investments and new infrastructure The global industrial transition of sustainably utilizing renewable aquatic and terrestrial biomass resources in energy, intermediate, and final products for economic, environmental, social, and national security benefits.

Determining Biomass Availability in 2030 Based on the U.S. Billion-Ton Update, modified to use the 2013 USDA Long-Term Forecast. Modified biomass supply curves to include transportation, preprocessing, and storage/handling. Used an average cost of $60 per dry ton to the mouth of the convertor. Included all feedstock types as well as “currently used” and “potential.” Applied a 10% loss factor.

2011 DOE Biomass Program Review Supply Curve Results 2012 Baseline scenario at $80 per dry ton RD&D Project Presentation Template

2011 DOE Biomass Program Review Supply Curve Results 2030 Baseline scenario at $60 per dry ton RD&D Project Presentation Template

Opportunities across the Supply Chain

Agricultural Act of 2014 - Title IX – Energy and Beyond Biobased Markets Program (9002) Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Program (9003) Repowering Assistance Program (9004) Bioenergy Program for Advanced Biofuels (9005) Biodiesel Fuel Education program (9006) Rural Energy for America Program (REAP - 9007) Biomass Research and Development (9008) Feedstock Flexibility Program (9009) Biomass Crop Assistance Program (9010) Community Wood Energy Program (9012)

Establishment, Harvest, Storage, Transportation Risk Mitigation for Growers Through the Biomass Crop Assistance Program, USDA has incentivized more than 800 producers on over 47,000 acres across 188 counties in 12 states to establish and produce seven different dedicated energy crops since 2009, $8M for 2015 existing expansion; NEW Project Area Proposals this summer with submission period through November In 2014, Farm Service Agency county offices supported BCAP contract approvals for $4.4M to deliver approximately 220,000 dry tons to 19 facilities in 10 states, $11.5M through December 2015 USDA offers insurance coverage for farmers growing biofuel crops like switch grass and camelina and we are helping identify farmland most suitable for energy crops. Noninsured Crop Disaster Assistance Program expanded in 2014 Farm Bill for bioenergy crops not covered under crop insurance program. USDA invested $332M since 2009 to accelerate research under NIFA AFRI ranging from genomic research on bioenergy crops, to development of conversion processes and costs/benefit analysis -Providing matching payment signups of up to $11.5 million this summer. Facility applications are being taken through June 12th at Stat FSA offices. -Posting a Request for NEW Project Area Proposals this summer with an submission period that runs through November. -Offering and allocating $8 million toward a project area producer signup expansion and enhancement opportunity in select EXISTING project areas in late summer.

Construction and Fuel Production Helping to Power the Military Rural Development supporting efforts to build six new pioneer plants, in addition to two existing facilities previously supported by the 9003 Program; New regulation due out in near future To encourage the production of advanced biofuels, USDA has made payments through the Advanced Biofuel Payment Program for over $286M to over 300 companies in 47 states since 2009. Updated Rural Energy for America Program Regulation make ~$280 million available with Loan Guarantees up to $25M open year round; partnered in over 4 billion gallons capacity since 2003 In 2010, USDA partnered with the DOE and Navy to speed the development of domestic, competitively-priced drop-in diesel and jet fuel substitutes, Agencies jointly committed up to $510M Three award made under Defense Production Act for $70M each, 100MMG Capacity; Farm to Fleet program announced Dec. 2013, makes biofuel part of regular bulk fuel purchase and use. Maximum REAP Loan Amount $25 million- Total eligible project costs > $33.4 million

USDA Institutes for Biobased Manufacturing Innovation Bolstering New Markets President’s 2016 Budget includes $80M for USDA public-private partnerships to establish two Innovation Institutes which engage industry, leverage funding, and facilitate tech transfer. BioManufacturing- Building the scientific foundation, processes, and workforce capacity to move bioenergy and biobased product research from development to deployment and commercialization. Nanocellulosics- Focused on utilization of cellulose to be turned into a renewable supply of industrial materials, ensuring that the United States is the leading global source of commercial cellulosic nanomaterials research, innovation, production, and commercialization. $100M to boost infrastructure for renewable fuel use, seeking to double number of higher blend renewable fuel pumps; June NOSA USDA is strengthening markets for biobased products with ~2,000 products carrying the BioPreferred label, 150 more in process; Represents companies in over 40 countries on six continents

--Economic, Energy and Resource Security, Environmental Benefits --An initiative needs a boldly articulated goal, a coordinated policy approach with agency alignment (need to get EPA on board early and often to be a partner in commercialization), and a strong industry component. Highlights from July 2014 Public Bioeconomy Workshop developing the BRD Board White Paper Bioeconomy should be inclusive and part of the ‘all of the above’ energy strategy. Industry will need to find balance between what is ‘technically feasible’ versus ‘economically viable.’ The future self-sustaining bioeconomy needs to include energy return on investment, and capital intensity. An expansion of the bioeconomy will rely on certainties: Government policy Sustainable feedstock supply Market demand Bioeconomy will need to allow for increased feedstock diversity, including wastes, algae, rotation crops, etc. Future expansion of the bioeconomy will require detailed analysis and further consideration on impact on entire ecosystem and related sectors. Increased attention in bioproducts and renewable chemicals will have a major impact on the success of the bioeconomy.

Farm to Fly 2.0 (F2F2) USDA has forged a partnership with the commercial aviation enterprise to enable, commercially-viable aviation biofuel supply chains that are able to support one billion gallons of production capacity, use by 2018. DOE formally joined effort in 2014 Regional and state level, connecting partners to develop successful supply chains and bring product to market. Market beginning to develop with multiple airlines having flown domestic flights powered by biofuels; established offtake agreements with fuel suppliers; Military biofuel testing, bulk fuel solicitation and use.

F2F2 FSRL Subteam Goals: Benchmark current feedstock readiness status Create repository of FSRL evaluations Create guidance for executing FSRL evaluations Potential users: Policy makers and R&D funding organizations identifying gaps that require additional R&D funding or incentives; Fuel purchasers (e.g., airlines) looking to evaluate proposals for fuel procurement; Fuel producers looking to identify feedstock options. The Farm2Fly 2.0 team is requesting evaluations of various feedstocks that can be used for alternative jet fuel production. The evaluations received will be placed in a publicly accessible repository and the results will also be summarized in tables and worksheets. The evaluations are intended to be used for two purposes: first, to enable stakeholders to identify gaps where further research, development or investment may be needed to facilitate readiness of a particular feedstock for a given conversion process, and second, to allow parties interested in developing alternative fuel facilities to understand what feedstocks may be available in the near term in a particular region.

Feedstock Readiness Level (FSRL) Tool Components Feedstock Readiness Level (FSRL) Components Fuel Readiness Level (FRL) Feedstock Readiness Level # FSRL Description (1) PROD (2) MARK (3) POLY (4) LINK Conversion Process FSRL uses the same Technology Readiness Level (TRL) scale as the Fuel Readiness Level (FRL) tool FSRL descriptions are parallel with FRL (fuel conversion process readiness level) FSRL is described by four readiness components: (1) Production; (2) Market; (3) Policy; and (4) Linkage - The Feedstock Readiness Level (FSRL) uses the same scale as the Fuel Readiness Level Tool, - and the descriptions for the FSRL are in parallel with those for conversion technology and fuel readiness levels. - The FSRL is comprised of four components: (1) Production readiness – which address only biological factors, those that related to the growing of the feedstock; (2) Market readiness – those factors that deal with the movement of feedstocks to conversion facilities and their utilization; (3) Program Support and Regulatory Compliance (Policies) – those factors that help to incentivize or discourage the availability of feedstocks for use in the production of advanced biofuels; and (4) Linkage - for FSRL evaluations, the feedstock is explicitly linked to a specific conversion process to call out the steps for mutual development to optimize fuel products – in the case of CAAFI, it has been focused on jet fuel production, but since many processes produce multiple fuels (i.e., diesel, jet, etc.) many of the same linkages will apply to jet fuel as diesel, for example FSRL tool modeled after and designed to complement the CAAFI Fuel Readiness Level (FRL) tool. FSRL developed jointly by USDA/CAAFI (FAA/Volpe) at CAAFI’s request

Summary table FSRL Checklist Specific to feedstock, conversion process, region Two checklist versions Dedicated crops and woody species Agricultural and forest residues Summary table Includes current and anticipated FSRL status Provides opportunity to describe rationale for rating for each component Fornax, 1988 Because the FSRL is intended to evaluate a feedstock in conjunction with a specific fuel production technology, the user should score each element of the FSRL Market, Policy, and Linkage columns in the context of the particular end use. Production, however, may be evaluated independent of the particular end use if large scale production is already under way for other uses, as it is possible that such production might be redirected. In such cases, an estimate of current total production/availability would be helpful.

FSRL Checklist Structure Instructions Sheet FSRL Checklist for Dedicated Crops and Woody Species FSRL Checklist for Agricultural and Forest Residues Summary Table Template FSRL Checklist Example (filled out) Summary Table Example (filled out)

FSRL Checklist Structure Instructions Seet FSRL Checklist for Crops and Woody Species FSRL Checklist for Agricultural and Forest Residues Summary Table Template FSRL Checklist Example (filled out) Sumary Table Example (filled out)

Request for Evaluations Please contact us if you would like help performing or sharing an evaluation: Kristin Lewis Volpe National Transportation Systems Center kristin.lewis@dot.gov 617-494-2130

For more information on USDA Energy and Bioeconomy Programs, visit: Thank you! For more information on USDA Energy and Bioeconomy Programs, visit: www.usda.gov/energy todd.campbell@osec.usda.gov