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Statement of Need: The program will increase energy independence, promote resource conservation, diversify markets for agricultural and forestry products, create jobs, and enhance economic development in rural economies. The program was originally announced in the Federal Register as an Advanced Notice of Proposed Rulemaking on November 20, 2008.

Summary of the Legal Basis: The Biorefinery Assistance program was authorized by the Food, Conservation, and Energy Act of 2008, which made available $75,000,000 in mandatory funding for 2009 and $245,000,000 in mandatory funding for 2010, till expended. Additionally, the 2008 Farm Bill provided an authorization to appropriate up to $150,000,000 in discretionary funding for each fiscal year 2009 through 2012. The program provides loan guarantees for the development, construction and retrofitting of commercial-scale biorefineries, and grants to help pay for the development and construction costs of demonstration-scale biorefineries. The purpose is to assist in the development of new and emerging technologies for the development of advanced biofuels.

Alternatives: A Notice of Funding Availability was published in the Federal Register on November 20, 2008, to implement the program for fiscal year 2009. Permanent regulation need to be implemented to provide funding in 2010 and further clarify of the program

Anticipated Costs and Benefits: It is anticipated that there will be costs directly attributable to the contractor, which is assisting with drafting the proposed rule. Other costs would be internal costs associated with the promulgation of the proposed rule. The Agency is confident that the regulations contain sufficient safeguards to mitigate any risk associated with a proposed rule and would be a benefit to the agency as well as potential applicants considering applying for payments under this program. Benefits accruing to the publishing of a proposed rule would clarify the process, payments, eligibility and understanding of any ambiguity conveyed in the initial announcement of the program. Additional benefits stem from the ability of the public and interested parties to comment on program and consider issues concerning the geographic location and demographic composition of locatable projects as well as the ownership criteria.

Risks: The proposed action does not mitigate risk to the public health or safety or to the environment.