Title
Chief Administrative Office recommending the Board adopt and authorize the Chair to sign Resolution 020-2024 authorizing the submittal of an application for the United States Department of Agriculture Rural Business Development Grant not to exceed $100,000 for Bioeconomy Development Opportunity Zone Rating to attract future bio-based businesses in the County.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
The clean energy market encompasses a range of renewable and sustainable energy sources aimed at reducing the environmental impact and dependence on non-renewable resources. Biomass is a renewable energy derived from organic materials such as plants, wood, agricultural residue, and other biological sources. El Dorado County has a surplus of feedstock in the form of woody biomass in our forests that could be leveraged to attract ground/aviation biofuel and renewable biobased economic development projects.
To attract these projects to the County, the feedstock needs to be quantified by initiating a technical risk assessment to show feasibility of development to potential new biobased economic stakeholders. A Bioeconomic Development Opportunity (BDO) Zone rating is a standard-based assessment of our county’s manufacturing readiness with respect to development potential of biofuels, renewable chemicals, biogas or bioproducts projects.
BDO Zone ratings scale ranges from the strongest indication “AAA” indicating a very strong capacity of supply chain infrastructure to support biobased development; to the weakest indication “CC” indicating a very strong likelihood of biomass feedstock supply chain or infrastructure failure. BDO Zone ratings of “AAA”, “AA” and "A" identify optimal zones for new biobased development and are used to connect regions with biobased business investors and developers. To date, BDO Zones have been linked with $1B of private capital for biobased economic development projects.
In December 2023, the USDA RBDG has released a Notice of Funding for a grant designed to support the development of small and emerging businesses in rural areas. The grant application procedures require an applicant’s governing body to declare by resolution authorizing the submittal of the application. The Chief Administrative Office is recommending the submittal of a grant application not to exceed $100,000 to fund the BDO Zone Rating, certifying our biomass supply chain and connecting our County with potential biobased project developers and investors.
On April 12, 2022, the Board approved the creation of a Biomass Ad Hoc Committee consisting of Supervisor Parlin and Supervisor Turnboo to engage with relevant County staff and stakeholders to consider options for a biomass cogeneration facility in El Dorado County (Legistar 22-0601).
On June 10, 2022, the Biomass Ad Hoc Committee and County staff met with representatives of Sierra Pacific Industries (SPI) at the former SPI sawmill in Camino to discuss the potential siting of a biomass cogeneration facility on SPI’s Camino property.
ALTERNATIVES
The Board could choose not to apply for the grant and pay for the rating from General Fund.
PRIOR BOARD ACTION
April 12, 2022 - Legistar Item 22-0601
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
Planning and Building Department, Economic Development Division
FINANCIAL IMPACT
There is no financial impact related to this item.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Obtaining the Chair's signature on the resolution and forward original to Tara Stout in the Chief Administrative Office.
STRATEGIC PLAN COMPONENT
The potential to develop a biobased business and create new jobs in the County is in line with the Thriving Economy strategic focus area to explore the feasibility of “waste to energy” industries.
CONTACT
Tara Stout, Principal Management Analyst