Title
Chief Administrative Office recommending the Board:
1) Receive and file a presentation on the Bioeconomy Development Opportunity Zone Rating;
2) Accept a grant award under the United States Department of Agriculture, Rural Business Development Grant Program in the amount of $75,000 to fund a Bioeconomy Development Opportunity Zone Rating to attract bio-based businesses to the County;
3) Authorize the Chief Administrative Officer, or the Assistant Chief Administrative Officer, to sign the Rural Business-Cooperative Service Financial Assistance Agreement between the United States Department of Agriculture, Rural Development and El Dorado County;
4) Authorize the Chief Administrative Officer, or Assistant Chief Administrative Officer, to execute any grant related documents including, but not limited to, amendments that do not change the dollar amount of the grant agreement (contingent on approval from County Counsel), requests for payments, reports, and all other associated documents necessary to secure the grant funds and implement the approved project;
5) Authorize the Chief Administrative Office to procure an appraisal for planning purposes for portions of the Sierra Pacific Industries site in Camino; and
6) Approve and Authorize the Chair to sign a Budget Transfer increasing Federal revenue and increasing Professional Services in the amount of $75,000 for Fiscal Year 2024-25.
FUNDING: Rural Business Development Grant Program funds.
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 bio-based 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 bio-based economic stakeholders. A Bioeconomy 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 bio-based 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. The BDO Zone initiative, led by Ecostrat USA, has become a recognized driver of bio-based project development throughout North America. The BDO Zone rating was recently recognized in the March 2024 USDA, “Plan to Enable the Bioeconomy in America: Building a Resilient Biomass Supply.” To date, BDO Zones have been linked with $1 billion of private capital for biobased economic development projects.
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 file 22-0601).
In December 2023, the USDA Rural Business Development Grant (RBDG) Program released a Notice of Funding for a grant designed to support the development of small and emerging businesses in rural areas. The Sierra Pacific Industries property in Camino was selected as the focal point for the RBDG application and proposed BDO Zone evaluation due to its location in a rural area, proximity to a high concentration of woody biomass feedstock, and historical use as a former sawmill site. The purpose of procuring an appraisal for the site is for planning purposes only. There is no current plan for the County to purchase the land.
In February 2024, the Board adopted Resolution 020-2024 authorizing the submittal of an application for the USDA RBDG Program grant not to exceed $100,000 for BDO Zone Rating to attract future bio-based businesses in the County. The County was awarded $75,000 in RBDG funds to be used for a contract with Ecostrat USA to develop a BDO Zone rating for the County.
The Chief Administrative Office is currently negotiating an agreement with Ecostrat USA to perform the BDO Zone rating.
ALTERNATIVES
The Board could choose not to accept the grant funding, which would require the use General Fund for the BDO Zone Rating, or direct staff to discontinue the effort.
PRIOR BOARD ACTION
April 12, 2022 - Legistar Item 22-0601
February 6, 2024 - Legistar Item 24-0142
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Council - review and approval
Planning and Building Department, Economic Development Division
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no Net County Cost associated with this item. The total cost-share/match requirements for this grant program of $75,574 will be a combination of $11,074 of currently budgeted County staff salary and benefits and $64,500 third-party in-kind donated staff time by Ecostrat USA.
A FY 2024-25 budget transfer is being requested to allow for the use of grant funds for a contract to perform a BDO Zone Rating.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
The potential to develop a bio-based 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