The webinar summary and Key Strategies were contributed by the National Association of Regional Councils.
Economic Development Districts (EDDs) leverage regional resources to build thriving communities, and sometimes these resources are already in the region’s own backyard. Many communities have significant surpluses of sustainable biomass, a renewable organic material from plants and animals. Turning biomass into fuel offers economic benefits to regions. In 2022, biomass accounted for nearly 5% of U.S. total energy consumption, according to the U.S. Energy Information Administration (EIA). Sources for biomass energy include wood and wood processing waste, agricultural crops and waste materials, biogenic materials in municipal solid waste, and animal manure and human sewage. The conversion of biomass resources into energy products as an economic driver is supported by both the U.S. Department of Agriculture (USDA) and the U.S. Department of Commerce’s Economic Development Administration (EDA). The National Association of Development Organizations Research Foundation (NADO-Research Foundation), recognizing the support available by USDA and EDA, convened experts working in this field for a discussion on bioeconomy opportunities for EDDs.
Jordan Solomon, President & CEO of Ecostrat and Chairman of the Bioeconomy Development Opportunity (BDO) Zone Intiative, discussed the significance of BDO Zone Ratings at a webinar hosted by the NADO Research Foundation offered through their EDD Community of Practice. The BDO Zone Initiative emphasizes leveraging local biomass resources to attract new projects in clean fuel and drive new biobased economic development. The BDO Zone initiative addresses key barriers regions face, assessing and quantifying their regional feedstock. BDO Zone Ratings solve this problem by enabling high-potential “biomass-rich” communities to be “found” by biobased developers and investors around the world.
A BDO Zone Rating is a standards-based assessment of biomass feedstock and infrastructure attributes of a region that determine? development potential of new biofuel, renewable chemical, biogas, or bioproduct manufacturing plants. Soloman emphasized that investment grade BDO Zone Ratings allow regions to leverage biomass assets to attract new biobased manufacturing plants and, in turn, create jobs. The initiative allows regions to tap into the clean energy sector by certifying regional readiness for bioenergy manufacturing.
The webinar highlighted success in Libby, Montana, where BDO Zone Ratings helped drive economic development in a rural area. Mark Peck, Shared Stewardship Coordinator at the Lincoln County Port Authority, detailed how the BDO Zone Rating played a pivotal role in attracting an international biobased project developer to the region.
Dr. Karama Neal, Administrator of Rural Business-Cooperative Service at the United States Department of Agriculture (USDA) Rural Development, discussed funding programs that support biobased growth in regions. The USDA manages a BioPreferred Program which promotes the increased purchase and use of biobased products. The program’s purpose is to stimulate economic development, create new jobs, and provide new markets for farm commodities. Two major elements of the program include a voluntary labeling program and a federal procurement preference. Dr. Karma Neal referenced Executive Order 14081, which established a National Biotechnology and Biomanufacturing Initiative, a suite of investments in biotech research. This executive order increased funding for biotech workforce development, expanded support for biomanufacturing, and streamlined regulations to reduce barriers for the biotechnology sector. One funding source that can be used to further biobased development is the Rural Energy for America Program (REAP) program created under the Inflation Reduction Act (IRA). REAP provides loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or energy efficiency improvements. Another stream of funding from USDA is the Rural Business Development Grant (RBDG), which provides funding for technical assistance and training for small rural businesses.
Robert Venables, Executive Director, and Karen Peterson, Biomass Coordinator, at the Southeast Conference in Alaska, summarized biomass initiatives in Juneau and the surrounding region. The Southeast Conference is an Economic Development District serving 180 member organizations in a region with approximately 72,000 people in 32 communities across southeastern Alaska. The region’s goal is to be a leader in the bioeconomy sector and have integrated biomass into their strategic plan. The majority of energy costs paid by residents in the Southeast Alaskan region goes to space heat. Biomass presents an important opportunity for alternative energy heat to displace diesel. The Alaska Wood Energy Development Task Group (AWEDTG) works closely with the Southeast Conference and organizes the bi-annual Alaska Wood Energy Conference. AWEDTG consists of a coalition of federal and state agencies and not-for-profit organizations that have signed a Memorandum of Understanding (MOU) to explore opportunities to increase the utilization of wood for energy and biofuels production in Alaska. Turning biomass into a profitable economic driver and the concept of bioeconomies is becoming more prevalent as leaders look to create more sustainable and resilient futures for their communities.