Schumer Presses Energy Secretary to Support Taylor Biomass Application for Loan Guarantees; Approval of Application Would Create Over 300 Jobs, $2.5M in Wages and Benefits and Boost Local Economy

Press Release

Today, U.S. Senator Charles E. Schumer announced that he has personally called the Secretary of the U.S. Department of Energy, Stephen Chu, urging him to quickly approve an application for loan guarantees submitted by Taylor Biomass in Orange County. Currently, the company has amassed $20 million in private investment and is seeking $80 million in loan guarantees through a Department of Energy program designed for clean energy businesses. During his call with Secretary Chu, Schumer emphasized Taylor Biomass's ability to make good on any loan guarantees it received from the Energy Department and the company's potential to create jobs and boost the economy in an area of New York where it is sorely needed- unemployment in Orange County has been hovering around 8% for months. Schumer and Chu had a positive conversation during which the Secretary pledged to take a "hard look' at the company's application and work towards a solution that will create jobs in New York and reduce the state's dependence on foreign oil. Schumer pledged to continue to press his case for the company, saying that the company's innovative business model will yield good jobs for New Yorkers in an emerging field.

"This project will put people to work and contribute towards an America that isn't reliant on foreign oil, so an investment on the part of the Department of Energy make eminent sense," said Schumer. "Creating good-paying jobs needs to be our top priority and investing in companies like Taylor Biomass will do just that," Schumer said.

Taylor Biomass Energy is part of Taylor Recycling, a waste recovery company headquartered in Montgomery. TBE houses one of the most innovative construction and demolition recycling operations in the world. Over 95% of the waste received at this facility is converted into valuable and reusable end-products. Taylor pioneered a process called gasification to convert solid waste into a renewable energy source.

According to Taylor, the gasification process uses very high temperatures to convert biomass materials, including those commonly found in solid waste, into a high-quality gas known as "syngas." The materials are not combusted, fully avoiding the potential pollutants associated with the traditional burning method for converting waste into an alternative energy source. Syngas can then be used to produce energy through gas turbines or it can be converted into biofuels. According to Taylor, the company's current business model will reduce our dependence on foreign energy by 7.4 million gallons of oil per year.

Loan guarantees are an innovative approach that the federal government can use to support job growth in local communities while minimizing the use of taxpayer dollars. Under government loan guarantee programs, companies like Taylor Biomass go through an intensive vetting process during which the viability of the company's business plan is judged against factors like community interest and initial private investment. By guaranteeing the loan, the federal government spurs entrepreneurs to invest in the project because they know that their investment is safe. Approving this application for a loan guarantee would give Taylor Biomass the leverage they need to seek out additional private investment and begin the process of creating jobs and driving growth more quickly.

Right now, executives at Taylor Biomass estimate the total cost of building infrastructure to support their business at $100 million. Thus far, the company has secured $20 million in private investment and would use the $80 million loan guarantee to increase investor confidence and secure the remaining investment needed to get the project under way. By presenting a solid business plan, Taylor Biomass has already achieved success in program and has completed the first phase of the Department of Energy's application process, and now needs final approval to secure the loan guarantee. Once in place, the guarantees will allow the company to immediately create 300 temporary construction jobs for infrastructure development during which time Taylor Biomass will begin the process of hiring 46 full-time employees. Once fully operating, the business will add $2.5 million in wages and benefits to Orange County's economy. Moreover, having the business based in the Hudson Valley will put Orange County at the center of an emerging industry that is likely to grow as America begins to rely less on foreign energy sources.

Schumer has long been an advocate for Taylor Biomass. In June of 2007 Schumer successfully added language to a Senate Finance Committee bill that ensures gasification is recognized as an eligible waste-to-energy conversion method in the tax code. This inclusion allowed companies like Taylor, who do not use the full combustion method, to receive the same tax incentives as those companies that burn, rather than gasify, solid waste. The Energy Production Tax Credit is available to companies that produce electricity using renewable resources, such as wind, biomass, hydro, and trash combustion facilities. Companies can claim a credit of 2 cents per kilowatt hour for the first ten years the facility is in service.

Schumer added, "If we're going to remain the world's largest economy then we must invest in the jobs of the future- Taylor Biomass is a prime example of the type of business we should be working with. I committed to helping this business become a job creator for Orange County."

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