As Decision on Loan Guarantees Nears: Schumer Invites Energy SEC Chu to Tour Taylor Biomass; Visit Will Boost Company's Visibility and Plan to Create 300 Jobs

Press Release

Today, U.S. Senator Charles E. Schumer announced that he has invited the Secretary of the U.S. Department of Energy, Stephen Chu, to tour Orange County's Taylor Biomass as a decision on the company's application for loan guarantees draws near. 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. Schumer recently called Secretary Chu and emphasized Taylor Biomass's ability 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. Today, Schumer took the step of inviting Chu to visit the company and personally see the impact that $80 million in loan guarantees would have on job creation in Orange County. The invitation follows a positive conversation that Schumer and Chu had 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 nation's dependence on foreign oil.

"Securing these loan guarantees is absolutely critical to the future of Taylor Biomass and job creation in the Hudson Valley," Schumer said. "The minute Secretary Chu sees this place he'll know it's a winner and worthy of any assistance the Department of Energy can provide."

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 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. Right now, a decision on the company's application for loan guarantees is fast approaching, and a personal look by the Energy Secretary could provide the last bit of needed momentum for the company to receive final approval.

Schumer added, "Taylor Biomass is a big part of the Hudson Valley's economic engine and we've got to support it. Secretary Chu has done an excellent job of reading up on the company and its importance but seeing it in action is all together different and I think that will a big win for Taylor's application."

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