A new federal subsidy program aimed at increasing biomass fuel supply could provide farmers and woodland owners in Maine with $150 million over the next two years.

Gov. John Baldacci announced the Biomass Crop Assistance Program after an energy-related meeting he attended Wednesday with President Obama and other governors, according to Capitol News Service. The money, which comes from the American Recovery and Reinvestment Act, will help producers of biomass materials cover the costs of collecting, transporting and storing those materials. Suppliers who sell materials to a qualified conversion facility will see matching rates from $1 to $45 for each $1 per dry ton paid by the conversion facility to suppliers, according to the news service. Maine has 26 qualified facilities that use wood chips, oils and other materials to make biofuels, including some of the state's paper mills.

The subsidy program could spur development of new facilities in Maine, Baldacci said. Maine suppliers will be able to start applying for the subsidy in 60 days.

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