Presenta(on to the 7th Annual Forum of the California Biomass Collabora(ve May 10, 2010

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1 Sonia Yeh Institute of Transportation Studies Presenta(on to the 7th Annual Forum of the California Biomass Collabora(ve May 10, 2010

2 Outline Key design elements of sustainability requirements Comparison of interna6onal programs Updates on recent Governments efforts in suppor6ng ILUC modeling What it means to CA 2

3 Capacity Building Needed to Support Sustainability Regula9ons 1. Principles and criteria 2. Supply chain and repor6ng requirement Building the chain of custody (CoC) system 3. Cer9fica9on and verifica9on of sustainability repor6ng, and requirements to monitor or report progress Assurance process: verify the accuracy and truthfulness of reports and informa6on provided by the supply chains Requirements for auditors: qualifica6on Benchmarking of sustainability standards and cer6fica6on schemes The criteria and indicators of the sustainability standard; The audit quality of the sustainability standard 4. Legality 3

4 Major Biofuel Programs and GHG Requirements US Renewable Fuel Standard Program (RFS2) Conven6onal biofuel (20%), Advanced biofuel (50%), cellulosic biofuel (60%), CA Low Carbon Fuel Standard (LCFS) 10% reduc6on of average fuel carbon intensity (gco2/mj) compared with baseline fuels UK Renewable Transport Fuel Obliga6on (RTFO) 50% by 2010 EU Renewable Energy Direc6ve (RED) and Fuel Quality Direc6ve (FQD) 35% and 50% by 2017 (RED) 6% average fuel carbon intensity reduc6on by

5 1. Principles/Requirements in Major Biofuel Programs US Renewable Fuel Standard Program (RFS2) Minimum GHG savings by biofuel category, including indirect land use change Excludes feedstock produced from non agricultural land, federal forest lands, and ecologically sensi6ve forestland California Low Carbon Fuel Standard (LCFS) GHG only policy Includes indirect land use change UK Renewable Transport Fuel Obliga6on (RTFO) Environmental: minimum GHG savings, biodiversity, soil, water, and air Social: workers rights and land rights EU Renewable Energy Direc6ve (RED) biodiversity no go areas; conversion of high carbon stock areas prohibited; minimum GHG savings University of California, 5 Davis

6 1. Principles and Criteria in Other Relevant Standards Voluntary cer6fica6ons Opera6onal: Roundtable on Sustainable Palm Oil (RSPO) In prepara6on: the Roundtable on Responsible Soy (RTRS), the Beeer Sugarcane Ini6a6ve (BSI), the Council on Sustainable Biomass Produc6on (CSBP, focusing on second genera6on feedstock) Interna6onally standards/ini6a6ves Standard and cer6fica6on: Roundtable on Sustainable Biofuels (RSB) Research and modeling: Global Bioenergy Partnership (GBEP), Food and Agriculture Organiza6on (FAO) Scorecard: Inter American Development Bank (IDB) 6

7 Principles and Criteria of Biofuel Programs Gov programs Cer3fica3on

8 FAO Bioenergy and Food Security Criteria and Indicators (BEFSCI) Compila9on of Bioenergy Sustainability Ini9a9ves Environmental Socio Economic Governance Food Security Source: hep:// 8

9 2. Repor9ng Requirements EPA RFS2: addi6onal requirement to renewable fuel producers /importer GHG (fuel suppliers): repor6ng of produc9on process and co products through the EPA Moderated Transac6on System (EMTS) Sustainability (feedstock producers): record keeping of an affirma6on that feedstock meet the defini6on of renewable biomass CARB: GHG: RIN + feedstock origin and produc6on process Sustainability: none at this stage The current repor6ng mechanism tracks the sustainability performance of fuels at the feedstock level, not at the field level. Some informa6on per6nent to GHG calcula6on (e.g. fer6lizer use, type of land use (e.g. marginal land), yield) and agriculture prac6ces (e.g. 6llage vs no 6ll, residue removal rate, pes6cide use) may not be known at this stage

10 2. Chain of Custody (CoC) A mechanism to track informa6on of sustainability performance of feedstock from cul6va6on, transport, process to delivery CoC models (with decreasing stringency) Iden9fy preserve: each batch of cer6fied product is treated separately e.g. Organic coffee Segrega9on: cer6fied products are separated from non cer6fied products e.g. GMO free soy Batch processing: mass balance but documents must be separated from the non cer6fied products e.g. EU Renewable Energy Direc6ve (RED) Mass balance: cer6fied products & documents can be mixed with non cer6fied products & documents Book and claim: no physical link between cer6fied products and claims e.g. EPA Renewable Iden6fica6on Number (RIN) system e.g. Green electricity 10

11 Similar Capacity Building in Other Sustainability Standards RSB Principles and criteria, indicators (Version 1.0) Standard for adapta6on to crop specific condi6ons, geographic condi6ons and biomass produc6on standards Standards for Chain of Custody Standards for Cer6fica6on Bodies Standards for EU Market Access Netherlands Sustainability standard NTA8080: requirements for sustainably produced biomass (solid & liquid) for energy applica6ons (power, heat & cold and transporta6on fuels). Regula6ons for cer6fica6on NTA8081 (under development) 11

12 Other Capacity Building Efforts in Suppor9ng the Development of Sustainability Standards ISO/TC 248 Sustainability criteria for bioenergy Pilot tes6ng and implementa6on RSB/Inter American Development Bank field pilots in La6n American Countries 12

13 UK s Year One Progress (92% of imported biofuels) Reported Carbon Saving Data Capture 24% Industry data 70% Default feedstock/ countries 22% Env 18% Social Source: Renewable Fuels Agency 2008/09 Annual Report to Parliament on the Renewable Transport Fuel Obligation 13

14 Highlights of Recent Work on ILUC Modeling CARB: Refine analysis through the establishment of Expert Workgroup to provide recommenda6on by the end of this year 1. Comparative and Alternative Modeling Approaches 2. Issues Related to Co-product Credit 3. Land Cover Types 4. Elasticity Values 5. Uncertainty in LUC Estimates 6. Indirect Effects of Other Fuels 7. Carbon Emission Factors 8. Time Accounting Values EPA: CENTURY and DAYCENT (N2O) + FASOM (domes6c land use and Ag) + FAPRI (interna6onal land use and Ag) European Commission: Commission four modeling exercises, model comparisons, and literature review One study completed: IFPRI, based on a general equilibrium modelling approach and using an extended version of the GTAP database and the Mirage model. 14

15 Highlights of Recent Work on ILUC Modeling Cont d UK: Use causal descrip6ve method (sta6s6cal analysis, economic analysis, expert inputs and literature review) Four case studies: wheat, soybean, palm, and rapeseed Demonstra6on of mi6ga6on strategies that can avoid or minimize ILUC at the project level Four proof of concepts: unused land, increasing produc6vity of exis6ng bioenergy systems, increasing produc6vity of non exis6ng bioenergy systems, exploring a feedstock region level approach Criteria for low risk of indirect effects: economic viability, barriers for implementa6on, addi6onality, monitoring requirement Our team: Literature and modeling review: examining the impacts of key iluc model factors (coproducts, yield, trade, land compe66on) and modeling 6meframe across key ILUC models Exploring policy combina6ons and validate mi6ga6on strategies: Applying the Interna6onal Model for Policy Analysis of Agricultural Commodi6es and Trade (IMPACT) model in collabora6on with the Interna6onal Food Policy Research Ins6tute and University of Illinois, Urbana Champaign 15

16 California is at the Star9ng Points California stakeholders Interagency Forest Work Group (IFWG) state agencies environmental advocates regulated par6es (include fossil, and renewable fuel producers/suppliers) na6onal and interna6onal partners Mostly of the sustainability discussions concern domes6c biofuels/feedstock from agricultural produc6on forest biomass wastes and agricultural residues

17 Policy Challenges of the Sustainability Provision for CA LCFS How to integrate sustainability issues into a GHG policy? address sustainability issues associated with market mediated effects at the system level though repor6ng and cer6fica6on? such as food prices, indirect land use change (ILUC), and cumula6ve environmental impacts address scien6fic uncertain9es in best management prac6ces and sustainability impacts in a stable compliance environment? provide adequate incen9ves to encourage sustainable agricultural prac6ce /feedstock and fuel produc6on 17

18 Further Readings and Project Informa9on UC Working Group on Low Carbon Fuel Standard Implementa9on Studies hep://steps.ucdavis.edu/research/thread_6/lcfs Sustainability standards Yeh, Sonia, Daniel A. Sumner, Stephen R. Kasa, Joan M. Ogden, and Bryan M. Jenkins. 2009a. Implemen6ng Performance Based Sustainability Requirements for the Low Carbon Fuel Standard Key Design Elements and Policy Considera6ons. Ins6tute of Transporta6on Studies, University of California, Davis. Research Report UCD ITS RR ILUC review Biofuels GHG Emissions & Indirect Land Use Change (iluc): Surveying the Model Landscape, Julie Witcover. ACS 239th Na6onal Mee6ng, San Francisco, CA, March 22, hep://steps.ucdavis.edu/people/slyeh/syeh resources/uc lcfs/witcover%20acs%20presenta6o n%203%2021%2010.pdf Lifecycle water footprint of alterna6ve transporta6on fuels hep://steps.ucdavis.edu/research/thread_6/lcfs/water 18