Colorado Biomass Projects. Drew Bolin Director, Colorado Energy Office

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1 Colorado Biomass Projects Drew Bolin Director, Colorado Energy Office May 22, 2006

2 Typical Energy Costs Source: REN21 Renewable Energy Policy Network Renewables 2005 Global Status Report. Washington, DC: Worldwatch Institute.

3 National Biomass Partnership Mission Statement: Facilitate the increased use of BioEnergy and BioBased Products through coordinated federal, regional and state technical assistance and educational outreach programs. Two primary components: Five (5) regional programs serve as conduit to states National coordination and information exchange

4 Western Governors Association Clean and Diversified Energy Western Governors Goals 1. Add 30,000 megawatts of clean energy by Increase energy efficiency 20% by Meet the West s generation and transmission needs over the next 25 years. = Clean and Diversified Energy Advisory Committee (CDEAC) formed to provide recommendations to attain the goals

5 Potential 2015 Generation Capabilities Identified by Task Forces Advanced Coal Biomass Geothermal Solar Wind Energy Efficiency 5,000 megawatts 10,000 megawatts 5,600 megawatts 8,000 megawatts 9,000 megawatts (no new transmission) 48,000 megawatt decrease in forecasted demand (by 2020)

6 Potential 2015 Generation Capabilities WGA Biomass Task Forces Forest Resources 70,956 GWh 50% Urban Biomass GWh 35% Agriculture 21,681 GWh 15%

7 How Public-Private Partnerships Can Help Colorado Efforts Recipient: WGA $100,000 Biomass Grant Partnered with WGA for the CDEAC/Biomass Task - Supply Study and Report Formalizing the Colorado Biomass Working Group Pellet manufacturing (good economic development)

8 Aquila Project Colorado: Biomass & Biofuels Using Forest Thinnings Co-fired forest thinnings 5% with Canon City coal power plant 1st to sell Renewable Energy Credits from woody biomass on the voluntary market Biomass Availability/Sustainability Study Boulder County Biomass Heating System Other projects: Leadville District Heating Summit County/Frisco District Heating Jeffco power production Walden High School

9 Gov. Owens Signs Biofuels Bills Senate Bill adds the use of biofuels, such as agriculture, slash, and urban wood waste, for the purposes of heating and/or powering new state-owned buildings and on major renovations to existing state-owned buildings. Future biofuels life-cycle cost analyses will help determine if the cost of using biofuels is economically viable. Using biofuels may prove to be both an important energy conservation measure, as well as a benefit to taxpayers. Senate Bill requires biodiesel produced by Colorado's agriculture industry to be used as an additional fuel for a portion of Colorado's state-owned diesel vehicles. The program begins in 2007, and the measure may help Colorado conserve petroleum-based energy and provide an additional market for Colorado s farmers. In 2009, results of this program will be reported to determine the amount of biodiesel consumed as well as any economic benefit to taxpayers and Colorado s rural communities.

10 Front Range Fuels Treatment Partnership The Front Range Fuels Treatment Partnership (FRFTP) was initiated following the record fire season of FRFTP was formed to reduce wildland fire risks through sustained fuels treatment along the Colorado Front Range. Mission of the FRFTP Roundtable To serve as a focal point for diverse stakeholder input into the Partnership's efforts to reduce wildland fire risks through sustained fuels treatment along the Colorado Front Range.

11 Expanding Partnerships Front Range Fuels Treatment Partnership - Two National Forests - Six State Forest Service Districts/Nine Front Range Counties - BLM, National Park Service, Denver Water - Large Stakeholder Group (FRFTP Roundtable) - FRFTP Roundtable Report (May 2006) Recommendations include Biomass Utilization and Bioenergy Projects

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13 Colorado E85 Coalition Mission: To increase knowledge, resources, gallons consumed and retail availability of E85 in Colorado. Goals: 10 new E85 pumps in Colorado (double the number in next months) Double the gallons of E85 consumed in next months by promoting the use of E85 Educate consumers, fleets, pump owners, and dealers about E85

14 Colorado E85 Coalition Ethanol Benefits for Producers & Users Savings: E85 priced $1.99 per gallon near downtown Denver on 4/25/06 Domestic sourced fuel Revenue and jobs: Sterling Ethanol Plant: 40 million gallon ethanol plant Opened for production this fall for the corn harvest Spin off businesses that will employ 5-10 new employees

15 Issues and Challenges Funding for Public Sector Project Implementation Lack of Traditional Forest Industry Infrastructure Permit Requirements for Co-Firing with Biomass No Funding for Authorized Programs - Biomass Subsidies in the HFRA and Energy Bill WGA Biomass Recommendations Tax Parity among renewable technologies Long-term and large forest health treatment contracts Utility policies should not discriminate against the distributed generation nature of biomass

16 For more information, please contact: Colorado Office of Energy Management and Conservation 225 East 16th Ave, Suite 650 Denver, CO Website: Phone: (303)