Seizing Opportunities and Removing Obstacles

Transcription

1 Seizing Opportunities and Removing Obstacles

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3 Mid-Atlantic region has a small percentage of low/medium levels of P. % of Soils with High/very high P levels: MD = 78% (and increasing based on data), DE = 82%, PA = 64%, VA = 66% (Better Crops/Vol.86 (2002, No. 1), P.E. Fixen) 3

4 USDA 2002 Report Lancaster region, PA Eastern shore, MD/VA/DE Shenandoah Valley, VA Excess Manure P assuming no export of manure from county, 1997 Chesapeake Bay Watershed is one of the regions nationwide with the highest excess manure P (greater than 2 million lbs/county). 4

5 Manure P supply: Cropland P demand Confined Animal Production and Manure Nutrients. N. Gollehon, M. Caswell, M. Ribaudo, R. Kellogg, C. Lander, and D. Letson. Agriculture Information Bulletin No. (AIB771) 40 pp, June USDA-ERS.

6 Finding the Win - Win Technologies exist to produce energy from manure that provide the farmer with income and reduce air and water pollution. How can we get more projects on the ground in the Bay watershed? Agricultural Sustainability

7 What changes are needed at the federal and state level to encourage successful deployment of manure-to-energy technologies at the regional, community and farm scale? Market Entry Factors Financing for Maximizing Benefits Markets for Byproducts

8 3 ways to help Getting more projects on the ground will require multiple solutions. Help us to understand what policies are needed and the order of priority. Clarify and add to what the policy analysts have presented Vote for your top 3 priorities for the next 1-2 years. Complete the Survey

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10 OPPORTUNITY- Use RPS to get higher price for manure to energy Renewable Portfolio Standard Md.- 20% by 2022; 2% solar Pa.- 18% by 2021;.44% solar Va.- 12% by 2024 (voluntary) ISSUES Utilities buy renewable energy credits (REC s) from 12 states and D.C. in PJM, our regional transmission organization. Will not necessarily promote in-state production. REC market is flooded, can be banked for two years.

11 Extend RPS solar incentives to Manure to Energy 1. Adopt Technology Specific Set Asides for Manure to Energy. 2. Increase Alternative Compliance Payments for Manure to Energy. 3. Adopt Credit Multipliers for Manure to Energy. 4. VA adopt a mandatory RPS. 5. Couple with state tax and funding incentives for in state production.

12 OPPORTUNITY Offset power otherwise bought from grid. ISSUE Need to aggregate meters to offset costs for all farm structures. Contracts with Poultry Growers may include propane so power produced would not be used to offset heating/cooling costs. RECOMMENDATION 1. Virginia allow aggregation of meters. 2. Industry remove unintentional barriers to grower power generation. I

13 OPPORTUNITY Sell green energy to utilities and the grid

14 Small Projects: (Net metered); MD- 2MW Residential, PA- 50kW; VA-20kW; Commercial, PA- 3MW; VA- 500kW Grants + Tax Credits + Avoided Costs + Tipping fees+ Sell excess electric to utility= Payback period 3-5 years Medium and Large Projects: (Utility or Wholesale) MD > 2 MW; PA>5MW; VA> 500KW Grants + Tax Credits + Possible Avoided Costs (contract with large energy user like prison, industrial, park, processing plant) +Sell to utility and on wholesale market.

15 ISSUE- Power Purchase Agreements Medium and Large scale projects need long term power purchase agreements and above market rates to attract investment.

16 /kwh Long-Term Power Purchase Agreements Market Price Contract Price time

17 1. Investor owned utilities enter into long term power purchase agreements for manure to energy. Surcharge on utility bills to support PPA s. 2. States purchase manure to energy power for state needs. A

18 Bay Power certification for market based branding States certify that Bay Power: Is generated from manure to energy. Has added water quality components. Is generated in-state or in watershed, or Is generated in watershed manure hotspots R, L Create premium brand. Utilities and alternate electric suppliers market. Capitalize on movements to buy local, support clean energy, Save the Bay.

19 The rate of actual productivity in a year compared to the theoretical maximum 24hrs/day ; 7 days/week; 365 days/year

20 U.S. Capacity Factors by Fuel Type 2010 Fuel Type Average Capacity Factors (%) Nuclear 91.2 Biomass 85.5 Geothermal 71.6 Coal (Steam Turbine) 65.4 Gas (Combined Cycle) 45.8 Hydro 29.4 Wind 29.1 Solar 17.7 Gas (Steam Turbine) 12.9 Oil Source: (Steam Ventyx Velocity Turbine) Suite / Energy Information Administration 8.9 Updated: 4/11

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22 Funding Sources Different sources for different phases of technology development and scale Federal focus on Farm Bill programs State emphasis on tweaks to existing programs

23 OPPORTUNITY State and federal grant and loan programs that can be used for alternative energy projects. ISSUE Funds are not widely used for manure to energy projects or, if they are, no explicit link to water quality benefits. RECOMMENDATION Give priority to manure to energy projects that address water quality issues. Devote resources to technical assistance and outreach. A, L

24 Example USDA s Rural Energy for America Program (REAP) provides grants and loans for alternative energy projects (e.g., anaerobic digesters). Funds from USDA s Environmental Quality Incentives Program (EQIP) could be used to fund an integrated approach that also provides water quality benefits (e.g., separation technology). Alter the scoring system for REAP and EQIP to give priority to integrated projects.

25 Alternative Energy Grants and Loans FY11 $200,000,000 $180,000,000 $160,000,000 $140,000,000 $120,000,000 Alternative and Clean Energy Program Sustainable Energy Funds PA Energy Development Authority $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0 Strategic Energy Investment Fund MARBIDCO Maryland Virginia Pennsylvania

26 OPPORTUNITY Refundable or transferable alternative energy state tax credit programs. ISSUE Status of these programs varies across the three states. RECOMMENDATION Revise alternative energy tax credit programs to provide greater incentives for manure to energy projects. L

27 Comparison of Alternative Energy Tax Credit Programs State Legislation Amount Transferable/ Refundable? Status Pennsylvania H.B % of cost of project Transferable No appropriated funds Maryland H.B cents/kwh Refundable Active Virginia S.B cents/kwh Can be carried over Legislation didn t pass North Carolina 35% of cost of project Can be carried over Active

28 OPPORTUNITY Sale of nutrient credits as a revenue stream for manure to energy projects. ISSUES 1. Demand for nutrient credits is currently low. 2. Manure to energy projects don t fit well into existing credit certification approaches. RECOMMENDATION 1. Stimulate market by establishing credit bank. 2. Establish regional technical review panel to assist in calculating nutrient credit benefits. A,L A

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30 OPPORTUNITY Sale of separated solids as bedding ISSUE Tracking of nutrient fraction that remains in the solids RECOMMENDATION Potential revisions of nutrient management requirements and tracking for importers. A, R

31 OPPORTUNITY Sale of separated solids as peat replacement ISSUE Economies of scale Siting RECOMMENDATION Increase demand through promotion of LID, use on public projects L, R, I

32 OPPORTUNITY Beneficial use of ash as fertilizer or feed product ISSUE RECOMMENDATION

33 Cordell et al., 2009

34 OPPORTUNITY Beneficial use of ash as fertilizer or feed product ISSUE Air permitting RECOMMENDATION Clear classification of manure as a fuel instead of solid waste R

35 OPPORTUNITY Use of ash as a fertilizer on food crops ISSUE Limited experience and documentation of effectiveness RECOMMENDATION 1. Continued research 2. Include this practice in BMP risk management programs. I

36 OPPORTUNITY Use of ash as a fertilizer product ISSUE For maximum benefit, nutrients should be moved from surplus areas to deficient areas RECOMMENDATION Target projects in high-surplus areas I

37 Confined Animal Production and Manure Nutrients. N. Gollehon, M. Caswell, M. Ribaudo, R. Kellogg, C. Lander, and D. Letson. Agriculture Information Bulletin No. (AIB771) 40 pp, June USDA-ERS.

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39 3 ways to help Getting more projects on the ground will require multiple solutions. Help us to understand what policies are needed and the order of priority. Clarify and add to what the policy analysts have presented Vote for your top 3 priorities for the next 1-2 years. Complete the Survey

40 Policies: Market Entry Factors Incentivize manure to energy using RPS incentives similar to solar. Allow aggregation of meters. Encourage industry to remove unintentional barriers (ex. propane purchase requirements) Establish programs to facilitate long-term power purchase contracts, with initial rates above market price. Establish Bay Power certification for market-based branding program.

41 Policies: Financing Change ranking systems of funding programs to prioritize manure to energy projects that address water quality issues. Devote resources to technical assistance and outreach. (Farm Bill) Alter state tax credit programs MD: Expand existing tax credit program to make heat generation eligible. VA: Est. transferable or refundable tax credits, make heat generation eligible. PA: Fund the existing alternative energy tax credit program. Stimulate nutrient trading markets by establishing credit banks to buy and sell credits. Establish regional technical review panel to assist in calculating nutrient credit benefits.

42 Policies: Markets for By-Products Evaluate adequacy of current nutrient management plans to fully account for imported/exported nutrients in by-products. Increase demand for compost by promoting Low Impact Development (LID), and use on public projects. Clear classification of manure as a fuel instead of solid waste for purposes of air permitting. Facilitate use of organic fertilizer products on food crops through continued research and inclusion of this practice in BMP risk management programs. Target manure-to-energy projects in high P-surplus areas.