Renewable Biomass Thermal Energy in Massachusetts

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1 Creating A Cleaner Energy Future For the Commonwealth COMMONWEALTH OF MASSACHUSETTS Deval L. Patrick, Governor Richard K. Sullivan, Jr., Secretary Mark Sylvia, Commissioner Northeast Biomass Heating Expo Renewable Biomass Thermal Energy in Massachusetts Saratoga Springs, NY April 4, 2013 Dwayne Breger, Ph.D. Director, Renewable and Alternative Energy Division

2 DOER Mission Creating a Cleaner Energy Future for the Commonwealth Ensure deployment of all cost effective energy efficiency Maximize development of clean energy resources Create and implement energy strategies to assure reliable supplies and improve the cost of clean energy relative to fossil fuel based generation Support Massachusetts clean energy companies and spur Massachusetts clean energy employment

3 Primary Drivers for Clean Energy Policy (The Acts of 2008) Green Communities Act Expands EE delivery dli mechanisms and goals RPS expansion (APS) and strengthening targets Net metering provisions Wind Siting Commission Global Warming Solutions Act 2020 commitments 10 25% below 1990 levels 2050 commitments 80% or more below 1990 levels Oceans Management Act Provides zoning like planning of state waters Identifies presumptive areas for wind development Clean Energy Biofuels Act Mandate for advanced biofuels Paves way for transition to LCFS 3

4 RenewablePortfolio Standard Biomass Policy Regulatory Process Patrick Murray Administration Announces Enactment of Biomass Regulations August 17, CMR RENEWABLE ENERGY PORTFOLIO STANDARD CLASS I

5 Key Provisions to the Regulation for the Qualification of Woody Biomass into the RPS Program (electricity) Eligible ibl Forest tbiomass and Forest tsustainability Carbon Accounting 50% reduction of GHG Emissions by 20 yrs Differentiates biomass residues and thinnings Overall Efficiency Criterion 50%Efficiency Threshold; 60%for full REC credit

6 RPS Rulemaking Policy Findings Biomass can contribute to MA clean energy and climate commitments. Sustainable biomass resource is renewable, but exhaustible (especially residual supplies). So, question is how best to use the limited biomass we have to maximize its benefits. And for policymakers, what policies can best achieve this outcome. This process has significantly opened the opportunities to explore policy to promote biomass thermal.

7 Thermal fuel use in Massachusetts Space heating and cooling & water heating = 54% total building energy use 1/3 of homes heating system > 15 years old 7

8 High Cost Fuels in MA Source: MassCEC 8

9 Renewable thermal technologies Biomass: highly efficient, variable systems with low air emissions Using wood or other biomass (grasses), in the form of cordwood, pellets or chips Solar Hot Water: collectors providing additional heat for space heating, domestic hot water, process heat or other low temperature heating needs Heat pumps: highly efficient systems of compressors/expanders and heat exchangers using the thermal energy of ambient air, water or underground to heat and cool buildings Attention: account for electricity consumption by pumps and compressors Advanced biofuels: biomass derived liquid fuels delivering at least a 50% reduction in lifecycle GHG emissions Biogas: digester gas from Anaerobic Digestion or capped landfills used for heating purposes at the site of capture, or by mixing it in the natural gas pipelines. 9

10 Opportunity and Impacts Report $45,000 Incremental lifecycle costs (savings) GHG reductions $25,000 $5,000 $15, mission reductions (tons) Incremental lifecycle costs (or savings) ($) GSHP (Elec) Pellets (Elec) SHW (Elec) B5 (Elec) SHW (FO) GSHP (FO) Pellets (FO) SHW (NG) GSHP (NG) Pellets (NG) B5 (FO) Lifecylce GHG e $35,000 prepared for DOER by Meister Consulting Group 0

11 nnes/co2/y yr) GHG Em missions (To Residential Biomass Thermal GHG Emission (Reductions over 20 years) 21 Fossil fuel emissions Biomass emissions (100% thinnings) Biomass emissions (50% residue, 50% thinnings) Biomass emissions (100% residue) Electricity No. 2 Fuel Oil (High Efficiency Boiler) Natural Gas (High Efficiency Boiler)

12 Renewable Thermal Development in MA Global Warming Solutions Act Commits MA to GHG reductions of 25% below 1990 levels by 2020 and 80% below 1990 levels by 2050 Massachusetts Clean Energy and Climate Plan for 2020 Renewable thermal technologies to displace 2 million tons of GHG emissions, or ~2% of total 1990 emissions DOER/CEC commissioned renewable heating and cooling market analysis (published April 2012) Energy Bill (S2395, July 2012) Directed DOER to study putting useful thermal into the Alternative Portfolio Standard (APS) Renewable Thermal Pilot Programs

13 Thermal in the APS DOER study for the legislature (Dec. 2012) Inclusion in MA Alternative Portfolio Standard presents opportunity to address cost hurdle Statutory change necessary Attention to minimum standard info/heating andcooling in aps.pdf 13

14 Impact inclusion in APS Base load scenario, commercial size biomass & solar thermal systems prepared for DOER by Meister Consulting Group

15 Legislative Proposal for RenewableThermal intheaps SD 1135 Sen. Finegold inclusion of renewable thermal in APS Useful thermal energy definition Clarifies language to substitute Energy Generation for Electricity Generation Technologies Facility using sunlight, biomass, bio gas, liquid biofuel or naturally occurring temperature differencesinground in ground, airorwater Verified through an on site utility grade meter or other means satisfactory to the department

16 Renewable Thermal Pilot Programs DOER / MassCEC / MassDEP partnership Woodstove change out $1.2 million $2000 rebate for low income households $1000 rebate for all others Outdoor Hydronic Heater change out $150,000 $15,000 per household Residential wood pellet boiler $500,000 $7000 $13,000 per household Adders for thermal storage, solar thermal Industrial/commercial wood boiler $1.2 million Community District Heating $2 million Renewable thermal business investment financing program $3 million

17 Other Renewable Thermal Support Programs Residential and commercial air source and ground source heat pump programs $2 million Renewable heating DHCD partnership $2 million DOE project SAPHIRE $715,000 Schools and Public Housing Integrating Renewables and Efficiency Ongoing: MassCEC Commonwealth Solar Hot Water program $10 million (until 2016)

18 Additional Programs on the Horizon State Pilot Projects $2 million Demonstrate new, innovative clean technologies at state facilities under DOER s Leading By Example program Combined Heat and Power $5 million establish a subsidized loan program to support the financing of CHP units in MA Reduce Fuel Oiland Electric Heating in Stateand and Municipal Buildings $2.5 million Solar Water Heating and Wood Pellet Stoves for LIHEAP Households $1 million

19 Creating A Cleaner Energy Future For the Commonwealth Thank you! At the conference: DOER Renewable Thermal Team Dwayne Breger, Director Bram Claeys, Deputy Director Rob Rizzo, Biomass Program Manager and our MassCEC colleague Ben Dodge, Renewable Thermal Pilots