Comprehensive California Biomass Policy California Biomass Collaboration Policy Committee Workshop November 24, 2003 Sacramento
Workshop Objectives: Review Primary Obstacles to Biomass Industry Development in California Draft Integrated Public Policy Measures to Facilitate Commercialization of Biomass Power, Fuel and Chemical Industries Discuss the Most Effective Means for Carrying these Policy Measures Forward to the Governor & Legislature
Today s Agenda: 10:00 10:30 11:00 12:00 12:30 1:30 2:00 Workshop Objectives & Issue Summary Identification of Key Elements in a Comprehensive CA Biomass Policy Breakout Groups Lunch Break Group Reportbacks White Paper/Bill Development Strategy Further Discussion/Adjourn
August 4 Executive Board Meeting Consensus Points: Policy is the most urgent and key activity for the Collaboration CA needs a coherent & comprehensive biomass policy integrated regulatory framework incentives for industry & market development Biomass industries have diverse technologies, feedstocks, markets, and challenges
Barriers & Solutions: August 4 Executive Board Meeting BURN PLANTS BARRIERS High fuel costs High capital/om costs Scale limitations Energy pricing structure No environmental benefit credits Utility opposition to renewables outside their own portfolios Environmental opposition SOLUTIONS Subsidies (MSW and USFS) Favorable energy pricing structure Cross-over emissions credits Affirmative State policy favoring biomass over fossil, hydro & nuclear Public education and awareness campaigns
Barriers & Solutions: August 4 Executive Board Meeting MANURE DIGESTION BARRIERS Lack of information Lack of financial incentives No utility industry support Regulatory and permitting constraints Environmental opposition SOLUTIONS CEC production incentives RPS funding for new facilities Farm Bill funding Access to PPAs Permit streamlining
Barriers & Solutions: August 4 Executive Board Meeting LANDFILL GAS BARRIERS High costs of power production Scale limitations (1-5 MW) Regulatory constraints Interconnection Environmental opposition to landfill bioreactor cells Feedstock competition SOLUTIONS?
Barriers & Solutions: August 4 Executive Board Meeting AG & URBAN CELLULOSICS ANAEROBIC DIGESTION & GASIFICATION BARRIERS Technology scale-ups Feedstock access Legislative & regulatory constraints Funding constraints Scale limitations Lack of incentives for distributed energy options Local land use constraints Environmental opposition NO CBC DISCUSSION SOLUTIONS Removal of AB 939 feedstock & regulatory obstacles Removal of funding eligibility obstacles Require energy element in local general plans Permit streamlining State commitment to distributed energy Public awareness
Barriers & Solutions: August 4 Executive Board Meeting BARRIERS Process guarantees Cost of agricultural & forestry feedstocks Access to MSW biomass Lack of aggressive industry incentives Reliance on private capital (requires low risk/high return) Regulatory & permitting hurdles/costs Market uncertainties SOLUTIONS Removal of obstacles to feedstock supply Create positive business climate (CA RFS, suite of tax & other incentives) Allocate $$$, competitive solicitation Monetize GHG reduction Cross-media regulatory framework/streamlining State purchasing requirements
Policy Framework Issues Agriculture, Forestry, and Residue Management Economic Systems Model Biomass Industries Model of Power, Fuel & Chemical Commercialization Large Centralized Facilities vs. Decentralization of Power Production and Fuel/Chemical Refining???
Synergies with Federal Bioenergy Programs Biomass R&D Act of 2000 Energy Title, 2002 Farm Bill National Energy Policy (pending US Senate vote) RFS Tax Credits Biomass Facility Loan Guarantees State Renewable Energy Incentives: www.dsireusa.org
Synergies with Schwartzenegger Administration Policy Action Plan for California s Environment Smart Growth Plan Order to Halt All Pending Regulations Http://www.joinarnold.com/en/agenda/#D1
Key Policy Elements Suite of biomass industry commercialization incentives Feedstock access Funding/risk mitigation Monetization of environmental benefits Market access/penetration Integrated cross-media regulatory framework Permit streamlining Environmental advocacy Public awareness & support