CA Biomass Collaborative: California s progress in developing an economically and environmentally viable biomass to energy business sector April 4, 2011 Federal programs related to biomass and environmental services providing indirect subsidies for biomass utilization Edmund Gee, Woody Biomass Utilization Team Leader, USDA Forest Service, Washington, DC
Overview How the US govt is organized to deal with woody biomass to energy Policies directly related to woody biomass utilization Implications of specific areas of concern from the National to Regional to State (CA) Where are we going in the future with woody biomass for energy
USFS Organization for Biomass Utilization Chief WBUT Steering Committee Woody Biomass Utilization Team Team Leader Includes all Deputy Areas Multiple Functions http://www.fs.fed.us/woodybiomass Regional Biomass Coordinators Nine Regions, Stations and NE Area
USDA Organization For Renewable Energy Secretary Energy Council Chaired by Under Secretary for Rural Development Includes Vice Chairs Under Secretary for NRE Chief Economist Representatives from many agencies and programs Coordinates all energy programs (fuel reduction and conservation thru commercialization) BBCC BBCC Biobased Products and Bioenergy Coordination Council Chaired by Under Secretary for Research, Education, and Economics Representatives from many agencies and programs Coordinates all biomass programs
General US Government Biomass Utilization Organization The Biomass Research and Development Board (the Board), co chaired by the DOE and the USDA, is responsible for coordinating research and development activities relating to biofuels and biobased products. http://www.biomass.govtools.us/ about/biomassboard.asp The Biomass Research and Development Technical Advisory Committee (the Advisory Committee) is responsible for providing guidance, advice, and recommendations on the Initiative. http://www.biomass.govtools.us/ about/advisorycommittee.asp R&D Act of 2000 Farm Bill 2002 EPAct of 2005 Farm Bill 2008 FEDERAL ADVISORY COMMITTEE Others Congress WGA Charter NACD White House Biomass Board USDA Energy Council Action Plan Interagency Working Groups Woody Biomass Util. Group NASF Biofuels Initiative 30x30 20 in 10 USDA DOE DOI EPA DOT NSF OSTP COMMERCE FED ENVIR EXEC Others
Biomass Board Interagency Working Groups Feedstock Analyses (USDA DOE Led) (Report Specific) Availability and Economics Interagency Team Sustainability Interagency Team Green House Gases Interagency Team Biofuels Action Plan 1. Sustainability Interagency Working Group (DOE/USDA/EPA Led) 2. Feedstock Production Interagency Working Group (USDA/DOE OS Led) 3. Feedstock Logistics Interagency Working Group (USDA/DOE OBP Led) 4. Conversion Science and Technology Interagency Working Group (DOE Led) 5. Distribution Infrastructure Working Group (DOT Led) 6. Blending Interagency Working Group (EPA/DOE Partnership) 7. Environment, Health & Safety Interagency Working Group (DOT Led)
National Policy Woody Biomass Utilization Energy and Climate Change Policy Energy Policy Energy Policy Act of 2005, Executive Order 13514 Requires federal agencies to increase use of renewable energy and support expanded development of renewable energy through federal actions Climate Change Policy Executive Order 13514 Required federal agencies to inventory their GHG emissions and improve their environmental footprint
National Policy Forestry Forestry Policy National Fire Plan 2000 A comprehensive approach to the management of wildland fire, hazardous fuels, and ecosystem restoration and rehabilitation on Federal and adjacent State, tribal, and private forest and range lands in the United States. Healthy Forests Restoration Act 2003 Biomass utilization to create markets to reduce cost of hazardous fuels and restoration work Forest Landscape Conservation Program 2009 Farm Bill of 2008 WBU Grants, Community Wood Energy Program, Forest Biomass Energy Program
Federal Programs Federal programs related to biomass and environmental services providing indirect subsidies for biomass utilization 2008, Farm Bill WBU Grant Program Community Wood to Energy Program Forest Biomass for Energy Program Biomass Crop Assistance Program
Woody Biomass Utilization Grant Established 2005 2010, Requested FY11 & 12 $5MM @ $250K/grant Woody biomass material removed from forest restoration activities; Woody biomass shall be used in a bioenergy facility that uses commercially proven technologies to produce thermal, electrical, or liquid/ gaseous bioenergy; Funds the engineering services necessary for final design and cost analysis.
Community Wood to Energy Established 2008 Farm Bill Never funded, requested $5MM FY11 (Hazardous Fuels $$) & FY12 (IRR $$) Grants provide State, Tribal, and local governments support in developing community wood energy plans. Acquire community wood energy systems and/or technical assistance for public facilities that use woody biomass as the primary fuel. Current Farm Bill expires 2012
Forest Biomass for Energy Program Established by 2008 Farm Bill Never funded Requested FY11 & FY12 $15MM/year Research and development program to use forest biomass for energy; The Forest Service, other federal agencies, state and local governments, Indian tribes, land grant colleges and universities, and private entities are eligible to compete for program funds..
BCAP Update BCAP final rule was published October 27, 2010. BCAP began taking biomass conversion facility applications and project proposals on December 17, 2010. BCAP received an apportionment of $196 million for FY2011 to support the entire program: matching payments and project area annual rental payments and establishment payments for perennial crops. BCAP matching payments are up to $45 a dry ton.
BCAP Update Cont d BCAP guidance for woody materials under the matching payments opportunity is forthcoming. BCAP under the NOFA, released in June 2009, provided $244 million in matching payments. BCAP under the NOFA, released in June 2009, provided $29.6 million in matching payment to eligible material owners in California. BCAP under the NOFA, released in June 2009, provided $12.4 million in matching payments for federal woody resources.
Implications of specific areas of concern Dynamic landscape of policies and requirements at the federal, state, and local levels related to: What biomass can be used Air quality considerations, upfront and on going Federal and State energy policies New federal climate change policies Know where siting facilities may be precluded given existing policies and environmental conditions Know availability of woody biomass and other forms of biomass Consider how other industries/uses will influence markets and prices (i.e., supply and demand)
Challenges Availability of Woody Biomass and Competing Uses EISA Renewable Biomass Definition vs. Farm Bill Definition of Renewable Biomass Air Quality Regulations and Policies Relevant to Bioenergy Facilities Renewable Energy Standard Funding Sources Grants, Venture Capitalists
Shows impact of the current Renewable Biomass definition in the Renewable Fuels Standard (EISA 2007)
National Emission Standards for Hazardous Air Pollutants (NESHAPs) Section 112(k) of CAA lists area source categories that emit HAPs, including industrial boilers and institutional/commercial boilers Section 112(c)(6) list of categories accounting for 90% of emissions of 7 listed HAPs includes industrial boilers and institutional/commercial boilers Different approaches for new vs. existing sources: New source standards reflect what is achieved by the best controlled similar source Existing sources reflect what is achieved by the average of the best 12% of existing sources Different approaches for large (major) vs. smaller (area) sources EPA is directed by court order to propose rules by April 15, 2010 and take final action by December 16, 2010 Requires new NESHAPs for new and existing major and area sources of toxic air pollutants It will be effective on the date it is proposed Both air toxic pollutant rules: require limits based on maximum achievable control technology with later evaluations of remaining risk and stricter standards if needed (MACT) Will use information on boilers and incinerators and emissions testing, including 37 biomass units
Type of Woody Biomass Feedstock Matters Clean wood Discarded Wood Subject to Boiler MACT Standard Subject to Commercial & Industrial Solid Waste Incinerator MACT Standard WMB Co fired with Coal Subject to Utility MACT Standard
WA: 15% by 2020* OR: 25% by 2025 (large utilities)* 5% - 10% by 2025 (smaller utilities) State renewable portfolio standard State renewable portfolio goal Solar water heating eligible Renewable Portfolio Standards HI: 40% by 2030 www.dsireusa.org / November 2009 MN: 25% by 2025 MT: 15% by 2015 (Xcel: 30% by 2020) ND: 10% by 2015 SD: 10% by 2015 TX: 5,880 MW by 2015 WI: Varies by utility; 10% by 2015 goal VT: (1) RE meets any increase in retail sales by 2012; (2) 20% RE & CHP by 2017 MI: 10% + 1,100 MW by 2015* NY: 24% by 2013 NV: 25% by 2025* IA: 105 MW OH: 25% by 2025 CO: 20% by 2020 (IOUs) 10% by 2020 (co-ops & large munis)* WV: 25% by 2025* IL: 25% by 2025 CA: 33% by 2020 UT: 20% by 2025* KS: 20% by 2020 VA: 15% by 2025* AZ: 15% by 2025 NM: 20% by 2020 (IOUs) MO: 15% by 2021 NC: 12.5% by 2021 (IOUs) 10% by 2018 (co-ops & munis) 10% by 2020 (co-ops) Minimum solar or customer-sited requirement * Extra credit for solar or customer-sited renewables Includes non-renewable alternative resources EPA Staff Preliminary Assesment ME: 30% by 2000 New RE: 10% by 2017 NH: 23.8% by 2025 MA: 15% by 2020 + 1% annual increase (Class I Renewables) RI: 16% by 2020 CT: 23% by 2020 PA: 18% by 2020 NJ: 22.5% by 2021 MD: 20% by 2022 DE: 20% by 2019* DC: 20% by 2020 29 states & DC have an RPS 6 states also have goals
Increased Demand for Woody Biomass Utilization Biomass has surpassed hydropower as largest domestic source of renewable energy & provides >3 % of total energy consumed in US Expanded focus of wood fuel industry from residential to commercial and institutional applications National Fire Plan & Ten Year Comprehensive Strategy Healthy Forest Restoration Act State Renewable Energy Portfolios & Legislative Initiatives
Future of Woody Biomass for Energy Excerpts from President Obama s Speech on Clean Energy To harness our potential to produce clean energy right here at home: Biofuels in particular hold as tremendous promise to replace foreign oil. That is why, at USDA, we have set out a comprehensive strategy for how we will work with our sister Federal Departments, states and private businesses to build a national renewable biofuels industry. At USDA, we use Farm Bill programs to support farmers, ranchers and other rural Americans who are producing electricity from solar, wind, woody biomass, animal waste and other sources. Securing our energy future will take time and effort, and it will require our brightest scientists, our smartest companies, and all of us Democrats, Republicans, and everyone in between to do our part. And rural America must continue to help lead the way.
Bioenergy creating the Win Win Win Energy Policy and Security Climate Change Adaptation and Mitigation Forest Policy