A States Perspective of Biomass Power

U.S. EPA146 biomass energy projects*◦Independent Power Producers

Power only CHP (IPPs)

◦Industrial◦Commercial◦Electric utility

3962 MW

*Solid wood, agriculture byproducts & organic solids

IPP & utility power63 projects16 states1988 MW

*Solid wood, agriculture byproducts & organic solids

ProfilesMassachusetts◦Significant public challenges◦Unfavorable policy

Vermont◦RPS targets unmet◦Vermont Yankee nuke◦Public challenge

New Hampshire◦Revised RPS◦ Large new facility

Maine◦ 5 existing plants, 3 yr contracts

ProfilesMichigan◦No RPS revisions◦Rural development initiatives

Washington◦Removes placed-in-service date◦Expands eligible biomass feedstock

Oregon◦Biomass fuel credit modification

MASSACHUSETTSRPS◦15% by 2020 (new sources)◦7.1% (existing sources)

1%...’03; 5%...’10 plus 1% annually 1997 placed-in-service date Revisions proposed, yet to be released

MASSACHUSETTSCurrent status◦1 operating…18 MW◦0 closed◦0 new/under construction◦3 planned…135 MW◦0 terminated

MASSACHUSETTSObstacles◦Proposed RPS revisions

Wood = thinnings, storm salvage, sanitation; 15% by weight max. of harvested GHG reduction of 50% over 20 years; Efficiency requirements

40% = half REC, 60%-plus = whole REC

Existing plants comply by 2013, all by 2015

MASSACHUSETTSObstacles (con’t)

◦Citizen opposition, national attention PR relations attacks Challenging zoning,

Zoning approved, overturned Appeal filed

◦Citizen appeal of state air permits Administrative ruling: “No citizen standing” Dept. head: “People must be heard” Decision pending March 2012

VERMONTRPS◦20% by 2017◦Voluntary w/mandatory trigger

VPSB assessment, 2012

◦Third party PPAs or build◦Third-party “facilitator”

VERMONTCurrent status◦3 operating… 85MW◦0 closed◦0 new/under construction◦1 planned…29 MW◦1 terminated…29 MW

VERMONTOpportunity◦H 56: Baseload renewable

Separate from RPS Wood exclusive Avoided cost

◦25% renewable “consumption” Separate from RPS Farm, forest focus FIT, <2.2 MW

NEW HAMPSHIRERPS◦24% by 2025

Class I new systems; 16% Class II new solar; 0.3% Class III existing methane, biomass; 6.5% Class IV existing hydro; 1%

◦3 yr. REC bank, 30% compliance limit

NEW HAMPSHIRECurrent status◦8 operating…156 MW◦0 closed◦1 new/under construction…75 MW◦2 planned…40 MW◦0 terminated projects

NEW HAMPSHIREOpportunity◦Revised RPS: SB 218

Class III generators Remove methane, leave existing biomass Cate Street 75-MW, Berlin

CHP, thermal, co-fire

◦Short-term contracts

MAINERPS◦10% by 2017 mandatory, 40% target◦< 100 MW eligible◦1% in 2008, + 1% annually◦ACP: $61

MAINECurrent status◦7 operating…268 MW◦4 closed…MW◦0 new/under construction◦3 planned…35 MW◦1 terminated…24 MW

MAINEOpportunity◦LD 1706, HP 1258

3-year contracts, 5 existing IPPs Energy, capacity & RECs Market prices Resale/wholesale IPPs demonstrate jobs, economics

Utility: sell into wholesale markets

MICHIGANRPS◦10% by 2015

Energy efficiency “Clean” energy 2% in 2012, ramps up Biomass exclusions

“Uncertified” whole trees New MSW

MICHIGANCurrent status◦6 operating…162 MW◦0 closed◦2 new/under construction…47 MW◦5 planned…133 MW◦5 terminated…497 MW

MICHIGANObstacles◦No RPS modifications◦Limit fuel availability

Opportunity◦“25 x ‘25” ballot initiative, constitutional

amendment◦Forest- and ag-based rural development

initiatives

WASHINGTONRPS◦15% by 2020 + conservation & efficiency

3% by 2012 w/incr. increases March 31, 1999 placed-in-service requirement Biomass exclusions

Treated woods Black liquor Old growth fiber MSW

ACP: $50 per MWH

WASHINGTONCurrent status◦6 operating…141 MW◦0 closed◦1 new/under construction…20 MW◦4 planned…116 MW◦2 terminated…60 MW

WASHINGTONOther: opportunity◦SB 5575, passed Senate Feb. 14, 2012

Removes place-in-service date Expands biomass sources (BL, food wastes,

yard wastes)

◦SB 5343 CCA exemption for anaerobic digestion

sources

OREGONRPS◦By 2025…

Large…25% to “smallest”…5% 8%...“small community” (<20 MW) Unbundled RECs <20% Jan. 1, 1995 placed-in-service date

Incremental new capacity eligible

Efficiencies Biomass exclusions

Treated wood MSW capped at 11 MW

OREGONCurrent status◦9 operating…130 MW◦0 closed◦0 new/under construction◦4 planned…140 MW◦1 terminated…24 MW

OREGONOpportunity◦Biomass fuel tax credit

Biomass producers/collectors Biofuel Electricity

Anaerobic digestion, pellets, or torrefaction

Exclusions Firewood, charcoal, C&D, urban wood, mill waste

Stand-alone power newly eligible

OREGON

◦Biomass fuel tax credit (con’t)

Rates $10/green ton…wood, ag residue $5/green ton…yard debris $0.90/bushel…grain crops

OREGON

◦Biomass fuel tax credit (con’t)

Outcome*

Incr. availability… 20-30% Reduced cost… 20% Program specs. (per 10,000 BDT)

Cost:… $143,000 Wages/bennies.. $241,000 Jobs… 5.1 Total economics… $868,000

*Source: Ecosystem Workforce Program report