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

WBUTSteering

Committee

Woody Biomass Utilization Team

•Team Leader

• Includes all Deputy Areas 

•Multiple Functions

• http://www.fs.fed.us/woodybiomass

Nine Regions, Stations and NE Area

Chief

Regional Biomass Coordinators

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 •

Chaired by Under Secretary for Research, 

Education, and Economics

•

Representatives from many agencies and 

programs

• Coordinates all biomass programs BBCC –

Biobased

Products and 

Bioenergy

Coordination 

Council

USDA Organization For Renewable EnergySecretary

DOE

DOT

DOI

EPA

NACD NASFWGA

Others

Congress White House

BiomassBoard

Woody Biomass

Util. Group

NSF

FEDERALADVISORYCOMMITTEE

R&D Act of 2000Farm Bill 2002EPAct

of 2005Farm Bill 2008

OSTP

FEDENVIR EXEC

USDA

General US GovernmentBiomass Utilization 

Organization

Charter

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

Others

Biofuels

Initiative“30x30”“20 in 10”USDA

Energy Council

COMMERCE

• Action Plan• InteragencyWorking Groups

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 PolicyNational Fire Plan 2000A 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 2003Biomass utilization to create markets to reduce cost of 

hazardous fuels and restoration workForest Landscape Conservation Program 2009Farm 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 Subject to Boiler MACT 

Standard

Discarded 

Wood

Subject to Commercial & 

Industrial Solid Waste 

Incinerator MACT Standard

WMB Co‐fired 

with CoalSubject to Utility MACT 

Standard

EPA Staff Preliminary Assesment

Renewable Portfolio Standards

State renewable portfolio standard

State renewable portfolio goal

www.dsireusa.org / November 2009

Solar water heating eligible *† Extra credit for solar or customer-sited renewables

Includes non-renewable alternative resources

WA: 15% by 2020*

CA: 33% by 2020

☼ NV: 25% by 2025*

☼ AZ: 15% by 2025

☼ NM: 20% by 2020 (IOUs)10% by 2020 (co-ops)

HI: 40% by 2030

☼ Minimum solar or customer-sited requirement

TX: 5,880 MW by 2015

UT: 20% by 2025*

☼ CO: 20% by 2020 (IOUs)10% by 2020 (co-ops & large munis)*

MT: 15% by 2015

ND: 10% by 2015

SD: 10% by 2015

IA: 105 MW

MN: 25% by 2025(Xcel: 30% by 2020)

☼ MO: 15% by 2021

WI: Varies by utility; 10% by 2015 goal

MI: 10% + 1,100 MW by 2015*

☼ OH: 25% by 2025†

ME: 30% by 2000New 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

☼ NY: 24% by 2013

☼ NJ: 22.5% by 2021

☼ PA: 18% by 2020†

☼ MD: 20% by 2022

☼ DE: 20% by 2019*

☼ DC: 20% by 2020

VA: 15% by 2025*

☼ NC: 12.5% by 2021 (IOUs)10% by 2018 (co-ops & munis)

VT: (1) RE meets any increase in retail sales by 2012;

(2) 20% RE & CHP by 2017

29 states & DC have an RPS

6 states also have goals

KS: 20% by 2020

☼ OR: 25% by 2025 (large utilities)*5% - 10% by 2025 (smaller utilities)

☼ IL: 25% by 2025WV: 25% by 2025*†

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