A States Perspective of Biomass Power

1. A States Perspective of Biomass Power

2. U.S. EPA • 146 biomass energy projects* • Independent Power Producers • Power only • CHP (IPPs) • Industrial • Commercial • Electric utility • 3962 MW *Solid wood, agriculture byproducts & organic solids

3. IPP & utility power • 63 projects • 16 states • 1988 MW *Solid wood, agriculture byproducts & organic solids

4. Profiles • Massachusetts • 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

5. Profiles • Michigan • No RPS revisions • Rural development initiatives • Washington • Removes placed-in-service date • Expands eligible biomass feedstock • Oregon • Biomass fuel credit modification

6. MASSACHUSETTS • RPS • 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

7. MASSACHUSETTS • Current status • 1 operating…18 MW • 0 closed • 0 new/under construction • 3 planned…135 MW • 0 terminated

8. MASSACHUSETTS • Obstacles • 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

9. MASSACHUSETTS • Obstacles (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

10. VERMONT • RPS • 20% by 2017 • Voluntary w/mandatory trigger • VPSB assessment, 2012 • Third party PPAs or build • Third-party “facilitator”

11. VERMONT • Current status • 3 operating… 85MW • 0 closed • 0 new/under construction • 1 planned…29 MW • 1 terminated…29 MW

12. VERMONT • Opportunity • H 56: Baseload renewable • Separate from RPS • Wood exclusive • Avoided cost • 25% renewable “consumption” • Separate from RPS • Farm, forest focus • FIT, <2.2 MW

13. NEW HAMPSHIRE • RPS • 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

14. NEW HAMPSHIRE • Current status • 8 operating…156 MW • 0 closed • 1 new/under construction…75 MW • 2 planned…40 MW • 0 terminated projects

15. NEW HAMPSHIRE • Opportunity • Revised RPS: SB 218 • Class III generators • Remove methane, leave existing biomass • Cate Street 75-MW, Berlin • CHP, thermal, co-fire • Short-term contracts

16. MAINE • RPS • 10% by 2017 mandatory, 40% target • < 100 MW eligible • 1% in 2008, + 1% annually • ACP: $61

17. MAINE • Current status • 7 operating…268 MW • 4 closed…MW • 0 new/under construction • 3 planned…35 MW • 1 terminated…24 MW

18. MAINE • Opportunity • 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

19. MICHIGAN • RPS • 10% by 2015 • Energy efficiency • “Clean” energy • 2% in 2012, ramps up • Biomass exclusions • “Uncertified” whole trees • New MSW

20. MICHIGAN • Current status • 6 operating…162 MW • 0 closed • 2 new/under construction…47 MW • 5 planned…133 MW • 5 terminated…497 MW

21. MICHIGAN • Obstacles • No RPS modifications • Limit fuel availability • Opportunity • “25 x ‘25” ballot initiative, constitutional amendment • Forest- and ag-based rural development initiatives

22. WASHINGTON • RPS • 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

23. WASHINGTON • Current status • 6 operating…141 MW • 0 closed • 1 new/under construction…20 MW • 4 planned…116 MW • 2 terminated…60 MW

24. WASHINGTON • Other: 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

25. OREGON • RPS • 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

26. OREGON • Current status • 9 operating…130 MW • 0 closed • 0 new/under construction • 4 planned…140 MW • 1 terminated…24 MW

27. OREGON • Opportunity • 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

28. OREGON • Biomass fuel tax credit (con’t) • Rates • $10/green ton…wood, ag residue • $5/green ton…yard debris • $0.90/bushel…grain crops

29. 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