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RICE STRAW SUPPLY

RICE STRAW SUPPLY. Recommendations for Ensuring the Consistency and Predictability in the Supply of Rice Straw for Cost-Effective Uses CALIFORNIA AIR RESOURCES BOARD WORKSHOP MARCH 7, 2001 YUBA CITY, CA. Background. Senate Bill 1186 (1999) ARB to submit recommendations

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RICE STRAW SUPPLY

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  1. RICE STRAW SUPPLY Recommendations for Ensuring the Consistency and Predictability in the Supply of Rice Straw for Cost-Effective Uses CALIFORNIA AIR RESOURCES BOARD WORKSHOP MARCH 7, 2001 YUBA CITY, CA Air Resources Board - Rice Straw Supply Workshop

  2. Background • Senate Bill 1186 (1999) • ARB to submit recommendations • ensuring consistency and predictability in the supply of rice straw for cost-effective uses. • Work with other State agencies: • California Department of Food and Agriculture • State Energy Commission • California Integrated Waste Management Board • Preliminary Workshop - August 30, 2000 Air Resources Board - Rice Straw Supply Workshop

  3. Organization of Report • Summary and Recommendations • Current Straw Utilization Programs • Methods of Harvest, Storage and Distribution of Rice Straw • Harvest and Collection • Storage • Transportation and Distribution • Background Information • Appendices Air Resources Board - Rice Straw Supply Workshop

  4. Rice Straw Supply Economics • Growers • Cost to harvest/bale less than or equal to incorporation • Cost to replace nutrients removed during harvesting/baling • End-users • Inexpensive, consistently reliable supply of straw • Harvesters, Balers, Transporters, Distributors • Decrease costs to increase straw buyers HOW DO WE HELP MEET THESE GOALS? Air Resources Board - Rice Straw Supply Workshop

  5. Current Straw Utilization Programs • Rice Straw Demonstration Project Grant Fund (Rice Fund) - ARB • Rice Straw Utilization Tax Credit Program -CDFA • Agricultural Biomass Utilization Account - CDFA • Agricultural Biomass to Energy Incentive Grant Program -Trade and Commerce What do we need from these programs? • Ensure consistent and predictable supply of straw for consumers • Encourage use of rice straw over other commodities Air Resources Board - Rice Straw Supply Workshop

  6. Recommendations: Current Straw Utilization Programs • Support the Rice Straw Demonstration Grant Fund in the FY01-02, and FY 02-03 budgets • Extend the Rice Straw Utilization Tax Credit Program to 2015 What do we hope this would accomplish? • Increase incentive for financial backing of end-uses Air Resources Board - Rice Straw Supply Workshop

  7. Methods of Harvest, Storage, and Distribution • No single method is best • Depends on many factors (equipment and storage availability, weather, field conditions, end-use, etc.) • What factors affect costs? • Efficient and available equipment and facilities • Efficient methods of harvest/storage/transport • Straw quality and storage life • Storage facility location • Other Air Resources Board - Rice Straw Supply Workshop

  8. Recommendations: Methods of Harvest, Storage, and Distribution • Allocate funds to support research and demonstration projects • Develop more efficient equipment and methods to harvest, bale, and distribute straw • Develop cost-effective methods to monitor straw quality during storage • “life-span” of straw is unknown • Develop methods to optimally locate storage facilities • decrease transportation costs and community impacts Air Resources Board - Rice Straw Supply Workshop

  9. Harvest and Collection • Related factors affecting the use of rice straw Increase efficiency Increase need for efficient equipment and methods Decrease costs Increase use • Enhancing efficiency should increase end-use Air Resources Board - Rice Straw Supply Workshop

  10. Recommendations:Harvest and Collection • Accelerated tax depreciation for equipment • offset equipment costs and decrease cost of straw • Tax incentives • offset equipment costs and decrease cost of straw Air Resources Board - Rice Straw Supply Workshop

  11. Storage • Factors affecting rice straw use • Availability and usefulness of storage facilities • Storage facility location • Quality assurance Air Resources Board - Rice Straw Supply Workshop

  12. Recommendations: Storage • Modify Rice Straw Utilization Tax Credit Program to include storage component • Boost construction of new storage facilities • Allocate funds to support research and demonstration projects • Straw monitoring • impact of various storage options • quality assurance • Increased straw density • cost-effective methods • impact on storage • Storage facility location • impact on transportation and handling costs Air Resources Board - Rice Straw Supply Workshop

  13. Transportation and Distribution • Factors affecting rice straw use • Increased demand for equipment as use increases • Increased traffic load • Increased need for efficiency and payload Air Resources Board - Rice Straw Supply Workshop

  14. Recommendations: Transportation and Distribution • Allocate funds to support research and demonstration projects • Straw density • Cost-effective methods • impact on transportation and handling • Increased traffic • impact on air quality and local communities • Storage facility location • impact on transportation and handling costs • Accelerate tax depreciation of equipment • offset equipment costs and decrease cost of straw • Add other tax incentives • offset equipment costs and decrease cost of straw Air Resources Board - Rice Straw Supply Workshop

  15. Next Steps • 15-day comment period • March 7 - 22, 2001 • Incorporate comments into Final Proposed Report • Submit Final Proposed Report to Governor’s Office • Upon Governor’s approval, submit Final Report to Legislature Air Resources Board - Rice Straw Supply Workshop

  16. Contact Information Theresa Najita Air Pollution Specialist California Air Resources Board 1001 I Street P.O. Box 2815 Sacramento, CA 95812 Phone: 916-322-7297 Fax: 916-327-8524 Email: tnajita@arb.ca.gov http://www.arb.ca.gov/smp/rice/rice.htm http://www.arb.ca.gov/smp/rice/supply/supply.htm "The energy challenge facing California is real. Every Californian needs to take immediate action to reduce energy consumption. For a list of simple ways you can reduce demand and cut your energy costs, see our Web-site at http://www.arb.ca.gov." Air Resources Board - Rice Straw Supply Workshop

  17. Open Discussion • What are the major roadblocks that exist in ensuring consistency and predictability in the supply of rice straw? • For growers? • For harvesters and balers? • For distributors? • For end-users? • Are these roadblocks addressed in the report? Air Resources Board - Rice Straw Supply Workshop

  18. Can the recommendations help to ensure a consistent and predictable supply of straw? • Will costs decrease? • Will decreased costs be passed to the end-user? • Are the recommendations feasible? • Could they easily be implemented? • Are any major perspectives not represented in the Report? Air Resources Board - Rice Straw Supply Workshop

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