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Andrea Colnes, Policy Director Biomass Energy Resource Center

Sustainable Forest Biomass Energy: Connecting Forests and Communities Public Policy Issues & Opportunities USFWS Region 5 Biological Conference February 16, 2011. Andrea Colnes, Policy Director Biomass Energy Resource Center. Local Energy –

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Andrea Colnes, Policy Director Biomass Energy Resource Center

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  1. Sustainable Forest Biomass Energy: Connecting Forests and CommunitiesPublic Policy Issues & Opportunities USFWS Region 5 Biological ConferenceFebruary 16, 2011 Andrea Colnes, Policy Director Biomass Energy Resource Center

  2. Local Energy – A new way to look at the relationship between communities and forests

  3. Why Woody Biomass is a Good Energy Choice for the Northeast

  4. Approximately one third of US energy consumption is Thermal

  5. Residential Heating Oil and Propane Use By Region 12.6 million homes nation - wide use home heating oil or propane • 16.8 million barrels propane used annually in western region • 1.7 million homes use propane for space heating or water heating in western region • Energy Information Administration

  6. Comparative Cost of Heat

  7. The Challenge Will the US become a leader in the innovation, production, and sustainable use of biomass energy, biofuels, and bioproducts created from local wood and agricultural resources? Or, will the shift from a fossil-based economy to a bio-based economy lead to exploitation of biomass in a boom-and-bust cycle that does not sustain our region’s economy, communities, energy supply, agricultural base or forests on a long-term basis?

  8. Critical Issues for Sustainable Biomass Energy Sustainable Forestry– ensure overall ecological integrity and function Maximized Efficiency– ensure the energy value of biomass is utilized as fully and cleanly as possible Local Energy– use local wood resources for community and regional needs and keep investment and returns local Energy Security– provide communities with a stable, affordable clean, and locally produced source of energy Climate Change Mitigation– reduce net carbon emissions and increase carbon sequestration

  9. Northern Forest Biomass Energy Action Plan 2007 Collaboration, 40 Endorsers • Purpose: • “To explore the potential for woody biomass from the Northern Forest to provide an increased source of renewable, sustainable energy for the region, and to determine what needs to happen in the region for that potential to be realized.” Convened by BERC, the Northern Forest Center, and the Carsey Institute

  10. Wood SupplyBiomass energy applications must be consistent with a reliable and sustainable wood supply Forestland Area and Ownership Data Forest Inventory and Composition Data Forest Growth and Mortality Data Current Forest Harvesting Data • Market Development • Dependable Supply • Public/private sector roles • Anticipated losses • Inclusive Definition

  11. Sustainable Harvesting:Removals must be consistent with long-term forest health and productivity through an integrated approach Options: - Biomass Harvesting Guidelines or Standards - Forest Guild Retention and Harvesting Guidelines for the Northeast and other regions - Forest Guild Revised Assessment of Biomass Retention and Harvesting Guidelines - Wood Fuel Procurement Standards - Best Management Practices

  12. Scale & Efficiency: If used efficiently, woody biomass could replace significant portions of the nation’s petroleum use with a local renewable fuel source. • Used for heat or heat-led CHP, woody biomass is approximately 75% efficient • Used for generating electricity alone, woody biomass is 20-25% efficient • Used for making ethanol, woody biomass is 40-50% efficient The transition to modern wood heating: Efficiency increase from 50% to >90%

  13. Wood to Energy Conversion Efficiency(available technology)

  14. About how much wood might the potential uses consume? • Industrial Uses: • Bio-oil 50,000-100,000 tons/plant? • Cellulosic ethanol (at scale) 300,000-1,500,000 tons/plant • Power plants 200,000-600,000 tons/ plant • Community Uses: • One school 200-1,000 tons • 30 Schools 15,000 tons • All schools in Maine 250,000 tons • Middlebury College 30,000 tons • VT State office complex5,000 tons • Crotched Mountain Rehab Ctr. (NH Hospital) 3,000 tons • Public housing (50 units) 450 tons • All in Green Tons

  15. Emissions:Minimize emissions and meet or surpass stringent public health and air quality standards through: • Efficient combustion technologies • Best air pollution control strategies • Best management practices Emissions from wood boilers – down by a factor of 1000 Opportunity: New EPA Area Source Rule for Wood Boilers

  16. Biomass Energy & Carbon: Historic Claims and Recent Rhetoric

  17. Climate Change:Used efficiently and from sustainably managed forests, woody biomass has the potential to displace fossil fuels and reduce atmospheric CO2 emissions. • Forest Management • Net Changes in Carbon Stocks Over Time and Over the Landscape • Land Use Change • Efficiency • Fossil Fuel Offsets • Opportunities: • Invest RGGI funds in efficient biomass energy technologies • Develop national carbon policy that links biomass energy to carbon sequestration role of forests • Use state, regional or national carbon registries to measure, aggregate and verify carbon offsets

  18. National Energy Policy • Develop an “outcome-based” energy policy based on achieving efficiency, sustainability, renewability and security • - Rather than a “sector-based” approach boosting one technology over another • Existing public policy is creating market distortions that are undermining these policy objectives • Must look at all energy sectors • Must look beyond short-term pricing • Need to develop a new paradigm – not just new fuels

  19. $29 Billion on Renewable Energy Subsidies $72 Billion on Fossil Fuel Subsidies (2002-2008) Transportation fuels: $16 billion– through the Volumetric Ethanol Excise Tax Credit Program (VEETC) ($11 billion) and the corn-based ethanol grant program ($5 billion). Renewable electricity generation: $6 billion– through the Production Tax Credit ($5 billion), the Investment Tax Credit ($250 million), the Modified Accelerated Cost Recovery System ($200 million), and the Clean Renewable Energy Bond program ($85 million). Thermal energy: $0– no significant subsidies. Environmental Law Institute, 2009

  20. Public Policy to Support Efficient, Sustainable Biomass Energy • Comprehensive National Energy Policy (Electric, Transportation and Thermal) • All Fuels/All Sector Renewable Energy Standard with efficiency threshold • Carbon policy that supports the most efficient uses of biomass and links to carbon sequestration role of biomass • Federal incentives, grants and loans • Inclusive definition of Biomass • Sustainability requirements • Additional critical issues at the state and/or national levels: • Sustainable Woody Biomass Supply • Sustainable Forest Management and Use • Air Emission Standards and Regulations

  21. Current Biomass Energy Public Policy Initiatives National Programs Community Wood Energy Program Energy Independence and Security Act of 2007 - Sec 399a Biomass Crop Assistance Program DOE & USDA grant programs State Programs Primary focus on electric generation: RPS, REC’s Transportation: CA, MN, OR, PA, WA, WI Thermal: AZ, CT, MS, OR, PA, VT, WA. WI)

  22. Proposed Biomass Energy Policy • BCAP Review: New Rules October 2010. Restricted Eligible fuels, smaller program • EPA Emission Standards for Biomass Boilers: EPA must promulgate emission standards for area source boilers (a.k.a. Boiler MACT) by February 21, 2011 • Homestar: Rebates for energy efficiency products including wood/pellet stoves & boilers • Energy Bill: Electric Power focus; Carbon Accounting, Biomass Definition • EPA Tailoring Rule: EPA proposal to regulate CO2 emissions from biomass boilers under Clean Air Act on hold for 3 years • District Energy Financing • S.1621 Thermal Energy Efficiency Act • Energy & Water Development Appropriations Act ($15m for district energy feasibility studies)

  23. Proposed Biomass Energy Policy • Residential Tax Credits • HR 2080, American Renewable Biomass Heating Act • S.1643 Cleaner, Secure, Affordable Thermal Energy Act • Commercial/Industrial Tax Credits • S. 3188, American Renewable Biomass Heating Act • Production Tax Credits • S.1094 Renewable Energy Production Act • HR.5805 Thermal Renewable Energy and Efficiency Act (Thermal PTC, bonding, DOE Grants) • Renewable Energy Credits • S.1462 American Clean Energy Leadership Act (telescoping REC’s for efficiency) (Shaheen) • District Energy Financing • S.1621 Thermal Energy Efficiency Act • Energy & Water Development Appropriations Act ($15m for district energy feasibility studies)

  24. Applications

  25. The Vermont Experience • 2 power plants • 44 Public Schools • 43 Woodchip / 1 Pellet • 1 Hospital • 5 State Office Complexes • 3 Housing Complexes • 3 College Campuses • Dozens of businesses

  26. In the 2009/10 Heating Season, VT’s 43 Woodchip Heated Schools: • Used 23,271 green tons of woodchips to offset more than 1.425 million gallons of oil • Saved more than $1.7 million on heating costs (an average of $40,600 or 46% per school)

  27. District Heating - Campus • District heating & cooling system • Cutting fuel oil usage in half or 40% reduction (12,500 tons/yr CO2) greenhouse gas emissions • Local fuel/local economy – 75 mile radius and Willow plantation, 20,000 – 21,000 tons chips/year • At 2008 fuel prices, $2 million annual cost savings • CHP – 2-2.5 million killowatt hours electricity (1/5 campus electricity needs) • Student learning opportunity Middlebury College, Middlebury, Vermont

  28. District Heating – Campus • 12 MMBtu/hr • 2007-08 fuel savings $250,000 • 400,000 square feet • Baghouse, Cyclone emissions control systems Crotched Mountain Rehabilitation CenterGreenfield, New Hampshire

  29. WOODCHIP DISTRICT CHP SYSTEM Towns of Toblach and Olang SOUTH TYROL, ITALY • Heating Capacity (output): One 10 MW (34 MMBtu/hr) boiler and two 4 MW (14 MMBtu/hr) boilers • Electrical Capacity: 1.5 MW • Emissions Reduction and Combustion Control Equipment: Multi-cyclone, electrostatic precipitator, condensation plant, moving grates, O2 sensor control • Year Installed: 1995 • Thermal Output: Hot water • District Heating Network Length: 44 km (27 miles) • District Heating Customers: 900

  30. INDUSTRY WOOD PELLET HEATING SYSTEM Headquarters and Manufacturing Plant, Xolar Group EBERSTALZELL, UPPER AUSTRIA • Heating Capacity (output): Three 100 kW (340,000 Btu/hr) boilers • Emissions Reduction and Combustion Control Equipment: O2 sensor control • Year Installed: 2008 • Thermal Output: Hot water • Solar Hot Water Panels: for heating and cooling • Efficient, Super-Tight Building • Heated Insulated Soils beneath Building – Solar and Biomass

  31. Conclusion • What is the future role of wood energy in an oil and climate constrained world? • Efficient Applications • Sustainable Forestry • Local Energy and Economic Systems • Effective Public Policy Contact Information Andrea Colnes Policy and Development Director Biomass Energy Resource Center 43 State Street Montpelier, VT 05601 802-223-7770 X 129 acolnes@biomasscenter.org

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