So, You Have a Biomass Problem/Opportunity?

Nevada Biomass Workshop Reno, NV June 27-28, 2006 Bill Carlson Western Governors Association Biomass Task Force Carlson Small Power Consultants

Clean and Diversified Energy Initiative

Western Governors Association
Mission WGA addresses important policy and governance issues in the West, advances the role of the Western states in the federal system, and strengthens the social and economic fabric of the region. WGA develops policy and carries out programs in the areas of natural resources, the environment, human services, economic development, international relations and state governance. WGA acts as a center of innovation and promotes shared development of solutions to regional problems

Clean and Diversified Energy Initiative

Western Governors Goals
1. Add 30,000 megawatts of clean energy by 2015

2. Increase energy efficiency 20% by 2020

Clean and Diversified Energy Advisory Committee (CDEAC) Formed to Provide Recommendations to Attain these Goals

Clean and Diversified Energy Initiative

Potential 2015 Generation Capabilities
Advanced Coal 5,000 megawatts

Biomass 10,000 megawatts at 8/kWh

Energy Efficiency 48,000 megawatt decrease in forecasted demand (by 2020) Geothermal 5,600 megawatts Solar 8,000 megawatts Wind 54,000 megawatts

Clean and Diversified Energy Initiative

Biomass in the WGA Region Available for Power Generation
Forest Resources 70,956 GWh 50% Urban Biomass 49,117 GWh 35%

Agriculture 21,681 GWh 15%

Clean and Diversified Energy Initiative

Ancillary Benefits of Biomass Energy Production
(from 1999 NREL Report)

US Biomass Fuel Mix

Thousand bdt/yr 6,400 1,800 2,300 1,400 11,900

Mill Residues Forest Residues Agricultural Residues Urban Wood Residues Total

Clean and Diversified Energy Initiative

Ancillary Benefits of Biomass Energy Production
(from 1999 NREL Report)

Value of the Benefits

/ kWh Criteria Pollutants Greenhouse Gases Avoided Landfill Timber Stand Improvement Total 4.3 5.9 1.1 0.1 11.4

Clean and Diversified Energy Initiative

Ancillary Benefits of Biomass Energy Production Synergies Fire Risk Reduction Rural Economic Growth And Preservation Distributed Resources Productive Use of Byproducts

Clean and Diversified Energy Initiative

Fire Risk Reduction Strategy
Forestland: 216 MM acres

Timberland screened for Fire Severity Regime 89 MM acres

WUI 1.4 MM

Butte Creek Fuels Reduction Treatment Results Treatment opportunities on WUI and non-WUI timberland: 23 MM acres

Non-WUI 21.6 MM Timberland: 141 MM acres

Fire Severity Regime Screens:

1. Forest type with a surface or mixed severity fire regimes 2. For WUI added limited treatment of high severity fire regimes

Final Screens:
1. Plots with higher fire hazard (CI < 25 mph or CI < 40 + TI < 25) 2. Inventoried roadless areas excluded 3. Counties with wetter climates excluded

Relating the WGA Biomass Work to Nevada

Overstocked, sick dying forests
Lake Tahoe Mt. Charleston Back side of Sierras

Overstocked Pinyon-Juniper Woodlands

Central & Eastern Nevada Dewatering streams/springs

Relating the WGA Biomass Work to Nevada (Cont.)

Exotic & Invasive Species Urban Wood
Las Vegas Reno/Carson City

Clean and Diversified Energy Initiative

Biomass Recommendations 1. Achieve Tax Parity Among Renewable Technologies. 2. Strengthen Federal Land Management Policies to Allow Larger, Longer Restoration Projects. 3. Environmental Benefits of Biomass Should Be Paid For by Beneficiaries.

Clean and Diversified Energy Initiative

Biomass Recommendations (Cont.)
4. Demonstrate Government Leadership by Purchasing Power/RECs from Biomass Projects and by Supporting Biomass R&D.
5. Recognize the Value of Firm Capacity in Renewable Purchase Programs.

6. Renewable Energy Credits Should Not Include Ancillary Environmental Benefits

Clean and Diversified Energy Initiative

Biomass Recommendations - (Cont.)
7. Establish a Single Definition for Biomass. 8. Revise Utility Interconnection Policies.

9. Provide Long-Term Certainty for Biomass Programs.

10.Consider Fuel-Based Emissions When Issuing Air Quality Permits.

Making It Work in Nevada!

-DrawbacksNo infrastructure Few concentrations of biomass
WGA estimated 2 million TPY

No infrastructure Few large steam/heat users No infrastructure

Making It Work In Nevada! (Cont.)

-AdvantagesStreamlined decision process People/trees/agriculture in close proximity Good package of power generation incentives
Renewable Portfolio Standard Corporate Property Tax Exemption Corporate Sales Tax Exemption

Recognition of problem areas

Overcoming Your Drawbacks

A setting must be created that will attract private infrastructure development Private capital needs
Raw material supply Markets Long term commitment

Focus your efforts in a few key areas of state

Raw Material Supply

Largely responsibility of federal land managers due to land ownership Must block up lands across agencies over long time period and offer as stewardship contracts No artificial constraints on activity that would destroy economic value Urban biomass supplies can supplement land restoration You are trying to restore lands by creating economic unit that would attract private infrastructure development

Markets
Largely responsibility of private infrastructure developers Scope and scale should be appropriate to the resource restoration need Big developed markets are commodity forest products, transportation fuels, electricity Every piece of biomass should go to highest and best use for best economics Grants are great, but create neither markets nor infrastructure, and are no substitute for economic strategy

A Checklist for Land Managers

A Checklist for Land Managers

Treating maximum acres for minimum cost instead of minimum acres for maximum cost 1. Decide what you want land to look like: Spacing Age mix Species mix Wildlife provisions

Perhaps prepare a several acre sample plot

A Checklist for Land Managers

Treating maximum acres for minimum cost instead of minimum acres for maximum cost

2. Use stewardship contracting authority in order to establish proper relationship with contractors and allow agency to focus on final results on the land. These are not timber sales!

A Checklist for Land Managers

Treating maximum acres for minimum cost instead of minimum acres for maximum cost 3. To create new infrastructure, make the stewardship offering as large as possible. 100,000+ acres 4. To create new infrastructure, make the stewardship offering as long as possible 10 year minimum 20 years preferable

A Checklist for Land Managers

Treating maximum acres for minimum cost instead of minimum acres for maximum cost
5. Do not place artificial constraints on offerings that will raise the cost per acre Arbitrary size limits Ability to unilaterally change prescription Seasonal restrictions Remember, the goal is to save these lands from loss to catastrophic wildfire, disease or insects

A Checklist for Land Managers

Treating maximum acres for minimum cost instead of minimum acres for maximum cost
6. In offerings, use removal along existing road network to block lands into defensible perimeters as quickly as possible
The Quincy Library Group Model

7. Insure that your agency has done all it can to create the best economic climate for bidders that will result in lowest cost per acre for service
Help with federal energy bill extension Help with state energy incentives

A Checklist for Land Managers

Treating maximum acres for minimum costs instead of minimum acres for maximum costs
8. Never, for a minute, forget the ultimate goal:
Return the land to a sustainable condition as quickly as possible at a reasonable cost Treat it like a crisis, because it is! Its a vision thing

If You Are Successful Lands will be restored to within range of natural variability Potential for catastrophic wildfire will be reduced Rural economies and tax coffers will be strengthened Air pollution will be reduced Greenhouse gas generation will be reduced Water will be returned to streams/springs Balance of payments improved as products, energy produced domestically Fossil fuel use reduced Landfill life will be extended
Strike your blow for world peace, use biomass!!