Nevada Biomass Workshop (3)

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    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

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    Clean and Diversified

    Energy InitiativeWestern Governors Association

    Mission

    WGA addresses important policy and

    governance issues in the West, advances

    the role of the Western states in the federalsystem, 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

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    Clean and Diversified

    Energy Initiative

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

    Western Governors Goals

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

    2. Increase energy efficiency 20% by 2020

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    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

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    Clean and Diversified

    Energy InitiativeBiomass in the WGA Region Available for Power Generation

    Agriculture

    21,681 GWh

    15%

    Forest Resources

    70,956 GWh

    50%

    Urban Biomass

    49,117 GWh

    35%

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    Clean and Diversified

    Energy InitiativeAncillary Benefits of Biomass Energy Production

    (from 1999 NREL Report)

    Mill ResiduesForest Residues

    Agricultural ResiduesUrban Wood ResiduesTotal

    Thousand bdt/yr6,4001,800

    2,3001,40011,900

    US Biomass Fuel Mix

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    Clean and Diversified

    Energy Initiative

    Ancillary Benefits of Biomass Energy Production

    (from 1999 NREL Report)

    Criteria Pollutants

    Greenhouse GasesAvoided LandfillTimber Stand ImprovementTotal

    / kWh

    4.3

    5.91.10.1

    11.4

    Value of the Benefits

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    Clean and Diversified

    Energy InitiativeAncillary Benefits of Biomass Energy Production

    Synergies

    Fire Risk Reduction

    Rural EconomicGrowth AndPreservation

    Distributed Resources

    Productive Use of

    Byproducts

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    Clean and Diversified

    Energy InitiativeFire Risk Reduction Strategy

    Forestland:

    216 MM acres

    Timberland:

    141 MM acres

    Timberland screened for

    Fire Severity Regime

    89 MM acres

    Treatment opportunities

    on WUI and non-WUI timberland:

    23 MM acres

    Butte Creek Fuels Reduction

    Treatment Results

    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

    WUI1.4 MM

    Non-WUI21.6 MM

    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

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    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

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    Relating the WGA Biomass Work

    to Nevada (Cont.)

    Exotic & Invasive Species

    Urban Wood

    Las Vegas

    Reno/Carson City

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    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.

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    Clean and Diversified

    Energy Initiative

    Biomass Recommendations(Cont.)

    4.Demonstrate Government Leadership by

    Purchasing Power/RECs from Biomass Projectsand 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

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    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.

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    Making It Work in Nevada!

    -Drawbacks-

    No infrastructure

    Few concentrations of biomass

    WGA estimated 2 million TPY

    No infrastructureFew large steam/heat users

    No infrastructure

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    Making It Work In Nevada! (Cont.)

    -Advantages-Streamlined decision process

    People/trees/agriculture in closeproximity

    Good package of power generationincentives

    Renewable Portfolio Standard Corporate Property Tax Exemption

    Corporate Sales Tax Exemption

    Recognition of problem areas

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    Overcoming Your Drawbacks

    A setting must be created that will attractprivate infrastructure development

    Private capital needs Raw material supply

    Markets

    Long term commitment

    Focus your efforts in a few key areas of state

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    Raw Material Supply

    Largely responsibility of federal landmanagers 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 supplementland restoration

    You are trying to restore lands by creatingeconomic unit that would attract privateinfrastructure development

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    Markets

    Largely responsibility of private infrastructuredevelopers

    Scope and scale should be appropriate to the

    resource restoration need

    Big developed markets are commodity forestproducts, transportation fuels, electricity

    Every piece of biomass should go to highest and

    best use for best economics

    Grants are great, but create neither markets norinfrastructure, and are no substitute for economicstrategy

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    A Checklist for Land Managers

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    1. Decide what you want land to look like: Spacing

    Age mix

    Species mix

    Wildlife provisions

    Perhaps prepare a several acresample plot

    A Checklist for Land Managers

    Treating maximum acres for minimum costinstead of minimum acres for maximum cost

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    2. Use stewardship contracting authorityin 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 costinstead of minimum acres for maximum cost

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    3. To create new infrastructure, make thestewardship offering as large as possible.

    100,000+ acres

    4. To create new infrastructure, make thestewardship offering as long as possible

    10 year minimum

    20 years preferable

    A Checklist for Land Managers

    Treating maximum acres for minimum costinstead of minimum acres for maximum cost

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    A Checklist for Land Managers

    Treating maximum acres for minimum costinstead of minimum acres for maximum cost

    5. Do not place artificial constraints on

    offerings that will raise the cost per acreArbitrary size limits

    Ability to unilaterally changeprescription

    Seasonal restrictions

    Remember, the goal is to save theselands from loss to catastrophic wildfire,disease or insects

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    6. In offerings, use removal along existing

    road network to block lands into defensibleperimeters as quickly as possible

    The Quincy Library Group Model

    7. Insure that your agency has done all it canto create the best economic climate forbidders that will result in lowest cost peracre for service

    Help with federal energy bill extension

    Help with state energy incentives

    A Checklist for Land Managers

    Treating maximum acres for minimum costinstead of minimum acres for maximum cost

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    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

    A Checklist for Land Managers

    Treating maximum acres for minimum costsinstead of minimum acres for maximum costs

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    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, energyproduced domestically

    Fossil fuel use reduced Landfill life will be extended

    Strike your blow for world peace, use biomass!!