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State Bioenergy Primer Information and Resources for States on Issues, Opportunities, and Options for Advancing Bioenergy

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State Bioenergy Primer Information and Resources for States on Issues, Opportunities, and Options for Advancing Bioenergy State BIOENERGY PRIMER Information and Resources for States on Issues, Opportunities, and Options for Advancing Bioenergy U.S. ENVIRONMENTAL PROTECTION AGENCY AND NATIONAL ReNEWABLE ENERGY LABORATORY SEPTEMBER 15, 2009 TABLE OF CONTENTS Acknowledgements ________________________________________________________________ iv Key Acronyms and Abbreviations ______________________________________________________ v Executive Summary ___________________________________________________ 1 Introduction _________________________________________________________ 3 1.1 How the Primer Is Organized ____________________________________________________ 5 1.2 References ____________________________________________________________________ 5 What Is Bioenergy? ____________________________________________________ 7 2.1 What Are Biomass Feedstocks? ___________________________________________________ 8 2.2 Potential for Increased Production and Use of Biomass Feedstocks ____________________ 11 2.3 How Are Biomass Feedstocks Converted into Bioenergy? ____________________________ 12 2.4 Resources for Detailed Information ______________________________________________ 21 2.5 References __________________________________________________________________22 Benefits, Challenges, and Considerations of Bioenergy _____________________25 3.1 Energy Security Benefits _______________________________________________________26 3.2 Economic Benefits ____________________________________________________________ 27 3.3 Environmental Benefits, Challenges, and Considerations ____________________________ 29 3.4 Feedstock Supply Challenges ___________________________________________________35 3.5 Infrastructure Challenges ______________________________________________________ 37 3.6 Resources for Detailed Information ______________________________________________ 39 3.7 References __________________________________________________________________44 How Can States Identify Bioenergy Opportunities? _________________________ 47 4.1 Step 1: Determine Availability of Biomass Feedstocks _______________________________48 4.2 Step 2: Assess Potential Markets for Identified Biomass Feedstocks and Bioenergy _______ 53 4.3 Step 3: Identify Opportunities for Action __________________________________________59 4.4 Resources for Detailed Information ______________________________________________62 4.5 References __________________________________________________________________65 Options for States to Advance Bioenergy Goals ____________________________ 67 5.1 Favorable Policy Development __________________________________________________68 5.2 Favorable Regulatory Development ______________________________________________ 69 5.3 Environmental Revenue Streams ________________________________________________ 70 5.4 Direct Investment/Financing and Incentives ______________________________________ 70 5.5 Research, Development, and Demonstration ______________________________________ 74 5.6 Information Sharing ___________________________________________________________ 74 5.7 Resources for Detailed Information ______________________________________________ 75 5.8 References ___________________________________________________________________ 77 Resources and Tools for States _________________________________________ 79 Glossary ____________________________________________________________ 93 | State Bioenergy Primer III ACKNOWLEDGEMENTS The U.S. Environmental Protection Agency (EPA) would like to acknowledge the many individual and organizational researchers and government employees whose efforts helped to bring this extensive report to fruition. The following contributors provided signifi- cant assistance through their review of the document: ■ EPA - Paul Argyropoulos, Dale Aspy, Allison Dennis, Karen Blanchard, William Brandes, Kim Crossman (now with Energy Trust of Oregon), Scott Davis, Jim Eddinger, Rachel Goldstein, Doug Grano, Bill Maxwell, Donna Perla, Felicia Ruiz, Christopher Voell, Robert Wayland, and Gil Wood. ■ National Renewable Energy Laboratory (NREL) - Ann Brennan, Scott Haase, Victoria Putsche, John Sheehan (now with University of Minnesota), Phil Shepherd, Walter Short, and Bob Wallace (now with Pennsylvania State University). ■ U.S. Forest Service - Marcia Patton-Mallory and Larry Swain. The following individuals authored this report: ■ EPA - Danielle Sass Byrnett, Denise Mulholland, and Emma Zinsmeister. ■ NREL - Elizabeth Doris, Anelia Milbrandt, Robi Robichaud, Roya Stanley (now with the state of Iowa), and Laura Vimmerstedt. IV State Bioenergy Primer | KEY ACRONYMS AND ABBREVIATIONS ACORE American Council on Renewable Energy JEDI Job and Economic Development Impact model B100 100 percent biodiesel kWh Kilowatt-hours B20 A blend of 20 percent biodiesel and 80 percent LCA Life-cycle assessment petroleum diesel LCFS Low carbon fuel standard B90 A blend of 90 percent biodiesel and 10 percent LFG Landfill gas petroleum diesel LMOP EPA’s Landfill Methane Outreach Program BCAP Biomass Crop Assistance Program LRAMs Lost revenue adjustment mechanisms BCEX Biomass Commodity Exchange MACT Maximum available control technologies BERS Bio-Energy Recovery Systems MSW Municipal solid waste BPA Bisphenol A MTHF Methyl tetrahydrofuran Btu British thermal units MW Megawatts CHP Combined heat and power MWh Megawatt-hours CMAQ Congestion Mitigation and Air Quality Improvement program NAAQS National Ambient Air Quality Standards CNG Compressed natural gas NACAA National Association of Clean Air Agencies CO Carbon monoxide NESHAP National Emission Standards for Hazardous Air Pollutants CROP Coordinated Resource Offering Protocol NREL DOE’s National Renewable Energy Laboratory DG Distributed generation NSPS New Source Performance Standards DOE U.S. Department of Energy ORNL DOE’s Oak Ridge National Laboratory DOT U.S. Department of Transportation PBF Public benefits fund DPA Diphenoloic acid PEDA Pennsylvania Energy Development Authority DSIRE Database of State Incentives for Renewable Energy PHMSA DOT’s Pipeline and Hazardous Materials Safety E10 A blend of 10 percent ethanol and 90 percent petroleum Administration E85 A blend of 85 percent ethanol and 15 percent petroleum PLA Polylactide EERE DOE’s Office of Energy Efficiency and Renewable Energy PM Particulate matter EGRID EPA’s Emissions & Generation Resource Integrated RDF Refuse-derived fuel Database REC Renewable energy credit EIA DOE’s Energy Information Administration RFA Renewable Fuels Association EISA Energy Independence and Security Act RFS Renewable fuels standard EPA U.S. Environmental Protection Agency RPS Renewable portfolio standard EPRI Electric Power Research Institute SABRE State Assessment for Biomass Resources ETBE Ethyl tert-butyl ether SIP State Implementation Plan FFVs Flexible fuel vehicles SSEB Southern States Energy Board FIDO USFS Forest Inventory Data Online Syngas Synthesis gas FPW Food processing waste USDA U.S. Department of Agriculture GHG Greenhouse gas USFS U.S. Forest Service GIS Geographic Information System VOCs Volatile organic compounds GREET Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation WARM EPA’s WAste Reduction Model GW Gigawatts WGA Western Governors’ Association IEA International Energy Agency WREZ Western Renewable Energy Zones Project IGCC Integrated gasification combined cycle WWTP Wastewater treatment plant | State Bioenergy Primer V VI State Bioenergy Primer | Executive Summary Across the country, states are CHAPTER ONE Introduction MAP looking for ways to tackle their CHAPTER TWO What Is Bioenergy? energy, environmental, and climate CHAPTER THREE benefits and challenges change challenges through a variety CHAPTER FOUR DOCUMENT Identifying Bioenergy Opportunities of approaches. One frequently CHAPTER FIVE discussed option is the use of Options for Advancing Bioenergy biomass resources to develop bioenergy—bioheat, biopower, biofuels, and bioproducts. Many information resources are available that discuss biomass/bioenergy in a highly technical manner and/ or that focus only on one feedstock (e.g., forest resi- dues, agricultural crops) or product (e.g., biofuels). Alternately, some entities present bioenergy informa- tion that is relevant to the general public but is too simplified for decision makers. This State Bioenergy Primer is designed to bring many of these resources together and provide useful, targeted information that will enable a state decision maker to determine if he/she wants or needs more details. The primer offers succinct descriptions of biomass feedstocks (Chapter 2), conversion technologies (Chap- ter 2), and the benefits/challenges of promoting bio- energy (Chapter 3). It includes a step-wise framework, resources, and tools for determining the availability of feedstocks (Chapter 4), assessing potential markets for biomass (Chapter 4), and identifying opportunities for action at the state level (Chapter 4). The primer also EXECUTIVE SUMMARY | State Bioenergy Primer 1 describes financial, policy, regulatory, technology, and Each state’s individual geography, economic base, mar- informational strategies for encouraging investment ket conditions, climate, and state-specific incentives in bioenergy projects and advancing bioenergy goals and regulations will impact the feedstocks and bioen- (Chapter 5). Each chapter contains a list of selected ergy outputs that make economic and environmental resources and tools that states can use to explore topics sense for that state to pursue. in further detail. A decision maker starts identifying potentially
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