Confederated Tribes of the Umatilla Indian Reservation P.O
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Revised CTUIR RENEWABLE ENERGY FEASIBILITY STUDY FINAL REPORT June 20, 2005 Rev.October 31, 2005 United States Government Department of Energy National Renewable Energy Laboratory DE-FC36-02GO-12106 Compiled under the direction of: Stuart G. Harris, Director Department of Science & Engineering Confederated Tribes of the Umatilla Indian Reservation P.O. Box 638 Pendleton, Oregon 97801 2 Table of Contents Page No. I. Acknowledgement 5 II. Summary 6 III. Introduction 12 III-1. CTUIR Energy Uses and Needs 14 III-1-1. Residential Population – UIR 14 III-1-2. Residential Energy Use – UIR 14 III-1-3. Commercial and Industrial Energy Use – UIR 15 III-1-4. Comparison of Energy Cost on UIR with National Average 16 III-1-5. Petroleum and Transportation Energy Usage 16 III-1-6. Electrical Power Needs – UIR 17 III-1-7. State of Oregon Energy Consumption Statistics 17 III-1-8 National Energy Outlook 17 III-2. Energy Infrastructure on Umatilla Indian Reservation 19 III-2-1. Electrical 20 III-2-2. Natural Gas 21 III-2-3. Biomass Fuels 21 III-2-4. Transportation Fuels 21 III-2-5. Other Energy Sources 21 III-3. Renewable Energy Economics 21 III-3-1. Financial Figures of Merit 21 III-3-2. Financial Structures 22 III-3-3. Calculating Levelized Cost of Energy (COE) 23 III-3-4. Financial Model and Results 25 IV. Renewable Energy Resources, Technologies and Economics – In-and-Near the UIR 27 IV-1 Biomass Resources 27 IV-1-1. Resource Availability 27 IV-1-1-1. Forest Residues 27 IV-1-1-2. Forest Mill Residues 28 IV-1-1-3. Agriculture Residues 30 IV-1-1-4. Dedicated Energy Crops 32 IV-1-1-5. Urban Wood Waste 33 IV-1-2. Summary 35 IV-1-3. References 36 IV-2. Bio-Pellet Fuel 38 IV-2-1. Background 38 IV-2-2. Resource Assessment 39 IV-2-2-1. Agriculture Crops, Residues and Byproducts 39 IV-2-2-2. Forest Crops, Byproducts and Residues 40 3 Table of Contents - Continued Page No. IV-2-3. Pellet Fuel Technology – Manufacture and Uses 40 IV-2-3-1. Pellet Fuel Manufacture 41 IV-2-3-2. Fuel Pellet Properties and Specifications 42 IV-2-3-3. Pellet Fuel Use and Appliances 47 IV-2-4. Pellet Fuel Economics 57 IV-2-5. Regulatory and Environmental Issues 62 IV-2-6. References 64 IV-3. Bio-Diesel Fuel 67 IV-3-1 Conversion Process 67 IV-3-2. Bio-Diesel Fuel Production 72 IV-3-3. Bio-Diesel Fuel Economics 75 IV-3-4. Environmental Issues 80 IV-3-5. Bio-Diesel Market 81 IV-3-6. Bio-Diesel Incentive Programs and Tax Credits 82 IV-3-7. References 83 IV-4. Bio-Ethanol Fuel 87 IV-4-1. Technology Overview 87 IV-4-2. Economics of Bio-Ethanol Production 89 IV-4-3. Bio-Ethanol Production Potential 89 IV-4-4. Bio-Ethanol Incentive Programs and Tax Credits 90 IV-5. Solar Energy 91 IV-5-1. Solar Resource 91 IV-5-2. Solar Technologies 93 IV-5-3. Solar Economics 102 IV-5-4. Solar Recommendations 110 IV-6. Wind Energy 111 IV-6-1. Introduction 111 IV-6-2. Wind Development – National, Regional and Local 113 IV-6-2-1. National Wind Development 113 IV-6-2-2. Regional Wind Development 114 IV-6-2-3. Federal Government 115 IV-6-2-4. Oregon State 116 IV-6-2-6. Energy Trust of Oregon 117 IV-6-2-5. Washington State 118 IV-6-2-7. Utilities 119 IV-6-3. Wind Energy Economics and Incentives 120 IV-6-4. Environmental Attribute Value 121 IV-6-4-1. Power Purchase 122 IV-6-4-2. Commercial Generation 122 IV-6-4-3. Distributed Generation 123 4 Table of Contents - Continued Page No. IV-6-4-4. Developing Wind Power on the UIR 124 V-6-5. Wind Resources 124 IV-6-5-1. Preliminary Wind Assessment on the UIR 124 IV-6-5-2. Anemometer Siting Criteria 126 IV-6-5-3. Infrastructure 128 IV-6-6. Wind Monitoring Feasibility 129 IV-6-6-1. Study Areas 129 IV-6-6-2. Wind Monitoring Strategy 134 IV-6-7. Conclusions and Recommendations 136 IV-6-8 References 137 IV-6-9. PNNL Report Transmission System Access for Wind-generated Electricity 139 V. Draft Renewable Energy Vision 143 VI. Business Development Planning 147 VI-1 Wind Energy Business Plan 147 VI-2 Bio-Pellet Fuel Business Plan 148 VI-3 Bio-Diesel Fuel Development Plan 149 VI-4 Bio-Ethanol Fuel Development Plan 152 VI-5 Solar Energy Development Plan 152 IV-2-8. Pellet Fuel Appendices 154 IV-2-8-1. Pellet Fuel Manufactures 154 IV-2-8-3. Pellet Appliance Manufactures 158 IV-2-8-4. Miscella neous Information 159 IV-3-8. Bio-diesel Appendices 161 IV-3-8-1. Current and Proposed Bio-Diesel Production Plants 161 IV-3-8-2. NBB Member Fuel Producers/Marketers 163 IV-3-8-3. Bio-Diesel Distributors in OR, WA, NV, CA and ID 165 5 I. Acknowledgement The financial support for the work contained in this report has been provided by the U. S. Department of Energy with contribution by Pacific Northwest National Laboratory, Office of Small Business Programs and the Confederated Tribes of the Umatilla Indian Reservation. The CTUIR, the preparer’s of this feasibility study wish to acknowledge and thank those individuals of the Department of Energy (DOE) National Renewable Energy Laboratory (NREL), the DOE Pacific Northwest National Laboratory, the Bonneville Power Administration and the Oregon Office of Energy. These entities are tirelessly promoting better energy policy for everyone. In addition the preparers would also thank the many, many other people the Department of Science and Engineering consulted from the public an private sectors dedicated to incorporating sustainability, conservation, and renewable energy into practice and their willingness to share their knowledge. Feasibility Report Prepared by: Dr. John Cox Dr. Rico Cruz Ted Repasky, MS Lisa Breckenridge, MBA Thomas Bailor, BA 6 II. Summary Energy is an essential resource in this 21st century and energy resources are essential to ensure survival in this modern era. As such, energy from a Tribal perspective is an issue of sovereignty, sustainability, and self sufficiency. Achieving energy independence is essential to achieving self determination. The environmental impacts of past energy production and the shrinking supply of fossil fuels is forcing the emergence of a new energy economy. The CTUIR must adapt to this changing global environment to survive. Although energy development and production has impacted many resources significant to the CTUIR, energy itself, is also a very significant cultural resource that must be properly managed to help the CTUIR sustain their community. This preliminary assessment of renewable energy resources on the Umatilla Indian Reservation (UIR) has been performed by CTUIR Department of Science and Engineering (DOSE). This analysis focused primarily identifying renewable resources that may be applied on or near the Umatilla Indian Reservation. In addition preliminary technical and economic feasibility of developing renewable energy resources have been prepared and initial land use planning issues identified. Renewable energies examined in the course of the investigation included solar thermal, solar photovoltaic, wind, bio- ethanol, bio-diesel and bio-pellet fuel. All renewable energy options studied were found to have some potential for the CTUIR. These renewable energy options are environmentally friendly, sustainable, and compliment many of the policy goals of the CTUIR. Energy is a priority of the CTUIR BOT. The CTUIR tribal government is developing an energy policy that includes policy direction on energy diversity and sustainability and investigating options and opportunities to realize their goals of energy independence. Due in part to this effort, more planning time and effort has now been spent looking at and understanding energy efficiency and conservation issues on the UIR. The tribe has now participated in several energy efficiency initiatives and investigations of major facilities and assets. Conservation and efficiency are often a pre requisite for renewable implementation. This report seeks to provide an overall review of renewable energy technologies and applications. It tries to identify existing projects near to the CTUIR and the efforts of the federal government, state government and the private sector in the renewable energy arena. It seeks to provide an understanding of the CTUIR as an energy entity. This report intends to provide general information to assist tribal leadership in making decisions related to energy, specifically renewable energy deve lopment. The authors recognize that in a general sense the information contained within provides that overview but in many cases falls short. This stems from the fact that the reservation is in a sense a contained universe where many details about energy use in the community is not readily available or easily accessible. As such it is extremely important that the CTUIR seek to gather and organize its energy information. 7 In many cases the results of research in this project have been incorporated into ongoing efforts. The CTUIR now has a better data set available on the major utilities both transmission and distribution for incorporation into planning and the CTUIR is now further along in the planning phase of several renewable energy projects. Energy efficiency and conservation efforts are being undertaken, and the data provided by this research has already moved the CTUIR into the next phase of wind, biomass, and bio- fuel development. Wind Wind energy development is commensurate with CTUIR’s effort to diversify its economy that recognizes energy as an essential natural resource and renewable energies as a sustainable and practical substitute and alternative to fossil fuels with a lower environmental impact.