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Introduction to Funding Opportunities: Bioenergy and GHG Reducing Projects By: Bob Lonergan, Christine Polo, Anni Santos, Sarah Deslauriers and Rowena Patawaran

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Introduction to Funding Opportunities: Bioenergy and GHG Reducing Projects By: Bob Lonergan, Christine Polo, Anni Santos, Sarah Deslauriers and Rowena Patawaran FUNDING OPPORTUNITIES Introduction to Funding Opportunities: Bioenergy and GHG Reducing Projects By: Bob Lonergan, Christine Polo, Anni Santos, Sarah Deslauriers and Rowena Patawaran The Need for Funding Funding Programs With rising energy costs, depleting fossil fuel supplies, and Federal Public Programs increasing concerns of climate change, the use of • Energy Efficiency Block Grants (DOE) bioenergy and the reduction of greenhouse gases These grants can be used for energy efficiency and (GHGs) has gained interest within the wastewater conservation programs and projects communitywide, as industry. While water resource recovery facilities (WRRFs) well as renewable energy installations on government operating anaerobic digesters can utilize digester gas to buildings. Availability varies from year to year and, generate clean renewable energy, capital costs for depending on the timing, this funding may or may not these systems can be tremendous for a municipality, which is a barrier for the implementation of these be available. systems. This fact sheet will provide the various funding • Clean Water State Revolving Fund – Green Project programs and mechanisms that can ease or alleviate Reserve (EPA) the financial burden incurred with the installation of The Green Project Reserve, or GPR, requires all Clean these systems. Options include low interest loans, partial Water State Revolving Fund (CWSRF) programs to direct funding via grants, revenue generation or partnerships a portion of their capitalization grant toward projects with developers. that address green infrastructure, water efficiency, Implementation of bioenergy and GHG reduction energy efficiency, or other environmentally innovative projects provide several benefits. Based on a activities. Congressional Research Service study, WRRFs can account for 30%-40% of the energy costs of a • Renewable Fuel Standard (RFS) Program (EPA) municipality. As noted in the study, energy is the second- Renewable Identification Numbers (RIN's). highest budget cost item after labor cost; therefore, As of July 2014, the EPA’s RFS program now allows installation of energy recovery facilities can provide digester biogas from municipal WRRF digesters to be annual costs savings to municipalities. used as a transportation fuel feedstock. The biogas is designated as a “cellulosic” (D3) feedstock, thereby In addition to costs savings, implementation of these conferring the greatest possible value for the associated facilities will reduce GHGs. According to Accelerating RIN’s; the value of a D3 RIN is worth the sum of the Resource Recovery: Biosolids Innovations and Opportunities, there are currently 1,269 WRRFs with values of a D3 RIN, a D5 RIN, a D6 RIN and the cellulosic biogas systems in the U.S.. If all the WRRFs that treat more waiver credit. To qualify for RIN credits, the fuel must be than 5 million gallons per day (MGD) install an energy in the form of compressed natural gas (CNG) or recovery facility, annual carbon dioxide emissions could liquefied natural gas (LNG), or it must be used to be reduced by an estimated 2.3 million metric tons. This produce electricity used to power electric vehicles. RIN is equal to the annual emissions from 430,000 passenger credits are expressed in gallons of gasoline equivalents vehicles. (GGE) which are determined as the equivalent amount of gasoline offset by the fuel; using 115,000 Btu/gallon for gasoline. Third-parties are often hired that specialize in Copyright © 2017 Water Environment Federation. All Rights Reserved. WSEC-2017-FS-019, RBC Bioenergy/Carbon Resource and Recovery Subcommittees Page 1 of 7 RIN verification for the EPA and brokering of RIN’s • US Department of Energy (DOE) Southwest throughout the United States (see: WEF RIN Fact Sheet). Combined Heat and Power (CHP) Technical Assistance Partnership • Renewable Energy Credits (REC’s): The DOE recently started providing technical assistance REC’s, also known as Green tags, Renewable Electricity for entities and consultants evaluating CHP systems for Certificates, or Tradable Renewable Certificates (TRCs), anaerobic digestion of wastewater biosolids, food waste are tradable, non-tangible energy commodities in the and other miscellaneous substrates. The technical United States that represent proof that 1 megawatt-hour assistance is provided at no charge and includes the (MWh) of electricity was generated from an eligible following services: renewable energy resource (renewable electricity) and Screening and Preliminary Analysis: was fed into the shared system of power lines which The Screening and Preliminary Analysis includes a high- transport energy. REC’s provide a mechanism for the level quick screening survey with a payback calculator. purchase of renewable energy that is added to and pulled from the electrical grid. Feasibility Analysis: These certificates can be sold and traded or bartered, During the Feasibility Analysis Phase, DOE estimates and the owner of the REC’s can claim to have annual energy savings, installation costs, simple purchased renewable energy. According to the DOE's paybacks, equipment sizing and prime mover type. Green Power Network, REC’s represent the environmental attributes of the power produced from Investment Grade Analysis: renewable energy projects and are sold separately from The Investment Grade Analysis includes third-party commodity electricity. While traditional carbon emissions review of Engineering Analysis and equipment sizing and trading programs use penalties and incentives to selections. achieve established emissions targets, REC’s simply Procurement, Operations, Maintenance, and incentivize carbon-neutral renewable energy by Commissioning: providing a production subsidy to electricity generated This last phase includes Review of RFP bids and from renewable sources. specifications, as well as a limited operational analysis. A certifying agency gives each REC a unique identification number to make sure it doesn't get State and Local Public Programs double-counted. The green energy is fed into the electrical grid (by mandate) and the accompanying While there is not an official database that includes REC’s can be sold on the open market. information on all the state and local energy REC values vary from state to state and fluctuate over efficiency/generation, the following link takes you to a time. REC’s allow for purchasers to support renewable fairly comprehensive list with links to individual programs energy generation, attain RFS goals, and allow the for state/local incentives for renewables and energy economic forces of supply and demand to spur the efficiency: DsireUSA further development of renewable energy generation. There are currently 17 states that have incentives for The link below explains the REC program for the state of producing CNG from digester biogas. Several examples Colorado: Colorado REC Program of state-level programs offered by California follow: • Grants for buses and bus facilities • Energy Conservation Assistance Act (ECAA) The 49 United States Code 5339 provides federal funding The California Energy Commission (CEC) offers a low for replacement, rehabilitation and purchase of buses interest loan program for cities and schools to implement (and related equipment). Federal funding currently energy efficiency and renewable energy projects. provides 80% of the cost of new CNG buses providing • Self-Generation Incentive Program (SGIP) that a minimum 12-year vehicle service life is met. The California Public Utilities Commission’s (CPUC's) - • Alternative Fuel Excise Tax Credit SGIP provides incentives to support existing, new, and The Safe, Accountable, Flexible, Efficient Transportation emerging distributed energy resources. Qualifying Equity Act: A Legacy for Users (PL 109-59, § 11113, 26 technologies include wind turbines, waste heat to power USC § 6426, § 6427) provides an incentive for CNG and technologies, pressure reduction turbines, internal LNG when used as a "motor vehicle" fuel. This federal tax combustion engines, microturbines, gas turbines, fuel incentive provides $0.50 per gasoline gallon equivalent. cells, and advanced energy storage systems. This It originally took effect in October 2006 and has been program has been extended through at least the end of extended several times, often retrospectively. The latest 2019 and provides significant funding for renewably extension ended in 31-Dec-2016. fueled engine generator alternatives as well as for other similar cogeneration technologies. Copyright © 2017 Water Environment Federation. All Rights Reserved. WSEC-2017-FS-019, RBC Bioenergy/Carbon Resource and Recovery Subcommittees Page 2 of 7 • Air Quality Improvement Program The Alternative and Renewable Fuel and Vehicle This is an incentive program administered by the Air Technology Program was established by Assembly Bill Resources Board to fund clean vehicle and equipment 118 (AB 118) and administered by the CEC and is also projects, research on biofuels production and the air part of the state’s strategy to meet the 2020 and 2050 quality impacts of alternative fuels, and workforce GHG reduction goals. Through this program, CEC training. provides up to $100 million per year toward the development and deployment of low‐carbon • Carl Moyer Memorial Air Quality Standards Attainment Program alternative fuels, fueling infrastructure, and advanced The program provides grants for engines and equipment vehicle technologies, including biogas to CNG projects that produce cleaner air emissions than required by
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