Bioenergy Policy Education Resources National Public Policy Education Conference September 23, 2003 Thomas G. Johnson

A Generic Framework for Bioenergy Policy Education What is bioenergy? What is bioenergy? Why bioenergy? Why bioenergy? Current situation Current situation Policy alternatives Policy alternatives Consequences and impacts Consequences and impacts

What is Bioenergy? Glossaries of Bioenergy Terms Glossaries of Bioenergy Terms Center for Resource SolutionsCenter for Resource Solutions e.org/what_is/dictionary/dictionary.htmlhttp:// e.org/what_is/dictionary/dictionary.htmlhttp:// e.org/what_is/dictionary/dictionary.htmlhttp:// e.org/what_is/dictionary/dictionary.html Includes links to a number of more detailed sources of informationIncludes links to a number of more detailed sources of information Department of EnergyDepartment of Energy tmlhttp://eia.doe.gov/kids/glossary/index.h tmlhttp://eia.doe.gov/kids/glossary/index.h tmlhttp://eia.doe.gov/kids/glossary/index.h tml

What is Bioenergy? Biomass at a Glance Biomass at a Glance US Department of EnergyUS Department of Energy basics/index.htmhttp:// basics/index.htmhttp:// basics/index.htmhttp:// basics/index.htm Energy for Kids (US DOE) Energy for Kids (US DOE) What is energy, history of energy use, fun facts, quizzes, and moreWhat is energy, history of energy use, fun facts, quizzes, and more

What is Bioenergy? Energy 101 (Union of Concerned Scientists) Energy 101 (Union of Concerned Scientists) newable_energy/page.cfm?pageID=73http:// newable_energy/page.cfm?pageID=73http:// newable_energy/page.cfm?pageID=73http:// newable_energy/page.cfm?pageID=73 At a high school or lower levelAt a high school or lower level Includes a section on history of energy use, detailed discussions of most sources of energyIncludes a section on history of energy use, detailed discussions of most sources of energy A number of photos and diagramsA number of photos and diagrams

Example of Graphics from Economics 101 Source: Union of Concerned Scientists, Energy 101

What is Bioenergy? FAQs Bioenergy and Carbon Sinks FAQs Bioenergy and Carbon Sinks FAQs 3_task38faq.pdfhttp:// 3_task38faq.pdfhttp:// 3_task38faq.pdfhttp:// 3_task38faq.pdf Renewable Energy FAQs Renewable Energy FAQs enewable_energy/page.cfm?pageID=4 6http:// enewable_energy/page.cfm?pageID=4 6http:// enewable_energy/page.cfm?pageID=4 6http:// enewable_energy/page.cfm?pageID=4 6 Green Electricity FAQs Green Electricity FAQs

What is Bioenergy? FAQs Examples Examples “What is the difference between CO 2 emissions from bioenergy and fossil fuels?”“What is the difference between CO 2 emissions from bioenergy and fossil fuels?” “Can land be managed simultaneously as a carbon sink and for bioenergy and fiber production?”“Can land be managed simultaneously as a carbon sink and for bioenergy and fiber production?” “Aren’t renewable energy sources more expensive?”“Aren’t renewable energy sources more expensive?”

Why Bioenergy? Bioenergy reduces: Bioenergy reduces: Global warmingGlobal warming Air pollutionAir pollution NOx NOx SOx SOx Smog Smog Water pollution from mining and transportation of non-renewablesWater pollution from mining and transportation of non-renewables Trade deficitsTrade deficits Energy dependenceEnergy dependence

Why Bioenergy? Sources of Information Union of Concerned Scientists, “The Hidden Cost of Fossil Fuels” and “Environmental Benefits of Renewable Energy” Union of Concerned Scientists, “The Hidden Cost of Fossil Fuels” and “Environmental Benefits of Renewable Energy” /health_and_environment/page.cfm? pageID=88 /health_and_environment/page.cfm? pageID=88 /health_and_environment/page.cfm? pageID=88 /health_and_environment/page.cfm? pageID=88

Why not Bioenergy? Increased cropping for biomass could degrade land, reduce biodiversity, increase erosion, and increase pollution Increased cropping for biomass could degrade land, reduce biodiversity, increase erosion, and increase pollution brary/li_enviro_bioenergy.htmhttp:// brary/li_enviro_bioenergy.htmhttp:// brary/li_enviro_bioenergy.htmhttp:// brary/li_enviro_bioenergy.htm Some bioenergy processes are not economic without subsidization. Subsidies may exceed external benefits. Some bioenergy processes are not economic without subsidization. Subsidies may exceed external benefits. Bioenergy requires energy to produce and it is possible to increase overall energy use, including non-renewable energy Bioenergy requires energy to produce and it is possible to increase overall energy use, including non-renewable energy

Current Federal Policies The current Federal energy policy as outlined for the United Nations Framework Convention on Climate Change The current Federal energy policy as outlined for the United Nations Framework Convention on Climate Change pam/usapamn3.pdf pam/usapamn3.pdf pam/usapamn3.pdf pam/usapamn3.pdf

Current Federal Policies Federal Tax Credits Federal Tax Credits Renewable Energy Production Tax CreditRenewable Energy Production Tax Credit $.015 per kWh credit for biomass projects placed in service before January 1, 2002 $.015 per kWh credit for biomass projects placed in service before January 1, 2002 Renewable Energy Production IncentiveRenewable Energy Production Incentive $.015 per kWh credit for biopower $.015 per kWh credit for biopower Alcohol Fuel CreditAlcohol Fuel Credit $.60 per gal for ethanol and methanol $.60 per gal for ethanol and methanol Tax exempt financing for certain facilitiesTax exempt financing for certain facilities

Current State Policies System Benefit Charges System Benefit Charges Fees added to electricity charges to generate revenues for bioenergy projectsFees added to electricity charges to generate revenues for bioenergy projects Disclosure rules Disclosure rules Utilities required to indicate fuel sourcesUtilities required to indicate fuel sources Renewable Portfolio Standards Renewable Portfolio Standards States require a given percent of electricity from bioenergyStates require a given percent of electricity from bioenergy

States with RPS Voluntary RPS No RPS

Current State Policies Cap and Trade Cap and Trade Similar to air pollution control programsSimilar to air pollution control programs

Internet Sources on Current Bioenergy Policy Biopower htm htm Clean Air Act and renewable energy: Policy obstacles to renewable energy: pp_testimony_boston.pdf pp_testimony_boston.pdf Renewable energy policy outside the US: pdf pdf

Policy Alternatives Clean Energy Blueprint (Union of Concerned Scientists, 2001) Clean Energy Blueprint (Union of Concerned Scientists, 2001) Renewable Portfolio Standard (20% by 2020)Renewable Portfolio Standard (20% by 2020) Public Benefit Fund (.2 cent per kWh surcharge on electricity)Public Benefit Fund (.2 cent per kWh surcharge on electricity) Production Tax Credit (1.7 cent per kWh of non-hydro renewable energy)Production Tax Credit (1.7 cent per kWh of non-hydro renewable energy) Net Metering (payments to consumers that generate their own electricity)Net Metering (payments to consumers that generate their own electricity)

Policy Alternatives Increases in research spendingIncreases in research spending Incentives, and relaxed regulations to encourage combined heat and electricity productionIncentives, and relaxed regulations to encourage combined heat and electricity production Improved efficiency standards, building codes and incentives to reduce energy useImproved efficiency standards, building codes and incentives to reduce energy use Tradable Renewable Certificates (Green Tags)Tradable Renewable Certificates (Green Tags)

Policy Alternatives Tradable Renewable Certificates (Green Tags) Tradable Renewable Certificates (Green Tags) solutions.org/RegulatorHandbook.htmhttp:// solutions.org/RegulatorHandbook.htmhttp:// solutions.org/RegulatorHandbook.htmhttp:// solutions.org/RegulatorHandbook.htm r/pdf/0603_ases_a042.pdfhttp:// r/pdf/0603_ases_a042.pdfhttp:// r/pdf/0603_ases_a042.pdfhttp:// r/pdf/0603_ases_a042.pdf ket.htmhttp:// ket.htmhttp:// ket.htmhttp:// ket.htm

Consequences and Impacts Deriving 20% of energy needs from renewable sources would: Deriving 20% of energy needs from renewable sources would: $60 Billion investment in renewable energy generation$60 Billion investment in renewable energy generation $20 Billion in sales of biomass$20 Billion in sales of biomass $1.6 Billion in lease payments to site wind generators$1.6 Billion in lease payments to site wind generators $7 Billion in property taxes$7 Billion in property taxes Reduce demand and price for non- renewable energyReduce demand and price for non- renewable energy

Consequences and Impacts Deriving 20% of energy needs from renewable sources would: Deriving 20% of energy needs from renewable sources would: Reduce carbon emissions 18% by 2020Reduce carbon emissions 18% by 2020 Save consumers due to lower natural gas billsSave consumers due to lower natural gas bills Source: newable_energy/page.cfm?pageID=45 newable_energy/page.cfm?pageID=45 newable_energy/page.cfm?pageID=45

Consequences and Impacts 10 % reliance on Renewable Energy Sources would: 10 % reliance on Renewable Energy Sources would: Leave electricity prices about the sameLeave electricity prices about the same Reduce demand and price of natural gasReduce demand and price of natural gas Reduce energy costs by $13.6 Billion between 2002 and 2020Reduce energy costs by $13.6 Billion between 2002 and 2020 Source: DOE Energy Information Agency, ublicationID=640 ublicationID=640

Energy Policy Education Tools Clean Power Profiler: erprofiler.htm erprofiler.htm Green Power Locator: or.html or.html Energy Quest: html html

General Resources Oak Ridge National Laboratory: Oak Ridge National Laboratory: Best Practice Policies and Measure: Best Practice Policies and Measure: apamn3.pdfhttp://unfccc.int/resource/docs/natc/pam/us apamn3.pdfhttp://unfccc.int/resource/docs/natc/pam/us apamn3.pdfhttp://unfccc.int/resource/docs/natc/pam/us apamn3.pdf International Energy Agency Bioenergy site: International Energy Agency Bioenergy site: Renewable Energy Policy Project: Renewable Energy Policy Project: