1. Federal Environmental Symposium East June 18, 2009
Ed Gee, Chair, Interagency Woody Biomass Utilization Group,
USDA Forest Service, Washington, DC

2. Development of a Federal Bioenergy Facility in Using Woody Biomass
Overview
Background
Barriers & Challenges
Criteria for success
The next steps involved in successfully implementing a federal bioenergy facility.

3. The mission of the U.S. Forest Service is to sustain the health, resilience, and productivity of the nation’s forests and grasslands for the benefit of present and future generations. Our mission extends to both public and private forests nationwide, and we are deeply concerned because we see a number of serious challenges to sustainability, particularly in connection with climate change.
... to sustain the health, diversity, and productivity of the nation’s forests and grasslands to meet the needs of present and future generations ...

4. A decade long drought in the West
Shift from commodity production to restoration of ecosystem function and resiliency while at the same time
A decade long drought in the West
A multi-decade increase in the forest density and increased incidents of fire, insects and disease
An expansion of residential developments into forests
Growing concern over the effects of climate change on forests

5. National Fire Plan

6. Putting towns at risk and damaging watersheds

7. Buffalo Creek Fire
In 1996, the Buffalo Creek Fire in Colorado did major damage to Denver’s water supply, with one storm dumping more than 300,000 cubic yards of soil into the Strontia Springs Reservoir, causing millions of dollars of damage.
(And killing two people)

8. Forest growth greatly exceeds removals
on NFS lands in the Interior West
When net forest growth exceeds removals, live biomass is increasing

9. When dense forests combine with extended drought, the ecological stress sets the stage for increased insect epidemics and wildfire
Western Pine Bark Beetle Damage -- Prescott National Forest, Arizona

10. We can decrease the effect of drought, pests, and wildfires
Strategically placing these bioenergy facilities in areas close to the raw material
Decrease the many large fires that are in diseased and drought-stressed forests.
These indirect impacts also interact with the effects of our previous management; for example, many fire-adapted forests in the United States have grown denser than they were historically, making them more susceptible to drought and insect attack. Overgrown forests and insect-killed trees, coupled with drought, are creating huge fire hazards. Wildfire activity in the West has quadrupled since the 1970s. In 2004 and 2005, more than 8 million acres burned each year; in 2006 and 2007, it was more than 9 million. Given climate change and the current fuels situation, the number of acres burned annually could go as high as 12 to 15 million acres in the coming years. Highly severe fires will put lives at risk, causing billions of dollars in damage and leaving soils and ecosystems devastated, potentially for decades to come.

11. For most of human history, renewables were predominant energy sources.
Biomass, Water, Wind, Solar, Geothermal

12. Energy market shares of renewables declined sharply during 19th and 20th centuries while total energy production grew rapidly.

14. The Role of Renewable Energy Consumption in the Nation’s Energy Supply, 2008

15. National Renewable Energy Goals
Goal Areas
Approach
Outcomes
National Biomass Initiative
Biofuels – 68 billion gallons by 2030
Biopower – 10 quads by 2030
Bioproducts – 55 billion pounds by 2030
Vision workshop to update goals; followed by peer review. (final: Sept. ’06)
Three Region-specific Roadmap workshops
Roadmap of R&D and policy strategies and timelines (regional and national perspective)
Guidance to R&D Board
Guidance for annual joint USDA/DOE solicitation
Used to monitor progress by agencies
President’s Biofuels Initiative
30 x ‘30
Cellulosic ethanol – 30% gasoline displaced by 2030 – 60 billion gallons
Convened 30x’30 industrial workshop
Convened government biofuels implementation planning workshop
R&D & policy strategies to provide basis for DOE R&D planning
Federal Implementation Plan to map agency roles
20 in ‘10
Reduce U.S. gas use by 20% in 10 years (2017)
RFS for 35 billion gallons of renewable and alternative fuels
Facilitated growth in short time frame with expanded scope of fuel sources
Energy Act
2007
Advanced Biofuels – 36 billion gallons per year by 2022
RFS – Renewable Fuel Standard
21 billion by 2022 from non-starch
Must have 50% GHG reduction
25 x ‘25
Wind, Solar, Biofuels – 25% energy displaced by 2025 – 32 quads
Holding planning meetings and established workgroups**
Roadmap of R&D and policy recommendations, (draft: Oct. ‘06)
Adapted from BR&Di – Biomass Research & Development Initiative 15

16. Key Recent Development
Growing concern about unintended consequences of using food crops to produce biofuels.
Focus of US biomass energy policy has started to shift away from corn-ethanol toward “ligno-cellulosic” feedstocks.

17. Today, there is a resurgence of interest in renewables.
Oil Prices
National Security
Climate Change
Agriculture Policy

18. Wood is an obvious feedstock choice for biomass energy in some regions.

19. Concept Government Private Sector Government
Private sector firms 16 Energy Savings Contractors- design, construct, and operate power plants
Federal, State, Tribal and private-owned forests provide wood residues
RTOs manage dedicated green energy markets for federal agencies
Federal agencies purchase the green energy
Government
Private Sector
Government

20. 2 -3 Years 1 Year Design Private Sector Developer Development Stage
Financing
Negotiations
Close
Feasibility Study
Staffing
Site
PPA
Fuel
O&M
Design
Government
Establish agreement with RTO
RTO to create dedicated wholesale green energy market for the government
Engineering review of developer’s plans
Negotiate PPAs with federal agencies

21. Private Sector
Developer
2 – 3 Years
10 – 30 Years
< 1 Year
Construction Phase
Commercial Operations
Provisional Acceptance
Start-up, testing
Site
Work
Final Acceptance
Fabrication, erection,
etc
Punch List
Shakedown
Government
Continued development of PPAs with federal agencies

22. Government Sector Functions
Strategic Planning
Establish MOUs with federal agencies as needed
Identify new projects
Project Management and Facilitation
Identify biomass resources and broker their acquisition
Provide list of potential federal green energy buyers
Conduct independent Power Plant design engineering review
Conduct System analysis and modeling, i.e. Supply-Generation-Transmission-Sale

23. Private Sector Functions
Design/Construction Firm
Overall Project Owner
Feasibility Study
Legal Review
Project Risk Management
Permitting
Land acquisition
Site analysis/planning/development
Plant design
Construction
Operation

24. Barriers Supply Chain – Feedstock
Fear of over-scale and non-sustainability
Transportation costs
Economic resources for start-up
Lifecycle analysis vs capitalization costs
Mixed support from legislative branch

25. Challenges Competing priorities of appropriated funds
Climate change
Wildfire suppression
Forest health restoration
Providing green jobs
Economic resources
Socio-political support

26. Criteria for Success Social licensing
Reliable and predictable supply of woody biomass
Transportation network
Close proximity to transmission lines/substations
Financial support
Power purchase agreement

27. The Next Steps Involved in Successfully Implementing a Federal Bioenergy Facility
Developing a strong federal partnership with DOE-Federal Energy Mgmt Program – 16 ESCO’s
Secure the geographical location – vertical alignment
Use ESCO/traditional financial venture
Pre-feasibility study
Assurance of feedstock supply – stewardship contracting
Construction of bioenergy facility-thermal and CHP
Power Purchase Agreement
Monitor pilot bioenergy projects

28. Cost efficiency and potential savings of various sources to generate thermal energy.
Source Price Unit MMBtu/unit $/MMBtu Commerical Residential
Wood Chips $ 40 grn ton $ $27, n/a
Wood Pellets$ 160 ton $ $67, $1,153
Cordwood $ 175 cord $ $62, $1,060
Natural Gas $ therm $ $72, $1,241
Heating Oil $ gallon $ $147, $2,508
Propane $ gallon $ $161, $2,742

29. Key Concepts to Advocate:
The government doesn't just dictate to the public but leads by example.
The 'example' includes demonstrating how to advance 2 important sustainability principals, i.e.residual/waste minimization and generation of green energy.
It also includes use of the latest and cleanest resource-to-energy technologies - many of which were developed with government funds.

30. Accomplishment’s with Bioenergy Facilities
Meeting Executive Order 13423
Decreasing fossil fuel dependency
Decreasing wildfires through hazardous fuel reduction
Decreasing thermal and CHP costs
Decreasing GHG through wood substitution
Decreasing our CO2 emissions - climate change
Increasing Forest Health Restoration
Increasing National Security

31. Thank You
Q&A’s