1. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop1 RICE STRAW SUPPLY Recommendations for Ensuring the Consistency and Predictability in the Supply of Rice Straw for Cost-Effective Uses CALIFORNIA AIR RESOURCES BOARD WORKSHOP MARCH 7, 2001 YUBA CITY, CA

2. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop2 Background  Senate Bill 1186 (1999)  ARB to submit recommendations  ensuring consistency and predictability in the supply of rice straw for cost-effective uses.  Work with other State agencies: –California Department of Food and Agriculture –State Energy Commission –California Integrated Waste Management Board  Preliminary Workshop - August 30, 2000

3. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop3 Organization of Report  Summary and Recommendations  Current Straw Utilization Programs  Methods of Harvest, Storage and Distribution of Rice Straw  Harvest and Collection  Storage  Transportation and Distribution  Background Information  Appendices

4. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop4 Rice Straw Supply Economics  Growers  Cost to harvest/bale less than or equal to incorporation  Cost to replace nutrients removed during harvesting/baling  End-users  Inexpensive, consistently reliable supply of straw  Harvesters, Balers, Transporters, Distributors  Decrease costs to increase straw buyers HOW DO WE HELP MEET THESE GOALS?

5. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop5 Current Straw Utilization Programs  Rice Straw Demonstration Project Grant Fund (Rice Fund) - ARB  Rice Straw Utilization Tax Credit Program - CDFA  Agricultural Biomass Utilization Account - CDFA  Agricultural Biomass to Energy Incentive Grant Program - Trade and Commerce What do we need from these programs?  Ensure consistent and predictable supply of straw for consumers  Encourage use of rice straw over other commodities

6. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop6 Recommendations: Current Straw Utilization Programs  Support the Rice Straw Demonstration Grant Fund in the FY01-02, and FY 02-03 budgets  Extend the Rice Straw Utilization Tax Credit Program to 2015 What do we hope this would accomplish?  Increase incentive for financial backing of end-uses

7. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop7 Methods of Harvest, Storage, and Distribution  No single method is best  Depends on many factors (equipment and storage availability, weather, field conditions, end-use, etc.)  What factors affect costs?  Efficient and available equipment and facilities  Efficient methods of harvest/storage/transport  Straw quality and storage life  Storage facility location  Other

8. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop8 Recommendations: Methods of Harvest, Storage, and Distribution  Allocate funds to support research and demonstration projects  Develop more efficient equipment and methods to harvest, bale, and distribute straw  Develop cost-effective methods to monitor straw quality during storage  “life-span” of straw is unknown  Develop methods to optimally locate storage facilities  decrease transportation costs and community impacts

9. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop9 Harvest and Collection  Related factors affecting the use of rice straw Increase efficiency Decrease costs Increase use Increase need for efficient equipment and methods  Enhancing efficiency should increase end-use

10. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop10 Recommendations: Harvest and Collection  Accelerated tax depreciation for equipment  offset equipment costs and decrease cost of straw  Tax incentives  offset equipment costs and decrease cost of straw

11. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop11 Storage  Factors affecting rice straw use  Availability and usefulness of storage facilities  Storage facility location  Quality assurance

12. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop12 Recommendations: Storage  Modify Rice Straw Utilization Tax Credit Program to include storage component  Boost construction of new storage facilities  Allocate funds to support research and demonstration projects  Straw monitoring  impact of various storage options  quality assurance  Increased straw density  cost-effective methods  impact on storage  Storage facility location  impact on transportation and handling costs

13. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop13 Transportation and Distribution  Factors affecting rice straw use  Increased demand for equipment as use increases  Increased traffic load  Increased need for efficiency and payload

14. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop14 Recommendations: Transportation and Distribution  Allocate funds to support research and demonstration projects  Straw density  Cost-effective methods  impact on transportation and handling  Increased traffic  impact on air quality and local communities  Storage facility location  impact on transportation and handling costs  Accelerate tax depreciation of equipment  offset equipment costs and decrease cost of straw  Add other tax incentives  offset equipment costs and decrease cost of straw

15. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop15 Next Steps  15-day comment period  March 7 - 22, 2001  Incorporate comments into Final Proposed Report  Submit Final Proposed Report to Governor’s Office  Upon Governor’s approval, submit Final Report to Legislature

16. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop16 Contact Information Theresa Najita Air Pollution Specialist California Air Resources Board 1001 I Street P.O. Box 2815 Sacramento, CA 95812 Phone:916-322-7297 Fax: 916-327-8524 Email: tnajita@arb.ca.gov http://www.arb.ca.gov/smp/rice/rice.htm http://www.arb.ca.gov/smp/rice/supply/supply.htm "The energy challenge facing California is real. Every Californian needs to take immediate action to reduce energy consumption. For a list of simple ways you can reduce demand and cut your energy costs, see our Web-site at http://www.arb.ca.gov."

17. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop17 Open Discussion  What are the major roadblocks that exist in ensuring consistency and predictability in the supply of rice straw? – For growers? – For harvesters and balers? – For distributors? – For end-users?  Are these roadblocks addressed in the report?

18. March 7, 2001 Air Resources Board - Rice Straw Supply Workshop18  Can the recommendations help to ensure a consistent and predictable supply of straw? –Will costs decrease? –Will decreased costs be passed to the end-user?  Are the recommendations feasible? –Could they easily be implemented?  Are any major perspectives not represented in the Report?