1. A States Perspective of Biomass Power

2. U.S. EPA 146 biomass energy projects* ◦ Independent Power Producers  Power only  CHP (IPPs) ◦ Industrial ◦ Commercial ◦ Electric utility 3962 MW *Solid wood, agriculture byproducts & organic solids

3. IPP & utility power 63 projects 16 states 1988 MW *Solid wood, agriculture byproducts & organic solids

4. Profiles Massachusetts ◦ Significant public challenges ◦ Unfavorable policy Vermont ◦ RPS targets unmet ◦ Vermont Yankee nuke ◦ Public challenge New Hampshire ◦ Revised RPS ◦ Large new facility Maine ◦ 5 existing plants, 3 yr contracts

5. Profiles Michigan ◦ No RPS revisions ◦ Rural development initiatives Washington ◦ Removes placed-in-service date ◦ Expands eligible biomass feedstock Oregon ◦ Biomass fuel credit modification

6. MASSACHUSETTS RPS ◦ 15% by 2020 (new sources) ◦ 7.1% (existing sources)  1%...’03; 5%...’10 plus 1% annually  1997 placed-in-service date  Revisions proposed, yet to be released

7. MASSACHUSETTS Current status ◦ 1 operating…18 MW ◦ 0 closed ◦ 0 new/under construction ◦ 3 planned…135 MW ◦ 0 terminated

8. MASSACHUSETTS Obstacles ◦ Proposed RPS revisions  Wood = thinnings, storm salvage, sanitation;  15% by weight max. of harvested  GHG reduction of 50% over 20 years;  Efficiency requirements  40% = half REC, 60%-plus = whole REC  Existing plants comply by 2013, all by 2015

9. MASSACHUSETTS Obstacles (con’t) ◦ Citizen opposition, national attention  PR relations attacks  Challenging zoning,  Zoning approved, overturned  Appeal filed ◦ Citizen appeal of state air permits  Administrative ruling: “No citizen standing”  Dept. head: “People must be heard”  Decision pending March 2012

10. VERMONT RPS ◦ 20% by 2017 ◦ Voluntary w/mandatory trigger  VPSB assessment, 2012 ◦ Third party PPAs or build ◦ Third-party “facilitator”

11. VERMONT Current status ◦ 3 operating… 85MW ◦ 0 closed ◦ 0 new/under construction ◦ 1 planned…29 MW ◦ 1 terminated…29 MW

12. VERMONT Opportunity ◦ H 56: Baseload renewable  Separate from RPS  Wood exclusive  Avoided cost ◦ 25% renewable “consumption”  Separate from RPS  Farm, forest focus  FIT, <2.2 MW

13. NEW HAMPSHIRE RPS ◦ 24% by 2025  Class I new systems; 16%  Class II new solar; 0.3%  Class III existing methane, biomass; 6.5%  Class IV existing hydro; 1% ◦ 3 yr. REC bank, 30% compliance limit

14. NEW HAMPSHIRE Current status ◦ 8 operating…156 MW ◦ 0 closed ◦ 1 new/under construction…75 MW ◦ 2 planned…40 MW ◦ 0 terminated projects

15. NEW HAMPSHIRE Opportunity ◦ Revised RPS: SB 218  Class III generators  Remove methane, leave existing biomass  Cate Street 75-MW, Berlin  CHP, thermal, co-fire ◦ Short-term contracts

16. MAINE RPS ◦ 10% by 2017 mandatory, 40% target ◦ < 100 MW eligible ◦ 1% in 2008, + 1% annually ◦ ACP: $61

17. MAINE Current status ◦ 7 operating…268 MW ◦ 4 closed…MW ◦ 0 new/under construction ◦ 3 planned…35 MW ◦ 1 terminated…24 MW

18. MAINE Opportunity ◦ LD 1706, HP 1258  3-year contracts, 5 existing IPPs  Energy, capacity & RECs  Market prices  Resale/wholesale  IPPs demonstrate jobs, economics  Utility: sell into wholesale markets

19. MICHIGAN RPS ◦ 10% by 2015  Energy efficiency  “Clean” energy  2% in 2012, ramps up  Biomass exclusions  “Uncertified” whole trees  New MSW

20. MICHIGAN Current status ◦ 6 operating…162 MW ◦ 0 closed ◦ 2 new/under construction…47 MW ◦ 5 planned…133 MW ◦ 5 terminated…497 MW

21. MICHIGAN Obstacles ◦ No RPS modifications ◦ Limit fuel availability Opportunity ◦ “25 x ‘25” ballot initiative, constitutional amendment ◦ Forest- and ag-based rural development initiatives

22. WASHINGTON RPS ◦ 15% by 2020 + conservation & efficiency  3% by 2012 w/incr. increases  March 31, 1999 placed-in-service requirement  Biomass exclusions  Treated woods  Black liquor  Old growth fiber  MSW  ACP: $50 per MWH

23. WASHINGTON Current status ◦ 6 operating…141 MW ◦ 0 closed ◦ 1 new/under construction…20 MW ◦ 4 planned…116 MW ◦ 2 terminated…60 MW

24. WASHINGTON Other: opportunity ◦ SB 5575, passed Senate Feb. 14, 2012  Removes place-in-service date  Expands biomass sources (BL, food wastes, yard wastes) ◦ SB 5343  CCA exemption for anaerobic digestion sources

25. OREGON RPS ◦ By 2025…  Large…25%to “smallest”…5%  8%...“small community” (<20 MW)  Unbundled RECs <20%  Jan. 1, 1995 placed-in-service date  Incremental new capacity eligible  Efficiencies  Biomass exclusions  Treated wood  MSW capped at 11 MW

26. OREGON Current status ◦ 9 operating…130 MW ◦ 0 closed ◦ 0 new/under construction ◦ 4 planned…140 MW ◦ 1 terminated…24 MW

27. OREGON Opportunity ◦ Biomass fuel tax credit  Biomass producers/collectors  Biofuel  Electricity  Anaerobic digestion, pellets, or torrefaction  Exclusions  Firewood, charcoal, C&D, urban wood, mill waste  Stand-alone power newly eligible

28. OREGON ◦ Biomass fuel tax credit (con’t)  Rates  $10/green ton…wood, ag residue  $5/green ton…yard debris  $0.90/bushel…grain crops

29. OREGON ◦ Biomass fuel tax credit (con’t)  Outcome *  Incr. availability… 20-30%  Reduced cost… 20%  Program specs. (per 10,000 BDT)  Cost:…$143,000  Wages/bennies..$241,000  Jobs…5.1  Total economics…$868,000 * Source: Ecosystem Workforce Program report