State and Local
Climate and Energy Program
State
BIOENERGY
PRIMER
Information and Resources for States
on Issues, Opportunities, and Options
for Advancing Bioenergy
U.S. ENVIRONMENTAL PROTECTION AGENCY
AND
NATIONAL RENEWABLE ENERGY LABORATORY
SEPTEMBER 15, 2009
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TABLE OF CONTENTS
Acknowledgements _. _ iv
Key Acronyms and Abbreviations ._ v
Executive Summary _ 1
Introduction _ _3
1.1 How the Primer Is Organized __5
1.2 References _5
What Is Bioenergy?_ _7
2.1 What Are Biomass Feedstocks? __8
2.2 Potential for Increased Production and Use of Biomass Feedstocks ._ 11
2.3 How Are Biomass Feedstocks Converted into Bioenergy? ._ 12
2.4 Resources for Detailed Information __21
2.5 References 22
Benefits, Challenges, and Considerations of Bioenergy 25
3.1 Energy Security Benefits __26
3.2 Economic Benefits _ __27
3.3 Environmental Benefits, Challenges, and Considerations 29
3.4 Feedstock Supply Challenges __35
3.5 Infrastructure Challenges __37
3.6 Resources for Detailed Information 39
3.7 References __44
How Can States Identify Bioenergy Opportunities? 47
4.1 Step 1: Determine Availability of Biomass Feedstocks 48
4.2 Step 2: Assess Potential Markets for Identified Biomass Feedstocks and Bioenergy 53
4.3 Step 3: Identify Opportunities for Action 59
4.4 Resources for Detailed Information 62
4.5 References 65
Options for States to Advance Bioenergy Goals 67
5.1 Favorable Policy Development 68
5.2 Favorable Regulatory Development 69
5.3 Environmental Revenue Streams 70
5.4 Direct Investment/Financing and Incentives 70
5.5 Research, Development, and Demonstration ._74
5.6 Information Sharing ._ 74
5.7 Resources for Detailed Information 75
References ._ 77
Resources and Tools for States 79
Glossary_ 93
State Bioenergy Primer III
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IV State Bioenergy Primer
ACKNOWLEDGEMENTS
The U.S. Environmental Protection Agency (EPA)
would like to acknowledge the many individual and
organizational researchers and government employees
whose efforts helped to bring this extensive report to
fruition. The following contributors provided signifi-
cant assistance through their review of the document:
EPA - Paul Argyropoulos, Dale Aspy, Allison Dennis,
Karen Blanchard, William Brandes, Kim Grossman
(now with Energy Trust of Oregon), Scott Davis, Jim
Eddinger, Rachel Goldstein, Doug Grano, Bill Maxwell,
Donna Perla, Felicia Ruiz, Christopher Voell, Robert
Wayland, and Gil Wood.
National Renewable Energy Laboratory (NREL)
- Ann Brennan, Scott Haase, Victoria Putsche, John
Sheehan (now with University of Minnesota), Phil
Shepherd, Walter Short, and Bob Wallace (now with
Pennsylvania State University).
U.S. Forest Service - Marcia Patton-Mallory and Larry
Swain.
The following individuals authored this report:
EPA - Danielle Sass Byrnett, Denise Mulholland, and
Emma Zinsmeister.
NREL - Elizabeth Doris, Anelia Milbrandt, Robi
Robichaud, Roya Stanley (now with the state of Iowa),
and Laura Vimmerstedt.
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KEY ACRONYMS AND ABBREVIATIONS
ACORE
B100
B20
B90
BCAP
BCEX
BERS
BPA
Btu
CHP
CMAQ
CNG
CO
CROP
DG
DOE
DOT
DPA
DSIRE
E10
£85
EERE
EGRID
EIA
EISA
EPA
EPRI
ETBE
FFVs
FIDO
FPW
GHG
CIS
GREET
GW
IEA
IGCC
American Council on Renewable Energy
100 percent biodiesel
A blend of 20 percent biodiesel and 80 percent
petroleum diesel
A blend of 90 percent biodiesel and 10 percent
petroleum diesel
Biomass Crop Assistance Program
Biomass Commodity Exchange
Bio-Energy Recovery Systems
Bisphenol A
British thermal units
Combined heat and power
Congestion Mitigation and Air Quality Improvement
program
Compressed natural gas
Carbon monoxide
Coordinated Resource Offering Protocol
Distributed generation
U S Department of Energy
U S Department of Transportation
Diphenoloic acid
Database of State Incentives for Renewable Energy
A blend of 10 percent ethanol and 90 percent petroleum
A blend of 85 percent ethanol and 15 percent petroleum
DOE's Office of Energy Efficiency and Renewable Energy
EPA's Emissions & Generation Resource Integrated
Database
DOE's Energy Information Administration
Energy Independence and Security Act
U.S. Environmental Protection Agency
Electric Power Research Institute
Ethyl tert-butyl ether
Flexible fuel vehicles
USFS Forest Inventory Data Online
Food processing waste
Greenhouse gas
Geographic Information System
Greenhouse Gases, Regulated Emissions, and Energy Use
in Transportation
Gigawatts
International Energy Agency
Integrated gasification combined cycle
JEDI
kWh
LCA
LCFS
LFG
LMOP
LRAMs
MACT
MSW
MTHF
MW
MWh
NAAQS
NACAA
NESHAP
NREL
NSPS
ORNL
PBF
PEDA
PHMSA
PLA
PM
RDF
REC
RFA
RFS
RPS
SABRE
SIP
SSEB
Syngas
USDA
USFS
VOCs
WARM
WGA
WREZ
WWTP
Job and Economic Development Impact model
Kilowatt-hours
Life-cycle assessment
Low carbon fuel standard
Landfill gas
EPA's Landfill Methane Outreach Program
Lost revenue adjustment mechanisms
Maximum available control technologies
Municipal solid waste
Methyl tetrahydrofuran
Megawatts
Megawatt-hours
National Ambient Air Quality Standards
National Association of Clean Air Agencies
National Emission Standards for Hazardous Air
Pollutants
DOE's National Renewable Energy Laboratory
New Source Performance Standards
DOE s Oak Ridge National Laboratory
Public benefits fund
Pennsylvania Energy Development Authority
DOT's Pipeline and Hazardous Materials Safety
Administration
Polylactide
Particulate matter
Refuse-derived fuel
Renewable energy credit
Renewable Fuels Association
Renewable fuels standard
Renewable portfolio standard
State Assessment for Biomass Resources
State Implementation Plan
Southern States Energy Board
Synthesis gas
U.S. Department of Agriculture
U.S. Forest Service
Volatile organic compounds
EPA's WAste Reduction Model
Western Governors' Association
Western Renewable Energy Zones Project
Wastewater treatment plant
State Bioenergy Primer
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VI State Bioenergy Primer |
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Executive
Summary
Across the country, states are
looking for ways to tackle their
energy, environmental, and climate
change challenges through a variety
of approaches. One frequently
discussed option is the use of
biomass resources to develop
bioenergy—bioheat, biopower,
biofuels, and bioproducts.
Many information resources are available that discuss
biomass/bioenergy in a highly technical manner and/
or that focus only on one feedstock (e.g., forest resi-
dues, agricultural crops) or product (e.g., biofuels).
Alternately, some entities present bioenergy informa-
tion that is relevant to the general public but is too
simplified for decision makers.
This State Bioenergy Primer is designed to bring many
of these resources together and provide useful, targeted
information that will enable a state decision maker to
determine if he/she wants or needs more details.
The primer offers succinct descriptions of biomass
feedstocks (Chapter 2), conversion technologies (Chap-
ter 2), and the benefits/challenges of promoting bio-
energy (Chapter 3). It includes a step-wise framework,
resources, and tools for determining the availability of
feedstocks (Chapter 4), assessing potential markets for
biomass (Chapter 4), and identifying opportunities for
action at the state level (Chapter 4). The primer also
CHAPTER ONE
Introduction
CHAPTER TWO
What Is Bioenergy?
CHAPTER THREE
Benefits and Challenges
CHAPTER FOUR
Identifying Bioenergy Opportunities
CHAPTER FIVE
Options for Advancing Bioenergy
EXECUTIVE SUMMARY | State Bioenergy Primer
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describes financial, policy, regulatory, technology, and
informational strategies for encouraging investment
in bioenergy projects and advancing bioenergy goals
(Chapter 5). Each chapter contains a list of selected
resources and tools that states can use to explore topics
in further detail.
BIOENERGY CONSIDERATIONS
Biomass energy, or bioenergy—fuel or power derived
from organic matter—can be used to produce trans-
portation fuel, heat, electric power, or other products.
Bioenergy currently represents approximately 3 to 4
percent of the United States' total energy production
(EIA, 2008).
The benefits of increased use of bioenergy depend
upon the intended use and source, but can include: im-
proved energy security and stability through reduced
dependence on foreign sources of energy; increased
economic development and job growth through
creation of new domestic industries and expansion
of existing industries; and expanded environmental
benefits, including reduction of greenhouse gas (GHG)
emissions.
Along with the opportunities, however, are potential
challenges—among them the need for reliable feed-
stock supplies, the problems of infrastructure con-
straints for delivering of feedstocks and distribution of
products, the potential for ancillary environmental and
land use impacts resulting from increasing biomass
supplies to produce bioenergy, and the potential for
tradeoffs in air emissions resulting from direct com-
bustion of biomass.
Each states individual geography, economic base, mar-
ket conditions, climate, and state-specific incentives
and regulations will impact the feedstocks and bioen-
ergy outputs that make economic and environmental
sense for that state to pursue.
A decision maker starts identifying potentially fruitful
bioenergy opportunities by examining all potential
feedstocks—both agricultural/energy crops (e.g., corn,
soybeans, switchgrass) and waste/opportunity fuels
(e.g., wastewater treatment biogas, wood waste, crop
residues, manure, landfill gas, solid waste)—and their
specific location and costs within the state. The evalua-
tion of biomass resources is followed by an assessment
of the potential markets and competition for those
feedstocks and what steps would be required to capital-
ize on the bioenergy potential.
If a decision maker determines that the benefits of
bioenergy outweigh the challenges for their state, nu-
merous options are available for advancing bioenergy
goals. Favorable policy development, favorable regula-
tory development, capitalization of environmental
revenue streams, direct investment/financing or incen-
tives, and research and development are all options for
effectively promoting bioenergy in a state.
Each of the chapters in this Bioenergy Primer describes
how states consider these and other issues as they
decide whether or not to develop a bioenergy promo-
tion strategy, and is augmented by case studies about
how states have successfully implemented a variety of
approaches.
State Bioenergy Primer | EXECUTIVE SUMMARY
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CHAPTER ONE
Introduction
Biomass energy, or bioenergy—fuel
or power derived from organic
matter—is one of the keys to a
sustainable energy future in the
United States and throughout the
world. Bioenergy has the potential to:
Improve energy security and stability by reducing de-
pendence on fossil sources of energy.
Increase economic development and job growth
through creation of new domestic industries.
Produce environmental benefits, including reduction
of greenhouse gas (GHG) emissions.
Along with the potential opportunities, however,
are challenges—among them the need for reliable
feedstock supplies, the problem of infrastructure con-
straints, and the potential for environmental and land
use impacts resulting from increasing biomass supplies
to produce bioenergy.
In 2006, and for the sixth year in a row, biomass was
the leading source of renewable energy in the United
States, providing more than 3 quadrillion British ther-
mal units (Btu) of energy. Biomass was the source for
49 percent of all renewable energy, or nearly 3.5 per-
cent of the total energy produced in the United States
(EIA, 2008).
O CHAPTER ONE
Introduction
i > CHAPTER TWO
What Is Bioenergy?
i •CHAPTER THREE
Benefits and Challenges
i • CHAPTER FOUR
Identifying Bioenergy Opportunities
(i CHAPTER FIVE
Options for Advancing Bioenergy
CHAPTER ONE CONTENTS
1.1 How the Primer Is Organized
1.2 References
CHAPTER ONE | State Bioenergy Primer
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DOES THE MARKET FOR BIOENERGY LOOK
PROMISING IN MY STATE?
The questions below can help state officials evaluate the potential for a bioenergy market
in their state.
1. Does the state have sufficient biomass re-
sources to support bioenergy development?
2. Are energy (electricity, propane, fuel oil,
natural gas, or liquid fuel) costs in the state
relatively high?
3. Is the cost of energy (e.g., electricity, gas-
oline, natural gas, oil) projected to increase?
4. Are electricity demand, renewable elec-
tricity demand, and/or biofuels demand pro-
jected to increase?
5. Are policy makers in the state inclined to
hedg e against potential future volatility?
6. Does the state have an electrical or ther-
mal renewable portfolio standard that re-
quires use of renewable energy?
7. Does the state have a renewable fuel
standard that requires use of biofuels?
8. Are financial incentives for production
of bioenergy (e.g., production incentives,
tax incentives, low-interest loans, rebates,
environmental revenue streams) offered in
the state?
9. Does the state have standardized, simpli-
fied utility interconnection requirements for
smaller bioenergy producers?
If a state has answered yes to two or more of the questions above, the market for bioenergy
could be promising. Chapters 3 and 5 of this primer may be of most interest.
If a state does not yet have the answers to these questions, the resources in this primer should
be helpful for determining what approaches can be taken to answer them.
FIGURE 1-1. THE ROLE OF RENEWABLE ENERGY CONSUMPTION IN THE NATION'S ENERGY SUPPLY, 2006
Source: E/A, 2008
Total = 99.861 Quadrillion Btu
Total = 6.922 Quadrillion Btu
Petroleum
40%
Nuclear
8%
Natural Gas
22%
Renewable
7%
Solar 1%
Hydroelectric 41%
Geothermal 5%
Biomass 49%
Wind 4%
4 State Bioenergy Primer | CHAPTER ONE
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The U.S. Department of Energy (DOE) estimates that
the land resources of the United States could produce
enough biomass to replace 30 percent of the current
U.S. demand for petroleum on a sustainable basis by
the mid-21st century (U.S. DOE, 2005).
Ultimately, the outlook for bioenergy depends heavily
on policy choices made at the state and federal levels.
The federal government and many states are exploring
the role of biomass as a means to achieve economic,
energy, and environmental goals.
EPA has produced this State Bioenergy Primer with the
following objectives:
To provide a basic overview of bioenergy, includ-
ing what it is, its potential benefits, and its potential
challenges.
To describe the steps that state decision makers can
take to assess whether and how to promote bioenergy.
To identify opportunities for state actions to support
bioenergy.
To present resources for additional information.
To provide examples and lessons learned from state
experiences with bioenergy.
1.1 HOW THE PRIMER
IS ORGANIZED
In addition to providing basic information and
overviews of relevant issues, each chapter includes
an extensive list of resources for additional,
detailed information. These resources are also
complied into a stand-alone resource kit found in
Appendix A.
1.2 REFERENCES
EIA (Energy Information Administration),
2008. Renewable Energy Annual 2006., Washington,
DC, 2008.
U.S. DOE (Department of Energy), 2005. Biomass as
Feedstock for a Bioenergy and Bioproducts Industry:
The Technical Feasibility of a Billion-Ton Annual
Supply. DOE/DO-102995-2135. Washington, DC,
April 2005. http://feedstockreview.ornl.gov/pdf/bil-
lion_ton_vision.pdf.
HOW THE STATE BIOENERGY PRIMER IS ORGANIZED
CHAPTER TWO: What Is Bioenergy?
Describes biomass feedstocks and conversion technologies for
producing bioenergy
CHAPTER THREE: Benefits and Challenges
Discusses energy security, economic benefits and
challenges, and environmental issues
CHAPTER FOUR: Identifying Bioenergy Opportunities CHAPTER FIVE: Options for Advancing Bioenergy
Presents steps for identifying biomass resource availability,
assessing market potential, and evaluating existing policies and
opportunities for action
Describes how states can facilitate projects through policies
and regulations, incentives, direct investment, research and
development, and information sharing
APPENDIX A: Tools and
Resources for States
Lists all resources referenced
throughout the document
APPENDIX B: Glossary
of Bioenergy Terms
Provides an at-a-glance guide to
key terms
CHAPTER ONE | State Bioenergy Primer
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I/
6 State Bioenergy Primer | CHAPTER ONE
\
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Bioenergy refers to renewable energy
produced from biomass, which
is organic material such as trees,
plants (including crops), and waste
materials (e.g., wood waste from
mills, municipal wastes, manure,
landfill gas (LFG), and methane from
wastewater treatment facilities).
Biopower refers to the use of biomass to produce
electricity. Biomass can be used alone or cofired with
another fuel, typically coal, within the same combus-
tion chamber.
Bioheat refers to the use of biomass to produce heat.
Biomass combined heat and power (CHP) refers
to the cogeneration of electric energy for power and
thermal energy for industrial, commercial, or domes-
tic heating or cooling purposes through the use of
biomass.
Biofuels are fuels (often for transportation) made from
biomass or its derivatives after processing. Examples of
commercially available biofuels include ethanol, biod-
iesel, and renewable diesel.
Bioproducts are commercial or industrial products
(other than food or feed) that are composed in whole
or in significant part of biomass. Examples of bioprod-
ucts include soy ink, cellophane, food utensils, and
paints made from biomass-based materials.
i' CHAPTER ONE
Introduction
6 CHAPTER TWO
What Is Bioenergy?
i •CHAPTER THREE
Benefits and Challenges
i • CHAPTER FOUR
Identifying Bioenergy Opportunities
(i CHAPTER FIVE
Options for Advancing Bioenergy
CHAPTER TWO CONTENTS
2.1 What Are Biomass Feedstocks?
2.2 Potential for Increased Production and Use of
Biomass Feedstocks
2.3 How Are Biomass Feedstocks Converted
into Bioenergy?
2.4 Resources for Detailed Information
2.5 References
CHAPTER TWO | State Bioenergy Primer
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Bioenergy is becoming an increasingly attractive
energy choice because of high or volatile fossil fuel
prices, concerns about national energy independence,
the impacts of conventional energy use on the environ-
ment, and global climate change. More production and
use of bioenergy can improve environmental quality
(provided best available technologies and pollution
controls are used); provide opportunities for economic
growth, often in rural areas; support state energy and
environmental goals; and increase domestic energy
supplies, which will enhance U.S. energy independence
and security.
The basic process for using the energy in biomass to
produce biopower, bioheat, biofuels, or bioproducts is
shown in Figure 2-1.
2.1 WHAT ARE BIOMASS
FEEDSTOCKS?
A feedstock is a material used as the basis for manu-
facture of another product. Biomass feedstocks are
sources of organic matter that are used as key inputs in
production processes to create bioenergy. Both agricul-
tural/energy crops and waste/opportunity fuels can be
used as biomass feedstocks.
AGRICULTURAL/ENERGY CROPS
Several traditional crops that are grown for food and
other uses can also be used to produce bioenergy,
primarily as biofuels. Crops currently used as biomass
feedstocks include:
Corn. Corn is the primary biomass feedstock currently
used in the United States to produce ethanol (and co-
products, as described in Section 2.2.2).
Rapeseed. Rapeseed is the primary feedstock used in
Europe to produce biodiesel (EERE, 2008).
1 Sorghum. Sorghum is used in the United States as an
alternative to corn for ethanol production. As of 2008,
15 percent of U.S. grain sorghum is being used for
ethanol production at eight plants (Biomass Research
and Development Initiative, 2008).
Soybeans. Soybeans are the primary biomass feedstock
currently used in the United States to produce biodiesel
from soybean oil.
1 Sugarcane. Brazil uses sugarcane to produce ethanol
and uses the sugarcane residue for process heat.
Other crops that are planted and harvested specifically
for use as biomass feedstocks in the production of bio-
energy are referred to as "energy crops." Energy crops
are fast-growing and grown for the specific purpose of
producing energy (electricity or liquid fuels) from all
or part of the resulting plant. The advantages of using
crops specifically grown for energy production include
consistency in moisture content, heat content, and
processing characteristics, which makes them more
cost-effective to process efficiently (U.S. EPA, 2007a).
Emerging energy crops include:
1 Microalgae. The oil in microalgae can be converted
into jet fuel or diesel fuel (National Renewable Energy
Laboratory (NREL), 2006). Microalgae with high lipid
content are best suited to production of liquid fuel.
FIGURE 2-1. STAGES OF BIOENERGY PRODUCTION
Source: Biomass Research and Development Board, 2008
8 State Bioenergy Primer | CHAPTER TWO
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Microalgae are highly productive, do not use agricul-
tural land or products, and are carbon-neutral (May-
field, 2008). More than 50 companies are researching
microalgal oil production, including development of
new bioreactors and use of biotechnologies to influence
microalgal growth (NREL, 2008).
Switchgrass; poplar and willow trees. These energy
crops are not yet being grown commercially in the
United States for bioenergy, but may have the great-
est potential for dedicated bioenergy use over a wide
geographic range. The U.S. Department of Energy (U.S.
DOE) estimates that about 190 million acres of land
in the United States could be used to produce energy
crops such as switchgrass and poplar and willow trees
(U.S. EPA, 2007a; Antares, 2003). Several states in the
Midwest and South could produce significant biopower
using switchgrass, which is currently grown on some
Conservation Reserve Program1 acres and on hay acres
as a forage crop (U.S. EPA, 2007a; Ugarte et al., 2006).
WASTE/OPPORTUNITY FUELS
Biomass feedstocks from waste materials are often
referred to as "opportunity" fuels because they would
otherwise go unused or be disposed of; bioenergy
production is an opportunity to use these materials
productively. Common opportunity fuels include:
Biogas. Biogas, consisting primarily of methane, is
released during anaerobic decomposition of organic
matter. Facilities that deal with large quantities of or-
ganic waste can employ anaerobic digesters and/or gas
collection systems to capture biogas, which can be used
as a source of on-site bioheat and/or biopower. Major
sources of biogas include:
• Wastewater treatment plants (WWTPs). Anaerobic
digesters can be used during treatment of wastewater
to break down effluent and release biogas, which can
then be collected for subsequent use as a source of
bioenergy. According to an analysis by the U.S. EPA
Combined Heat and Power Partnership, as of 2004,
544 municipal WWTPs in the United States use an-
aerobic digesters. Only 106 of these facilities utilize
the biogas produced by their anaerobic digesters to
generate electricity and/or thermal energy. If all 544
facilities were to install CHP systems, approximately
1 The Conservation Reserve Program, administered by USDA, provides
technical and financial assistance to eligible farmers and ranchers to address
soil, water, and related natural resource concerns on their lands in an environ-
mentally beneficial and cost-effective manner. For more information see www.
nrcs.usda.gov/programs/CRP/.
340 megawatts (MW) of biogas-fueled electricity
could be generated (U.S. EPA, 2007a).
• Animal feeding operations. EPAs AgSTAR Program
has identified dairy operations with more than 500
head and swine operations with more than 2,000
head as the most viable candidates for anaerobic
digestion of manure and subsequent methane capture
(U.S. EPA, 2007a). As of April 2009, 125 operators in
the United States collect and use their biogas. In 113
of these systems, the captured biogas is used to gener-
ate electrical power, with many of the farms recover-
ing waste heat from electricity-generating equipment
for on-farm use. These systems generate about
244,000 MWh of electricity per year. The remaining
12 systems use the gas in boilers, upgrade the gas for
injection into the natural gas pipeline, or simply flare
the captured gas for odor control (U.S. EPA, 2009b).
For more information on how anaerobic digestion is
used to produce biogas for bioenergy, refer to Sec-
tion 2.2.1 — Conversion Technologies for Biopower
and Bioheat.
Landfills. As the organic waste buried in landfills
decomposes, a gas mixture of carbon dioxide (CO2)
and methane (CH4) is produced. Gas recovery
systems can be used to collect landfill emissions,
providing usable biogas for electricity generation,
CHP, direct use to offset fossil fuels, upgrade to pipe-
line quality gas, or use in the production of liquid
fuels. As of December 2008, EPAs Landfill Methane
Outreach Program estimated that, in addition to the
approximately 445 landfills already collecting LFG to
produce energy, 535 landfills are good candidates for
landfill gas-to-energy projects (U.S. EPA, 2008a).
Biosolids. Biosolids are sewage sludge from wastewater
treatment plants. Biosolids can be dried, burned, and
used in existing boilers as fuel in place of coal, or co-
fired with coal to generate steam and power. Biosolids
can also be converted into biogas for bioenergy (see
Biogas section above). The high water content of most
biosolids can present challenges for combustion. As a
result, biosolids must generally go through a drying
process prior to being used for energy production.
Crop residues. More than 300 million acres are used
for agricultural production in the United States. As of
2004, the most frequently planted crops (in terms of
average total acres planted) were corn, wheat, soybeans,
hay, cotton, sorghum, barley, oats, and rice. Following
CHAPTER TWO | State Bioenergy Primer
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the harvest of many traditional agricultural crops, resi-
dues such as crop stalks, leaves, cobs, and straw are left
in the field. Some of these residues could be collected
and used as bioenergy feedstocks (U.S. EPA, 2007a).
Food processing wastes. Food processing wastes
include nut shells, rice hulls, fruit pits, cotton gin trash,
meat processing residues, and cheese whey, among
others. Because these residues can be difficult to use
as a fuel source due to the varying characteristics of
different waste streams, the latter two of these food
processing wastes are often disposed of as industrial
wastewater. Work is under way in the food processing
industry to evaluate the bioenergy potential of these
residues, including collection and processing methods
to allow more effective use as biomass feedstocks.
Utilities and universities have used food wastes such as
peanut hulls and rice hulls for biopower. Many anaero-
bic digester operators are currently adding agricultural
and food wastes to their digesters to provide enhanced
waste management and increased biogas generation
(U.S. EPA, 2007a).
Forest residues. Residues from silviculture (wood
harvesting) include logging residues such as limbs
and tops, excess small pole trees, and dead or dying
trees. After trees have been harvested from a forest
for timber, forest residues are typically either left in
the forest or disposed of via open burning through
forest management programs because only timber of a
certain quality can be used in lumber mills and other
processing facilities. An advantage of using forest resi-
dues from silviculture for bioenergy production is that
a collection infrastructure is already in place to harvest
the wood. Approximately 2.3 tons of forest residues are
available for every 1,000 cubic feet of harvested timber
(although this number can vary widely); these residues
are available primarily in the West (U.S. EPA, 2007a).
Forest thinnings. Forest thinnings can include un-
derbrush, saplings, and dead or dying trees removed
from dense forest. Harvesting, collecting, processing,
and transporting loose forest thinnings is costly. The
use of forest thinnings for power generation or other
facilities is concentrated in the western United States;
in other areas not already used for silviculture, there is
no infrastructure to extract forest thinnings. Typically,
the wood from forest thinnings is disposed of through
controlled burning due to the expense of transporting
it to a power generation facility (U.S. EPA, 2007a).
10 State Bioenergy Primer | CHAPTER TWO
CELLULOSIC FEEDSTOCKS
Cellulosic feedstocks include opportunity fuels (e.g., wood
waste, crop residues) and energy crops (e.g., switchgrass,
poplar, and willow trees). In using cellulosic feedstocks,
the fiber, or cellulose, is broken down into sugars or other
intermediate products that can be converted to bioenergy.
Using cellulosic feedstocks such as wood waste and municipal
solid waste for ethanol or other biofuel production or
bioproducts development could reduce the waste stream
in the United States. Ethanol production from cellulosic
feedstocks has not yet occurred on a commercial scale but is
actively under development (see Section 2.2.2 — Conversion
Technologies for Biofuels). For discussions of the benefits and
challenges of ethanol production, see Chapter 3, Benefits,
Challenges, and Considerations of Bioenergy.
Municipal solid waste. Municipal solid waste
(MSW)—trash or garbage—can be collected at land-
fills, dried, and burned in high-temperature boilers to
generate steam and electricity. Mass burn incineration
is the typical method used to recover energy from
MSW, which is introduced "as is" into the combus-
tion chamber; pollution controls are used to limit
emissions into the air. Some waste-to-energy facilities
have been in operation in the United States for more
than 20 years. More than one-fifth of incinerators use
refuse-derived fuel (RDF), which is MSW that has
been thoroughly sorted so that only energy-producing
components remain (U.S. EPA, 2008b). RDF can be
burned in boilers or gasified (U.S. DOE, 2004). (See the
related section above on biogas, which describes collec-
tion of biogas from landfills for use as bioenergy.) The
waste-to-energy industry currently generates 17 billion
kilowatt-hours (kWh) of electricity per year. However,
based on the total amount of MSW disposed of in the
United States annually (250 to 350 million tons), MSW
could be used as fuel to generate as much as 70 to 130
billion kWh per year (U.S. EPA, 2008e).
1 Restaurant wastes. Used vegetable oils, animal fats,
and grease from restaurants can be used as biomass
feedstocks to produce biodiesel. Small-scale efforts
have been successfully implemented in a number of
cities, counties, and universities across the country.
For example, San Francisco initiated a program to
use restaurant wastes to fuel the city's fleet of more
than 1,600 diesel vehicles, which were retrofitted
to accept the biodiesel (City and County of San
Francisco, 2007). The use of restaurant wastes may
be less expensive than using new vegetable oil as the
feedstock to produce biodiesel if collection costs can
be minimized—collection of small volumes from nu-
merous locations can increase costs (Commonwealth
of Massachusetts, 2008).
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Wood waste. Wood waste includes mill residues from
primary timber processing at sawmills, paper manu-
facturing, and secondary wood products industries
such as furniture makers. It also includes construction
wood waste, yard waste, urban tree residue, and dis-
carded consumer wood products that would otherwise
be sent to landfills (U.S. EPA, 2007a). Wood wastes
such as woodchips, shavings, and sawdust can be com-
pressed into pellets, which offer a more compact and
uniform source of energy (Biomass Energy Resource
Center, 2007).
Mill residues. Mill residues include bark, chips,
sander dust, edgings, sawdust, slabs, and black liquor
(a mixture of solvents and wood byproducts, usually
associated with the pulp and paper industry manu-
facturing process). They come from manufacturing
operations such as sawmills and pulp and paper com-
panies that produce lumber, pulp, veneers, and other
composite wood fiber materials. Almost 98 percent of
mill residues generated in the United States are cur-
rently used as fuel or to produce wood pellets or fire
logs, or fiber products, such as hardboard, medium-
density fiberboard, particle board, and other wood
composites (U.S. EPA, 2007a). The U.S. Department
of Agriculture (USDA) estimates that 2 to 3 percent
of mill residues are available as an additional fuel
resource because they are not being used for other
purposes. The largest concentrations of mill residues
are in the West and Southeast (U.S. EPA, 2007a).
Construction (and demolition) wood waste.
Wood waste comprises about 26 percent of the total
construction and demolition waste stream; about
30 percent of that debris is uncontaminated by
chemical treatment and available for recovery (U.S.
EPA, 2007a).
Discarded consumer wood products. These products
include discarded wood furniture, cabinets, pallets,
containers, and scrap lumber (U.S. EPA, 2007a).
Yard trimmings. Yard trimmings can be generated
from residential landscaping and right-of-way trim-
ming near roads, railways, and utility systems such
as power lines. Yard trimmings comprise about
14 percent of the MSW stream. Approximately 36
percent of yard trimmings are recoverable, and thus
about 5 percent of the total MSW waste stream is
yard trimmings that could be useable as a feedstock
(U.S. EPA, 2007a).
For more information about biomass feedstocks, see
EPA's CHP Biomass Catalog of Technologies at www.
epa.gov/chp/basic/catalog.html#biomasscat.
WOOD PELLETS
Wood pellets, briquettes, fire logs, and other compressed
wood products are made from byproducts of forest products
manufacturing, forest management, and recycled urban wood
waste. These products are held together by the lignin in the
wood when they are condensed through subjection to heat
and pressure. Pellets are manufactured in uniform sizes and
shapes (usually between 1-1V2 inches by approximately 1/4-
5/16 inches in diameter) and have a higher energy content by
weight (roughly 7,750 Btu per pound at six percent moisture
content) than many other biomass feedstocks due to their
high density and low-moisture content. These characteristics
alleviate many of the potential issues associated with storing
biomass residues. Wood pellets are sold in different grades
based on the ash produced during combustion relative to the
amount of fuel fed into the wood pellet boiler (ranging from 1
to 3 percent). States regulate the disposal and/or subsequent
use of the ash.
Source: Biomass Energy Resource Center, 2007
2.2 POTENTIAL FOR INCREASED
PRODUCTION AND USE OF BIOMASS
FEEDSTOCKS
CURRENT PRODUCTION AND USE
In 2006, renewable energy accounted for 7 percent of
the nation's energy supply; of that, biomass was the
source of 49 percent of renewable energy consumption
(see Figure 1-1). Wood (used as fuel wood), forest
residue, and wood waste feedstocks supplied the most
bioenergy in 2005 (64 percent), followed by other types
of wastes (e.g., MSW, LFG, agricultural residues, bio-
solids) (18 percent), and corn and soybean oil used to
produce biofuels and related coproducts (18 percent)
(EIA, 2008a; EIA, 2008b).
FUTURE PRODUCTION AND USE
Significant potential exists to increase the production
and use of many different types of biomass feedstocks.
In 2005, U.S. DOE and USDA convened an expert pan-
el to assess whether the land resources of the United
States could produce a sustainable supply of biomass
sufficient to displace 30 percent of the nation's current
petroleum consumption (U.S. DOE, 2005). The panel
concluded that by the mid-21st century:
CHAPTER TWO | State Bioenergy Primer 11
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The amount of wood, forest residue, and wood waste
feedstocks sustainably produced for bioenergy each
year could be increased nearly three times.
The amount of agricultural feedstocks sustainably har-
vested while continuing to meet food, feed, and export
demands each year could be increased five times.
The panel believes the potential increases in all of these
biomass feedstocks can occur with relatively modest
changes in agricultural and forestry practices and land
use, including technological advances that increase
feedstock yields, adoption of certain sustainable crop
cultivation practices (e.g., no-till), and land use changes
that allow for large-scale production of perennial crops.
For more information on determining the potential
for increased use of feedstocks in a particular state,
refer to Chapter 4, How Can States Identify Bioenergy
Opportunities?
2.3 HOW ARE BIOMASS FEEDSTOCKS
CONVERTED INTO BIOENERGY?
The processes, or "conversion technologies," used to
convert biomass feedstocks from solids, liquids, or
gases into bioenergy are shown in the middle column
of Figure 2-2. This figure illustrates how different bio-
mass feedstocks are converted into power, heat, fuels,
and products.
All of the technologies shown in Figure 2-2 can and
have been used for converting biomass; however, not
all are currently deployed on a commercial scale. Table
2-1 indicates the commercialization status of some of
the more commonly used conversion technologies for
bioenergy production.
The conversion technologies listed in Figure 2-2 and
Table 2-1 are described in Section 2.3.1.
BIOREFINERIES
A biorefinery integrates biomass conversion technologies to
produce biopower, biofuels, and/or bioproducts. A biorefinery
is similar in concept to a petroleum refinery, producing
multiple fuels and products. Biorefineries may play a key role
in developing a domestic, bioenergy-based economy. Ideally, a
biorefinery would be highly flexible, capable of using a variety
of biomass feedstocks and changing its processes as needed,
based on product demands. Such flexibility will help make
biorefineries economically viable. Successful biorefineries
already exist in the forest products and agricultural industries,
producing food, feed, fiber, and/or chemicals (including
plastics), as well as on-site power generation or CHP for facility
operations (U.S. DOE, 2003).
TABLE 2-1. COMMERCIALIZATION STATUS OF COMMON BIOENERGY CONVERSION TECHNOLOGIES
Conversion Technology
Commercialization Status of Technology
Direct combustion Commercially available
Cofiring Commercially available
Landfill Gas systems Commercially available
Anaerobic digestion Commercially available
Gasification (thermochemical process)
Emerging technology
Pyrolysis (thermochemical process) Emerging technology
Thermochemical conversion of sugars
Commercially available
Plant extraction (biochemical process) Emerging technology
Transesterification Commercially available
Fermentation (biochemical process)
Commercially available for conventional ethanol production and bioproducts
Emerging technology for cellulosic ethanol production
12 State Bioenergy Primer | CHAPTER TWO
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FIGURE 2-2. BIOMASS CONVERSION TECHNOLOGIES
BIOPOWER/BIOHEAT FEEDSTOCKS
CENTRAL PLANTS/POWER PLANTS
ONSITE POWER AND/OR HEAT
Direct Combustion
(Turbine/Boiler/Engine)
Co-Firing (Boiler with
Steam Turbine)
Landfill Gas
MSW
Gasification (Turbine/Boiler/Engine)
• gasifier • pyrolizer
Agriculture o Forest Residues
Urban Wood Waste
Pipeline
Quality Gas
Wastewater Treatment Sludge
Animal Manure
Anaerobic Digester
UTILITY POWER AND/OR HEAT
Switchgrass II
Urban, Agriculture, & \
Forest Waste Residues I
Corn i
Sorghum I
Sugarcane I
CeHutos/c Ethanol
Ethanol/
Other Alcohols
Biochemical (Biorefining)
Thermochemical (Chemical Refining)
Fermentation
Transesterification
Rapeseed |
Soybeans (
Vegetable Oils f
Animal Fats I
REFINERIES/PROCESSING FACILITIES
BIOPRODUCT FEEDSTOCKS
BIOPRODUCT
Coatings
Adhesives
Solvents
Textiles
Food Processing
Wastes
Corn
Sorghum
Sugarcane
Wood
Cotton
Biochemical
(Fermentation/Plant Extraction)
Thermochemical
(Conversion of Sugars)
Solvents
Coatings
Pharmaceuticals
Thermochemical
(Gasification/Pyrolysis)
Chemicals
Pellets / Briquettes
Agricultural and Forest
Residues
Urban Wood Wastes
Lubricants
Solvents
Resins
Plasticizers
Inks
Adhesives
Vegetable Oils
Soybeans
Sunflower Seeds
Linseed
Transesterification
(Alcohol Processing)
CHAPTER TWO | State Bioenergy Primer 13
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2.3.1 CONVERSION TECHNOLOGIES FOR
BIOPOWER AND BIOHEAT
The three main types of conversion technologies used
for producing electricity and heat are direct combustion,
cofiring, and gasification systems. An important smaller
scale conversion technology is anaerobic digestion.
Direct Combustion
Solid Fuels to Electricity, Heat, or CHP. In direct
combustion systems used to produce electricity, a
solid biomass feedstock (e.g., agriculture residues,
forest residue, municipal solid waste, wood waste) is
combusted with excess oxygen (using fans) in a boiler
to produce steam that is used to create electricity. Di-
rect combustion, commonly used in existing fossil-fuel
power plants, is a dependable and proven technology,
and is the conversion technology most often used for
bioenergy power plants. However, the typically small
size of bioenergy power plants (often due to high costs
of transporting feedstocks), coupled with the low ef-
ficiency rates associated with the direct combustion
process, can result in higher costs to produce electricity
than with conventional fossil-fueled power plants (U.S.
DOE, 2007). Some new combustion technologies are
using compressed hot air (either directly or indirectly
through a heat exchanger) to fire a combustion turbine.
In direct combustion systems used to produce heat,
biomass feedstock loaded into a boiler or furnace can
be used to create steam, hot water, or hot air which is
then used for thermal applications. Large open build-
ings can be heated very efficiently with wood-fired
furnaces or hydronic heating systems such as radiant
floors. Direct combustion technologies for producing
heat can utilize modern, computer-controlled systems
with automatic fuel feeders, high-efficiency boilers,
and add-on controls to reduce particulate matter (PM)
and toxics emissions to relatively low levels (provided
best available technologies are used). These systems are
typically less expensive to operate than systems that use
electricity, fuel oil, or propane but more expensive than
natural gas systems (U.S. EPA, 2007a). However, all
economic comparisons are site-specific.
CHP systems generate electricity and recapture waste
heat from the electricity generation process, resulting
in higher efficiency of fuel use. The electricity and heat
can be used by the entity producing them as on-site
power and heat, sold to others (such as an electric
utility company), or in some combination of the two
approaches. The forest products, chemical, and food-
processing industries use on-site CHP systems widely.
14 State Bioenergy Primer | CHAPTER TWO
Increased use of biomass in CHP systems at pulp and
paper mills has contributed to bioenergy surpassing
hydropower as the leading source of renewable energy
in the United States since 1999 (EIA, 2008a). Increas-
ingly, on-site CHP (and to a limited degree, biomass
CHP) is also being used at ethanol production facilities
due to its increased efficiency and lower fuel costs (U.S.
EPA, 2007b).
For more detailed information on direct combustion
technologies used for combined heat and power from
biomass, see EPA's CHP Biomass Catalog of Tech-
nologies (U.S. EPA, 2007a) at www.epa.gov/chp/basic/
catalog. html#biomasscat.
Gaseous Fuels to Electricity, Heat, or CHP. As solid
waste decomposes in a landfill, a gas is created that
typically consists of about 50 percent methane and 50
percent CO2.2 The gas can either disperse into the air or
be extracted using a series of wells and a blower/flare
(or vacuum) system. This system directs the collected
gas to a central point where it can be processed and
treated. The gas can then be used to generate electric-
ity, heat, or CHP via direct combustion; replace fossil
fuels in industrial and manufacturing operations; be
upgraded to pipeline quality gas, compressed natural
gas (CNG) or liquid natural gas (LNG) for vehicle
fuel; or be flared for disposal. As of December 2008,
approximately 490 LFG energy projects were opera-
tional in the United States. These 490 projects generate
approximately 11 million megawatt-hours (MWh) of
electricity per year and deliver more than 230 million
cubic feet per day of LFG to direct-use applications.
EPA estimates that approximately 520 additional
landfills present attractive opportunities for project
development (U.S. EPA, 2007a, U.S. EPA, 2009c).
For more information about LFG systems, see in-
formation on converting LFG to energy from EPA's
Landfill Methane Outreach Partnership at www.epa.
gov/landfill/'overview.htm#converting.
Cofiring
Solid Fuels to Electricity. Cofiring to produce electric-
ity involves substituting solid fuel biomass (e.g., wood
waste) for a portion of the fossil fuel (typically coal)
used in the combustion process. In most cases, the
existing power plant equipment can be used with only
minor modifications, making this the simplest and
2 The amount of methane generated by a landfill over its lifetime depends on
the composition of the waste, quantity and moisture content of the waste, and
design and management practices of the facility.
-------
most economical option for biopower. Pulverized coal
boiler systems are the most widely used systems in
the United States; cofiring is also used in other types
of boilers, including coal-fired cyclones, stokers, and
fluidized bed boilers.
To evaluate the efficacy of biomass cofiring, a study by
U.S. DOE and the Electric Power Research Institute
(EPRI) modeled the performance of a pulverized coal
power plant using only coal and the same power plant
operating with biomass cofiring. The study identified
a 15 percent biomass cofiring rate as realistic given
biomass resource limitations and requirements to
maintain unit efficiency. Cofiring biomass for up to
15 percent of the fuel was demonstrated during pre-
liminary testing to result in little or no loss in boiler
efficiency (EPRI and U.S. DOE, 1997).
For more information on cofiring, see EPA's CHP
Biomass Catalog of Technologies (U.S. EPA, 2007) at
www.epa.gov/chp/basic/catalog.htmlfbiomasscat.
Gasification and Pyrolysis
Solid Fuels to Electricity, Heat, or CHP. Gasification,
plasma arc gasification, and pyrolysis are thermal
degradation processes that can convert solid biomass
feedstocks to a gas.
Gasification is a chemical or heat process that converts
a solid fuel to a gas. To create bioenergy, solid biomass
feedstocks (e.g., wood waste) are heated above 700
degrees Celsius inside a gasifier with limited oxygen,
which converts the feedstock into a flammable, synthe-
sis gas (syngas). Depending on the carbon and hydro-
gen content of the biomass and the gasifier's properties,
the heating value of the syngas can range from about
15 to 40 percent of natural gas. Syngas can be burned
in a boiler or engine to produce electricity and/or heat.
Syngas can also be converted thermochemically to a
liquid fuel (Kent, 2007).
Gasification has high efficiencies and great potential
for small-scale power plant applications. Because the
gas can be filtered to remove potential pollutants, the
process can produce very low levels of air emissions.
For more information on gasification, see EPA's CHP
Biomass Catalog of Technologies at www.epa.gov/
chp/basic/catalog.html#biomasscator DOE's Biomass
primer at www.eere.energy.gov/de/biomass_power.html
Plasma Arc Gasification is a waste treatment technol-
ogy that uses the high temperatures of an electrical
discharge ("arc") to heat a gas, typically oxygen or
nitrogen, to temperatures potentially in excess of 3000
degrees Celsius. The gases heated by the plasma arc
come into contact with the waste in a device called
a plasma converter and vitrify or melt the inorganic
fraction of the waste and gasify the organic and hydro-
carbon (e.g., plastic, rubber, etc.) fraction. The extreme
heat pulls apart the organic molecular structure of the
material to produce a simpler gaseous structure, pri-
marily CO, H2, and CO2 (Beck, 2003).
Plasma arc gasification is intended to be a process for
generating electricity, depending upon the composition
of input wastes, and for reducing the volumes of waste
being sent to landfill sites (R. W. Beck, 2003). Most
plasma arc systems are cost effective at only very large
scales (1,000,000 tons of feedstock per year or more). A
number of companies are working on the development
and deployment of this emerging technology.
Pyrolysis also uses high temperatures and pressure
in the absence of oxygen to decompose organic com-
ponents in biomass into gas, liquid (bio-oil), and char
products (bio-char) (U.S. DOE, 2003). The process
occurs at lower temperatures than combustion or
gasification. Controlling the temperature and reaction
rate determines product composition (Southern States
Energy Board, 2006).
Bio-oil is an acidic complex mixture of oxygenated
hydrocarbons with high water content. Most data
and research come from the pyrolysis of wood,
although it is possible to convert any biomass
feedstock into bio-oil through pyrolysis. Bio-oil's
composition is influenced by several factors: feed-
stock properties, heat transfer rate, reaction time,
temperature history of vapors, efficiency of char re-
moval, condensation equipment, water content, and
storage conditions. Bio-oil can be used for producing
thermal energy (e.g., for heating buildings, water,
and in industrial processes), for power generation
using slow-speed diesel engines or combustion tur-
bines, and for cofiring in utility-scale boilers. Bio-oil
cannot be used as a transportation fuel without
further refining (Easterly, 2002) (see Section 2.2.2 —
Thermochemical and Biochemical Conversion, for a
discussion of bio-oil and transportation fuels).
The energy content of bio-oil ranges from 72,000 to
80,000 Btu per gallon whereas conventional heating
oil (No. 2) has an energy content of about 138,500
Btu per gallon. Thus, bio-oil contains about 52 to 58
percent as much energy and almost twice as much
bio-oil is required to produce the same amount of
CHAPTER TWO | State Bioenergy Primer 15
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heat as No. 2 heating oil. In addition, bio-oil weighs
about 40 percent more per gallon than heating oil
(Easterly, 2002).
• A coproduct of producing bio-oil is char or bio-char
(see Section 2.2.3 — Biochemical).
Anaerobic Digestion
Solid Fuels to Gaseous Fuels for Electricity, Heat, or
CHP. Anaerobic digestion is the decomposition of
biological wastes (i.e., wastewater treatment sludge or
animal manure) by microorganisms in the absence
of oxygen, which produces biogas. Digestion occurs
under certain conditions (psychrophilic, mesophilic,
and thermophilic), which differ mainly based on
bacterial affinity for specific temperatures. This process
produces a gas that consists of 60 to 70 percent meth-
ane, 30 to 40 percent CO2, and trace amounts of other
gases (EPA, 2002). The methane can be captured (and
sometimes filtered or cleaned) and used to produce
electricity and/or heat, directly used to offset fossil
fuels, upgraded to pipeline quality gas, or used in
the production of liquid fuels. Anaerobic digestion is
commonly used at wastewater treatment facilities and
animal feeding operations.
Anaerobic digestion at wastewater treatment facilities
is used to process, stabilize, and reduce the volume of
biosolids (sludge) and reduce odors. It is often a two-
phase process: First, biosolids are heated and mixed
in a closed tank for about 15 days as digestion occurs.
The biosolids then go to a second tank for settling and
storage. Temperature, acidity, and other characteristics
must be monitored and controlled. Many wastewater
treatment plants that use anaerobic digesters burn the
gas for heat to maintain digester temperatures and heat
building space. The biogas can also be used to produce
electricity (e.g., in an engine-generator or fuel cell) or
flared for disposal.
Anaerobic digesters at animal feeding operations are
used to process, stabilize, and reduce the volume of
manure, reduce odors and pathogens, separate solids
and liquids for application to cropland as fertilizer or
irrigation water, and produce biogas. Farm-based an-
aerobic digesters consist of four basic components: the
digester, a gas-handling system, a gas-use device, and a
manure storage tank or pond to hold the treated efflu-
ent prior to land application. The biogas can be used to
generate heat, hot water, or electricity, directly used
to offset fossil fuels, upgraded to pipeline quality gas,
or used in the production of liquid fuels. The captured
16 State Bioenergy Primer | CHAPTER TWO
biogas is typically used to generate electrical power,
with many farms recovering waste heat for on-farm
use. These systems generate about 244,000 MWh of
electricity per year in the United States. The biogas can
also be used in boilers, upgraded for injection into the
natural gas pipeline, or flared for odor control.
For more information about anaerobic digestion, see
EPA's Guide to Anaerobic Digesters at www.epa.gov/
agstar/operational.html.
2.3.2 CONVERSION TECHNOLOGIES FOR
BIOFUELS
Conversion of biomass into ethanol and biodiesel
liquid fuels has been increasing steadily over the past
decade. As of November 2008, there are 180 fuel
ethanol production facilities in operation or expan-
sion and another 23 under construction (Renewable
Fuels Association [RFA], 2008). Total fuel ethanol
production in 2008 was 9 billion gallons (RFA, 2009).
In addition, as of January 2008, 171 companies have
invested in development of biodiesel manufacturing
plants and were actively marketing biodiesel. The an-
nual production capacity from these biodiesel plants
is 2.24 billion gallons per year (National Biodiesel
Board, n.d.). This discussion focuses on ethanol and
biodiesel production; however, other biofuels can also
be produced, such as methanol, butanol, synfuels, and
algal fuel. Additional details about current and devel-
oping technologies for converting solid biomass into
liquid fuels are available from the Western Governors'
2008 Association Strategic Assessment of Bioenergy
Development in the West, Bioenergy Conversion
Technology Characteristics (Western Governors' As-
sociation, 2008).
Both ethanol and biodiesel can be produced using a
variety of feedstocks and processes. Their feedstocks
ETHANOL AND BIODIESEL.
Both ethanol and biodiesel are registered as fuel and fuel
additives with the U.S. EPA.
As initially required under the Energy Policy Act of 2005
and subsequently revised in the Energy Independence and
Security Act (EISA) of 2007, Congress created a Renewable
Fuel Standard (RFS) to ensure that transportation fuel sold in
the United States contains minimum volumes of renewable
fuel, such as ethanol or biodiesel. The current RFS program will
increase the volume of renewable fuel required to be blended
into gasoline to 36 billion gallons by 2022.
Source: U.S. EPA, 2009
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and conversion technologies are shown in Figure 2-2
and described below.
Thermochemical and Biochemical Conversion
Solid Fuels to Cellulosic Ethanol. Ethanol can be made
from cellulosic materials such as grasses, wood waste,
and crop residues. Cellulosic ethanol is made from
plant parts composed of cellulose, which makes up
much of the cell walls of plants, and hemicellulose, also
found in plant cell walls. Lignin, another plant part that
surrounds cellulose, can also be used to make ethanol.
Feedstocks that use both cellulose and lignin are some-
times referred to as "lignocellulosic" feedstocks; for
simplicity, this section uses the term cellulosic to refer
to both cellulosic and lignin-based ethanol production.
Breaking down the cellulose in cellulosic feedstocks
to release the sugars for fermentation is more difficult
than breaking down starch (e.g., in corn) to release
sugars; thus, cellulosic ethanol production is more
complex and more expensive than conventional etha-
nol production. Cellulosic biofuel production uses bio-
chemical or thermochemical processes (NREL, 2007).
ETHANOL
A type of alcohol that is used as an alternative energy
transportation fuel, can be made from crops such as
corn, sugarcane, sorghum, and switchgrass, as well as
opportunity/waste fuels such as agricultural and forest/
wood residue.
Conventional ethanol has been made from corn or sugarcane
for decades using processes that have evolved over time, but
are nonetheless considered "conventional" ethanol production.
Cellulosic ethanol is created from cellulosic feedstocks
using processes that have been developed more recently
and are not yet commercially deployed. Cellulosic ethanol is
considered "advanced" or "second generation," using more
complex processes and potentially a wider variety of biomass
feedstocks.
Biochemical conversion. Biochemical conversion for
ethanol production from cellulosic feedstocks involves:
Pretreatment of the feedstock using high-tempera-
ture, high-pressure acid; enzymes; or other methods
to break down the lignin and hemicellulose that sur-
round the cellulose.
Hydrolysis using enzymes and acids to break down
the cellulose into sugars.
Fermentation to convert the sugars into ethanol (as
in conventional production).
• Distillation to produce purer ethanol (as in conven-
tional production).
• Thermochemical conversion. Thermochemical
conversion uses heat and chemicals to break down cel-
lulosic feedstock into syngas. Depending upon the pro-
cess being used, the gas can be converted to liquid fuels
such as ethanol, bio-butanol, methanol, mixed alcohols,
or bio-oil (through pyrolysis). Thermochemical con-
version is particularly useful for lignin, which cannot
be easily converted to ethanol using the biochemical
process described above; up to one-third of cellulosic
feedstock can be composed of lignin. Forest and mill
residue feedstocks generally have high lignin contents,
and thus would be more suitable for thermochemical
ethanol conversion than biochemical conversion.
The thermochemical conversion process involves:
Drying the cellulosic feedstock.
Gasification (using heat to convert the feedstock to
a syngas) or pyrolysis (using heat and pressure to
produce an oil).
Contaminant removal.
Conversion of the syngas to ethanol, bio-oil, or other
products.
Distillation to separate ethanol from water (if pro-
ducing ethanol).
A number of researchers and organizations are
evaluating process changes and refinements to make
cellulosic ethanol production more commercially
viable and cost-competitive. For more informa-
tion, see NREL's Research Advances: NREL Leads the
Way—Cellulosic Ethanol at www.nrel.gov/biomass/
pdfsH0742.pdf.
For more information on cellulosic ethanol produc-
tion, see www.afdc.energy.gov/afdc/ethanol/produc-
tion_cellulosic. html.
Solid Fuels to Bio-Oil Bio-oil has limited market pres-
ence and does not yet enjoy the popularity of other
biofuels such as ethanol and biodiesel. Current research
and development in pyrolysis focuses on maximizing
liquid (bio-oil) yields because of the ability to transport
and store liquid fuels and the ability of bio-oil to be
further refined in existing petroleum refineries into
transportation fuels. In 2005, successful tests produced
syngas through gasification of bio-oil, which can be fur-
ther processed into syndiesel. Syndiesel can be used in
CHAPTER TWO | State Bioenergy Primer 17
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all diesel end-use devices without modification (Dyna-
motive, 2005). Recent tests also show that it is possible
to take bio-oil and refine it into a green diesel product
using existing petroleum refineries. This technology
pathway effectively takes advantage of the infrastructure
associated with the existing petroleum industry (Hol-
mgren et al., 2005). Beyond energy products, bio-oil can
be further refined into a range of specialty chemicals,
including flavor enhancers, and fuel additives.
Fermentation
Solid Fuels to Conventional Ethanol. In the United
States, all commercially established ethanol production
to date has been based on the biochemical process of
fermentation, which involves conversion of sugars in
starchy plants (such as corn or sugarcane) by microor-
ganisms into alcohol. As of November 2008, 171 of the
180 operating ethanol biorefineries in the United States
used corn as the primary feedstock (RFA, 2008).
Ethanol from corn is produced in either dry mills or wet
mills. In dry mills, corn is ground into flour, water and
enzymes are added, the mixture is "cooked," and yeast
is added for fermentation. The mixture is then distilled
and water is removed to produce ethanol. In wet mills,
corn is soaked in hot water to separate starch and pro-
tein, the corn is ground and the germ is separated, the
remaining slurry is ground, and some of the remaining
starch is further processed to produce sugars. The mate-
rial is then fermented and distilled to produce ethanol.
In recent years, most new ethanol production facilities
have been dry mill plants. As of July 2008, approxi-
mately 95 percent of United States corn-ethanol facili-
ties were dry mills, accounting for nearly 90 percent of
gallons produced. Dry mills typically produce ethanol,
animal feed, and sometimes CO2 (U.S. EPA, 2008d).
For more information on conventional corn-based
ethanol production, see www.afdc.energy.gov/afdc/
ethanol/production_starch_sugar.html.
Transesterification
Oils to Biodiesel. Biodiesel production converts oils
or fats into biodiesel, which can be used to fuel diesel
vehicles (or stationary engines). In biodiesel produc-
tion, fats and oils are converted into biodiesel through
a process known as "transesterification." The oils and
fats are filtered and pretreated to remove water and
contaminants (e.g., free fatty acids), then mixed with
an alcohol (often methanol) and a catalyst (e.g., sodium
hydroxide) to produce compounds known as fatty acid
18 State Bioenergy Primer | CHAPTER TWO
BIODIESEL
Biodiesel is usually blended with petroleum diesel to create
either B20 (a 20 percent biodiesel blend) or B90 (a 90 percent
biodiesel blend), which can be used in diesel engines with little
or no modification and provides better engine performance
and lubrication than petroleum fuel (U.S. EPA, 2008e).
methyl esters and glycerin (U.S. DOE, 2008). The esters
are called biodiesel when they are intended for use as
fuel. Glycerin is used in pharmaceuticals, cosmetics,
and other markets. Often biodiesel and glycerin are
produced as coproducts.
In the United States, biodiesel is made primarily from
soybeans/soy oil or recycled restaurant grease; in
Europe, biodiesel is produced primarily from rapeseed
(EERE, 2008). About half of current biodiesel produc-
tion facilities can use any fats or oils as a feedstock, in-
cluding waste cooking oil; the other production facilities
require vegetable oil, often soy oil. Biodiesel production
facilities are often located in rural areas, near biodiesel
feedstock sources such as farms growing soybeans.
Farmers often use biodiesel in their farm equipment.
Increased demand for biodiesel feedstocks from
farms, as well as establishment of locally sited and/or
owned biodiesel production facilities, can help boost
rural economies.
For more information about biodiesel production,
see the U.S. DOE Web site at www.afdc.energy.gov/
afdc/fuels/biodiesel_production.html and the National
Biodiesel Board's Web site at www.biodiesel.org/
pdf_files/fuelfactsheets/Production.PDF.
2.3.3 CONVERSION TECHNOLOGIES FOR
BIOPRODUCTS
Biomass feedstocks are made of carbohydrates, and
thus contain the same basic elements—carbon and hy-
drogen—as petroleum and natural gas. Many products,
such as adhesives, detergents, and some plastics, can
be made from either petroleum or biomass feedstocks.
Like biofuels, technologies for converting biomass
feedstocks into bioproducts use three main processes:
biochemical conversion, thermochemical conversion,
or transesterification.
Biochemical conversion for bioproducts includes
fermentation and plant extraction. Thermochemical
conversion technologies, such as direct combus-
tion, gasification, and pyrolysis, use heat, chemicals,
-------
catalysts, and pressure to break down biomass feed-
stocks. Transesterification uses alcohols to break down
vegetable oils for use in bioproducts.
As of 2003, use of biomass feedstocks provided more
than $400 billion of bioproducts annually in the United
States (U.S. DOE, 2003). Production of chemicals and
materials from bio-based products was approximately
12.5 billion pounds, or 5 percent of the current pro-
duction of target U.S. chemical commodities (U.S.
DOE, 2005).
BIOPRODUCTS
Many industrial and consumer products, such as soap,
detergent, soy-based ink, solvents, and adhesives, are already
produced totally or partially from biomass feedstocks, primarily
corn, vegetable oils, and wood.
In addition, many products currently made from petroleum could
instead be made, in whole or part, from biomass feedstocks.
Also, new bioproducts and technologies are being developed
with the potential to increase production and use of bioproducts.
Current Bioproduct Applications
Acrylic fibers
Adhesives
Pharmaceuticals
Polymers
Cosmetics
Resins
Detergents
Soaps
Lubricants
Solvents
Paints
Textiles
Biochemical
Biochemical conversion for bioproducts includes fer-
mentation and plant extraction.
Sugars and Starches to Bioproducts. Fermentation
with microorganisms or enzymes is commonly used to
convert starches and the sugar glucose into a variety of
organic acids and ethanol that are then used to create
bioproducts or intermediate materials used in manu-
facturing bioproducts. Food processing wastes are used
as biomass feedstocks in the fermentation process for
bioproducts (A.D. Little, Inc., 2001).
Specifically, fermentation can also be used to convert
sugars into:
Lactic acid derivatives such as acrylic acid, which can
be used in coatings and adhesives;
Ethyl lactate, which can replace many petroleum-based
solvents; and
Polylactide (PLA), a plastic that can be used in packag-
ing and fiber applications, and can be melted and reused
or composted when it reaches the end of its useful life.
Ongoing research and pilot-scale applications of
bioproducts made from lactic acid derivatives show
great promise. Advances in fermentation technology
(e.g., new microorganisms and separation techniques)
may allow other sugars (e.g., pentose sugars such as
xylose) to be converted to bioproducts. These advances
would open up use of cellulosic biomass feedstocks
(e.g., corn stover, switchgrass, wheat straw) to make
bioproducts. Such advances may allow additional
bioproducts to be made through fermentation at costs
competitive with conventional petroleum-based prod-
ucts (U.S. DOE, 2003).
Plant Components to Bioproducts. Lumber, paper,
and cotton fiber are well-known examples of plants
used to make bioproducts. Tocopherols and sterols are
substances in plants that can be extracted and purified
for use in vitamins and cholesterol-lowering products.
A plant known as guayule produces nonallergenic rub-
ber latex that can replace other types of rubber to which
many people have developed allergies (U.S. DOE, 2003).
Thermochemical
Thermochemical conversion technologies—sugar
conversion, gasification, and pyrolysis—use heat,
chemicals, catalysts (such as acids, metals, or both),
and pressure to break down biomass feedstocks, di-
rectly converting sugars into bioproducts or producing
intermediate materials that can be converted into final
bioproducts through other means.
Sugars to Bioproducts. Thermochemical conversion
has been used for more than 50 years to convert the
sugar glucose into sorbitol. Sorbitol derivatives—such
as propylene glycol, ethylene glycol, and glycerin—are
important commercial products used in solvents,
coatings, pharmaceuticals, and other applications. Cur-
rently, propylene glycol and ethylene glycol are made
from petroleum; thermochemical conversion uses
biomass feedstocks (rather than petroleum) to produce
these sorbitol derivatives.
Thermochemical conversion can also convert sugars
other than glucose (e.g., xylose) to sorbitol. Ther-
mochemical conversion is also used to convert sugar
to levulinic acid, which is then used to produce a
CHAPTER TWO | State Bioenergy Primer 19
-------
variety of bioproducts, such as methyl tetrahydrofuran
(MTHF), used in primaquine, an antimalarial drug,
and diphenoloic acid (DPA), used as an alternative to
bisphenol A (BPA) in polymers.
New catalysts and thermochemical technologies are
creating new opportunities for bioproducts, including
use of cellulosic feedstocks to create sorbitol-related
and other bioproducts (U.S. DOE, 2003).
Solid Fuels to Syngas. Gasification uses high tempera-
tures and oxygen to convert solid carbonaceous mate-
rial into syngas, which is a mixture of carbon monox-
ide (CO), hydrogen, and sometimes CO2. Syngas can
be converted into chemicals such as methanol, which is
then converted into other chemicals such as formalde-
hyde and acetic acid. Syngas can also be converted into
chemicals, such as paraffins and fatty acids, by using
catalysts (cobalt or iron) and high temperature and
pressure (known as the Fischer-Tropsch process) (U.S.
DOE, 2003).
Solid Fuels to Bioproducts. Pyrolysis uses high tem-
peratures and pressure in the absence of oxygen to de-
compose organic components in biomass into liquids,
solids, and gases. The liquids, in particular, can contain
chemicals that can be used in bioproduct manufac-
turing, but isolating these chemicals via separation
technology can be difficult. The technology closest to
commercialization is pyrolysis of cellulosic feedstocks
containing high amounts of lignin. This technology can
produce a replacement for the toxic chemical phenol
in phenol-formaldehyde resins, used in plywood and
other wood composites (U.S. DOE, 2003).
Bio-char is another potential product from the pyroly-
sis process, which has multiple uses. One option is to
use the char as a soil amendment on agricultural lands.
Bio-char has been shown to improve soil organic mat-
ter, reduce fertilizer and water requirements, improve
nutrient delivery to the plant (through adsorption),
and sequester carbon (Cornell University, 2009).
Densification
Solid Fuels to Pellets or Briquettes. A robust mar-
ket exists for solid biomass fuels such as pellets or
briquettes, which are a bioproduct formed from
compressed wood or agricultural residue feedstocks
that can be used as fuel for heating (see Section 2.2.1 —
Direct Combustion).
20 State Bioenergy Primer | CHAPTER TWO
Pellets are typically 1/4" or 5/16" diameter and are the
most costly compressed biomass form. Bripells are the
same shape as pellets but 1-1/2" in diameter. They are so
named because they are between briquettes and pellets
in size. Briquettes are compressed biomass forms larger
than a pellet. Typically, briquettes are square or rectangu-
lar and can be the size of typical backyard barbeque fuel
up to the size of a building brick (NREL, Unpublished).
Pellets are a refined product and require the most ex-
pensive processing. The higher cost of pellets as a fuel
for heating is offset by the convenience of being able to
use fuel burning equipment that can be automated and
needs minimal attention (particularly when compared
to bulk biomass systems). This convenience is impor-
tant because pellets typically compete for market share
against almost zero-maintenance natural gas, propane,
or electric heat. Briquettes require less energy to pro-
duce and are processed through simpler production
methods (NREL, Unpublished).
Transesterification
Oils to Bioproducts. Transesterification uses alcohols
to break down vegetable oils for use in bioproducts.
Vegetable oils are composed primarily of triglycerides,
which can be broken down using an alcohol (such as
methanol) into glycerin and fatty acids. The fatty acids
are then modified into intermediate products used to
make bioproducts. Vegetable oils from biomass feed-
stocks such as soybeans, sunflowers, and linseed are
used to manufacture bioproducts such as lubricants,
solvents, resins, plasticizers, inks, and adhesives (U.S.
DOE, 2003).
For more information on conversion technologies
used to manufacture bioproducts, see U.S. DOE's
report Industrial Bioproducts: Today and Tomorrow at
www. brdisolutions. com/pdfs/BioProductsOpportuni-
tiesReportFinal.pdf.
-------
2.4 RESOURCES FOR DETAILED INFORMATION
Description
Woody Biomass Utilization, U.S.
Forest Service and Bureau of Land
Management.
This U.S. Forest Service and Bureau of Land Management
Web site provides links to a variety of resources and reports
on woody biomass utilization, including tools and references
specifically targeted at state governments.
www. fores tsandrangelands.gov/
Woody_ Biomass/index.sh tml
BioWeb, Sun Grant Initiative.
An online catalog of a broad range of resources on
bioenergy, including descriptions of biomass resources,
biofuels, and bioproducts; explanations of conversion
technologies; and summaries of relevant policies. The
resources are searchable by both topic and level of detail of
information provided. The catalog is a product of the Sun
Grant Initiative, a national network of land-grant universities
and federally funded laboratories working together to
further establish a bio-based economy.
h ttp://bioweb.sungran torg/
Biomass as Feedstock for a
Bioenergy and Bioproducts
Industry: The Technical
Feasibility of a Billion-Ton
Annual Supply, U.S. DOE, USDA,
2005.
Describes issues associated with reaching the goal of 1
billion tons of annual biomass production (see especially pp.
34-37).
www. os ti. gov/b ridge
Biomass Energy Data Book, U.S.
DOE, September 2006.
Provides a compilation of biomass-related statistical data.
http://cta.ornl.gov/bedb/index.
shtml
Biomass Feedstock Composition
and Property Database, U.S. DOE
Provides results on chemical composition and physical
properties from analyses of more than 150 samples of
potential bioenergy feedstocks, including corn stover; wheat
straw, bagasse, switchgrass, and other grasses; and poplars
and other fast-growing trees.
wwwl.eere.energy.gov/biomass/
feedstock_databases.html
A Geographic Perspective on
the Current Biomass Resource
Availability in the United States,
Milbrandt, A., 2005.
Describes the availability of the various types of biomass on a
county-by-county basis.
www.nrel.gov/docs/
fy06osti/39181.pdf
Kent and Riegel's Handbook
of Industrial Chemistry and
Biotechnology, Kent, 2007
Detailed, comprehensive, fairly technical explanation of the
range of biomass conversion technologies.
Biomass Combined Heat and
Power Catalog of Technologies,
U.S. EPA, September 2007
Detailed technology characterization of biomass CHP
systems, including technical and economic characterization
of biomass resources, biomass preparation, energy
conversion technologies, power production systems, and
complete integrated systems. Includes extensive discussion
of biomass feedstocks.
www. epa.gov/chp/documen ts/
biomass_chp_catalog.pdf
Combined Heat and Power
Market Potential for Opportunity
Fuels, U.S. DOE, Resource
Dynamics Corporation, August
2004.
Determines the best "opportunity fuels" for distributed
energy sources and CHP applications.
www.eere.energy.gov/de/pdfs/
chp_opportunityfuels.pdf
CHAPTER TWO | State Bioenergy Primer 21
-------
2.4 RESOURCES FOR DETAILED INFORMATION (cont.)
Description
Jioproducts
Bioenergy Conversion
Technology Characteristics,
Western Governors' Association,
September 2008.
Investigates the biofuel conversion technologies that are
currently available, as well as technologies currently under
development that are developed enough to be potentially
available on a commercial basis circa 2015.
www. wes tgov.org/wga/in itia fives/
transfuels/Task%202.pdf
A National Laboratory Market
and Technology Assessment of
the 30x30 Scenario, NREL, March
2007
Draft assessment of the market drivers and technology needs
to achieve the goal of supplying 30 percent of 2004 motor
gasoline fuel demand with biofuels by 2030.
From Biomass to BioFuels: NREL
Leads the Way, NREL, August
2006.
Provides an overview of the world of biofuels, including the
maturity levels of various biofuels, how they are produced,
and the U.S. potential for biofuels.
www. nrel. gov/biomass/
pdfs/39436.pdf
Research Advances Cellulosic
Ethanol: NREL Leads the Way,
NREL, March 2007
Highlights some of NREL's most recent advances in cellulosic
ethanol production.
www. nrel. gov/biomass/
pdfs/40742.pdf
2.5 REFERENCES
• A.D. Little, Inc., 2001. Aggressive Use ofBioderived
Products and Materials in the U.S. by 2010. U.S. DOE.
Washington, DC, 2001. devafdc.nrel.gov/pdfs/6282.pdf.
Antares Group, Inc., 2003. Assessment of Power Pro-
duction at Rural Utilities Using Forest Thinnings and
Commercially Available Biomass Power Technologies.
Prepared for the U.S. Department of Agriculture, U.S.
DOE, and NREL. As cited in U.S. EPA, 2007.
Beck, 2003, Beck, R. W. City Of Honolulu Review of
Plasma Arc Gasification and Vitrification Technology
for Waste Disposal. Honolulu, 2003. www.opala.org/
pdfs/solid_waste/arc/PlasmaArc.pdf.
Biomass Energy Resource Center, 2007. Wood Pellet
Heating: A Reference on Wood Pellet Fuels & Technol-
ogy for Small Commercial 6- Institutional Systems.
Montpelier, VT, June, 2007. www.biomasscenter.org/
pdfs/DOER_Pellet_Guidebook.pdf.
Biomass Research and Development Board, 2008. Na-
tional Biofuels Action Plan. Washington, DC, October
2008. wwwl.eere.energy.gov/biomass/pdfs/nbap.pdf.
22 State Bioenergy Primer | CHAPTER TWO
Biomass Research and Development Initiative, 2008.
Increasing Feedstock Production for Biofuels: Econom-
ic Drivers, Environmental Implications, and the Role
of Research. Washington, DC, 2008. wwwl.eere.energy.
gov/biomass/pdfs/brdij:eedstock_wg2008.pdf.
City and County of San Francisco, 2007. Mayor
Newsom Launches SFGreasecycle - The Nation's First
Citywide Program That Collects Waste Grease to Cre-
ate Biofuel for Municipal Fleet. San Francisco, CA,
November, 20, 2007. www.sfgov.org/site/mayor_index.
asp?id=71394.
Commonwealth of Massachusetts, 2008. Advanced
Biofuels Task Force Report. Boston, 2008. www.mass.
gov/Eoeea/docs/eea/biofuels/biofuels_complete.pdf.
Cornell University, 2009. Biochar Soil Management.
Ithaca, NY. www.css.cornell.edu/faculty/lehmann/
research/biochar/biocharmain.html.
Dynamotive, 2005. Successful Conversion ofDynamo-
tive's Bio Oil to Synthetic Gas Demonstrates Potential
for Production of Synthetic Diesel and other Advanced
Fuels. Press Release, September 22,2005. www.the-
freelibrary.com/Successful+Conversion+of+DynaMoti
ve's+BioOil+to+Synthetic+Gas...-a0136505108.
-------
Easterly, 2002. Easterly, J. Assessment of Bio-Oil as
a Replacement for Heating Oil. Northeast Regional
Biomass Program. Washington, DC, November,
2002. www.mtholyoke.edu/courses/tmillett/course/
geog_304B/pub34.pdf.
EERE (Office of Energy Efficiency and Renewable
Energy), 2008. Biofuels. U.S. DOE, Washington, DC,
2008. wwwl.eere.energy.gov/biomass/.
•EIA (Energy Information Administration), 2008a.
Renewable Energy Trends in Consumption and
Electricity 2006. EIA, Washington, DC, July, 2008.
www.eia.doe.gov/cneaf/solar.renewables/page/trends/
tablel_5b.xls.
EIA, 2008b. Table 6. Biomass Energy Consumption
by Energy Source and Energy Use Sector 2001-2005.
Washington, DC, April 2008. www.eia.doe.gov/cneaf/
solar.renewables/page/rea_data/table6.html.
EPRI (Electric Power Research Institute) and
U.S. DOE, 1997. Renewable Energy Technology
Characterizations. EPRI TR-109496. Washington, DC,
1997. wwwl.eere.energy.gov/ba/pba/tech_character-
izations.html.
Holmgren, 2005. Holmgren, J., R. Marinangeli, T.
Markera, M. McCall, J. Petri, S. Czernik, D. Elliott, D.
Shonnard. Opportunities for Biorenewables in Petro-
leum Refineries. UOP, December 2005. www.pyne.
co.uk/Resources/user/PYNE%20Newsletters/001338_
Pyne%20p4-7.pdf.
Kent, 2007. Kent, James A., ed. Kent and Riegel's
Handbook of Industrial Chemistry and Biotechnology.
11th ed., pp. 1499-1548. New York: Springer, 2007.
Mayfield, 2008. Algal Model Systems. The Scripps
Research Institute. Presented at the National Renew-
able Energy Laboratory—Air Force Office of Scientific
Research Workshop on Algal Oil for Jet Fuel Produc-
tion. NREL, Golden, CO, February 2008. www.nrel.
gov/biomass/algal_oil_workshop.html.
Milbrandt, A., 2005. Geographic Perspective on the
Current Biomass Resource Availability in the United
States. NREL/TP-560-39181. NREL, Golden, CO, De-
cember 2005. www.nrel.gov/docs/fy06osti/39181.pdf.
National Biodiesel Board, n.d. Biodiesel Production.
National Biodiesel Board, Washington, DC, n.d. www.
biodiesel.org/pdf_files/fuelfactsheets/Production.pdf.
NREL (National Renewable Energy Laboratory),
2006. From Biomass to Biofuels: NREL Leads the
Way. August 2006. NREL/BR-510-39436. NREL,
Golden, CO, August 2006. www.nrel.gov/biomass/
pdfs/39436.pdf.
NREL, 2007. Research Advances—Cellulosic Ethanol:
NREL Leads the Way. NREL/BR-510-40742. NREL,
Golden, CO, March 2007. www.nrel.gov/biomass/
pdfs/40742.pdf.
NREL, 2008. Research Review 2007. NREL/MP-840-
42386. NREL, Golden, CO, August 2008. www.nrel.
gov/research_review/pdfs/2007/42386.pdf.
NREL, Unpublished. Assessment of Biomass Pelletiza-
tion Options for Greensburg, Kansas. Draft Technical
Report. NREL, Golden, CO.
•RFA (Renewable Fuels Association), 2008. Ethanol
Biorefinery Locations. Renewable Fuels Association,
Washington, DC, 2008. www.ethanolrfa.org/
industry/locations.
RFA, 2009. Historic U.S. Fuel Ethanol Production.
Renewable Fuels Association, Washington, DC, 2009.
www.ethanolrfa.org/industry/statistics/fA.
Southern States Energy Board, 2006. American Ener-
gy Security: Building a Bridge to Energy Independence
and to a Sustainable Energy Future. Southern States
Energy Board. Norcross, Georgia, 2006. americanener-
gysecurity.org/wordpress/wp-content/uploads/2009/02/
aes-report.pdf.
Ugarte et al., 2006. Ugarte, D., B. English, K. Jensen, C.
Hellwinckel, J. Menard, B. Wilson, 2006. Economic and
Agricultural Impacts of Ethanol and Biodiesel Expan-
sion. The University of Tennessee, Knoxville, TN, 2006.
beag.ag.utk.edu/pp/Ethanolagimpacts.pdf.
U.S. DOE (Department of Energy), 2003. Industrial
Bioproducts: Today and Tomorrow. U.S. DOE, Wash-
ington, DC, July 2003.
•U.S. DOE, 2004. Combined Heat and Power Market
Potential for Opportunity Fuels. Resource Dynamics
Corporation, Washington, DC, August 2004.
U.S. DOE, 2005. Biomass as Feedstock for a Bioenergy
and Bioproducts Industry: The Technical Feasibility of
a Billion-Ton Annual Supply. U.S. DOE, Washington,
DC, April 2005. DOE/DO-102995-2135./eedstocA:re-
view.ornl.gov/pdf/billion_ton_vision.pdf.
CHAPTER TWO | State Bioenergy Primer 23
-------
U.S. DOE, 2007. ABCs ofBiopower. U.S. DOE, Wash-
ington, DC, March 15, 2007. wvwl.eere.ettergy.gov/
biomass/abcs_biopower. html.
U.S. DOE, 2008. Biodiesel Production. U.S. DOE,
Washington, DC, 2008. www.afdc.energy.gov/afdc/
fuels/biodiesel_production.html.
•U.S. DOE, n.d. The U.S. Dry-MillEthanolIndustry.
U.S. DOE, Washington, DC, n.d. www.brdisolutions.
com/pdfs/drymill_ethanol_industry.pdf.
U.S. EPA (Environmental Protection Agency), 2002.
Managing Manure With Biogas Recovery Systems:
Improved Performance at Competitive Costs. U.S. EPA,
Washington, DC, 2002. www.epa.gov/agstar/pdf/man-
age.pdf.
U.S. EPA, 2007a. Biomass Combined Heat and Power
Catalog of Technologies. U.S. EPA, Washington, DC,
2007. www. epa.gov/chp/documents/biomass_chp_cata-
log.pdf.
U.S. EPA, 2007b. Utility-Ethanol Partnerships:
Emerging trend in district energy/CHP. U.S. EPA,
Washington, DC, 2007. www.epa.gov/chp/documents/
district_energy_article.pdf.
U.S. EPA, 2008a. Landfill Methane Outreach Program
(LMOP). U.S. EPA, Washington, DC, 2008. www.epa.
gov/lmop/overview.htm.
U.S. EPA, 2008b. Combustion. U.S. EPA, Washington,
DC, July 2008. www.epa.gov/osw/nonhaz/municipal/
combustion.htm.
U.S. EPA, 2008c. Municipal Solid Waste (MSW) in the
United States. U.S. EPA, Washington, DC, 2008. www.
epa.gov/epawaste/nonhaz/municipal/msw99.htm.
U.S. EPA, 2008d, Ethanol Production Facilities Da-
tabase. Combined Heat and Power Partnership. U.S.
EPA, Washington, DC, July 2008.
U.S. EPA, 2008e. Biodiesel. U.S. EPA, Washington, DC,
2008. www.epa.gov/smartway/growandgo/documents/
factsheet-biodiesel. htm.
U.S. EPA, 2009a. Renewable Fuel Standard Program.
U.S. EPA, Washington, DC, March 12, 2009. www.epa.
gov/OMS/renewablefuels/
•U.S. EPA, 2009b. Guide to Anaerobic Digesters. U.S.
EPA, Washington, DC, 2009. www.epa.gov/agstar/
operational.html.
U.S. EPA, 2009c. Energy Projects and Candidate Land-
fills. U.S. EPA, Washington, DC, 2009. www.epa.gov/
Imop/proj/index.htm.
Western Governors' Association, 2008. Strategic
Assessment ofBioenergy Development in the West, Bio-
energy Conversion Technology Characteristics. Antares
Group, Inc. 2008. www.westgov.org/wga/initiatives/
transfuels/Task%202.pdf.
24 State Bioenergy Primer | CHAPTER TWO
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CHAPTER THREE
Benefits, Challenges,
and Considerations
of Bioenergy
Biomass is a low-cost, domestic
source of renewable energy with
potential for large-scale production.
U.S. DOE estimates that, with
aggressive action, bioenergy could
displace one-third of the current
demand for petroleum fuels
nationwide by the mid-21st century
(U.S. DOE, 2005).
According to the American Council on Renewable En-
ergy (ACORE), biopower projects could see a 10-fold
increase—to 100 gigawatts (GW)—by 2025 with coor-
dinated federal and state policies to expand renewable
energy markets, promote and deploy new technology,
and provide opportunities to encourage renewable
energy use in multiple market sectors and applications
(ACORE, 2007).
With the potential for increased production and use of
biomass and bioenergy comes the potential for states
to take advantage of benefits associated with bioenergy,
but also the need to guard against pitfalls. Some ben-
efits and challenges will be of greater interest to states
in particular regions (e.g., arid vs. wet, nonattainment
vs. in attainment) or with particular characteristics
(e.g., urban vs. rural). States will want to weigh the
challenges and benefits when deciding whether and
how to pursue bioenergy development.
i' CHAPTER ONE
Introduction
i > CHAPTER TWO
What Is Bioenergy?
6CHAPTER THREE
Benefits and Challenges
i • CHAPTER FOUR
Identifying Bioenergy Opportunities
(i CHAPTER FIVE
Options for Advancing Bioenergy
CHAPTER THREE CONTENTS
3.1 Energy Security Benefits
3.2 Economic Benefits
3.3 Environmental Benefits, Challenges, and
Considerations
3.4 Feedstock Supply Challenges
3.5 Infrastructure Challenges
3.6 Resources for Detailed Information
3.7 References
CHAPTER THREE | State Bioenergy Primer 25
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A brief overview of benefits and challenges is provided
below, followed by a more detailed discussion.
BENEFITS
Policy makers are looking to production and use of
biomass for power, heat, fuels, and products as an ef-
fective means of advancing energy security, economic,
and environmental goals.
For example, an analysis of the primary drivers cited
in legislation for state renewable fuel standards (RFSs)
found that state goals included (Brown et al., 2007):
Energy Security: Increasing use of domestic fuels
to reduce dependence on foreign oil and its potential
disruptions, while keeping money for energy in
local communities.
Economic: Improving the rural economy by generat-
ing jobs, income, and taxes through demand for local
biomass resources and construction of biomass conver-
sion facilities.
Environmental: Achieving air quality goals and im-
proving public health by using bioenergy that reduces
GHGs and other air pollutants and by turning waste
products into bioenergy.
In addition, compared with some energy alternatives,
bioenergy may be one of the easier options to adopt in
the near term (e.g., coal-fired power plants can cofire
biomass and vehicle engines can use biofuels with few
if any modifications).
CHALLENGES
At the same time, there are potential challenges as-
sociated with deployment of any bioenergy project.
While the benefits of using biomass instead of other
fuel sources to meet state energy needs are numerous,
states should be aware of several potential issues when
exploring bioenergy. These include:
Environment: Potentially adverse environmental
impacts could result if increased production is not
handled sustainably, including air and water pollu-
tion, negative impacts of direct and indirect land use
changes, and increased water consumption.
Feedstock Supply: For a variety of reasons, securing
a suitable and reliable feedstock supply—particularly
one that will be available over the long term at a
reasonable cost—does not always prove easy. Many
26 State Bioenergy Primer | CHAPTER THREE
feedstocks are seasonal and may only be harvested
once a year. In order to cover their fuel needs for
energy production over the course of a year, bioenergy
producers may need to utilize flexible conversion pro-
cesses capable of using a variety of feedstocks available
in different seasons.
Infrastructure: The location and nature of feedstock
inputs or bioenergy outputs produced at bioenergy
plants can make their delivery difficult. Additionally,
current infrastructure levels may not support market
demand or can be constrained by other economic fac-
tors despite demand.
These benefits and challenges are described in the fol-
lowing sections. Note that not all are relevant to every
type of bioenergy production or use.
3.1 ENERGY SECURITY BENEFITS
3.1.1 INCREASED ENERGY INDEPENDENCE
THROUGH BIOFUELS
The United States currently imports 65 percent of the
petroleum it consumes—the majority for transporta-
tion fuels (U.S. Energy Information Agency, 2008).
Relying on foreign energy sources leaves the nation
vulnerable to price increases and supply limits that
foreign nations could impose. Reliance on foreign
petroleum also contributes significantly to the U.S.
trade deficit. Increasing the domestic energy supply by
expanding biofuels production could help reduce U.S.
dependence on foreign oil, thus increasing the nations
energy security.
3.1.2 DECREASED INFRASTRUCTURE
VULNERABILITY THROUGH BIOPOWER
The vulnerability of our energy infrastructure to at-
tacks is also an energy security concern. Increased use
of domestic bioenergy can help reduce this vulnerabil-
ity because bioenergy involves a domestic, dispersed
energy infrastructure that may be less prone to attack.
When a reliable feedstock supply is available, biopower
can be a baseload renewable resource, compared to
other renewable resources such as wind and solar,
which may be available on an intermittent basis, and
compared to fossil fuels, supplies of which may become
increasingly limited and more expensive.
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ETHANOL'S NET ENERGY BALANCE
Net energy balance is the total amount of energy used over the
full life cycle of a fuel, from feedstock production to end use.
Technical debate is ongoing about the implications of some
forms of bioenergy, most notably ethanol as a transportation
fuel. In the 1980s, the net fossil fuel energy balance for corn
to ethanol was negative, meaning the fossil energy input to
create the ethanol was greater than the fossil energy displaced.
Technology improvements have changed this such that most
recent studies find that corn-based ethanol reduces petroleum
usage. However, some studies find a negative net fossil energy
balance for corn ethanol when all fossil energy sources (e.g.,
coal-fired electricity used to power the production plant) are
taken into account (U.S. DOE, 2006).
Study results vary due to differing assumptions about energy
sources, by-products, and system boundaries. For example,
ethanol plants that take full advantage of CHP opportunities
would have greater energy efficiency and a better energy
balance. Use of biomass or biogas as the production facility's
fuel for power and heat also reduces fossil energy use (E3
Biofuels, 2007; U.S. DOE, 2006).
U.S. EPA studied the effect of CHP on energy use in the dry mill
conversion process used to produce ethanol from corn. The
Agency analyzed the impact of this technology on total energy
consumption (including power fuel use at the plant for ethanol
production and subsequent reductions in central station power
fuel use) for plants using natural gas, coal, or biomass as fuel.
In all cases where plants utilized CHP technology, total net fuel
consumption was reduced as electricity generated by the CHP
systems displaced less efficient central station power. Energy
use reductions of approximately 8 percent were modeled for
the plants utilizing biomass-fueled CHP (U.S. EPA, 2007a).
In contrast to the varying net fossil energy balance results
for corn-based ethanol, cellulose-based ethanol is found to
provide both lower petroleum usage and a positive net fossil
energy balance because less fossil fuel is required to acquire
cellulosic feedstocks (e.g., grasses, wood waste, etc.) than corn
(U.S. DOE, 2006).
U.S. DOE's Biomass Energy Databook (2006) provides
detailed comparisons of energy inputs and GHG emissions
for various ethanol scenarios compared to gasoline. For more
information, see http://cta.ornlgov/bedb/pdf/Biomass_
Energy_Data_Book.pdf.
3.1.3 RELIABLE BASELOAD POWER SOURCE
Biomass power is a reliable, cost-effective source of
baseload power. Unlike wind or solar, biomass feed-
stocks can be stored and used to generate power 24
hours a day, seven days a week. The ability to store
feedstocks is beneficial for utilities because it enables
them to consistently know when they will be available,
in what quantities, and at what cost.
3.2 ECONOMIC BENEFITS
3.2.1 PRICE STABILITY FROM BIOPOWER
A key economic benefit of bioenergy is its potential
to provide price stability in volatile energy markets.
For example, opportunity fuels—waste materials from
agricultural or industrial processes—can generally be
obtained for no or very low cost, as is the case with
biogas collection and use at wastewater treatment
plants or animal feeding operations. In addition to
displacing purchased fossil fuels, using opportunity
fuels for biopower may also free up landfill space and
reduce tipping fees associated with waste disposal.
As bioenergy technologies continue to improve, the
potential for bioenergy to be a cost-competitive energy
choice increases.
Even when the cost of bioenergy is greater than fossil
fuels, in some cases bioenergy can help stabilize energy
prices by providing more diverse sources of energy
for the fuel supply. For example, biomass-fueled CHP
can provide a hedge against unstable energy prices
by allowing the end user to supply its own power
when prices for electricity are very high. In addition,
a CHP system can be configured to accept a variety of
feedstocks (e.g., biomass, biogas, natural gas) for fuel;
therefore, a facility could build in fuel-switching capa-
bilities to hedge against high fuel prices.
Using a diversity of renewable resources can also
provide economic benefits. Two studies in the United
Kingdom compared electric systems that rely on wind
alone with systems that combine wind and biomass
on the same grid. In both cases, the need for ancillary
services and transmission line upgrades, and thus the
overall costs of the system, were significantly reduced
when wind was complemented with biomass generat-
ing capacity (IEA, 2005).
ESSEX JUNCTION WASTEWATER TREATMENT FACILITY
ESSEX JUNCTION, VERMONT
Essex Junction's wastewater treatment facility uses two 30
kilowatt (kW) microturbines to generate electricity and thermal
energy from the methane gas produced by its digester. Before
CHP was installed, the plant used only half of the methane it
produced. Now the plant uses 100 percent of the methane
produced to heat the anaerobic digester, saving 412,000 kWh
and $37,000 each year. These energy savings represent 36
percent of the facility's electricity demand. The project has an
estimated payback of seven years.
Source: U.S. EPA, 2007f
CHAPTER THREE | State Bioenergy Primer 27
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3.2.1 ECONOMIC DEVELOPMENT FROM
FEEDSTOCK PRODUCTION AND BIOENERGY
A major driver for many states in considering bioen-
ergy expansion is the potential for economic develop-
ment benefits. It is prudent to keep in mind, however,
that the specifics of policy/program design and imple-
mentation, combined with the particular market forces
at work in a state, will impact the extent to which a
state will realize these benefits.
Nonetheless, the bioenergy supply chain has the
potential to create jobs, income, and taxes associated
with growing and harvesting or collecting the resource,
facility construction, operation and maintenance, trans-
portation, and feedstock processing. The funds retained
in communities from local feedstock production and
conversion create jobs and strengthen the local property
and income tax base. Because biomass resources are pri-
marily agricultural or forestry-based, rural communities
have tended to benefit most from increased demand for
feedstocks; however, if urban communities begin to fur-
ther develop their use of waste/ opportunity fuels, they
may also see localized benefits (U.S. DOE/SSEB, 2005).
Other potential economic benefits that can accrue from
use of biomass for power, fuels, or products include
(U.S. DOE/SSEB, 2005):
Creating new uses and markets for traditional com-
modity crops.
Creating opportunities to diversify rural income by
growing new crops for biomass markets.
Mitigating land-clearing costs for development or
reforestation purposes.
PRODUCER PAYMENTS:
BIOMASS CROP ASSISTANCE PROGRAM
As part of the Food, Conservation, and Energy Act of 2008,
the Biomass Crop Assistance Program (BCAP) was created to
financially support the establishment and production of crops
for conversion to bioenergy and to assist with collection,
harvest, storage, and transportation of eligible material for use
in a biomass conversion facility. BCAP provides payments to
farmers while they establish and grow biomass crops in areas
around biomass facilities. To qualify for payments, potential
biomass crop producers must participate in and be approved
as part of a "BCAP project area" that is physically located within
an economically viable distance from a biomass conversion
facility. Contracts run for five years for annual and perennial
crops and 15 years for woody biomass. The program provides
three types of payments to producers: direct, annual and cost-
share (sometimes called delivery) payments.
Source: USDA, 2008; NASDA, 2008
28 State Bioenergy Primer | CHAPTER THREE
Providing markets and partially defraying costs for
removal of undergrowth for forest health initiatives.
Eliminating, mitigating, or transforming the need for
agricultural and forestry-related subsidies.
Increased bioenergy can create or expand domestic
industries nationally and regionally. The United States
is already experiencing economic benefits from biofu-
els, according to a study by RFA. In 2006, the ethanol
industry created more than 160,000 direct and indirect
jobs; generated nearly $5 billion in federal, state, and
local tax revenues; and reduced the federal trade
deficit by more than $11 billion (Urbanchuk, 2007).
Biomass power is a vital component of Americas green
economy. This $1 billion-a-year industry provides
14,000-18,000 jobs nationwide and contributes mil-
lions of dollars to local tax revenues yearly (Cleaves,
Personal Communication, 2009).
Despite the potential economic benefits of biomass cul-
tivation and bioenergy production, farmers may be re-
luctant to devote land to producing biomass feedstocks
due to uncertainty in demand for these crops and
up-front investment costs. To help communities and
domestic industries take advantage of the economic
benefits of biomass cultivation and bioenergy produc-
tion, the Food, Conservation, and Energy Act of 2008
established the Biomass Crop Assistance Program to
provide financial incentives to farmers to grow biomass
feedstocks and connect with bioenergy producers (see
text box).
ECONOMIC DEVELOPMENT BENEFITS FROM BIOENERGY
FACILITIES
In 2005, RFA estimated that a typical ethanol plant producing
40 million gallons per year would provide a one-time boost of
$142 million to the local economy during construction, expand
the local economic base by $110.2 million each year through
direct spending of $56 million, create 41 full-time jobs at the
plant and a total of 694 jobs throughout the entire economy,
and boost state and local sales tax receipts by $1.2 million for
every $209,000 invested (U.S. DOE/SSEB, 2005).
A 2002 study conducted in South Dakota estimated that
a 24-million-gallon-per-year biodiesel facility under
consideration would create 29 new jobs at the facility and
another 748 jobs in the community. The facility would have
a $22-million annual payroll and would generate $4.6 million
in state and local tax revenues and $6.4 million in federal tax
revenues (Leatherman and Nelson, 2002).
For each megawatt of biopower produced from forest residue,
U.S. DOE estimates that at least four jobs are created to procure
and harvest the residue. Additional jobs would be created to
transport the residue and construct, operate, and maintain the
biopower facility (U.S. DOE, 2005).
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3.3 ENVIRONMENTAL BENEFITS,
CHALLENGES, AND CONSIDERATIONS
This section describes the potential environmental
benefits and challenges of bioenergy in terms of air
quality, land resources, waste, water resources, and
food supply. The environmental effects of bioenergy
can vary substantially because of the diversity in feed-
stock production, chemical content, and conversion
processes. As with many multifaceted issues, bioenergy
presents a complex set of environmental considerations
and potential tradeoffs, some of which require active
and attentive policy/program design and implementa-
tion to ensure the benefits outweigh the potential for
negative consequences of missteps.
In such a complex area, policy makers can turn to
detailed state or locally specific evaluations of potential
environmental effects to ensure they are making in-
formed decisions. A life-cycle assessment (LCA) can be
used to quantify these effects.
LCA is a technique to assess the environmental aspects
and potential impacts associated with a product, pro-
cess, or service by (U.S. EPA, 2008a):
Compiling an inventory of relevant energy and mate-
rial inputs and environmental releases.
Evaluating the potential environmental impacts associ-
ated with identified inputs and releases.
Interpreting the results to help with more informed
decision making.
A number of EGAs have been completed on bioenergy
technologies and systems (see 3.6—Resources for De-
tailed Information).
3.3.1 AIR QUALITY BENEFITS AND
CHALLENGES
Bioenergy can help improve air quality by reducing
GHG emissions as well as emissions of several key air
pollutants, depending on which biomass feedstocks
and bioenergy conversion technologies are used (see
Chapter 2 for descriptions of feedstocks and conver-
sion technologies). These emission reductions can
provide economic and environmental benefits by low-
ering emission-related operating costs, such as allow-
ance/ permit costs and emissions-control equipment
expenses (Hanson, 2005). At the same time (again
depending on feedstocks and technologies), bioenergy
can also increase certain air emissions relative to fossil
fuels. These issues are described below.
Decreased GHG Emissions from Bioenergy
Biomass is generally considered to contribute nearly
zero net GHG emissions (U.S. EPA, 2007b; IPCC,
2006). The reason for this accounting is because con-
version of biomass feedstocks (whether in the form of
biopower or biofuels) returns approximately the same
amount of CO2 to the atmosphere as was absorbed dur-
ing growth of the biomass, resulting in little to no ad-
ditional CO2 released to the air. In contrast, when fossil
fuels are burned, they release CO2 into the atmosphere
that was captured by photosynthesis and "stored" mil-
lions of years ago, thereby increasing the total amount
of carbon in the atmosphere today. Fuel sources such as
landfill gas and manure digester biogas actually reduce
GHG emissions while producing energy.
Some recent studies dispute whether land use changes
associated with biofuels (not biopower) production
and international agricultural commodity markets
counteract this benefit and actually increase GHG
emissions (Searchinger et al., 2008; Delucchi et al.,
2008; Wang and Haq, 2008). U.S. EPA is responsible for
studying this issue carefully as part of the rulemaking
process for the Federal Renewable Fuel Standard and
ultimately enforcing new GHG reduction standards
for renewable fuels as required by the Energy Indepen-
dence and Security Act (EISA) of 2007.
Biofuels. The Argonne National Laboratory has estimat-
ed (excluding indirect land use) that when corn ethanol
displaces an energy-equivalent amount of gasoline,
GHG emissions are reduced by 18-29 percent; cellulosic
ethanol yields an 85-86 percent reduction (Wang, 2005).
REDUCING GHG EMISSIONS WITH WASTE-TO-ENERGY
An example of GHG savings from bioenergy can be illustrated
by the diversion of MSW from landfills to incinerators. MSW as
a biomass feedstock reduces landfill methane emissions and
substitutes for fossil-based power sources. EPA's life-cycle
models (WARM and MSW Decision Support Tool) estimate that
0.55 to 1.0 tons of GHG emissions can be saved per ton of MSW
combusted when incineration with energy recovery is selected
over landfilling. MSW includes a large biogenic component (50
to 66 percent), and this fraction of the total can be considered
carbon neutral from an energy generation perspective. Overall,
a significant net GHG emissions savings could be realized from
MSW combustion with energy recovery.
Source: U.S. EPA, 2008c
CHAPTER THREE | State Bioenergy Primer 29
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Biodiesel is regarded as having significant GHG reduc-
tion capabilities, depending on the source of the feed-
stock. USDA and U.S. DOE performed a comparative
life-cycle analysis (excluding indirect land use) of soy-
based biodiesel and petroleum diesel used in city buses
and estimated that B20 (a blend of 20 percent biodiesel
and 80 percent petroleum diesel) and B100 (100 percent
biodiesel) can reduce CO2 emissions by approximately
15 percent and 78 percent, respectively (NREL, 1998).
Biopower. A 2004 NREL study found that overall,
compared to coal-generated electricity, producing elec-
tricity with biomass feedstocks will substantially reduce
GHG emissions (20 to 200+ percent) and the fossil en-
ergy consumption per kilowatt-hour of electricity gen-
erated (Spath and Mann, 2004). In addition, emissions
of methane, a potent GHG, can be reduced by utilizing
biomass residues that would otherwise decompose in
landfills (e.g., urban and industrial residues). Biopower
USE OF BIOPOWER FOR OFFSETS
Entities (corporations, facilities, governments) interested in
reducing their CO2 emissions are advised to first strive for
cost-effective GHG reductions through internal projects, such
as energy efficiency and on-site renewable energy projects. As
cost-effective direct options are exhausted, entities may also
consider supporting GHG reduction projects that occur outside
their organizational boundary—known as "offsets."
Offsets represent GHG reductions that are quantified and
verified at one location, but whose emission reductions are
"credited" to another location or entity. Under all internationally
recognized GHG protocols, biopower projects (including
converting LFG to energy, capture and use of anaerobic digester
gas, and solid fuel biomass feedstocks) can qualify for offset
credits under certain circumstances due to their GHG benefits.
EPA's Climate Leaders program, for example, offers protocols
for measuring the GHG benefits from biogas and biomass
power projects that meet four key accounting principles:
Real. The quantified GHG reductions must represent actual
emission reductions that have already occurred.
Additional. The GHG reductions must be surplus to regulation
and beyond what would have happened in the absence of
the project or in a business-as-usual scenario based on a
performance standard methodology.
Permanent. The GHG reductions must be permanent or have
guarantees to ensure that any losses are replaced in the future.
Verifiable. The GHG reductions must result from projects
whose performance can be readily and accurately quantified,
monitored, and verified.
For more information on offsets and other environmental
revenue streams for which biomass might qualify, see www.
epa.gov/chp/documents/ers_program_details.pdf.
Source: U.S. EPA, 2009; U.S. EPA, 2007d
30 State Bioenergy Primer | CHAPTER THREE
generated from biogas captured from landfills, waste-
water treatment facilities, or animal feeding operations
can also reduce methane emissions. On a national
scale, if all wastewater treatment facilities that operate
anaerobic digesters and have sufficient influent flow
rates (greater than 5 million gallons per day) were to
install CHP, approximately 340 MW of clean electricity
could be generated, offsetting 2.3 million metric tons of
CO2 emissions annually (U.S. EPA, 2007c).
Air Emissions Considerations with Feedstock
Production
The application of fertilizers, pesticides, and herbicides
associated with agricultural feedstocks (e.g., corn, soy-
beans, crop residues) can result in air pollutant emis-
sions, including emissions of particulate matter (PM),
nitrogen and sulfur compounds, heavy metals, and
volatile organic compounds (VOCs) (U.S. DOE, 2003).
In general, crops grown for bioenergy require fewer
pesticides and fertilizers than crops grown for food;
nevertheless, mitigation of air pollutants from agricul-
ture is important for all crop production, whether the
crop is used for food, feed, or bioenergy. Practices that
reduce the need for agricultural chemicals and fertil-
izers while retaining crop yields and quality contribute
to sustainability and increase the viability of biomass as
a feedstock resource (U.S. DOE, 2003).
Air Emission Considerations with Biopower
Air emissions associated with biopower vary by feed-
stock, technology, and the extent to which emission
controls are used.
SO, and NOY. Using certain biomass feedstocks—such
2, A *-"
as wood, wood waste, or crop residues—to produce bio-
power can reduce SO2 and NOX emissions because the
sulfur and nitrogen content is much lower than in coal.
Power plants reduce SO2 and NOX emissions when
they cofire these biomass feedstocks with coal, com-
pared to using coal alone (U.S. DOE, 2004; Mann and
Spath, 2001).
Biopower facilities using biomass feedstocks in certain
types of direct combustion technologies (e.g., fluid-
ized bed boilers) and gasification technologies (e.g.,
integrated gasification combined cycle, or IGCC) have
reduced SO2 and NOX emissions, compared to coal-
only electricity production (U.S. DOE, 2004a; Mann
and Spath, 2001).
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Controlled burning of crop residues for power genera-
tion also can reduce SO2 and NOX emissions by up to
98 percent, compared to emissions from uncontrolled
open burning, which many farmers use to burn their
crop residues as waste (U.S. DOE, 2004).
Mercury. Mercury emissions from biopower facilities
are significantly less—near zero—than those from
coal-burning power plants (NREL, 2003).
Particulate matter. Biopower—and in particular,
bioheat—can contribute to PM2.5 emissions. Indus-
trial- and utility-scale biomass combustion facilities
RELEVANT FEDERAL AIR QUALITY STANDARDS
States must comply with federal air quality standards, including
the National Ambient Air Quality Standards (NAAQS) established
under the Clean Air Act for "criteria" pollutants, which include
CO, lead, nitrogen dioxide, particulate matter (PM2.5, PM10),
ground-level ozone, and sulfur dioxide (SO2).
Most power generation facilities (both fossil fuel-based and
bioenergy), as well as burning of transportation fuels (both
gasoline and biofuels) in vehicles, emit some of these criteria
pollutants. States that do not meet one or more of the NAAQS
standards are considered "nonattainment" areas and are
required to develop and submit State Implementation Plans
(SIPs) that indicate how they will meet these standards.
To help meet federal NAAQS requirements for criteria
pollutants, EPA provides guidance to states for developing SIPs
that quantify and include emission reductions achieved from
energy efficiency and renewable energy measures, including
bioenergy. For more information, see www.epa.gov/ttn/oarpg/
tl/memoranda/ereseerem_gd.pdf.
Bioenergy (as well as most fossil fuel-based) facilities may
also be subject to additional federal standards for combustion
sources and air-permitting requirements for new sources,
including New Source Performance Standards (NSPS) and
National Emission Standards for Hazardous Air Pollutants
(NESHAP) for boilers, gas turbines, and internal combustion
engines. Existing combustion sources must obtain NESHAP
permits; new combustion sources must install maximum
available control technologies (MACT) and meet additional
requirements to qualify for both NSPS and NESHAP permits.
Meeting these permitting requirements can take significant
effort by project developers.
In 2009, EPA will be publishing a proposed area source rule
that will apply new emission requirements to all non-residential
small boilers. All bioenergy boilers—typically used to produce
heat or steam—installed after that date will be subject to
emission regulations for new boilers. All bioenergy boilers in
place prior to that date will eventually be required to comply
with regulations for existing boilers. For more information, see
www.epa.gov/woodheaters/resources.htm.
States may also have their own permitting requirements
in addition to, or that are more stringent than, federal
requirements.
must comply with federal and state permits for air
pollutants, which require controls for PM. As noted in
the text box on this page, permitting requirements for
small, non-residential boilers will also be in place in
2009.
However, the burning of wood and wood waste in
traditional, residential wood stoves is a significant con-
tributor to PM2.5 concentrations in some areas of the
country. Since 1988, all wood stoves manufactured in
the United States must be EPA-certified, which means
they use one-third less wood than older stoves to pro-
duce the same heat and emit 50-70 percent less PM;
however, only 20-30 percent of the 10 million wood
stoves in use are the newer, certified type.
For more information, see www.epa.gov/woodstoves/
changeout.html.
Air Emission Considerations with Biofuels
Analyses by EPA and others have found that the effects
of biofuels on air pollutant emissions depend strongly
on the type of renewable fuel, the engine type and per-
formance, and the vehicle emissions control system per-
formance. In addition, biodiesel impacts on emissions
can vary depending on the type of biodiesel (soybean,
rapeseed, or animal fats) and type of conventional diesel
to which the biodiesel was added (U.S. EPA, 2002).
Ethanol
CO. Because ethanol contains oxygen, adding ethanol
to gasoline allows engines to burn fuel more com-
pletely, reducing emissions of unburned hydrocarbons;
CO emissions can be reduced by 20-30 percent. States
with CO nonattainment areas require that fuel contain
oxygen and ethanol is blended into gasoline for this
reason (U.S. DOE, 2008).
NOX. Past tests have shown that ethanol-gasoline
blended fuels, such as El0 (a blend of 10 percent etha-
nol and 90 percent petroleum), increase NOX emissions
slightly. However, results on the use of E85 (a blend
of 85 percent ethanol and 15 percent petroleum; used
in flexible fuel vehicles [FFVs]) have shown that NOX
emissions do not increase (U.S. DOE, 2008).
VOCs. Certain VOCs that are present in gasoline, such
as benzene (a carcinogen), are not present in ethanol;
thus, adding ethanol to gasoline reduces emissions
of these and other exhaust-related VOCs (U.S. DOE,
2008). However, other air toxics (formaldehyde, acetal-
dehyde, and 1,3-butadiene) are present in ethanol and
CHAPTER THREE | State Bioenergy Primer 31
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blending ethanol with petroleum can increase non-
exhaust VOCs (U.E. EPA, 2007e).
Biodiesel
CO, PM, SO2. B20, a blend of 20 percent biodiesel and
80 percent petroleum diesel, helps reduce emissions of
PM, CO, and hydrocarbons, compared to conventional
diesel. These air emissions from biodiesel-diesel fuel
blends generally decrease as the concentration of
biodiesel increases. Biodiesel does not produce SO2
emissions (U.S. EPA, 2002).
NOX. The effect of biodiesel on NOx can vary with
engine design, calibration, and test cycle. At this time,
the data are insufficient to conclude anything about the
average effect of B20 on NOx; some studies indicate
emissions slightly increase while others indicate a
slight decrease or neutral response (U.S. EPA, 2002;
NREL, 2009).
BIODIESEL VS. CONVENTIONAL DIESEL EMISSIONS IN
HEAVY-DUTY ENGINES
One of the most common blends of biodiesel, B20, contains 20
percent biodiesel and 80 percent petroleum diesel by volume.
When soy-based biodiesel at this concentration is burned
in heavy-duty highway engines, the emissions, relative to
conventional diesel, contain approximately:
11 percent less CO
10 percent less PM
21 percent less unburned hydrocarbons
2 percent more NOX
Source: U.S. EPA, 2002
Decreased Air Emissions from Bioproducts
Manufacturing
Compared to manufacturing that relies solely on
fossil fuels, manufacturing of bioproducts can help
reduce certain pollutant emissions, including VOCs
and GHGs. This is because many biomass feedstocks
used to manufacture bioproducts can also be used to
generate power and heat for these same manufacturing
processes, thus decreasing or eliminating the need for
fossil fuels and associated emissions. Also, bioproducts
are often manufactured using lower temperatures and
pressures than fossil fuel-based manufacturing; there-
fore, less combustion may be needed, which may result
in fewer air emissions (U.S. DOE, 2003).
NATURAL DISASTERS CAN GENERATE A SUBSTANTIAL
VOLUME OF DEBRIS
U.S. EPA's Planning Guide for Disaster Debris highlights the
need for communities to plan for the cleanup of debris after
a major natural disaster. Based on lessons learned from
communities that have experienced such disasters, this guide
contains information to help communities prepare for and
recover more quickly from the increased solid waste generated
by a natural disaster. Major categories of disaster debris include
damaged buildings, sediments, green waste, personal property,
ash and charred wood—much of which can be productively
utilized if plans are in place (e.g., through recycling, as fuel for
biopower production).
For more information, see www.epa.gov/osw/conserve/rrr/imr/
cdm/debris.htm.
32 State Bioenergy Primer | CHAPTER THREE
3.3.2 WASTE REDUCTION BENEFITS
Reduced Solid Waste from Biopower
The use of biomass residues can reduce the amount
of waste that must be disposed of in landfills. MSW is
sometimes used in bioenergy production, which di-
verts the MSW from the waste stream. Burning MSW
in boilers for heat or power can reduce the amount of
waste that would otherwise be disposed of in landfills
by up to 90 percent in volume and 75 percent in weight
(U.S. DOE, 2004a). With a range of 137 to 266 million
tons of MSW currently landfilled on an annual basis,
the potential for volume reduction is significant (U.S.
EPA, 2008c). Waste reduction not only saves increas-
ingly limited landfill space, but also helps protect the
environment (e.g., water quality in rivers and oceans).
In addition, using agricultural and forest residues for
bioenergy production allows for these wastes to be dis-
posed of through controlled combustion, rather than
burned in open-air slash piles, which helps control and
reduce potentially harmful emissions. Such pollution
reduction also provides public health benefits (e.g.,
maintaining or improving drinking water supplies and
reducing illnesses associated with air pollution) (U.S.
DOE, 2004a).
Reduced Hazardous and Toxic Wastes from
Bioproducts Manufacturing
Many bioproduct manufacturing processes use natural
catalysts (e.g., enzymes) and solvents (e.g., water) and
produce few or no toxic or hazardous by-products. (In
contrast, manufacturing of fossil fuel-based products
uses large amounts of aromatic solvents or strong inor-
ganic acids and bases.) In most cases, solid wastes and
liquid effluents from biological processes used to make
bioproducts are biodegradable or can be recycled or
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disposed of without extensive treatment. Even in cases
where bioproduct manufacturing does release wastes of
concern (e.g., production of cellophane produces VOC
emissions and high-acid wastewater), the pollution
generated is often less than that of similar fossil-based
products (e.g., cellophane produces two to three times
less pollution than polyurethane). In addition, some
chemicals used to make bioproducts could be replaced
with more environmentally friendly bio-based chemi-
cals (U.S. DOE, 2003).
3.3.3 LAND RESOURCE CONSIDERATIONS
Soil Impacts. Naturally, using biomass to produce en-
ergy can have an impact on land resources. These im-
pacts vary with feedstock and can be positive or nega-
tive. Biomass grown for feedstock purposes (in contrast
to waste/opportunity fuels) requires large areas of land
and can deplete the soil over time. For example, there
are long-term economic and environmental concerns
associated with removal of large quantities of residues
from cropland. Removing residue on some soils could
reduce soil quality, promote erosion, and lead to a loss
of soil carbon, which in turn lowers crop productivity
and profitability (U.S. DOE, 2005).
Ecosystem Impacts. When natural areas or otherwise
undeveloped land is converted to agricultural uses
to produce biofuel feedstocks, the potential exists for
damage to local ecosystems and displacement of spe-
cies. To minimize land use impacts, fuel crops must be
EPA'S FUTURE MIDWESTERN LANDSCAPES STUDY
The rapid growth of the biofuels industry, which uses crops
and other biomass to make liquid fuel, is causing changes in
agricultural practices and land uses across the United States,
and most strikingly in the Midwest. EPA has initiated the Future
Midwestern Landscapes Study to examine projected changes
in landscapes and ecosystem services in the Midwest. Given its
immediate influence, biofuel production will be studied as a
primary driver of landscape change.
By conducting this study, U.S. EPA aims to:
Understand how current and projected land uses affect the
ecosystem services provided by Midwestern landscapes.
Provide spatially explicit information that will enable EPA
to articulate sustainable approaches to environmental
management.
Develop web-based tools depicting alternative futures so users
can evaluate trade-offs affecting ecosystem services.
For more information, see www.epa.gov/ord/esrp/quick-finder/
mid-westhtm.
managed so they stabilize the soil, reduce erosion, and
protect wildlife habitat.
Forest Health. Significant opportunities may exist to
link forest health and bioenergy production. In many
forests throughout the western United States, natural
ecosystems have been significantly altered by fire sup-
pression and logging practices, creating a high risk of
intense wildfire. The surplus biomass from thinning
unnaturally overgrown forest areas represents a poten-
tially large renewable energy resource. Forest thinning
can be done in a sustainable manner to minimize soil
erosion and preserve wildlife habitat (Oregon Depart-
ment of Energy, 2007). Development of forest biomass
harvesting guidelines (see box below) can help ensure
that thinning or residue removal is performed in line
with the many aspects of forest health.
Land Area. Biomass power plants, much like fossil fuel
power plants, require large areas of land for equipment
and fuel storage. For example, a small biopower facility
that processes 100 tons/day of woody biomass would
require approximately 12,500 square feet exclusively for
storing a 30-day supply of biomass (assuming average
storage height of 12 feet and average density of 40lb/
cubic foot). For a larger biopower facility that processes
680 tons/day of feedstock, more than 93,700 square feet
of storage space could be needed, which is equivalent
to more than two football fields (U.S. EPA, 2007d).
However, if biomass plants burn a waste source such
as construction wood waste or agricultural waste,
they can provide a benefit by freeing areas of land that
might otherwise have been used for landfills or waste
piles (U.S. EPA, 2008b).
STATES DEVELOP FOREST BIOMASS HARVESTING GUIDELINES
Biomass harvesting guidelines are designed to fill gaps where
existing best management practices may not be sufficient
to protect forest resources under new biomass harvesting
regimes. States that have developed biomass harvesting
guidelines or standards that cover biomass removals include:
Maine, Minnesota, Missouri, Pennsylvania, and Wisconsin.
Existing guidelines cover topics such as dead wood, wildlife and
biodiversity, water quality and riparian zones, soli productivity,
silviculture, and disturbance. A Forest Guild (2009) report
provides an assessment of existing guidelines and provides
recommendations for future forestry guidelines focused on
woody biomass removal.
For more information, see www.forestguild.org/publications/
research/2009/biomass_guidelines.pdf.
CHAPTER THREE | State Bioenergy Primer 33
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ENVIRONMENTALLY SUSTAINABLE PRACTICES FOR BIOMASS
FEEDSTOCK PRODUCTION
Bioenergy production has the potential to be a low-input,
sustainable energy system. Practices that allow bioenergy to be
developed in an environmentally sustainable manner include
the following:
Improvements in crop production are increasing crop yields per
acre, thus requiring less land and fewer chemical inputs such
as fertilizers and pesticides. Minimizing the use of fertilizers and
pesticides for energy crops and crop residues can help protect
water quality, air quality, wildlife, and public health.
Degraded lands and abandoned and underutilized farmland can
be used to grow biomass feedstocks rather than using existing
farmland.
Agricultural and forest land on which biomass feedstocks are
grown can create new wildlife habitats and protect existing
ones (e.g., crop harvesting can be prohibited during bird
nesting seasons), while providing open spaces that enhance the
quality of life in communities.
Continued adoption of reduced- and no-till field practices for
harvesting crop residues (e.g., corn stover, wheat straw) for
cellulosic biofuel production can maintain enough residues in
fields to control soil erosion and sustain soil quality.
Development and use of water-efficient crops will help
conserve the amount of water needed for both agricultural and
energy crops.
Transitioning from corn-based ethanol production to cellulosic
biofuels will contribute to the environmental benefits of
bioenergy because using waste/opportunity feedstocks means
less water and chemical use, along with ancillary benefits from
using waste productively.
Production of microalgae can be accomplished in tanks or on
degraded lands using brackish or saline water.
3.3.4 WATER RESOURCE CHALLENGES
Water Quality Considerations from Feedstock
Production
Chemical fertilizers, pesticides, and herbicides associ-
ated with agricultural feedstocks pose a risk to water
quality if they enter surface waters. These chemicals
can contaminate surface water, groundwater, and
drinking water supplies.
Fertilizer Runoff. The influx of fertilizer nutrients into
water supplies can lead to eutrophic conditions where
algae growth becomes excessive. As this increased
plant matter dies, oxygen is consumed in the decompo-
sition process, which can lead to hypoxia—the state of
extremely low dissolved oxygen that is deadly for many
aquatic species. In the Gulf of Mexico this problem
is particularly acute due to the high concentration of
farms in the Mississippi River watershed. Agricultural
runoff enters the Gulf of Mexico via the Mississippi
34 State Bioenergy Primer | CHAPTER THREE
River and creates a hypoxic zone every summer that
damages many valuable fisheries.
For more information, see www.epa.gov/owow/msba-
sin/hypoxialOl. htm.
Practices that reduce the need for these chemicals while
retaining crop yields and quality contribute to the sus-
tainability and viability of bioenergy production (U.S.
DOE, 2003). One of the proposed solutions to the nutri-
ent runoff problem has been to increase the acres of pe-
rennial crops (e.g., switchgrass) relative to annual crops
(e.g., corn). Perennial crops require fewer applications
of pesticides and fertilizers. When strategically placed,
they can absorb the runoff from annual crop plantings.
Other benefits of perennial crops include less erosion
and less soil compaction due to less soil disturbance
(U.S. DOE, 2005).
Another potential solution to the nutrient runoff prob-
lem is to preserve or plant riparian buffers (vegetated
regions adjacent to streams and wetlands). Based on
recent studies, riparian buffers of various types (grass,
forest, wetland, and combinations thereof) can be effec-
tive at reducing nitrogen in riparian zones, especially
nitrogen flowing in the subsurface, in areas where soil
type, hydrology, and biogeochemistry are conducive to
microbial denitrification and plant uptake. While some
narrow buffers (1 to 15 meters) may remove nitrogen,
wider buffers (>50 meters) more consistently remove
significant portions of nitrogen (U.S. EPA, 2005).
In contrast to potential adverse water quality impacts
from diverting previously uncultivated lands to energy
crops, redirecting large quantities of animal manure to
bioenergy uses can lessen nutrient runoff and reduce
contamination of surface water and groundwater re-
sources (U.S. DOE, 2005).
Herbicides and Pesticides. Bioenergy crops such as
tree crops and switchgrass require herbicide application
prior to establishment and during the first year to mini-
mize competition from weeds until the crops are well
established. However, tree crops and switchgrass need
only one-tenth the amounts of herbicides and pesticides
required on average by agricultural crops. Studies are
showing that herbicide migration into groundwater is
less likely to occur with application to biomass crops
(ORNL, 2005).
Temperature and Chemical Pollution. Water pollution
is also a potential concern with biomass power plants. As
is the case with fossil fuel power plants, pollutants can
-------
build up in the water used in the biomass power plants
boiler and cooling system. In addition, the water used for
cooling is much warmer when it is returned to the lake
or river than when it was removed. Pollutants and higher
water temperatures can harm fish and plants in the lake
or river where the power plant water is discharged. This
discharge usually requires a permit and is monitored.
Water Use Changes from Feedstock Production
and Biofuels
Water use is another concern associated with feedstock
production and biomass processing. Most current ag-
ricultural feedstocks have irrigation requirements, and
biofuels plants currently use several gallons of water for
every gallon of fuel produced. Because these plants are
usually built close to where the feedstocks are grown to
minimize transportation costs, local water supplies are
drawn upon to serve both irrigation and production
needs. Water use is a particular concern in arid regions
and where water resources are already being depleted
(Oregon Environmental Council, 2007).
3.3.5 FOOD SUPPLY CHALLENGES
One concern regarding the expansion of bioenergy
is that crops grown for food, particularly corn, could
be diverted from the global food chain to the biofuels
supply chain. In the case of corn, only a small amount
of U.S. corn is currently exported to undernourished
populations. The 24 countries where at least one-third
of the population is undernourished import less than
0.1 percent of U.S. corn (Muller et al, 2007).
A more pressing concern may be the conversion of land
from agricultural crop production to biomass feed-
stock production in developing countries where food
shortages exist. The demand for biofuels from wealthy
countries could exacerbate this problem in developing
countries. International and national policies maybe
needed to protect local food supplies. The issue of bio-
energy's relationship to agriculture also needs additional
analysis, along with further investigation of the many
other issues that affect world food, land use, hunger, and
poverty (Muller et al., 2007).
3.4 FEEDSTOCK SUPPLY CHALLENGES
3.4.1 LOCATING HIGH-QUALITY FEEDSTOCKS
FOR BIOENERGY
It is critical for bioenergy producers to have access to a
reliable, high-quality biomass feedstock supply. For both
biofuels and biopower, feedstocks should ideally
be available:
For a relatively fixed cost over long periods of time (i.e.,
for the life of the bioenergy project).
From a consistent source or sources in close proximity
to the bioenergy plant.
With high-quality characteristics, such as high heating
value, low moisture and ash content, and consistent
particle size.
Obtaining biomass feedstocks with these qualities can
be challenging. Factors that can cause uncertainty in the
availability of a suitable feedstock over time include:
Transportation Constraints. Transportation costs im-
pose limits on the areas over which a biomass feedstock
can be obtained cost effectively.
Competition for Feedstocks. Competition can include:
Alternative end uses: If the feedstock has more than
one end use, a bioenergy producer might need to com-
pete with other markets for the use of the resource.
Competing land uses: Biomass producers may shift
production to other resources if they become more
profitable to grow than the original feedstock.
STORAGE CHALLENGES
Once feedstocks are identified and transported to biorefineries,
they are accumulated in piles, pretreated and/or processed, and
then placed in buffer storage containers prior to use. Challenges
associated with storing feedstocks include:
Volume. Biomass feedstocks can have low bulk densities, and as
a result, prep-yards and storage facilities must be large enough
to accommodate the large volumes necessary for bioenergy
production. For example, a 30-day supply of woody biomass
(average density 40 pounds per cubic foot) for a biorefinery with
a 680 tons per day conversion system would cover an area larger
than two football fields, if piled to an average height of 12 feet.
Pile management. As feedstocks arrive at biorefineries they are
piled in prep-yards prior to treatment and processing, using
either front end loaders or a radial stacker (depending on the
volume required). Piles must be carefully managed to maintain
the quality of the feedstock, which may require a range of
precautions from dust control to combustion prevention.
Shelf life. Because biomass feedstocks consist of organic
material, they are susceptible to degradation and decomposition
over time. Feedstocks have a "shelf life" that is dependent on
their moisture content and the climate in which they are stored.
To ensure that feedstocks remain stable prior to use, storage
facilities may need to install environmental control technologies,
which can be costly.
Source: U.S. EPA, 2007d; U.S. DOE, 2004b
CHAPTER THREE | State Bioenergy Primer 35
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Competition among bioenergy producers: Bioenergy
producers may have to compete with one another for
a scarce feedstock supply as an increasing number of
bioenergy projects are deployed.
Natural causes. Weather, agricultural pests, and plant
disease can decrease the quantity and quality of the
desired supply available from a given agricultural or
energy crop source.
Seasonality of feedstocks. Some feedstocks are season-
al and may have limited availability depending on the
time of year. Bioenergy producers may need to engage
with multiple suppliers and/or employ flexible conver-
sion processes capable of using a variety of feedstocks
to ensure a steady supply of feedstock and consistent
levels of energy output throughout the year. Working
with multiple landowners to obtain feedstocks may
prove challenging since landowners may have compet-
ing objectives related to forest stewardship, forest man-
agement plans, financial concerns, and other priorities.
These factors contribute to uncertainty and/or
volatility in feedstock prices. The first two factors—
transportation and competition—are critical, and can
be influenced by policy or program design.
Transportation
The cost of a biomass resource is influenced in large
part by transportation costs—the expenditure required
to bring the feedstock to the bioenergy plant. Because
biomass provides less energy per unit of weight or
volume than do fossil fuels, more feedstock is required
to generate a given output. Therefore, the resource
cannot be profitably transported as far as coal or oil, so
bioenergy facilities must be located within an area of
concentrated feedstock.
BIOMASS COMMODITY EXCHANGE
Wisconsin is developing the Biomass Commodity Exchange
(BCEX) to help organize the way new businesses and
landowners connect to provide biomass for bioenergy
applications. The BCEX project has been charged with creating
an implementation plan for a commodity exchange as a means
to increase the efficiency of the supply chain providing biomass
to the existing biofuels industries and the emerging concept
of the forest biorefinery. The implementation plan will also
examines the future trade of closed-loop energy crops, such
as willow, poplar and switchgrass and as an approach to offset
CO2 emissions through synergies created with other regulated
exchanges such as the Chicago Climate Exchange.
For more information,
see www.biomasscommodityexchange.com.
36 State Bioenergy Primer | CHAPTER THREE
The distance that biomass can be transported profitably
depends on numerous factors, including the cost of
transportation fuel and quality of the biomass, which
are subject to considerable variability by feedstock and
location. DOE estimates feedstock transportation costs
as usually in the range of $0.20 to $0.60 per dry ton per
mile (U.S. DOE, 2005). All transportation costs will
vary with local conditions, but one of the primary fac-
tors influencing transportation costs is the cost of diesel
fuel. Also, using barges and rail to transport feedstocks
is less expensive than trucking per unit of feedstock.
Competition for Feedstocks
In some situations, biomass producers might be reluc-
tant to agree to long-term supply contracts, which can
also contribute to cost uncertainties. For example, bio-
mass producers want the freedom to sell to whichever
market or end user is willing to pay the most, and may
therefore be hesitant to agree to long-term contracts if
the feedstock has multiple end uses. Biomass producers
may also be reluctant to enter into long-term contracts
when the potential exists for commodities other than
the feedstock to become more profitable during the
life of the contract (e.g., from soybeans to corn). As
producers shift production away from the original
feedstock to other resources, the cost of obtaining a
given quantity of the feedstock will increase.
For example, as shown in Figure 3-1, the price of
corn has increased significantly in recent years and is
projected to remain high by historical standards for the
foreseeable future. Some studies have attributed these
trends to increased corn-based ethanol production,
although debate exists as to how much of this price in-
crease can be attributed to other factors such as rising
energy prices. Nonetheless, if corn prices are predicted
to increase, farmers will be even more reluctant to en-
ter into long-term contracts because they would often
prefer to hedge in hopes of higher prices later.
Feedstock availability and price will ultimately deter-
mine the feasibility of a proposed bioenergy plant.
Potential bioenergy investors will extend the capital
needed to finance proposed projects only if the projects
will generate an attractive return. Typically, investors
look to recover their initial capital outlays in just a
few years. Any variability in the availability or cost of
suitable biomass feedstocks could significantly reduce
the return on their investment. Therefore, investors are
unlikely to help finance a project unless both long-term
feedstock supply plans and purchase agreements for
the energy produced are in place.
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FIGURE 3-1. U.S. CORN PRICES, 2000 TO 2018
Source: USDA Agricultural Projections to 2018, February 2008
Corn Prices are Projected to Peak in 2009/10
4.00
3.50
1.50
A*
CROP YEAR
Some states have enacted policies and other measures
to reduce the risk of investing in bioenergy. To learn
more about the actions that states can take to make the
investments more attractive, see Chapter 5, How Can
States Facilitate Financing of Bioenergy Projects?
3.5 INFRASTRUCTURE CHALLENGES
3.5.1 PRODUCT DELIVERY CHALLENGES
FOR ETHANOL
Pipeline Limitations
All motor fuels must be transported from refineries to
refueling stations as efficiently and cost effectively as
possible. When the fuel must be transported a great
distance, as is often the case, pipelines are typically the
least-cost option.
Unlike conventional refined motor fuels (e.g., gasoline,
diesel), which are routinely shipped via pipeline, the
distribution of ethanol through the nation's pipeline
network poses challenges largely due to several proper-
ties of the biofuel:
Ethanol will easily absorb water that has accumulated in
pipelines, potentially rendering it useless as a motor fuel.
Because it readily absorbs water, ethanol cannot be
separated from other products in a petroleum pipeline
by the typical method of sending water between
batches of different petroleum products.
Ethanol is an effective solvent/cleansing agent and
therefore may be contaminated by residues of other
materials that have been shipped through the pipeline.
Ethanol is corrosive and can damage pipeline parts and
storage tanks.
In addition, the current U.S. petroleum pipeline network
is not optimally sited for ethanol distribution, produc-
tion of which is heavily concentrated in the Midwest.
•d
ETHANOL PIPELINE IN CENTRAL FLORIDA
In September 2008, Kinder Morgan Energy Partners, L.P.
successfully performed test shipments of batches of denatured
ethanol in its 16-inch Central Florida Pipeline—otherwise
used to transport gasoline between Tampa and Orlando.
Approximately $10 million in modifications were made to
the line in preparation for the ethanol shipments, including
chemically cleaning the pipeline, replacing equipment that was
incompatible with ethanol, and expanding storage capacity
at the Orlando terminal. As a direct result of the tests. Kinder
Morgan announced in December 2008 that the pipeline would
become the first in the United States to carry commercial
batches of ethanol. Kinder Morgan has also proposed creating
a dedicated 8-inch "inter-terminal" ethanol pipeline to supply
its Hooker's Point terminal in Tampa.
Source: Kinder Morgan, 2008a and 2008b
CHAPTER THREE | State Bioenergy Primer 37
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As a result of these factors, ethanol is typically not
transported in large quantities by pipeline, but instead
by barge, rail, or truck, which are all more costly and
less efficient than shipping via pipelines. In 2005, rail
was the primary transportation mode for ethanol,
shipping 60 percent of ethanol production, or approxi-
mately 2.9 billion gallons. Trucks shipped 30 percent
and barges 10 percent (USDA, 2007). It typically costs
roughly $0.17 to $0.20 per gallon to transport ethanol
by rail, whereas it would cost approximately $0.05 per
gallon to transport by pipeline (RFA, 2008). This added
expense hurts the competitiveness of ethanol relative to
conventional refined fuels.
Although it is possible to convert some existing
pipelines for ethanol shipment, the cost of doing so is
usually prohibitive and difficult to justify. Developing
a new, dedicated ethanol distribution infrastructure
would help to address many of these challenges; how-
ever, the high construction and capital costs and the
challenge of obtaining new rights-of-way make build-
ing a new pipeline distribution system unlikely unless
the need arises to ship very large quantities of ethanol.
The U. S. Department of Transportation's Pipeline and
Hazardous Materials Safety Administration (PHMSA)
is researching a variety of technologies that could make
large-quantity distribution of ethanol by pipeline more
feasible in the future.
For more information, see http://primis.phmsa.dot.
gov/comm/Ethanol.htm?nocache=406.
DEVELOPING INFRASTRUCTURE: TENNESSEE'S BIOFUEL
GREEN ISLAND CORRIDOR NETWORK
In 2006, the state of Tennessee established a grant program
to facilitate development of the Biofuel Green Island Corridor
Network along Tennessee's interstate system and major
highways. The goal of this program is to help establish readily
available "green island" refueling stations for B20 and E85 no
more than 100 miles apart along heavily traveled transportation
corridors. Ultimately, the state hopes to have at least one
B20 and one E85 station in 30 priority counties, and three of
each station type within all major urban areas. The state has
allocated $1.5 million in state funds and $480,000 in funds from
the federal Congestion Mitigation and Air Quality Improvement
(CMAQ) program to pay for up to 80 percent of fuel station
installation costs, offering grantees a maximum of $45,000 per
pump or $90,000 per location. The program has also focused
on installing visible and easily recognizable signage along the
corridors to indicate where B20 and E85 stations are located
and encourage their use. As of October 2008, there were 22
E85 stations and about 27 B20 stations in Tennessee.
Source: Tennessee Department of Transportation, 2009
38 State Bioenergy Primer | CHAPTER THREE
Fueling System Limitations
A second major infrastructure challenge to increased
ethanol use is to ensure there are sufficient fueling
stations offering access to E-85 blends of ethanol to
support the increasing volumes of renewable fuels as
set forth in EISA.
As of 2008, there were more than 1,600 stations offer-
ing E85 in the United States. However, due to the dis-
tribution issues discussed above, most of these stations
are located in the Midwest, where most ethanol pro-
duction currently occurs. The highest concentrations of
E85 stations are found in Illinois, Indiana, Iowa, Min-
nesota, and Wisconsin; although E85 is commercially
available in more than 40 states across the country.
TRANSATLAS INTERACTIVE ALTERNATIVE FUEL MAP
The U.S. Department of Energy (DOE) and the National Renew-
able Energy Lab (NREL) have developed a comprehensive
mapping tool to help industry and government planners
implement alternative fuels and advanced vehicles. The new
TransAtlas tool combines different types of geographic data to
identify areas with potential for developing advanced transpor-
tation projects. NREL employed user-friendly Google Maps to
display the locations of existing and planned alternative fueling
stations, concentrations of different vehicle types, alternative
fuel production facilities, roads, and political boundaries.
For more information, see www.afdc.energy.gov/afdc/data/
geographic.h tml.
DOE estimates that 6.8 million light-duty FFVs are on
U.S. roadways, and this number is likely to grow. FFVs
are designed with specific modifications that allow
them to run on either traditional gasoline (which may
contain as much as 10 percent ethanol, depending on
state regulations) or E85.3 Unfortunately, many owners
of FFVs do not realize their vehicles can run on E85
and/or don't know where to find E85 stations. Many
more fueling stations offering E85 are needed, as is
greater market visibility, if states want to capitalize on
the existing potential market of FFV owners.
To locate E85 fueling stations, see www.afdc. energy.
gov/afdc/ethanol/ethanol_locations.html.
3 Vehicles that are not designated as E85-compatible should not use E85fuel
because the high content of ethanol can damage the engine and fueling system.
http://www.afdc.energy.gov/afdc/e85toolkit/eth vehicles.html
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3.6 RESOURCES FOR DETAILED INFORMATION
Description
Economic Impacts of Bioenergy
Production and Use, U.S. DOE,
SSEB Southeast Biomass State and
Regional Partnership, October
2005.
Summarizes the benefits of bioenergy production in the U.S.,
including job creation, reduced demand for fossil fuels, and
expanded tax bases.
www.vienergy.org/Economics.pdf
State Energy Alternatives
Web Site, U.S. DOE, National
Conference of State Legislatures.
Provides information on state-specific biomass resources,
policies, and status as well as current biofuels and biopower
technology information.
http://appsl.eere.energy.gov/
states/
An Assessment of Biomass
Harvesting Guidelines, Evans and
Perschel, Forest Guild, 2009.
Presents an assessment of existing biomass harvesting
guidelines and provides recommendations for the
development of future guidelines.
www. fores tguild.org/
publications/research/2009/
biomass_guidelines.pdf
Planning for Disaster Debris, U.S.
EPA, 2008.
Provides information and examples for developing a disaster
debris plan that will help a community identify options for
collecting, recycling, and disposing of debris in the event of a
natural disaster.
www.epa.gov/osw/conserve/rrr/
imr/cdm/p ubs/disas ter. h tm
Biopower/Bioheat
Biomass Power and
Conventional Fossil Systems with
and without CO2 Sequestration-
Comparing the Energy Balance,
Greenhouse Gas Emissions, and
Economics, NREL, January 2004.
Provides a comparative analysis of a number of different
biopower, natural gas, and coal technologies.
www.nrel.gov/docs/
fy04osti/32575.pdf
Economic Impacts Resulting
from Co-Firing Biomass
Feedstocks in Southeastern
U.S. Coal-Fired Power Plants,
Presentation by Burton English et
al, University of Tennessee.
Summarizes the economic impacts in eight southeastern
states from using biomass to co-fire power plants that
traditionally have only used coal for fuel.
www.farmfoundation.org/
projects/documen ts/english-
cofire. pp tprojec ts/docum en ts/
english-cofire.ppt
Green Power Equivalency
Calculator, U.S. EPA
Allows any bioenergy user to communicate to internal and
external audiences the environmental impact of purchasing
or directly using green power in place of fossil fuel derived
energy by calculating the avoided carbon dioxide (CO2)
emissions. Results can be converted into an equivalent
number of passenger cars, gallons of gasoline, barrels of oil,
or American households' electricity use.
www.epa.gov/grnpower/pubs/
calculator.htm
Job Jolt: The Economic Impacts
of Repowering the Midwest:
The Clean Energy Development
Plan for the Heartland, Regional
Economics Applications
Laboratory, November 2002.
Analyzes the economic and job creation benefits of
implementing a clean energy plan in the 10-state Midwest
region.
www.michigan.gov/
documen ts/n wlb/Job_Jolt_
RepoweringMidwest_235553_7.
pdf
Potential Impacts of Biomass
Power on the Rural Development
of Missouri, Community Policy
Analysis Center, Department of
Agricultural Economics, University
of Missouri-Columbia, 2006.
Analyzes the relationship between bioenergy and rural
development, and studies the economic impacts of a
hypothetical biopower plant in Missouri.
www. implan.com/library/
documents/2006pdfs/08_
biomass_power_liu.pdf
CHAPTER THREE | State Bioenergy Primer 39
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3.6 RESOURCES FOR DETAILED INFORMATION (cont.)
Description
Jioproducts
Alternative Fueling Station
Locator, U.S. DOE.
Allows users to find alternative fuels stations near a specific
location on a route, obtain counts of alternative fuels stations
by state, view U.S. maps, and more. The following alternative
fuels are included in the mapping application: compressed
natural gas, E85, propane/liquefied petroleum gas, biodiesel,
electricity, hydrogen, and liquefied natural gas.
www.afdc.energy.gov/afdc/data/
geographic.html
Biomass Energy Data Book,
ORNL, September 2008.
Describes a meta-analysis of energy balance analyses for
ethanol, revealing the sources of differences among the
different studies.
http://cta.ornl.gov/bedb/pdf/
Biomass_Energy_Data_Book.pdf
Changing the Climate: Ethanol
Industry Outlook 2008, Renewable
Fuels Association (RFA), 2008.
Forecasts that 4 billion gallons of ethanol production capacity
will come on line from 68 biorefineries being constructed in
2008 and beyond, increasing the 2007 figure by nearly 50%.
www.ethanolrfa.org/objects/pdf/
outlook/RFA_Outlook_2008.pdf
Contribution of the Ethanol
Industry to the Economy of the
United States, RFA, 2007
Finds that the industry spent $12.5 billion on raw materials,
other inputs, and goods and services to produce about 6.5
billion gallons of ethanol in 2007. An additional $1.6 billion
was spent to transport grain and other inputs to production
facilities; ethanol from the plant to terminals where it is
blended with gasoline; and co-products to end-users.
www.ethanolrfa.org/objects/
documents/576/economic_
con tribution_2006.pdf
Economic and Agricultural
Impacts of Ethanol and Biodiesel
Expansion, University of
Tennessee, 2006.
Finds that producing 60 billion gallons of ethanol and 1.6
billion gallons of biodiesel from renewable resources by 2030
would likely result in development of a new industrial complex
with nearly 35 million acres planted dedicated to energy crops.
h ftp://beag.ag.utk.edu/pp/
Ethanolagimpacts.pdf
Ethanol and the Local
Community, RFA, 2002
Summarizes possible effects of ethanol production on local
economic development.
www.ethanolrfa.org/objects/
documents/120/ethanol_local_
community.pdf
Greener Fuels, Greener Vehicles:
A State Resource Guide, National
Governors' Association, 2008.
Discusses alternative transportation fuels and vehicle
technologies.
www.nga.org/Files/
pdf/0802GREENERFUELS.PDF
Greenhouse Gas Impacts of
Expanded Renewable and
Alternative Fuels Use, U.S. EPA,
April 2007
Provides a summary of GHG emissions from a variety of
advanced fuel options.
www.epa.gov/oms/
renewablefuels/420f07035.htm
New Analysis Shows Oil-Savings
Potential of Ethanol Biofuels,
National Resources Defense
Council (NRDC), 2006.
Describes NRDC's meta-analysis of energy balance papers
and its standardized methods.
www.nrdc.org/media/
pressreleases/060209a.asp
A Rebuttal to "Ethanol Fuels:
Energy, Economics and
Environmental Impacts," National
Corn Growers Association, 2002.
Refutes the contention in a previous article that more energy
goes into producing ethanol than ethanol itself can actually
provide, creating a negative energy balance.
www. e thanolrfa. org/
objects/documen ts/84/
ethanolffuelsrebuttal.pdf
Renewable Fuel Standard
Program, U.S. EPA
Describes efforts undertaken by U.S. EPA toward a National
Renewable Fuels Standard under requirements of the Energy
Policy Act of 2005. While these requirements are superseded
by more recent legislation, links from this page provide
useful background. In particular, the discussion of estimated
costs summarizes the expected incremental costs of policies
advancing ethanol.
www.epa.gov/oms/
renewablefuels/
40 State Bioenergy Primer | CHAPTER THREE
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3.6 RESOURCES FOR DETAILED INFORMATION (cont.)
Description
Regulatory Impact Analysis:
Renewable Fuel Standard
Program, U.S. EPA, 2007
Examines proposed standards that would implement a
renewable fuel program as required by the Energy Policy Act
of 2005. It notes, however, that renewable fuel use is forecast
to exceed the standards due to market forces anyway.
www.epa.gov/OMS/
renewablefuels/420r07004-
sections.htm
SmartWay Grow & Go Factsheet
on Biodiesel, U.S. EPA, October
2006.
Describes how biodiesel is made, its benefits versus
vegetable oil, performance, availability, affordability, and
other characteristics.
www.epa.gov/smartway/
growandgo/documents/
factsheet-biodiesel.htm
SmartWay Grow & Go Factsheet
on ESS and Flex Fuel Vehicles,
U.S. EPA, October 2006.
Describes E85-fuel and flex-fuel vehicles, including their
affordability and benefits.
www.epa.gov/smartway/
growandgo/documents/
factsheet-e85.htm
State-Level Workshops on
Ethanol for Transportation: Final
Report
Summarizes a series of DOE-sponsored, state-level
workshops exploring and encouraging construction of
ethanol plants.
www.nrel.gov/docs/
fy04osti/35212.pdf
TransAtlas Interactive
Alternative Fuel Map, U.S. DOE
Provides user-friendly Google Maps to display the locations
of existing and planned alternative fueling stations,
concentrations of different vehicle types, alternative fuel
production facilities, roads, and political boundaries.
www.afdc.energy.gov/afdc/data/
geographic.html
Analysis of Potential Causes of
Consumer Food Price Inflation,
RFA, 2007
Asserts that the "marketing bill," not increased ethanol
production, is responsible for rising food prices.
www.ethanolrfa.org/resource/
facts/food/documen ts/lnforma_
Renew_Fuels_Study_Dec_2007.
pdf
Ethanol Juggernaut Diverts
Corn from Food to Fuel, Raloff,
Janet, Science News, 2007
Makes the case that ethanol is driving up food prices.
www.sciencenews.org/view/
generic/id/8179/title/Food_for_
Thought Ethanol_Juggernaut_
Diverts_ Corn_ from_ Food_ to_
Fuel
Food versus Fuel in the United
States, Institute for Agriculture
and Trade Policy, 2007
Finds that biofuel production is not diverting food from
tables in the U.S. or abroad.
www. ia tp.org/ia tp/publica tions.
cfm ?accountlD=258&reflD=
100001
U.S. Corn Growers: Producing
Food and Fuel, National Corn
Growers Association, 2006.
Provides the corn growers' perspective that producing food
and fuel from corn is working out well, without undue impact
on food prices.
www.ncga.com/files/pdf/
FoodandFuelPaperlO-08.pdf
Aggressive Use of Bioderived
Products and Materials in the
U.S. by 2010, A.D. Little, Inc., 2001.
The presentation and report summarize near-term
opportunities to dramatically increase the use of biomass to
make nonfuel products.
www. p2pays. org/ref/4 0/39 031.
pdf
Industrial Bioproducts: Today
and Tomorrow, U.S. DOE, July
2003.
The report finds that a bioindustry could harness the energy
and molecular building blocks of biomass (crops, trees,
grasses, crop residues, forest residues, animal waste, and
municipal solid waste) to create products now manufactured
from petroleum, making us far less dependent on fossil fuels.
www. brdisolutions. com/pdfs/
BioProductsOpportunitiesReportFinal.
pdf
Preliminary Screening Technical
and Economic Assessment
of Synthesis Gas to Fuels and
Chemicals with Emphasis on the
Potential for Biomass-Derived
Syngas, NREL, 2003.
Summarizes opportunities for biomass to be used to
manufacture a variety of products beyond fuels alone.
www.nrel.gov/docs/
fy04osti/34929.pdf
CHAPTER THREE | State Bioenergy Primer 41
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3.6 RESOURCES FOR DETAILED INFORMATION fcont.JJ
Description
Environmental Life Cycle
Implications of Fuel Oxygenate
Production from California
Biomass - Technical Report,
NREL, 1999.
Looks at the costs and benefits of biomass-derived ethanol,
ETBE, and E10 as fuel oxygenates across their life cycles.
www-erd.llnl.gov/
FuelsoftheFuture/pdf_files/
lifecyclecalif.pdf
Quantifying Cradle-to-Farm
Gate Life-Cycle Impacts
Associated with Fertilizer used
for Corn, Soybean, and Stover
Production, NREL, May 2005.
Documents the costs, such as eutrophication, and benefits of
nitrate and phosphate fertilizers used in production of three
crops.
wwwl.eere.energy.gov/biomass/
pdfs/37500.pdf
Life Cycle Analysis of Ethanol
from Corn Stover, NREL, 2002
This comprehensive accounting of ethanol's flows to and
from the environment focuses on ethanol produced from
corn stover
www.nrel.gov/docs/gen/
fy02/31792.pdf
Life Cycle Inventory of Biodiesel
and Petroleum Diesel for Use
in an Urban Bus: Final Report,
NREL, 1998.
Examines the relative costs and benefits of using biodiesel
versus petroleum diesel in an urban bus.
www.nrel.gov/docs/legosti/
fy98/24089.pdf
Life Cycle Assessment of
Biodiesel versus Petroleum
Diesel Fuel, Institute of Electrical
and Electronics Engineers, 1996.
The proceedings of the 31st Intersociety Energy Conversion
Engineering Conference, held August 11-16,1996, in
Washington, DC.
Accessible by subscription only
Life Cycle Assessment of
Biomass-Derived Refinery
Feedstocks for Reducing CO2,
NREL, 1997
Discusses the two processes for producing 1,4-butanediol.
The first process is the conventional hydrocarbon feedstock-
based approach, utilizing methane to produce formaldehyde,
and acetylene with synthesis under conditions of heat and
pressure. The second is a biomass-based feedstock approach
where glucose derived from corn is fermented.
Not available online
Life Cycle Assessment of
Biomass Cofiring in a Coal-Fired
Power Plant, NREL, 2001.
Reports on a cradle-to-grave analysis of all processes
necessary for the operation of a coal-fired power plant that
co-fires wood residue, including raw material extraction, feed
preparation, transportation, and waste disposal and recycling.
Accessible by subscription only
Understanding Land Use
Change and U.S. Ethanol
Expansion, RFA, November 2008.
Discusses historical agricultural land use and crop utilization
trends, explores the role of increased productivity, looks at
the contributions of ethanol feed co-products, and examines
global agricultural land use projections obtained from
Informa Economics.
www.ethanolrfa.org/objects/
documen ts/2041/final_ land_
use_1110_w_execsumm.pdf
National Biofuels Action
Plan, Biomass Research and
Development Board, October
2008.
Outlines areas where cooperation between federal agencies
will help to evolve bio-based fuel production technologies
into competitive solutions for meeting U.S. fuel demands.
Seven key areas for action are identified: feedstock
production; feedstock logistics; conversion of feedstock to
fuel; distribution; end Use; sustainability; and Environment,
Health, and Safety.
wwwl.eere.energy.gov/biomass/
pdfs/nbap.pdf
Tools for Evaluating Benefits
AirCRED, Argonne National
Laboratory, August 2007
This tool is used to support local air emission reductions
claims associated with alternative-fuel vehicles within the
State Implementation Planning process.
www.transportation.anl.gov/
modeling_simulation/AirCred/
index.html
42 State Bioenergy Primer | CHAPTER THREE
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3.6 RESOURCES FOR DETAILED INFORMATION fcont.JJ
Description
Biomass Technology Analysis
Models and Tools
Web sites of models and tools that demonstrate biomass
technologies and uses, and can be used in life-cycle
assessments. Most tools can be applied on a global, regional,
local, or project basis.
www.nrelgov/analysis/analysis_
tools_ tech_bio.h tml
Biomass Feedstock Composition
and Property Database
Provides data results from analysis of more than 150 samples
of potential biofuels feedstocks, including corn stover, wheat
straw, bagasse, switchgrass and other grasses, and poplars
and other fast-growing trees.
wwwl.eere.energy.gov/biomass/
feedstock_databases.html
CHP Emissions Calculator, U.S.
EPA.
Enables a quick and easy analysis of the criteria air pollutant
and GHG emission reductions from incorporating CHP
designs into plants and production facilities. It also translates
these reductions into "cars" and "trees" to convey their value
to a nontechnical audience.
www.epa.gov/chp/basic/
calculator.html
Clean Air Climate Protection
Software, ICLEI and NACAA.
Helps local governments create greenhouse gas inventories,
quantify the benefits of reduction measures, and formulate
local climate action plans.
www.cacpsoftware.org/
Emissions & Generation
Resource Integrated Database
(EGRID), U.S. EPA
Provides a comprehensive database of electric-sector
emissions at the plant, state, and regional levels. These
can be compared to emissions from biopower to estimate
emissions'effects.
www.epa.gov/cleanrgy/egrid/
index.htm
Greenhouse Gases, Regulated
Emissions, and Energy Use in
Transportation (GREET) Model,
Argonne National Laboratory,
August 2007
Includes full fuel-cycle and vehicle-cycle emissions and
energy estimation capability. While not a full life-cycle
assessment tool, it allows estimation of upstream emissions
and energy effects. For some state policy questions, it may
provide sufficient analytic detail on its own. For decisions
with greater financial implications, it may be most appropriate
to use for initial screening to support development of a more
detailed study. States may wish to use GREET directly or to
consider analyses that have been done using this tool.
www.transportation.anl.gov/
modeling_simulation/GREET/
Job and Economic Development
Impact (JEDI) Models
Easy-to-use, spreadsheet-based tools that analyze the
economic impacts of constructing and operating power
generation and biofuel plants at the local and state levels.
www.nrel.gov/analysis/jedi
Power Profiler, U.S. EPA
Provides a quick estimate of electricity emissions rates
by location, which could be compared to emissions from
biopower to estimate emissions effects.
www.epa.gov/grnpower/buygp/
powerprofiler.htm
Standard Biomass Analytical
Procedures
Provides tested and accepted methods for performing
analyses commonly used in biofuels research.
wwwl.eere.energy.gov/biomass/
analyticaLprocedures.h tml
Theoretical Ethanol Yield
Calculator
Calculates the theoretical ethanol yield of a particular
biomass feedstock based on its sugar content.
wwwl.eere.energy.gov/biomass/
ethanol_yield_calculator.html
Thermodynamic Data for
Biomass Conversion and Waste
Incineration, NREL, National
Bureau of Standards.
Provides heat of combustion and other useful data for
biopower and biofuels research on a wide range of biomass
and non-biomass materials.
wwwl.eere.energy.gov/biomass/
pdfs/2839.pdf
CHAPTER THREE | State Bioenergy Primer 43
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CHAPTER THREE | State Bioenergy Primer 45
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Southeast State and Regional Biomass Partnership,
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U.S. EPA (Environmental Protection Agency), 2002.
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Washington, DC, September 25, 2007. www.epa.gov/
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U.S. EPA, 2007e. Regulatory Impact Analysis: Renew-
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U.S. EPA, 2008a, Life-Cycle Assessment (LCA). Na-
tional Risk Management Research Laboratory Web site.
U.S. EPA, Washington, DC, last updated October 17,
2008. www.epa.gov/nrmrl/lcaccess/.
U.S. EPA, 2008b. Land Resource Use. Clean Energy
Program Web site. U.S. EPA, Washington, DC, last
updated October 20, 2008. www.epa.gov/cleanrgy/
energy-and-you/affect/land-resource.html.
U.S. EPA, 2008c. Municipal Solid Waste (MSW) in the
United States. U.S. EPA, Washington, DC, 2008. www.
epa.gov/epawaste/nonhaz/municipal/msw99.htm.
U.S. EPA, 2009. Climate Leaders Greenhouse
Gas Inventory Protocol Optional Module Guidance.
U.S. EPA. Washington, DC, January 2009. www.
epa.gov/climateleaders/documents/resources/
OffsetProgramOverview.pdf.
Wang, 2005. Wang, M. Updated Energy and Green-
house Gas Emissions Results of Fuel Ethanol. 15th
International Symposium on Alcohol Fuels, San Diego,
CA, September 26-28, 2005. www.transportation.anl.
gov/pdfs/TA/354.pdf.
•Wang and Haq, 2008. Wang, M. and Z. Haq. "Etha-
noPs Effects on Greenhouse Gas Emissions." E-letter
to Science, August 12, 2008. www.sciencemag.org/cgi/
eletters/319/5867/1238.
X
46 State Bioenergy Primer | CHAPTER THREE
-------
CHAPTER FOUR
How Can States Identify
Bioenergy Opportunities?
After learning about the benefits and
challenges of bioenergy (Chapter 3),
state decision makers can consider
whether they want to use bioenergy
to meet state energy, environmental,
and economic goals.
If states decide they want to promote bioenergy, they
should consider the three steps shown below. Follow-
ing these steps will help ensure that states (1) fully un-
derstand the most appropriate bioenergy activities for
them, and (2) design policies and programs tailored to
the market conditions and resource availability unique
to each state.
Stepl
Determine Availability of
Biomass Feedstocks
Step 2
Assess Potential Markets for
Identified Biomass Feedstocks
StepS
Identify Opportunities
for Action
Note: The order in which Steps 1 and 2 are completed is
not critical as both steps are equally important to develop a
rational approach.
i' CHAPTER ONE
Introduction
i > CHAPTER TWO
What Is Bioenergy?
i •CHAPTER THREE
Benefits and Challenges
6 CHAPTER FOUR
Identifying Bioenergy Opportunities
(i CHAPTER FIVE
Options for Advancing Bioenergy
CHAPTER FOUR CONTENTS
4.1 Step 1: Determine Availability of Biomass Feedstocks
4.2 Step 2: Assess Potential Markets for Identified
Biomass Feedstocks and Bioenergy
4.3 Step 3: Identify Opportunities for Action
4.4 Resources for Detailed Information
4.5 References
CHAPTER FOUR | State Bioenergy Primer 47
-------
FLORIDA'S FARM TO FUEL INITIATIVE
In September 2005, inspired by the "25x'25" initiative—a group
of stakeholders promoting expansion of biomass from farms,
forests, and ranches to provide 25 percent of the total energy
consumed in the United States by 2025—the state of Florida
looked closely at its energy profile and resource base to
determine how more biomass could be used sustainably in
the state.
Through an assessment of market conditions Florida
determined that the state was one of the nation's largest
consumers of both petroleum gasoline and nonrenewable
electricity in the United States. Florida also identified more
than a dozen types of produce for which it is ranked first or
second in production and sales value in the United States (i.e.,
determined potential feedstocks and markets). The Florida
Department of Agriculture and Consumer Services held its first
stakeholder meeting in January 2006 to develop a proposal to
match the state's needs with available resources, and identified
opportunities for action.
As a result, the Farm to Fuel Initiative was enacted in June
2006 as a comprehensive strategy for promoting renewable
energy within the state. The main objective of the program
is to enhance the market for and promote production and
distribution of renewable energy from Florida-grown crops,
agricultural wastes and residues, and other biomass to enhance
the value of agricultural products and expand agribusiness in
the state. The program offers competitive renewable energy
matching grants for research and development, demonstration,
and commercialization projects relating to bioenergy based on
Florida-specific criteria. The program awarded $25 million to 12
projects across the state in 2008.
For more information, see: www.floridafarmtofuel.com/.
Source: Florida Department of Agriculture and Consumer Services,
2008 and 2007
4.1 STEP 1: DETERMINE AVAILABILITY
OF BIOMASS FEEDSTOCKS
A complete inventory of its biomass feedstocks will
allow a state to fully assess the range of options for
bioenergy development. Biomass feedstocks are avail-
able across the United States, especially in the Midwest
and Southeast (see Figure 4-1). However, each state
possesses its own unique blend of bioenergy feed-
stocks. State-specific information is necessary to ensure
pursuit of the most technically and economically viable
bioenergy activities for a state.
When assessing the availability of potential biomass
feedstocks, it is important for decision makers to con-
sider all types, including waste/opportunity fuels and
energy crops, as discussed in Chapter 2. States should
pay particular attention to obtaining accurate estimates
48 State Bioenergy Primer | CHAPTER FOUR
of biomass feedstock availability because miscalcula-
tions can greatly impact the economic viability and
successful operation of bioenergy projects.
The key question each state must answer while assess-
ing its available feedstocks and completing Step 1 is:
What is the total fuel potential of all biomass feed-
stocks, by location, in the state?
To develop an assessment of biomass resource availabil-
ity, states should first see whether they can use existing
data sources (see Section 4.1.1). If existing sources
prove insufficient, states may want to consider conduct-
ing a biomass assessment (see Section 4.1.2). Nothing
takes the place of a detailed, on-the-ground biomass
resource assessment when considering a project.
REGIONAL BIOMASS FEEDSTOCK AVAILABILITY
Locations in all regions of the country have opportunities to
take advantage of waste and opportunity fuels for biopower
and bioheat generation. With respect to advanced biofuels
production, regionally, cellulosic ethanol production from corn
and wheat residues would probably occur most in the Midwest;
dedicated crop production would most likely occur in the
South/Southeast; and cellulosic ethanol production from wood
and forest residues would occur in the West, Southeast, and
Northeast (assuming relatively short transportation distances
from feedstock to production facility) (Ugarte et al., 2006).
4.1.1 USE EXISTING RESOURCES TO
DETERMINE BIOMASS FEEDSTOCK
AVAILABILITY
Numerous existing resources provide data on potential
biomass feedstocks by state and information on how
to conduct a biomass assessment (as discussed later
in this chapter). For example, key state agencies (e.g.,
the state Department of Agriculture) are often valu-
able sources of information about potential biomass
feedstocks. In-state expertise can also be found among
local USDA rural development representatives (www.
rurdev.usda.gov/recd_map.html), as well as local
academic and business experts in agriculture, forestry,
and waste.
The following resources provide information about
potential biomass feedstocks and/or data on feedstock
availability by geographic location. Each specializes in
particular types of data, as described below:
Biomass Resource Assessment Tool. This online
biomass mapping tool, developed by NREL for the U.S.
-------
FIGURE 4-1. TOTAL BIOMASS RESOURCES AVAILABLE
IN THE UNITED STATES PER SQUARE KILOMETER BY COUNTY
Source: Milbrandt, 2005
Biomass Resources Available in the United States
Normalized by County Area
O
Hawaii
Alaska
Tonnes/sq km/Year
• Above 250
• 200-250
• 150-200
• 100-150
D 50-100
D Less than 50
This study estimates the technical biomass resources currently available in the United
States by county. It includes the following feedstock categories:
Agricultural residues (crop and animal manure);
Wood residues (forest, primary mill, secondary mill, and urban wood);
• Municipal discards (methane emissions from landfills and domestic water treatment);
Dedicated energy crops (on Conservation Reserve Program and Abandoned Mine Lands).
EPA Blue Skyways program, allows users to select a lo-
cation on the map, quantify the biomass resources avail-
able within a user-defined radius, and then estimate the
total thermal energy or power that could be generated
by recovering a portion of that biomass. The tool acts as
a preliminary source of biomass feedstock information;
however, it will not take the place of an on-the-ground
feedstock assessment. The tool also contains numerous
layers including landfills, waste water treatment plants,
anaerobic digesters on animal feeding operations, EPA
brownfields, biopower plants, fossil power plants, etha-
nol manufacturing facilities, and alternative fuel filling
stations. The tool can be found at http://rpm.nrel.gov/
biopower/biopower/launch.
Biomass Feedstocks. The U.S. DOE Biomass Program
works with industry, academia, and national laboratory
partners on a balanced portfolio of research in biomass
feedstocks and conversion technologies. The Web site
provides a gateway to a wealth of biomass informa-
tion, including feedstock availability. In particular, the
program's site lists several U.S. DOE reports on the
potential of different feedstocks, including corn stover,
woody biomass, and switchgrass, which states across
the nation may find useful.
To locate these publications, visit wwwl.eere.energy.
gov/biomass/publications.html#feed. The U.S. DOE
Biomass Program homepage can be accessed at wwwl.
eere.energy.gov/biomass/biomass_feedstocks.html.
CHAPTER FOUR | State Bioenergy Primer 49
-------
State Assessment for Biomass Resources. Produced
by the U.S. DOE Office of Energy Efficiency and
Renewable Energy (EERE) Alternative Fuels and
Advanced Vehicles Data Center, this tool provides de-
tailed information on biomass resources and utilization
throughout the United States. It features state-specific
information on conventional fuel and biofuel use,
ethanol and biodiesel stations and production plants,
and biofuel production capacities. In addition, it offers
state-by-state snapshots of available feedstocks, data on
potential production capacities, and projections on the
future use of biofuels. The site is particularly useful for
states interested in evaluating biomass resource poten-
tial for producing biofuels.
This resource can be found at www.afdc.energy.gov/
afdc/sabre/index.php.
Dynamic Maps, GIS Data, and Analysis Tools.
This NREL Web site provides county-level biomass
resource maps, which are useful for states interested
in their feedstock potential in the following categories:
crop residues, forest residues, primary mill residues,
secondary mill residues, urban wood waste, methane
emissions from landfills, methane emissions from
manure management, methane emissions from waste-
water treatment plants, and dedicated energy crops.
The maps are derived from data contained in a report,
Geographic Perspective on the Current Biomass Resource
Availability in the United States (described below).
The NREL Biomass Web site is www.nrel.gov/gis/
biomass.html. Note that these maps present technical
biomass resource data. The economic biomass resource
availability will most likely be somewhat less than what
is presented here.
Geographic Perspective on the Current Biomass
Resource Availability in the United States. This NREL
report provides the basis for the maps and data pre-
sented in NREL's Dynamic Maps, GIS Data, and Analy-
sis Tools Web site described above. The report provides
a geographic analysis of biomass resource potential at
the county level, and can give officials a sense of the
major biomass resources available within their state
and their technical potential relative to other states.
The report is available at www.nrel.gov/docs/fy06os-
ti/39181.pdf.
USFS Forest Inventory Data Online (FIDO). This
online tool provides access to the National Forest
Inventory and Analysis databases. It can be used to
generate tables and maps of forest statistics (including
50 State Bioenergy Primer | CHAPTER FOUR
tree biomass) by running standard reports for a specific
state or county and survey year, or customized reports
based on criteria selected by the user.
This tool can be accessed at http://199.128.173.26/fido/
index.html.
Market Opportunities for Biogas Recovery Systems.
This report published by U.S. EPAs AgStar program
assesses the market potential for biogas energy projects
at swine and dairy farms in the United States. For the
top ten swine and dairy states, the guide characterizes
the sizes and types of operations where biogas projects
are technically feasible, along with estimates of poten-
tial methane production, electricity generation, and
greenhouse gas emission reductions.
The report is available at www.epa.gov/agstar/pdf/
biogas%20recovery%20systems_screenres.pdf.
U.S. EPA's Landfill Methane Outreach Program
(LMOP) Landfill Database. This online database
provides a nationwide listing of operational and under
construction LFG energy projects; candidate municipal
solid waste landfills having LFG energy potential; and
information on additional landfills that could represent
LFG energy opportunities. The database can be ac-
cessed as a series of downloadable Excel spreadsheets,
which are updated and posted to the Web site each
month. The information contained in the LMOP da-
tabase is compiled from a variety of sources, including
annual voluntary submissions by LMOP Partners and
industry publications.
The database can be accessed at www.epa.gov/lmop/
proj/index, htm.
Coordinated Resource Offering Protocol (CROP)
Evaluations. This U.S. Forest Service and Bureau of
Land Management Web page provides the results of ten
CROP evaluations that have been conducted for more
than 30 million acres of public forestlands potentially
vulnerable to wildfires. The evaluations contain detailed
resource-offering maps that illustrate the growing fuel
load problem within major forest systems and quantify
the biomass available for removal within five years.
The evaluations can be accessed at www.forestsan-
drangelands.gov/Woody_Biomass/supply/CROP/
index.shtml
State Assessment for Biomass Resources (SABRE).
This comprehensive U.S. DOE tool provides detailed
information on biomass resources and utilization
-------
throughout the United States. It features state-specific
information on conventional fuel and biofuel use,
ethanol and biodiesel stations and production plants,
and biofuel production capacities. In addition, it offers
state-by-state snapshots of available feedstocks, data on
potential production capacities, and projections on the
future use of biofuels.
This tool can be accessed at www.afdc.energy.gov/afdc/
sabre/index.php.
4.1.2 CONDUCT A BIOMASS ASSESSMENT IF
MORE INFORMATION IS NEEDED
If more information is needed about biomass feedstock
availability after tapping into the resources discussed
above, a state can consider conducting its own biomass
feedstock assessment. The advantages of a state con-
ducting its own assessment include the ability to tailor
the study to meet specific state goals for bioenergy use
(i.e., focus on resources that the state knows it wants
to tap) and determine the level of data specificity (i.e.,
state level, county level, within 50 miles of existing en-
ergy and industrial infrastructure, etc.). Disadvantages
of a state conducting its own assessment are the time
and cost of doing so.
Some considerations for determining whether to con-
duct a state-specific biomass assessment include:
Identify priorities. First, consider using existing
information to decide generally what priorities are of
greatest interest, for example feedstock types (e.g., for-
est residues, energy crops), geography (e.g., economic
development in southeast portion of the state), or
output (e.g., biopower, biofuels) based on the state's
resources and goals.
Look closely to analyze data gaps in existing infor-
mation. Based on the scope of interest, a state can
decide whether existing data meet its needs or infor-
mation gaps need to be addressed by completing its
own assessment. In addition to general data availability,
some considerations will include how recent the infor-
mation is (i.e., to determine whether it is out of date),
and the degree of data specificity (e.g., an estimate for
the whole state, or detailed county-level data).
Determine resource availability. Once a state knows
its data needs, it will need to determine whether it has
the resources to perform any needed assessment itself
(i.e., using state staff) or whether it needs to hire a
contractor or tap into the expertise at state universities.
Costs to do so will need to be considered, as they will
impact the extent of the analysis that can be completed.
Some states have already conducted assessments or re-
lated studies of renewable energy (including biomass)
potential and can provide examples and guidance.
Examples include:
Guide to Estimates of State Renewable Energy
Potential. This guidebook lists existing studies of re-
newable energy potential and describes how to conduct
these studies.
State Biomass Resource Assessments
California: An Assessment of Biomass Resources in
California, 2007
Provides an updated biomass inventory for the state
along with an assessment of potential growth in
biomass resources and power generation that could
help to satisfy the state renewable portfolio stan-
dard (RPS). http://biomass.ucdavis.edu/materials/
reports%20and%20publications/2008/CBC_Bio-
mass_Resources_2007.pdf
Georgia: Biomass Wood Resource Assessment on a
County-by-County Basis for the State of Georgia, 2005
Provides a biomass wood resource assessment at
the county level for Georgia, www.gfc.state.ga.us/
ForestMarketing/documents/BiomassWRACounty-
byCountyGA05.pdf
Hawaii: Biomass and Bioenergy Resource Assessment:
State of Hawaii, 2002
Provides an assessment of current and potential bio-
mass and bioenergy resources for Hawaii. Includes
animal wastes, forest product residues, agricultural
residues, and urban wastes, www.hawaii.gov/dbedt/
info/energy/publications/biomass-assessment.pdf
Mississippi: Mississippi Institute for Forest Inventory
Dynamic Report Generator
Provides a continuous, statewide forest resource
inventory necessary for the sustainable forest-based
economy. The inventory information is derived from
sampling estimation techniques with a presumed
precision of +/- 15 percent sampling error with 95
percent confidence, www.mifi.ms.gov/
South Carolina: Biomass Energy Potential in South
Carolina: A Conspectus of Relevant Information, 2007
CHAPTER FOUR | State Bioenergy Primer 51
-------
SUMMARY OF BIOMASS RESOURCES AND THEIR DEGREE
OF UTILIZATION IN THE STATE OF HAWAII BY COUNTY
Hawaii's 2002 Biomass and Bioenergy Resource Assessment was developed through five tasks:
1. Collecting and reviewing relevant prior studies.
2. Collecting current bioenergy data from public and private sector sources.
3. Compiling, reducing, and analyzing data and information collected in Task 2.
4. Summarizing economic and other considerations related to development
and operation of bioenergy facilities.
5. Inventorying public and private sector bioenergy facilities in the state.
The results of these activities are summarized below; the full report is available at
www.hawaii.gov/dbedt/info/energy/publications/biomass-assessmentpdf.
tonsyri Hawaii Maui Kauai Honolulu
Swine Manure dry
Dairy Manure dry
410
Poultry dry 1.5201
Bagasse Fiber dry
Molasses as- received
540 180 1,560
8,300
4,830
275,000 74,000
(275.000)2 (56,000)2
80,000 15,000
Cane Trash dry 137,000 37,000
Pineapple Processing dry
Water
Macademia Nut Shells dry
Municipal Solid Waste as-received
Food Waste4-5 as-received
Sewage Sludge5 dry
19,000
(18.000)2
110,000
7,500
(7500)2
96,000 56,000 668,000
(6000.000)2'3
24,000 15,000 5,800 90,000
183
3,352 246 16,576
(3,352)2'3 (891)2'3
Fats/Oil/Grease6 dry 1,850 1,850 800 10,000
1 combined poultry waste estimate for Hawaii, Maui, and Kauai
2 amount currently used
3 tipping fee associated with utilization
4 amount entering landfills
5 included in municipal solid waste value
6 processed grease, contains minimal moisture
52 State Bioenergy Primer | CHAPTER FOUR
-------
Summarizes studies conducted on various actual
and potential feedstock resources in South Carolina
and the Southeast, as well as relevant nonregional
studies and other information. The report describes
the existing information base, as well as information
gaps. www.energy.sc.gov/publications/Biomass%20
Conspectus%204-10-07.pdf
Oregon: Biomass Energy and Biofuelsfrom Oregon's
Forests, 2006
Assesses the statewide potential for production of
electricity and biofuels from woody biomass, includ-
ing the available wood supply and the environmental,
energy, forest health, and economic effects. Reviews
and summarizes efforts underway to promote electric
energy and biofuels from woody biomass, and identi-
fies gaps in existing efforts. Assesses constraints and
challenges to the development of biomass energy and
biofuels from Oregon forests, including economic,
environmental, legal, policy, infrastructure, and other
barriers and develops recommendations on how to
overcome these barriers, www.oregonforests.org/as-
sets/uploads//Biomass_Full_Report.pdf
Regional Biomass Resource Assessments
Northeastern states (CT, DE, ME, MD, MA, NH, NJ,
NY, PA, RI, VT): Securing a Place for Biomass in the
Northeast United States: A Review of Renewable Energy
and Related Policies, 2003
Provides a biomass feedstock assessment for northeast-
ern states. www.nrbp.org/pdfs/nrbp_final_report.pdf
Western states (AK, AZ, CA, CO, HI, ID, KS, MT,
NE, NV, NM, ND, OR, SD, TX, UT, WA, WY): Bio-
mass Task Force Report, 2006
Focuses on use of biomass resources for produc-
tion of electricity as part of an overall effort of the
Western Governors' Association (WGA) to increase
the contribution of clean and renewable energy in
the region, www.westgov.org/wga/initiatives/cdeac/
Biomass-full.pdf
Western states (WA, OR, ID, MT, WY, CO, NM, AZ,
UT, NV, CA, TX, OK, ND, SD, NE, KS, AK and HI).
Western Bioenergy Assessment, 2008
Includes a series of technical reports produced for the
Western Governors' Association. These reports exten-
sively evaluate biomass resources in the western states,
biofuel conversion technologies, spatial analysis and
supply curve development, and deployment scenarios
and potential policy interactions, www.westgov.org/
wga/initiatives/transfuels/index.html
Western states (WA, OR, ID, MT, WY, CO, NM, AZ,
UT, NV, CA, TX, OK, ND, SD, NE, KS, AK and HI).
Transportation Fuels for the Future Initiative Working
Group Reports and Final Report, 2008
Analyzes the potential for the development of
alternative fuels and vehicle fuel efficiency member
states of the Western Governors' Association, www.
westgov.org/wga/initiatives/transfuels/index.html
WESTERN RENEWABLE ENERGY ZONES
WGA and U.S. DOE launched the Western Renewable
Energy Zones Project (WREZ) in May 2008. The central goal
of the WREZ project is to utilize areas of the West with vast
renewable resources to expedite development and delivery of
clean and renewable energy, including wind, solar, and biomass
resources. The project will generate:
Reliable information for use by decision makers that supports
cost-effective and environmentally sensitive development of
renewable energy in specified zones.
Conceptual transmission plans for delivering that energy to
load centers within the Western Interconnection.
The project also will evaluate all feasible renewable resource
technologies that are likely to contribute to the realization
of WGA's goal for development of 30,000 MW of clean and
diversified energy by 2015. For the latest information and
geographic information system (CIS) maps of the proposed
WREZ, see www.westgov.org/wga/initiatives/wrez/index.htm.
Source: Western Governors'Association and U.S. DOE, 2009
CD
4.2 STEP 2: ASSESS POTENTIAL
MARKETS FOR IDENTIFIED BIOMASS
FEEDSTOCKS AND BIOENERGY
Once a state understands the availability of potential
biomass feedstocks, the next step is to evaluate how
the feedstocks can be employed by the market. In this
step, analysis is conducted to determine the viability
of using a state's feedstocks, as identified in Step 1, to
produce bioenergy. To develop an evaluation that can
withstand the scrutiny required to justify state policy,
it is important to examine potential markets quantita-
tively and under a number of scenarios given different
economic or market activities. The following sets of
questions can be useful in assessing potential markets
for biomass feedstocks:
CHAPTER FOUR | State Bioenergy Primer 53
-------
1. At what cost can the feedstocks reasonably be used?
Are crop and waste feedstocks available at competi-
tive prices?
What is the relative proximity of feedstocks, process-
ing facilities, and markets?
How cost-competitive is the bioenergy with fossil-
based resources?
What are the economics of using bioenergy?
2. Who might use biomass feedstocks?
What industries can use the available feedstocks?
What is the current and potential competition for
feedstocks in the region?
Does the state have policies in place that could create
a market for bioenergy?
3. What does the state's energy and environmental
profile look like?
What are the state's anticipated energy demands?
What environmental issues should be considered?
4.2.1 AT WHAT COST CAN THE FEEDSTOCKS
REASONABLY BE USED?
Are Crop and Waste Feedstocks Available at
Competitive Prices?
The economics of bioenergy production are highly
dependent on feedstock prices, and it is important that
state officials considering actions to promote bioenergy
explore whether a sufficient supply of competitively
priced feedstocks exists to support a profitable bioen-
ergy industry. This undertaking is typically challeng-
ing, in part because the prices of biomass feedstocks
are subject to considerable uncertainty.
Many of the factors that influence the availability of
feedstocks over time, such as weather, plant disease,
feedstock demand, and transportation costs, will also
affect feedstock prices (see Chapter 3, Benefits and
Challenges of Bioenergy, for a more in-depth discus-
sion of these factors). Other factors, such as fossil
fuel prices, can also significantly impact the price of
feedstocks if their harvest requires the use of fertilizer
and other chemicals (the prices of which are highly
dependent on the cost of fossil fuels), if they need to be
transported any significant distance, and if higher fossil
fuel prices are passed through and impact the biofuels
supply chain. Financial speculation by commodities
54 State Bioenergy Primer | CHAPTER FOUR
traders will also affect the price of energy crop
feedstocks.
When evaluating the cost-effectiveness of a given feed-
stock supply, it is important to consider how changes
in these factors could affect feedstock prices; volatility,
uncertainty, and or/changes in any of these factors will
be reflected in the price of feedstocks. With all these
factors in mind, some of the questions that should be
considered when evaluating the cost effectiveness of
a given biomass feedstock supply over the long term
include:
Will bioenergy producers likely have to compete with
other industries for access to the resource?
What are projected fossil fuel prices?
How might financial speculators influence prices, if
at all?
1 Could a feedstock supply that is currently ample be-
come easily exhausted?
How much will feedstock prices change as the bioen-
ergy industry grows?
What Is the Proximity of Feedstocks,
Processing Facilities, and Markets?
In addition to understanding the industries or po-
tential industries that can utilize a state's biomass
feedstocks, it is important to know the limitations that
might impede cost-effective bioenergy use. Foremost
among these is whether biomass feedstocks, processing
facilities, and markets exist in close enough proximity
to deliver a competitive product. Proximity consider-
ations are discussed below.
How far can each biomass feedstock be transported
cost effectively? One critical factor that affects the
financial viability of using a biomass feedstock is the
proximity of the feedstock to where it would be used.
The most cost-effective bioenergy applications often
site the conversion facility as close as possible to the
feedstock source (and to the end user). For wood
feedstocks, a general rule of thumb is that 50 to 100
miles is the maximum distance that feedstocks can be
transported at competitive cost; however, this depends
on the cost of competing sources (e.g., of power/heat)
and on the specific type of bioenergy feedstock. EIA
(2006) uses the following assumptions in its National
Energy Modeling System (NEMS):
-------
Urban wood waste and mill residues transportation
cost: $0.24/ton-mile, maximum supply distance 100-
mile radius.
Forest residues, agricultural residues, energy crops
transportation cost: $10 to $12/ton-mile, within a
maximum supply distance of 50 miles.
Another question that needs to be answered is who,
specifically, will collect and transport the biomass to
the end-use facility? There are different answers to this
question depending upon whether one is using urban
wood waste, forest residues, or crop residues. What
contractual requirements for feedstock delivery need
to be developed? What is the quality and quantity of
feedstock to be supplied?
Are sufficient biomass resources available within
the distance identified to support a processing facil-
ity? Sufficient feedstocks must be close enough to the
potential processing facility to support its long-term
operation. For example, it would not make financial
sense to invest substantial capital for a plant that relies
on feedstock that will be exhausted within a few years.
Proposed projects may need long-term contracts for
feedstock supplies. Because bioenergy costs are fre-
quently highly dependent on feedstock transportation
costs, detailed scenario building and certainty analyses
will be needed to answer this question with confidence.
As an example, one analysis of biomass-fueled boiler
power generation systems and CHP configurations
showed that 100 tons/day of dry biomass fuel (assum-
ing 8,500 Btu of energy per pound) could be used to
generate 500 kW to 4 MW of electricity depending on
the conversion technology used, plus thermal energy
for process steam. (A 100 tons/day system would re-
quire about four to five standard semi-trailer trucks for
feedstock delivery each day.) A system receiving 900
tons/day of dry biomass fuel could produce roughly 8
MW to 24 MW of electricity depending on the conver-
sion technology and how much thermal energy was
desired (U.S. EPA, 2007d - Chapter 7).
Are markets for fuel, heat, and/or power readily
accessible? Available markets require critical infrastruc-
ture to be in place and may require contractual arrange-
ments. For example, biofuels require access to popula-
tions of consumers who need fuel. Bioenergy for heat
and power, especially if not used primarily or exclusively
for on-site demand, may require long-term contracts
with the electric utility (as discussed with interconnec-
tion standards in Section 4.3.2). Markets for renewable
energy, such as green power or renewable energy credits
(RECs), may or may not be open to biopower.
How Cost-Competitive Is Bioenergy with
Fossil-Based Resources?
The most promising markets for bioenergy will typi-
cally share several characteristics. Perhaps most im-
portantly, the cost of bioenergy will be competitive (in
some cases without government support; in other cases
with direct or indirect support) with energy that is gen-
erated from other sources, including fossil fuels. High
or volatile energy prices will generally help to improve
the cost effectiveness of bioenergy.
The increase in gasoline prices over the last several
years, for example, has helped to make ethanol a more
attractive alternative motor fuel economically. Similar-
ly, volatility in electricity prices over this same period
has generally increased the appeal of biomass power
as facilities look for ways to stabilize energy prices or
hedge fuel costs. It is important, therefore, that any
assessment of the market for bioenergy take prevailing
and forecasted energy prices into account.
Data on gasoline and electricity prices are available
on EIA's Web site at www.eia.doe.gov.
For information on prevailing energy prices by state,
seehttp://tonto.eia.doe.gov/state/SEP_MorePrices.cfm.
Forecasts of projected energy prices through 2030 are
available in EIA's Annual Energy Outlook reports.
The 2008 version of the report is accessible on the
Web site at www.eia.doe.gov/oiaf/aeo/index.html.
Energy prices and forecasts are also important to con-
sider in later evaluations if a state decides to develop
incentives or policy measures to support bioenergy.
A state will want to understand the level of support
necessary to achieve its objectives given prevailing and
projected cost effectiveness—to decrease the likelihood
that states offer too many or too few incentives for
PRICE VOLATILITY
Noteworthy, of course, is that petroleum prices spiked and
crashed in 2008—from a high of more than $100/barrel
to a low of less than $40/barrel—making biofuels in many
parts of the country uneconomical after a period of cost
competitiveness. This extreme type of volatility is difficult to
predict; having flexible policies that are robust to different price
trajectories can buffer the effects of volatile prices.
CHAPTER FOUR | State Bioenergy Primer 55
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bioenergy development and are therefore inefficient or
ineffective in the long run.
Using biomass to produce heat is currently one of the
most cost effective applications for biomass energy.
This is especially true if one is replacing propane or
fuel oil, which are typically more expensive than bio-
mass on a $/Million Btu basis. Depending on the price,
it may also be possible to compete with natural gas.
COST-COMPETITIVE WOOD CHIP BOILER
In the winter of 2009, the National Renewable Energy
Laboratory (NREL) installed a central, wood chip fired boiler to
provide thermal energy for its main campus. NREL estimates
that wood can be obtained for less than $3/million Btu,
compared to natural gas costs of $6-$10/million Btu. The
system is expected to meet up to 80% of NREL's heating load
with biomass energy.
Source: NREL, 2008
What are the Economics of Using Bioenergy?
Once information on availability, proximity, and cost
competitiveness of feedstocks and other considerations
has been gathered, it is important to conduct an eco-
nomic analysis of the various options for sourcing and
using biomass to produce bioenergy. At the minimum,
a 20-year pro-forma analysis should be developed to
evaluate various options. Bioenergy options should
be compared with other options such as fossil fuels
(e.g., if looking at using biomass to offset natural gas
in a school, what are the life-cycle costs of the biomass
technology vs. the natural gas technology?)
4.2.2 WHO MIGHT USE BIOMASS FEEDSTOCKS?
What Industries Can Use the Available
Feedstocks?
An understanding of the key market factors that will
allow potential feedstocks to become actual bioenergy
projects is essential. Foremost among these factors is
knowing what drives demand for biomass resources in
the state, that is, which industries can use the available
feedstocks.
Industries in a state can make greater use of bioenergy
in several ways:
Existing industries can expand their facilities or con-
struct new facilities.
56 State Bioenergy Primer | CHAPTER FOUR
Industries can use their waste streams as biomass
feedstock.
Existing energy production facilities can initiate or
increase their use of biomass.
New industries that use biomass feedstocks can be
encouraged to locate in the state.
Understanding the relationships between feedstocks,
conversion technologies, products, and markets, and
their implications for industry, commerce, and end us-
ers within a states borders, is essential.
Figure 2-2 in Chapter 2 illustrates the conversion
pathways of different biomass feedstocks into various
final forms of bioenergy. As the diagram shows, states
with abundant waste or opportunity fuels may have an
advantage if they focus support toward industries that
can generate on-site heat or power or utilities that can
provide heat and power. However, states with abundant
energy crops are in a better position to support biofuel
development using current technologies.
Although a wide variety of industrial, commercial, and
institutional facilities could potentially benefit from the
use of biomass as an energy source, there are several
types of facilities for which biomass could be a particu-
larly attractive and economical source of energy. Some
examples of these facilities include (DOE, 2004):
Schools, prisons, hospitals, and municipal WWTPs.
Facilities with large, fairly constant electricity and
heating requirements are good candidates for on-site
biopower/bioheat production. In 2008, four prisons
and one high school in the United States were using
biomass CHP systems to produce energy (ICF, 2008).
For facilities with potentially sensitive populations
(i.e., schools and hospitals) it is especially important
to utilize best available pollution control technolo-
gies to reduce the risk of exposure to air emissions.
FUELS FOR SCHOOLS
The Fuels for Schools program is an innovative venture between
public schools and state and regional foresters of the northern
and intermountain regions of the U.S. Forest Service. This
program helps public schools retrofit their current fuel or gas
heating systems to biomass-based systems through knowledge
sharing, information dissemination, identifying potential
financing opportunities, supply assessment, and overall support
and assistance as needed. As of 2008, Fuels for Schools had
initiated projects in Idaho, Montana, Nevada, and North Dakota.
For more information on Fuels for Schools, see: www.
fuelsforschools.info/.
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There are dozens of schools in the United States that
are heating their buildings with automated wood chip
boilers. These facilities may also be capable of generat-
ing anaerobic digester gas for use as a fuel by treating
wastewater in on-site treatment plants (DOE, 2004).
Landfills. Landfills can capture the gas that is pro-
duced as a byproduct of the decomposition of solid
waste for use as an energy source. This LFG can be
used to generate electricity and/or heat for the landfill
itself or other nearby facilities.
For more information, tools, and links to landfill and
LFG databases, visit EPA's LMOP Web site, www.epa.
gov/lmop.
Lumber yards and pulp and paper mills. Both the
lumber processing and pulp and paper industries
produce wood residues and black liquor that can be
used as a source of energy to generate electricity and/
or heat, typically for on-site use. Pulp and paper mills
also produce large quantities of wastewater that can be
treated with anaerobic digesters to create biogas.
• Food and beverage processing facilities. Food and
beverage processing facilities can use the food process-
ing waste (FPW) they generate as a fuel source. A 2004
study found that even though FPW could significantly
reduce fuel costs for these facilities, its use as a fuel is
minimal. The facilities are also good candidates for
anaerobic digestion of wastewater to produce biogas
for on-site use (DOE, 2004).
Petroleum refineries. There are opportunities to inte-
grate biomass feedstocks into existing fossil fuels indus-
tries. For example, petroleum refineries can take bio-oil
and process it within existing refineries, blending the
renewable diesel product into petroleum diesel and us-
ing existing pipeline infrastructure for distribution.
This alternative to biodiesel (sometimes called "green
diesel") overcomes the distribution infrastructure chal-
lenge described in Chapter 3. The same approach can
apply to bio-produced gasoline—"green gasoline."
Power plants and other large energy users. Power
plants, typically coal fired, can substitute biomass for a
portion of the fossil fuel used in the combustion pro-
cess, in most cases with only minor equipment modifi-
cations. As of 2006, 52 coal-burning power plants in the
United States were utilizing cofiring technology (EIA
2008). Other large energy users, such as cement plants,
may also be good candidates for biomass cofiring.
One source of information to help states identify
industries that are in a position to initiate or increase
their use of biomass is the U.S. Bureau of Economic
Analysis. The bureau provides information on state-
by-state output (gross domestic product) of indus-
tries, such as those described above, that might be
poised to incorporate bioenergy feedstocks into their
operations. This information is accessible online at
www. bea.gov/regional/gdpmap/.
The presence of related industries, including oil and gas
refining, blending, terminals, transportation corridors,
and distribution networks, can create more demand for
bioenergy. Transportation infrastructure limitations
(discussed below) may place constraints on building
centralized conversion facilities while creating oppor-
tunities for distributed ones.
BREWERY BIOENERGY PRODUCTION
Anheuser-Busch, a member of EPA's Climate Leaders
partnership program, utilizes Bio-Energy Recovery Systems
(BERS) at nine of its 12 breweries. These systems feature
anaerobic digesters that break down nutrients in the
wastewater from the brewing process, creating biogas. The
biogas is captured and used by CHP systems to fuel boilers that
provide heat and power for the breweries. Where they are in
use, BERS meet 15 percent of Anheuser-Busch facilities'on-site
fuel needs. In 2007, the nine systems generated enough energy
to heat more than 25,000 homes.
For more information, see: www.afaenwronment.com/
Environment/BioEnergyRecovery.html and www.epa.gov/
stateply/partners/partners/anheuserbuschcompaniesinc.htmi
•rt
What is the current and potential competition
for feedstocks in the region?
When doing a market assessment, it is very important
to consider whether there are any current users of
biomass and what the future competition for feedstocks
will be in the region. For example, a 50 MW biomass
power plant or ethanol plant could be sourcing feed-
stocks from within a 100-mile radius. Other plants
located within this radius will likely compete with it for
feedstocks, and competition will increase as the distance
between plants decreases. So when planning new bioen-
ergy facilities, it is crucial to examine how siting plants
will create and/or affect competition. Additionally,
there are other competitors for feedstocks that need to
be taken into consideration, such as composters, wood
recyclers, and landscape mulch companies. All current
and potential users of biomass need to be assessed.
CHAPTER FOUR | State Bioenergy Primer 57
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Does the State Have Policies that
Could Create a Market for Bioenergy?
States with promising markets for bioenergy may also
have enacted policies and incentives to encourage and/
or require use of renewable energy including biomass.
Renewable portfolio standards (RPS), RFS, production
and tax incentives, low-interest loans, rebates, environ-
mental revenue streams, grants, and standardized utility
interconnection standards are examples of the measures
states have enacted to improve bioenergy markets.
In addition, policies that are not specifically intended
to promote renewable energy can also enable a mar-
ket for industrial or commercial entities that might
become users of bioenergy, such as rural economic
development policies, designations of industrial devel-
opment zones with environmental restrictions, waste
reduction or processing requirements, etc. Chapter 5
provides information about evaluating state policies
and incentives.
4.2.3 WHAT IS THE STATE'S ENERGY AND
ENVIRONMENTAL PROFILE?
What Are the State's Anticipated
Energy Demands?
Besides evaluating existing markets in a state that can
utilize available biomass feedstocks, state officials can
assess anticipated rates of increase in electricity de-
mand, renewable electricity demand, and biofuels de-
mand. Rapid increases in these demands could create a
promising market environment for biomass feedstocks
and bioenergy. EIA, the state public utilities commis-
sion, state energy plan, or regional economic modeling
results are likely sources of energy demand forecasts.
Voluntary markets for renewable electricity and green
power can also spur demand.
For more information about green power, states can
refer to the Green Power Network at www.eere.energy.
gov/greenpower/. This online resource created by U.S.
DOE provides information about utility green pricing,
green power marketing, and renewable energy credits.
Interested states can also join U.S. EPA's Green Power
Partnership, a voluntary program that supports organi-
zational procurement of green power by offering expert
advice, technical support, tools, and resources.
For more information about the Green Power
Partnership, see www.epa.gov/greenpower/.
58 State Bioenergy Primer | CHAPTER FOUR
GREEN POWER MARKETING
The Green Power Network publishes a report series. Green
Power Marketing in the United States: A Status Report, which
identifies market trends. The report covering 2007 notes that
in that year, total retail sales of renewable energy in voluntary
purchase markets exceeded 18 billion kWh, a capacity
equivalent of 5,100 MW of renewable energy, including 4,300
MW from new renewable energy sources. Biomass energy
sources (including LFG) provided 28 percent of total green
power sales.
For more information, see
www.nrel.gov/docs/fy09osti/44094.pdf.
What Environmental Issues
Should Be Considered?
Due to the complexity of the interaction between bio-
energy and the environment, some types of bioenergy
production can be more beneficial to the environment
than others. In addition, some types of biomass are
more appropriate for certain climates or areas with
particular resources. For example, ethanol production
typically requires access to significant and reliable
water resources and is therefore less likely to have posi-
tive environmental effects in a drought-prone area. In
contrast, some evidence suggests that biomass CHP
requires less water than traditional natural gas-fired
electricity generation, making it a regionally appropri-
ate bioenergy option in a drier climate.
It is important for decision makers to understand the
net environmental effects of growing, collecting, and
processing biomass feedstocks into bioenergy in the
context of their state's environmental features and
challenges.
Examples of some environmental considerations that
could be important to a state when considering bioen-
ergy opportunities include:
Lower GHG emissions from biofuels and biopower
compared to fossil fuels can contribute to achieving
goals of state and local climate action plans.
Reduced air emissions (e.g., lower SO2, NOx, and
PM emissions) from cofiring biomass with coal can
make bioenergy more attractive to regulated facilities
in a nonattainment area by lowering emissions-
related operating costs. However, if gas or oil fueled
operations are converted to woody biomass, PM
emissions will increase.
When large areas of undeveloped land are converted to
agricultural uses to produce biofuel feedstocks, the po-
-------
tential exists for damage to local ecosystems (e.g., from
pesticide and fertilizer use) and displacement of species.
Unregulated biomass boilers and furnaces can increase
PM emissions, contributing to air quality problems.
As discussed in Chapter 3, Benefits and Challenges of
Bioenergy, LCAs can help identify strategies to maxi-
mize the environmental benefits of biomass because
they reveal the environmental effects of alternative
approaches to biomass production, transportation,
and conversion. Because of the level of detail involved,
LCAs are not often tailored to specific geographic re-
gions; however, state-specific analysis of policy options
can draw on LCA results. This type of analysis can sup-
port major state decisions about policies and incentives.
Section 4.4.2 — Bioenergy and State Planning, de-
scribes the inclusion of bioenergy in comprehensive
state environmental planning. Additional resources for
evaluating environmental effects of bioenergy, includ-
ing LCAs, are presented in Chapter 3.
4.3 STEP 3: IDENTIFY
OPPORTUNITIES FOR ACTION
Working through Steps 1 and 2 should provide a state
with a solid foundation for understanding the basics
about biomass feedstock availability and potential
markets for expanded bioenergy production. Before
identifying specific actions to promote bioenergy, a
state should have also considered the economic and
environmental benefits and challenges outlined in
Chapter 3. Once these considerations are weighed, a
state can decide whether to move ahead with policies
and initiatives that will promote bioenergy.
One final step before developing a bioenergy promo-
tion plan is to identify some key opportunities for
action. States have found success by examining their
policy and regulatory situations for typical barriers (see
Section 4.3.1); considering including bioenergy issues
in the content of state planning processes to enable
cohesive approaches with all stakeholders (see Section
4.3.2); and reviewing policy, regulatory, and financial
opportunities for further action.
4.3.1 TYPICAL BARRIERS TO BIOENERGY
DEVELOPMENT
After developing an understanding of the processes,
products, and markets that are relevant to a state,
the next step is to assess current policies that present
barriers to bioenergy development and those that can
remove barriers.
Because states have primary jurisdiction over many
areas related to bioenergy, including electricity genera-
tion, agricultural development, and land use, state
policies are particularly important in advancing or
impeding bioenergy. The key to successful advance-
ment is a policy environment that is flexible enough to
support diverse and changing utilization of different
biomass resources and conversion technologies, and
that can adapt as the industry grows, markets change,
and technology advances.
Policy areas that can impact the use of bioenergy
include regulatory requirements and market-based in-
centives. Policies that remove barriers to bioenergy de-
velopment can include favorable utility rate structures,
interconnection standards, state RPS, public benefits
funds, and financial incentives.
Policy Barriers to Biopower/Bioheat
Some policies create barriers to biopower develop-
ment, such as unfavorable utility rate structures, lack
of interconnection standards, and difficulties securing
environmental permits. Listed below are some key
policy barriers to biopower development and ways that
states have overcome them to enable a healthy market
for biopower:
Utility Rate Structures. Unfavorable utility rate struc-
tures have perennially been a barrier to increased de-
ployment of renewable energy technologies, including
those that use bioenergy. Unless carefully monitored to
encourage development of distributed generation (DG)
bioenergy resources, rate structures can increase the
cost of DG (with biomass or other fuels) or completely
disallow connection to the electrical grid.
Decoupling or Lost Revenue Adjustment Mecha-
nisms. Traditional electric and gas utility ratemak-
ing mechanisms unintentionally include financial
disincentives for utilities to support energy effi-
ciency and DG. This misalignment can be remedied
through "lost revenue" adjustment mechanisms
(LRAMs) or mechanisms that "decouple" utility
revenues from sales.
LRAMs allow a utility to directly recoup the lost rev-
enue associated with not selling additional units of
energy because of the success of energy efficiency or
DG programs in reducing electricity consumption.
CHAPTER FOUR | State Bioenergy Primer 59
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The amount of lost revenue is typically estimated by
multiplying the fixed portion of the utility's prices by
the energy savings from energy efficiency programs
or the energy generated from DG. The lost revenue is
then directly returned to the utility.
Revised Standby Rate Structures. Facilities that use
bioenergy usually need to contract with the utility for
standby power when the biopower system is unavail-
able due to equipment failure, during maintenance,
or in other planned outages. Electric utilities often
assess standby charges on on-site generation to cover
the additional costs they incur as they continue to
provide adequate generating, transmission, or distri-
bution capacity (depending on the structure of the
utility) to supply on-site generators when requested
(sometimes on short notice). The utility's concern is
that the facility will require power when electricity is
scarce or at a premium cost, and that it must be pre-
pared to serve load during such extreme conditions.
The probability that any one generator will require
standby service at the exact peak demand period
is low, and the probability that all interconnected
small-scale DG will need it at the same time is even
lower. Consequently, some states are exploring al-
ternatives to standby rates that may more accurately
reflect these conditions. These states are looking
for ways to account for the normal diversity within
a load class and consider the probability that the
demand for standby service will coincide with peak
(high-cost) hours versus the benefits that renewables
provide to the system.
Exit Fee Exemptions. When facilities reduce or end
their use of electricity from the grid, they reduce the
utility's revenues that cover fixed costs on the system.
The remaining customers may eventually bear these
costs. This can be a problem if a large customer
leaves a small electric system. Exit (or stranded asset
recovery) fees are typically used only in states that
have restructured their electric utilities.
To avoid potential rate increases due to load loss,
utilities sometimes assess exit fees on departing load
to keep the utility whole without shifting the respon-
sibility for those costs to the remaining customers.
States can exempt renewable projects from these exit
fees to recognize the economic value of the projects,
including their grid congestion relief and reliability
enhancement benefits.
60 State Bioenergy Primer | CHAPTER FOUR
Lack of Interconnection Standards for Clean Distrib-
uted Generation. The absence of standard intercon-
nection rules, or uniform procedures and technical
requirements for connecting DG systems to the electric
utility's grid, can make it difficult, if not impossible,
for DG systems to connect to the grid. This barrier can
hinder biomass CHP in particular.
Standardized Interconnection Rules and Net Meter-
ing. A lack of interconnection standards can make it
difficult, if not impossible, for renewable energy DG
systems, including those using biopower, to connect
to the electric grid. Once established, however, these
statewide standards reduce uncertainty and delays
that bioenergy systems can encounter when connect-
ing to the grid.
Standard interconnection rules establish uniform pro-
cesses and technical requirements that apply to utili-
ties within a state; in some states, municipally owned
systems or electric cooperatives may be exempt from
rules approved by state regulators. Standard intercon-
nection rules typically address the application process
and technical interconnection requirements for small
DG projects of a specified type and size.
Net metering provisions are a subset of interconnec-
tion standards for small-scale projects. When DG
output exceeds the site's electrical needs, the utility
can pay the customer for excess power supplied to
the grid or have the net surplus carry over to the next
month's bill. Some states allow the surplus account
to be reset periodically, meaning that customers
might provide some generation to the utility for free.
Net metering provisions streamline interconnection
standards but are often limited to specified sizes and
types of technologies, as well as fuel types.
Several groups are actively working to provide
information about and/or follow and facilitate
development of improved net metering standards.
These include:
Database of State Incentives for Renewable Energy,
which includes a summary table and summary da-
tabase on interconnection standards, www.dsireu-
sa.org/ (click on Summary Tables, and then Rules,
Regulations, and Policies [Renewable Energy]).
The Interstate Renewable Energy Council, which
publishes a newsletter, "Connecting to the Grid."
www. irecusa. org/index.php
EPA's Clean Energy-Environment Guide to Action
provides information about interconnection and
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net metering benefits, design elements, interaction
with state and federal programs, implementation
and evaluation, and case studies, www.epa.gov/
deanenergy/energy-programs/state-and-local/
state-best-practices.html
Environmental Permitting. Major new industrial fa-
cilities that produce and/or use bioenergy must obtain
a number of different permits from state agencies in-
cluding construction permits from state environmental
officials to ensure that plans meet environmental
standards; operating permits for air emissions during
operation; and stormwater and/or wastewater dis-
charge permits. New bioenergy facilities and projects
are subject to federal and state emission standards for
combustion sources and to air permitting requirements
for new sources.
The federal standards that could apply to biomass com-
bustion units are the New Source Performance Stan-
dards and National Emission Standards for Hazardous
Air Pollutants for boilers, gas turbines, and internal
combustion engines. The process of obtaining multiple
permits from different entities within state agencies—
particularly for newer technologies/processes—can add
significant uncertainty to construction timing and the
cost of emission controls that will be required.
4.3.2 BIOENERGY AND STATE PLANNING
One way to facilitate creation of a policy environment
conducive to bioenergy is to include bioenergy consid-
erations during comprehensive state energy, environ-
mental, or climate change planning.
Energy Plans
Energy planning involves a strategic effort to develop
energy-related goals and objectives and formulate
related policies and programs. As the nexus for a
variety of state concerns, energy planning can serve as
an umbrella mechanism for simultaneously addressing
energy, environmental, economic, and other issues.
Energy planning can be undertaken at both state and
regional levels.
Many states have used their energy plans to support
development and use of cost-effective clean energy,
including bioenergy, and to help address multiple
challenges, including energy supply and reliability
(e.g., concerns with availability, independence, and
security), energy prices, air quality and public health,
and job development. States can also develop strategies
completely devoted to bioenergy. For example, in 2006
California released the Bioenergy Action Plan for Cali-
fornia, which provides specific actions and timelines to
advance bioenergy in the state (Bioenergy Interagency
Working Group, 2006).
Environmental Plans
Opportunities also exist to consider biomass in envi-
ronmental planning. States facing nonattainment un-
der NAAQS are required to develop and submit SIPs.
EPA provides guidance to state and local governments
on quantifying and including emission reductions
from energy efficiency and renewable energy measures
in SIPs. (A guidance document is available at www.epa.
gov/ttn/oarpg/tl/memoranda/ereseerem_gd.pdf.)
Climate Change Plans
In addition, many states have completed climate action
plans to encourage clean energy as a way to decrease
carbon emissions. Given that biomass is "carbon-
neutral," it does and can play an important role in state
climate plans.
BIOMASS AND THE MASSACHUSETTS
CLIMATE PROTECTION PLAN
In 2004, Massachusetts published the Massachusetts Climate
Protection Plan as an initial step in a coordinated effort to reduce
GHG emissions and improve energy efficiency throughout the
state. The plan entails a set of near-term actions, including
development of a comprehensive state biomass policy to ensure:
• Biomass material is grown and harvested in an environmentally
sound manner.
• Strong air quality standards are maintained.
• Low emissions and advanced biomass conversion technologies,
as defined by the Massachusetts RPS, are utilized for both heat
and electricity.
• State agencies provide incentives and work together to
implement pilot biomass projects in various sectors (public and
private applications) in rural regions.
For more information, see masstech.org/renewableenergy/public_
policy/DG/resources/2004_MA_Climate_Protection_Plan.pdf.
X
Ql
4.3.3 REVIEW POLICY OPTIONS
Whether a state explores bioenergy through a com-
prehensive energy strategy, a SIP, or a climate change
action plan, several policies should be developed
simultaneously to enhance the likelihood that biomass
usage increases, as discussed in Chapter 5.
CHAPTER FOUR | State Bioenergy Primer 61
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4.4 RESOURCES FOR DETAILED INFORMATION
Description
Biomass Resource Assessment
Tool, U.S. EPA and NREL.
Online mapping tool that takes various biomass resource
datasets and maps them, allowing user queries and
analysis. For example, users can select a point on the map
and determine the quantity of feedstock within a certain
radius, and the quantity of energy that could potentially be
produced from that biomass.
h ttp://rpm.nrel.gov/biopower/
biopower/launch
Coordinated Resource Offering
Protocol (CROP) Evaluations,
U.S. Forest Service and Bureau of
Land Management.
Provides the results of ten CROP evaluations that have been
conducted for over 30 million acres of public forestlands
potentially vulnerable to wildfires. The evaluations contain
detailed resource-offering maps that illustrate the growing
fuel load problem within major forest systems and quantify
the biomass available for removal within five years.
www.forestsandrangelands.gov/
Woody_Biomass/supply/CROP/
index.shtml
USFS Forest Inventory Data
Online (FIDO)
Provides access to the National Forest Inventory and Analysis
databases. It can be used to generate tables and maps of
forest statistics (including tree biomass) by running standard
reports for specific states or counties and survey year, or
customized reports based on criteria selected by the user.
http://fiatools.fs.fed.us/fido/index.
html
Biomass Feedstocks, U.S. DOE
U.S. DOE Biomass Program Web site
wwwl.eere.energy.gov/biomass/
biomass_feedstocks.html
Dynamic Maps, CIS Data, and
Analysis Tools, NREL
Provides county-level biomass resource maps. The feedstock
categories include crop residues, forest residues, primary
mill residues, secondary mill residues, urban wood waste,
methane emissions from landfills, methane emissions from
manure management, methane emissions from wastewater
treatment plants, and dedicated energy crops. The maps
are derived from data contained in a report. Geographic
Perspective on the Current Biomass Resource Availability in
the United States (described below). Note that these maps
present technical biomass resource data. The economic
biomass resource availability will most likely be somewhat
less than what is presented in the maps.
www.nrel.gov/gis/biomass.htmt
Geographic Perspective on
the Current Biomass Resource
Availability in the United States,
NREL, 2006.
Provides the basis for the maps and data presented in
NREL's Dynamic Maps, CIS Data, and Analysis Tools Web site
described above. The report provides a geographic analysis
of biomass resource potential at the county level, and can
give state officials a sense of the major biomass resources
available within their state and their technical potential
relative to other states.
www.nrel.gov/docs/
fy06osti/39181.pdf
State Assessment for Biomass
Resources (SABRE), U.S. DOE
Provides detailed information on biomass resources and
utilization throughout the United States. It features state-
specific information on conventional fuel and biofuel use,
ethanol and biodiesel stations and production plants,
and biofuel production capacities. In addition, it offers
state-by-state snapshots of available feedstocks, data on
potential production capacities, and projections on the
future use of biofuels.
www.afdc.energy.gov/afdc/sabre/
index.php
62 State Bioenergy Primer | CHAPTER FOUR
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4.4 RESOURCES FOR DETAILED INFORMATION (cont.)
Description
State Woody Biomass
Utilization Policies,
University of Minnesota,
Department of Forest
Resources, Staff Paper 199. Becker,
D.R., and C. Lee. 2008.
Documents information on state policies to facilitate
comparison of the types of approaches used in certain
areas, policy structures and incentives employed, program
administration, and relationships to complementary local and
federal actions.
www. forestry, umn. edu/
publications/staff papers/
Staffpaperl99.pdf
Biopower/Bioheat
Initial Market Assessment for
Small-Scale Biomass-Based CHP.
National Renewable Energy
Laboratory, NREL, January 2008.
Examines the energy generation market opportunities
for biomass CHP applications smaller than 20 MW. Using
relevant literature and expert opinion, the paper provides
an overview of the benefits of and challenges for biomass
CHP in terms of policy and economic drivers, and identifies
primary characteristics of potential markets.
www.nrel.gov/docs/
fy08osti/42046.pdf
Green Power Marketing in the
United States: A Status Report,
NREL.
Documents green power marketing activities and trends in
voluntary markets in the United States.
h ttp://apps3. eere. energy.
gov/greenpower/resources/
pdfs/38994.pdf
U.S. EPAs Landfill Methane
Outreach Program (LMOP)
Promotes the use of landfill gas as a renewable, green energy
source. Its Web site contains general information, tools, and
links to databases containing specific landfill data.
www. epa.gov/lmop/
U.S. EPAs Landfill Methane
Outreach Program (LMOP)
Landfill Database
Provides a nationwide listing of operational and under-
construction LFG energy projects; candidate municipal solid
waste landfills having LFG energy potential; and information
on additional landfills that could represent LFG energy
opportunities. The database can be accessed as a series
of downloadable Excel spreadsheets, which are updated
and posted to the Web site each month. The information
contained in the LMOP database is compiled from a variety
of sources, including annual voluntary submissions by LMOP
partners and industry publications.
www. epa.gov/lmop/proj/index.
htm
Landfill Gas Energy Project
Development Handbook, U.S.
EPA Landfill Methane Outreach
Program.
Provides landfill gas energy project development guidance,
with individual chapters on the basics of landfill gas energy,
gas modeling, technology options, economic analysis and
financing, contract and permitting considerations, and
selection of project partners.
www. epa.gov/lmop/res/
handbook.htm
Market Opportunities for Biogas
Recovery Systems, U.S. EPA
AgStar.
Assesses the market potential for biogas energy projects at
swine and dairy farms in the United States. For the top ten
swine and dairy states, the guide characterizes the sizes and
types of operations where biogas projects are technically
feasible, along with estimates of potential methane
production, electricity generation, and greenhouse gas
emission reductions.
www.epa.gov/agstar/pdf/
biogas%20recovery%20sys tems_
screenres.pdf
U.S. EPAs Combined Heat and
Power (CHP) Partnership
Promotes the use of biomass-fueled CHP and the use of
biogas at wastewater treatment facilities.
www. epa.gov/chp
CHAPTER FOUR | State Bioenergy Primer 63
-------
4.4 RESOURCES FOR DETAILED INFORMATION fcont.JJ
Description
Jioproducts
State Assessment for Biomass
Resources, U.S. DOE
Provides detailed information on biomass resources and
utilization throughout the United States. It features state-
specific information on conventional fuel and biofuel use,
ethanol and biodiesel stations and production plants,
and biofuel production capacities. It offers state-by-
state snapshots of available feedstocks, data on potential
production capacities, and projections on the future use of
biofuels. The site is particularly useful for states interested in
evaluating resource potential for producing biofuels.
www.afdc.energy.gov/afdc/sabre/
index.php
Environmental Laws Applicable
to Construction and Operation
of Ethanol Plants, U.S. EPA
This compliance assistance manual, issued by EPA Region 7,
serves as a road map of information on federal environmental
programs and federal and state agency roles applicable to the
construction, modification, and operation of ethanol plants.
www.epa.gov/region07/priorities/
agriculture/ethanol_plan ts_
manual.pdf
Environmental Laws Applicable
to Construction and Operation
of Biodiesel Production
Facilities, U.S. EPA
State Examples
California
This compliance assistance manual, issued by EPA Region 7,
serves as a road map of information on federal environmental
programs and federal, state, and local agency roles
applicable to designing, building, and operating biodiesel
manufacturing facilities.
www.epa.gov/region07/priorities/
agriculture/biodiesel_manual.pdf
An Assessment of Biomass Resources in California, 2007,
provides an updated biomass inventory for the state along
with an assessment of potential growth in biomass resources
and power generation that could help to satisfy the state
renewable portfolio standard (RPS).
h ttp://biomass. ucdavis. edu/
materials/reports%20and%20
publications/2008/CBC_Biomass_
Resources_2007.pdf
Georgia
Biomass Wood Resource Assessment on a County-
by-County Basis for the State of Georgia provides a
biomass wood resource assessment on a county-level
basis for Georgia.
www.gfc.state.ga.us/
ForestMarketing/documents/
Biomass WRACoun tybyCoun tyGA 05.
pdf
Hawaii
Biomass and Bioenergy Resource Assessment: State of
Hawaii provides an assessment of current and potential
biomass and bioenergy resources for the state. Includes
animal wastes, forest products residues, agricultural residues,
and urban wastes.
www.hawaii.gov/dbedt/info/
energy/publications/biomass-
assessment.pdf
Mississippi
Mississippi Institute for Forest Inventory Dynamic Report
Generator provides a continuous, statewide forest resource
inventory necessary for the sustainable forest-based
economy. The inventory information is derived from
sampling estimation techniques with a presumed precision of
+/-15% sampling error with 95 percent confidence.
www.mifi.ms.gov/
South Carolina
Potential for Biomass Energy Development in South Carolina
quantifies the amount of forestry and agricultural biomass
available for energy production on a sustainable basis in
South Carolina. Also includes an analysis of the economic
impacts of transferring out-of-state costs for coal to in-state
family forest landowners and biomass processors.
www.scbiomass.org/Publications/
Po ten tial%20Biomass%20
Energy%20in%20SC.pdf
64 State Bioenergy Primer | CHAPTER FOUR
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4.4 RESOURCES FOR DETAILED INFORMATION fcont.JJ
Description
Oregon
Biomass Energy and Biofuels from Oregon's Forests assesses
the statewide potential for production of electricity and
biofuels from woody biomass, including the available
wood supply and the environmental, energy, forest health,
and economic effects. Reviews and summarizes efforts
underway to promote electric energy and biofuels from
woody biomass, and identifies gaps in existing efforts.
Assesses constraints and challenges to the development of
biomass energy and biofuels from Oregon forests, including
economic, environmental, legal, policy, infrastructure, and
other barriers and develops recommendations on how to
overcome these barriers.
www.oregonforests.org/assets/
uploads/Biomass_Full_Report.pdf
Northeastern states (CT, DE, ME,
MD, MA, NH, NJ, NY, PA, RI, VT)
Securing a Place for Biomass in the Northeast United States:
A Review of Renewable Energy and Related Policies provides
a biomass feedstock assessment for northeastern states.
www.nrbp.org/pdfs/nrbp_final_
report.pdf
Western states (WA, OR, ID, MT,
WY, CO, NM, AZ, UT, NV, CA, TX,
OK, ND, SD, NE, KS, AK, HI)
The Western BioenergyAssessment includes a series of
technical reports produced for the Western Governors'
Association. These reports extensively evaluate biomass
resources in the western states, biofuel conversion
technologies, spatial analysis and supply curve development,
and deployment scenarios and potential policy interactions.
www.westgov.org/wga/initiatives/
transfuels/index.h tml
Western states (WA, OR, ID, MT,
WY, CO, NM, AZ, UT, NV, CA, TX,
OK, ND, SD, NE, KS, AK, HI)
The Western Governors'Association Transportation Fuels for
the Future Initiative provides seven working group reports
and a final report analyzing the potential for the development
of alternative fuels and vehicle fuel efficiency in the West.
www.westgov.org/wga/initiatives/
transfuels/index.h tml
Western states (WA, OR, ID, MT,
WY, CO, NM, AZ, UT, NV, CA, TX,
ND, SD, NE, KS, AK, HI)
Biomass Task Force Report focuses on the use of biomass
resources for the production of electricity as part of an
overall effort of the Western Governors'Association to
increase the contribution of clean and renewable energy in
the region.
www.westgov.org/wga/initiatives/
cdeac/Biomass-fulipdf
4.5 REFERENCES
• Bioenergy Interagency Working Group, 2006. Bio-
energy Action Plan for California CEC-600-2006-010,
California Energy Commission, Sacramento, CA, 2006.
www.energy.ca.gov/bioenergy_action_plan/.
EIA, 2006. Model Documentation: Renewable Fuels
Module of the National Energy Modeling System. Office
of Integrated Analysis and Forecasting. DOE/EIA-
M069. U.S. DOE, Washington, DC, March 2006. http://
tonto.eia.doe.gov/FTPROOT/modeldoc/m069(2006).
pdf.
EIA, 2008. Net Summer Capacity of Plants Cofiring
Biomass and Coal. Energy Information Administra-
tion, July 2008. www.eia.doe.gov/cneaf/solar.renew-
ables/page/trends/table9. html.
Florida Department of Agriculture and Consumer
Services, 2008. Matthew D. Curran, Ph.D. Bureau of
Petroleum Inspection. EPA Region 4 Biofuels Confer-
ence, November 18, 2008.
Florida Department of Agriculture and Consumer
Services, 2007. Florida Farm to Fuel. Tallahassee, FL,
2007. www.floridafarmtofuel. com/.
CHAPTER FOUR | State Bioenergy Primer 65
-------
Milbrandt, 2005. Milbrandt, A. A Geographic Perspec-
tive on the Current Biomass Resource Availability
in the United States. NREL, Golden, CO, December
2005. NREL/TP-560-39181. www.nrel.gov/docs/
fy06osti/39181.pdf.
NREL (National Renewable Energy Laboratory),
2008. Facility Heating with Biomass. Scott Haase.
National Renewable Energy Laboratory. GovEnergy
2008, August 5, 2008. www.govenergy.com/2008/pdfs/
renewables/HaaseRenewables4.pdf.
U.S. DOE (Department of Energy). Biomass Feed-
stocks. Office of Energy Efficiency and Renewable En-
ergy, U.S. DOE, Washington, DC. wwwl.eere.energy.
gov/biomass/biomass_feedstocks.html.
•U.S. DOE, 2004. Combined Heat and Power Market
Potential for Opportunity Fuels. Prepared by Resource
Dynamics Corporation for U.S. DOE, Washington,
DC, August 2004. www.eere.energy.gov/de/pdfs/
chp_opportunityfuels.pdf.
U.S. EPA (Environmental Protection Agency), 2007.
Opportunities for and Benefits of Combined Heat and
Power at Wastewater Treatment Facilities. U.S. EPA,
Washington, DC, April 2007. www.epa.gov/chp/docu-
ments/wwtj'_opportunities.pdf.
Western Governor's Association and U.S. DOE, 2009.
"Western Renewable Energy Zones project." Washing-
ton, DC, 2009. www.westgov.org/wga/initiatives/wrez/
index.htm.
66 State Bioenergy Primer | CHAPTER FOUR
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CHAPTER FIVE
Options for
States to Advance
Bioenergy Goals
States interested in promoting
bioenergy can take active roles
in removing financial, policy,
regulatory, technology, and
informational barriers hindering
development of biomass projects.
As diverse as these approaches
are, they are all aimed at reducing
investor risk in order to increase
the likelihood of bioenergy projects
moving forward to completion.
Bioenergy developers often need to raise capital to
cover significant project expenses, such as construction
costs, the cost of equipment, installation fees, and any
costs incurred during the regulatory and permitting
process. The terms under which investors and lenders
provide this capital—should they agree to provide any
at all—can significantly impact the cost of producing
bioenergy, and therefore its competitiveness with other
energy sources. All else constant, the greater the inves-
tors' and lenders' perception of risks related to a par-
ticular project, the greater the cost of capital. States can
help reduce the cost of financing for many bioenergy
developers by enacting policies and other measures
that reduce lending and investment risks.
i' CHAPTER ONE
Introduction
i > CHAPTER TWO
What Is Bioenergy?
i •CHAPTER THREE
Benefits and Challenges
i • CHAPTER FOUR
Identifying Bioenergy Opportunities
O CHAPTER FIVE
Options for Advancing Bioenergy
CHAPTER FIVE CONTENTS
5.1 Favorable Policy Development
5.2 Favorable Regulatory Development
5.3 Environmental Revenue Streams
5.4 Direct Investment/Financing and Incentives
5.5 Research, Development, and Demonstration
5.6 Information Sharing
5.7 Resources for Detailed Information
5.8 References
CHAPTER FIVE | State Bioenergy Primer 67
-------
States can promote bioenergy by facilitating:
1 Favorable policy development
Favorable regulatory development
Environmental revenue streams
Direct investment/financing
Incentives
Research, development, and demonstration
Information sharing
Although not a comprehensive list, these options have
been implemented in many states and provide numer-
ous lessons.
The following sections provide details on how states
can implement each of these options to promote in-
vestment in bioenergy.
5.1 FAVORABLE POLICY
DEVELOPMENT
Many states have promoted bioenergy by seeking to
create new or expanded markets for biopower, biofuels,
or bioproducts. Enacting policies that encourage or re-
quire use of bioenergy does not necessarily financially
support development, but does provide certainty for
producers that a market will exist for their products,
which in turn reduces investor risk.
State policies that require use of renewable energy, such
as RPS and renewable fuels standards, have proven
to stimulate growth in renewable energy markets and
reduce investor risk by ensuring each year that a given
amount of electricity or motor fuel is supplied from
renewable sources, including biomass.
Typical state policies that create markets for bioener-
gy—including detailed information about program
benefits, design elements, interactions with state and
federal programs, implementation and evaluation, and
case studies—are discussed in EPA's Clean Energy-Envi-
ronment Guide to Action at www.epa.gov/deanenergy/
energy-programs/state-and-local/state-best-practices.
html. Best practices in design and implementation have
a significant impact on policy effectiveness.
Several policy options that states can implement to
remove barriers to bioenergy development are pre-
sented below. Although not a comprehensive list, these
68 State Bioenergy Primer | CHAPTER FIVE
options have been implemented in many states and
provide numerous lessons.
State "Lead by Example" Initiatives. State and local
governments are implementing a range of programs
and policies that advance clean energy, including bioen-
ergy within their own facilities, fleets, and operations.
These "lead by example" (LBE) initiatives help state and
local governments achieve energy cost savings while
promoting adoption of clean energy technologies by the
public and private sectors. States are leveraging their
purchasing power, control of significant energy-using
resources, and high visibility of their public facilities to
demonstrate clean energy technologies and approaches
that lower their energy costs and reduce emissions.
State LBE initiatives that can support development of
bioenergy include:
Purchasing and using renewable energy and clean
energy generation in public facilities.
Implementing "green fleet" programs that require
state vehicles to use biomass-based renewable fuels.
Implementing procurement rules that require state
agencies to purchase biomass-based products.
For more information, see EPA's Clean Energy Lead
by Example Guide at www.epa.gov/cleanenergy/docu-
ments/epa_lbe.pdf.
Renewable Portfolio Standard (RPS). An RPS re-
quires utilities and other retail electricity providers to
supply a specified minimum percentage (or absolute
amount) of customer load with eligible sources of
renewable electricity. These laws create a new market
for renewable energy and DG projects by outlining
the specific minimum amount or percentage of clean
energy that must be produced by a specified date (e.g.,
25 percent of in-state electricity production must come
from renewable resources by January 1, 2050). As of
November 2008, 35 states, including the District of Co-
lumbia, have adopted RPS laws or goals. All state RPSs
include bioenergy as an eligible resource.
Fostering Voluntary Green Power Markets. Voluntary
green power programs are a relatively small but grow-
ing market that provides electricity customers the op-
portunity to make environmental choices about their
electricity consumption. Green power can be offered in
both vertically integrated (i.e., regulated) and competi-
tive (i.e., deregulated) retail markets as bundled renew-
able energy that consumers can purchase voluntarily,
-------
either through green pricing programs or green power
marketing. States can play key roles in shaping green
power markets:
For regulated markets, states can play important
roles in increasing voluntary participation rates in
green pricing programs by requiring utilities to of-
fer them to consumers as an option and/or conduct
outreach, education, or marketing campaigns about
green pricing programs to consumers.
• Under deregulated markets, states can mandate
green power marketers' access to electricity custom-
ers, which would otherwise involve high transaction
costs to the marketers.
In addition to fostering green power programs, states
can ensure that they complement other policies already
in place, such as public benefits funds (PBFs) or RPSs.
Green power programs have existed for approximately
10 years and have contributed to development of
more than 2,200 megawatts (MW) of new renewable
capacity. Biomass has been the second most popular
resource, after wind, to serve renewable demand.
Renewable Fuel Standard (RFS). U.S. EPA, under
EISA, is responsible for revising and implementing
regulations to ensure that a certain percentage of trans-
portation fuel be renewable. The federal Renewable Fuel
Standard program will increase the volume of renewable
fuel required to be blended into gasoline from 9 billion
gallons in 2008 to 36 billion gallons by 2022.4 States
may also enact their own RFSs in addition to the federal
program. As of August 2008,12 states had an RFS in
place (Pew Center on Global Climate Change, 2008).
Low Carbon Fuel Standard (LCFS). An LCFS for trans-
portation fuels is a policy to encourage utilization of
low-carbon fuels (measured on a full life-cycle basis) to
reduce GHG emissions from the transportation sector.
In 2007, the Governor of California signed an execu-
tive order directing the state's Secretary of Environ-
mental Protection to coordinate the development of
an LCFS, which will be the first and only in the United
States. The California Air Resources Board released a
draft of the standard in March 2009, which if imple-
mented would start in 2011 and require fuel providers
to ensure that the mix of fuel they sell into the Califor-
nia market meets, on average, a declining standard for
GHG emissions (measured in CO2-equivalent grams
4 The new RFS program regulations are being developed in collaboration
with refiners, renewable fuel producers, and many other stakeholders (see
www.epa.gov/oms/renewablefueh/index.htm).
per unit of fuel energy sold). By 2020 the standard
would reduce the carbon intensity of California's pas-
senger vehicle fuels by at least 10 percent and reduce
GHG emissions from the transportation sector by
about 16 million metric tons (almost 10 percent of the
total GHG emission reductions needed to achieve the
State's mandate of reducing GHG emissions to 1990
levels by 2020). The proposed standard is designed to
be compatible with market-based compliance mecha-
nisms (U.S. EPA, 2008b and California Environmental
Protection Agency, 2009).
For more information on California's pending LCFS,
seewww.energy.ca.gov/low_carbon_fuel_standard/.
High Tipping Fees. The availability of urban wood
residues is largely governed by the size of tipping fees.
Where such fees are high (partly due to the lack of land
for landfills), recycling is often higher. Also, high tip-
ping fees provide economic incentives to utilize these
resources (U.S. DOE, 2005).
5.2 FAVORABLE REGULATORY
DEVELOPMENT
In some circumstances, bioenergy developers will
experience time delays as they go through the process
of obtaining required utility interconnection, envi-
ronmental compliance, and construction permits. The
prospect of significant time delays for some projects
can contribute to investor risk. States can help reduce
this risk by streamlining and standardizing regulatory
and permitting processes for bioenergy producers.
BIOENERGY ONE STOP SHOPS
The Georgia Center for Innovation in Agribusiness is working to
promote production and use of renewable energy and biofuels
in Georgia by conducting One Stop Shops that bring together
prescreened businesses and representatives from more than
20 state and federal agencies. These working meetings give
companies the opportunity to present and discuss ideas for
bioenergy projects and obtain the permitting and contact
information they need to get their ideas off the ground. The
center aims to help businesses through the permitting process
in 90 days while creating networks connecting business,
industry, research, and government. To date, 14 One Stop Shop
meetings have been conducted, with 85 companies presenting
ideas. As a result of these meetings, 23 bioenergy projects have
been launched or planned for implementation by 2015.
For more information, visit
http://energy.georgiainnovation.org/services.
CHAPTER FIVE | State Bioenergy Primer 69
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EPA's Environmental Technology Verification pro-
gram provides emissions verification for various
technologies, including biomass cofiring and other
new clean energy technologies. Use of emissions data
from verification studies can help speed the permit-
ting process for new facilities.
Visit www.epa.gov/etv/ to see what verification re-
ports are available.
For biofuels producers and distributors, one step that
states can take is to adopt ASTM standards for blending
There is no federal requirement in this area, so states
have often had different standards. A more consistent
market allowing preblended fuels to be sold across
states could reduce distribution costs (Schultz, 2008).
STATE GRANT PROGRAMS: PENNSYLVANIA ENERGY
DEVELOPMENT AUTHORITY
Several states provide funding and financial incentives, such
as grants, loans, and loan guarantees, to drive investment in
renewable energy, including bioenergy. These offerings are not
only stimulating the nation's renewable energy markets, but are
helping to reduce air and water pollution, promote economic
development and job creation, and improve energy security.
Pennsylvania is among the states now offering grant funding
for bioenergy research and production.
Every year, the Pennsylvania Energy Development Authority
(PEDA) competitively awards millions of dollars in grants to
help finance clean, advanced energy projects. Energy projects
eligible to receive funding include biomass, wind, solar, fuel
cells, and other energy sources. For-profit businesses, local
governments, and nonprofit organizations, as well as businesses
interested in locating their advanced energy operations in
Pennsylvania, have been invited to apply for funding in the
past. Applications to receive funding are evaluated based
on numerous factors, such as a project's cost-effectiveness,
technical feasibility, and economic and environmental benefits.
The extent to which the project promotes use and development
of the state's indigenous energy resources, such as biomass,
and improves energy diversity and security are also considered
in the evaluation process.
From 2004 to 2007, Pennsylvania awarded $6 million in grants
to 13 different bioenergy projects. Among the recipients of
funding were a school district using biomass to heat school
buildings, several biodiesel producers, a major university
conducting applied research, and several LFG energy projects.
To learn more about the grant program, visit PEDA's Web
site at www.depweb.state.pa.us/enintech/cwp/view.
asp?a=1415&q=504241.
Source: DSIRE
70 State Bioenergy Primer | CHAPTER FIVE
5.3 ENVIRONMENTAL
REVENUE STREAMS
Bioenergy has a number of potential environmental
benefits over other forms of energy, which in some
cases can be monetized (for more information on these
potential benefits, see Chapter 3, Benefits and Challeng-
es of Bioenergyj. States can offer environmental revenue
streams (ERS), such as renewable energy certificates
(RECs) or emission allowance guarantees that reward
biomass technologies for their environmental attributes.
Some states, for example, allow renewable energy pro-
ducers to participate in the emissions allowance market
for NOx. The sale of these allowances can provide bio-
energy producers with an additional source of revenue.
Further, if CO2 is regulated through a cap-and-trade
system, biopower and other bioenergy sources might
obtain cash flow through the associated carbon market.
These additional sources of revenue can significantly
reduce risk for potential lenders and improve potential
investment returns.
For more information on environmental revenue
streams, see EPA's CHP Partnership paper Environmen-
tal Revenue Streams for Combined Heat and Power at
www.epa.gov/chp/documents/ers^>rogram_details.pdf.
CO2 OFFSETS: ENVIRONMENTAL REVENUE STREAMS FOR
BIOENERGY PROJECTS
Separate from CC>2 cap-and-trade programs, several states
regulate CC>2 emissions from particular sources. To help
regulated sources comply cost effectively, these states allow sale
of CC>2 emission offset credits. Projects that reduce CC>2 or other
GHG emissions at one location generate CO2 credits that can
be sold to offset emissions at another location. In states such as
Massachusetts, Oregon, and Washington, biomass CHP projects
can be used to create offsets.
Source: U.S. EPA, 2008
5.4 DIRECT INVESTMENT/
FINANCING AND INCENTIVES
States can substantially reduce investor risk by providing
funding and financial incentives for bioenergy produc-
tion. These offerings increase the likelihood of a market
for bioenergy by reducing energy costs—and, therefore,
the competitiveness of bioenergy with other energy
sources—and improving returns for potential investors.
-------
Numerous states offer direct incentives to bioenergy
project developers in various forms; more incentives
are available for biopower production than for biofuels
(see Tables 5-1 and 5-2). Low interest rate loans, bond
programs, rebates, grants, production incentives, and
tax incentives (deductions, exemptions, and credits)
are among the different types of incentives states have
made available for bioenergy production. The effective-
ness of incentive programs varies greatly, as tracked by
NREL's State Clean Energy Policies Analysis Project.
For more information, see www.nrel.gov/apply-
ing_technologies/scepa.html.
For municipal projects—including municipal use of
urban wood waste and methane capture and use at
municipal landfills and wastewater treatment plants—
municipal bonds, bank loans, and/or lease purchase
agreements may be available.
Some common state approaches to providing incen-
tives include:
Public Benefit Funds (PBFs). PBFs, also known as
system benefits charges (SBC) or clean energy funds,
are typically created by levying a small fee or surcharge
on electricity rates paid by customers (e.g., for renew-
able energy PBFs, this fee is approximately 0.01 to 0.10
mills per kWh). To date, PBFs have been used primar-
ily to fund energy efficiency and low-income assistance
programs; more recently they have supported clean
energy supply (i.e., renewable energy, including bioen-
ergy, and CHP).
For more information about PBF benefits, design ele-
ments, interaction with state and federal programs,
implementation and evaluation, and case studies, see
EPA's Clean Energy-Environment Guide to Action at
www.epa.gov/deanenergy/energy-programs/state-and-
local/state-best-practices.html.
Financial Incentives. Financial incentives, including
tax incentives, grants, and loans, can play a key role
in reducing investor risks and promoting bioenergy
development.
State tax incentives for renewable energy can take
the form of personal or corporate income tax credits,
tax reductions or exemptions, and tax deductions
(e.g., for construction programs). Tax incentives aim
to spur innovation by the private sector. State tax
incentives for renewable energy are a fairly common
policy tool. While state tax incentives tend to be
INCENTIVES FOR BIOMASS IN OREGON
The state of Oregon has developed a suite of financial
incentives to promote the use of biomass for bioenergy
production. Two of these include:
Business Energy Tax Credit. Offers a 50 percent tax credit
on eligible project costs up to $20 million for a variety of
projects, including two categories that may apply to biomass
projects—high efficiency combined heat and power (CHP) and
renewable energy generation. The credit can be taken as 10
percent annually over five years, or a project owner can transfer
the credit to a pass-through partner in return for a lump sum
payment at the completion of the project. For more information,
visit: www.oregon.gov/ENERGY/CONS/BUS/BETC.shtmi
Energy Trust of Oregon Grants. Charged by the Oregon Public
Utility Commission with investing in cost-effective energy
conservation, renewable energy resources, and energy market
transformation in Oregon, the Energy Trust offers millions
of dollars annually in grants for innovative commercial
applications of renewable energy technology. Incentive
levels are based on a project's above-market costs. For more
information, visit: www.energytrust.org/grants/up/index.html.
BIOFUEL TAX INCENTIVES IN INDIANA
The state of Indiana has developed a comprehensive set of
incentives to promote biofuels within its borders. Between
2005 and 2009, $16 million in tax incentives were used to
kick-start the ethanol industry—resulting in 10 new ethanol
production facilities in the state along with several biodiesel
plants to make soybean-based fuel. These incentives target
different aspects of biofuel production and distribution, and
include tax credits for:
Ethanol production. Ethanol producers are entitled to a credit
of $0.125 per gallon of ethanol produced, including cellulosic
ethanol. The maximum credit that may be claimed by a single
producer depends on the volume of grain ethanol produced.
Ethanol retail. E85 retailers are allowed to deduct $0.18 from
the required state gross retail tax for every gallon of E85 sold
during reporting periods ending before July 1, 2020.
Biodiesel production. Biodiesel producers are entitled to a
credit of $1.00 per gallon of biodiesel produced. The total
amount of credits granted to a single taxpayer may not
exceed $3 million for all taxable years, but may be increased
to $5 million with prior approval by the Indiana Economic
Development Corporation.*
Biodiesel blending. Biodiesel blenders are entitled to a credit
of $0.02 per gallon of blended biodiesel produced at a facility
located in Indiana. The total amount of credits granted to a
single taxpayer may not exceed $3 million for all taxable years.*
Biodiesel retail. Through December 31, 2010, a taxpayer that
is a fuel retailer and distributes blended biodiesel for retail
purposes is entitled to a credit of $0.01 per gallon of blended
biodiesel distributed.*
*This tax credit is contingent on funding, which as of July 2009
was not available.
Source: U.S. DOE, 2009
CHAPTER FIVE | State Bioenergy Primer 71
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TABLE 5-1. SUMMARY OF STATE FINANCIAL INCENTIVES FOR BIOMASS TECHNOLOGIES
NUMBER OF
INCENTIVE TYPE
State Grant Program
State Loan Program
Property Tax Exemption
Sales Tax Exemption
Corporate Tax Credit
Production Incentive
Personal Tax Credit
Personal Deduction
State Rebate Program
Industry Recruitment
Corporate Tax Exemption
Corporate Deduction
Excise Tax Incentive
State Bond Program
TOTAL INCENTIVES
lNl_bN HVbb
AVAILABLE
25
28
21
10
13
9
8
4
2
14
1
1
1
2
139
STATES OFFERING INCENTIVES
Alabama, Alaska, Connecticut (x2), Delaware, District of Columbia, Florida, Illinois, Indiana, Iowa,
Maine, Massachusetts (x2), Michigan (x3). New York, North Carolina, Ohio, Pennsylvania (x2),
Rhode Island, South Carolina, Vermont, Wisconsin
Alabama, Alaska, California, Connecticut, Hawaii, Idaho, Iowa (x2), Maine, Massachusetts,
Minnesota (x3), Mississippi, Missouri, Montana, Nebraska, New Hampshire, New York (x2). North
Carolina, Oklahoma (x2), Oregon, Rhode Island, South Carolina, Tennessee, Vermont
Arizona, Colorado, Connecticut, Iowa, Kansas, Maryland, Michigan, Montana (x3), Nevada (x3).
New Jersey, New York, Ohio, Oregon, Rhode Island, South Dakota, Texas, Vermont
Georgia, Idaho, Kentucky, Maryland, New Mexico, Ohio, Utah, Vermont, Washington, Wyoming
Florida, Georgia, Iowa, Kentucky, Maryland, Missouri, Montana, New Mexico, North Carolina,
North Dakota, Oregon, South Carolina, Utah
California, Connecticut, Minnesota, New York, North Carolina, South Carolina, Vermont, Washington
Iowa, Maryland, Montana (x2). New Mexico, North Carolina, North Dakota, Oregon, Utah
Alabama, Arizona, Idaho, Massachusetts
New Jersey, Wisconsin
Colorado, Connecticut, Hawaii, Illinois, Massachusetts (x2), Michigan (x2), Montana (x2). New
Mexico, Oregon, Wisconsin (x2)
Ohio
Massachusetts
Iowa
Idaho, New Mexico
Source: DSIRE, January 26, 2009
smaller than federal incentives, they are often addi-
tive and can become significant considerations when
making purchase and investment decisions.
Grants, buy-downs, and generation incentives
support development of energy efficiency and clean
generation technologies. For renewable energy state
grants cover a broad range of activities and frequently
address issues beyond system installation costs.
To stimulate market activity, state grants can cover
research and development, business and infrastruc-
ture development, system demonstration, feasibility
72 State Bioenergy Primer | CHAPTER FIVE
studies, and system rebates. In contrast to incentives
that help finance initial capital costs (e.g., rebates
and state sales tax exemptions), states also provide
generation incentives on the basis of actual electricity
generated. In their most straightforward form, gen-
eration incentives are paid on a kilowatt-hour basis.
State loan programs provide low-interest loans to
promote development of clean energy. One common
approach is a revolving loan fund. This type of fund
is designed to be self-supporting. States create a pool
of capital when the program is launched. This capital
-------
TABLE 5-2. SUMMARY OF STATE INCENTIVES FOR ALTERNATIVE FUELS/ALTERNATIVE-FUEL VEHICLES
NUMBER OF
INCENTIVE TYPE
State Grant Program
State Loan Program
Property Tax Exemption
State Bond Program
Exemption
Production Incentive
Retail Incentive
Use Incentive
Excise Tax Incentive
Rebate
Tax Credit
Tax Deduction
Tax Exemption
Tax Reduction
Tax Refund
TOTAL INCENTIVES
INUbNIlVbb
AVAILABLE
42
16
1
1
15
1
1
4
4
60
2
25
11
5
188
STATES OFFERING INCENTIVES
Arizona, Arkansas, California, Colorado, Connecticut (x2), Florida, Georgia, Idaho, Illinois (x3),
Indiana (x3), Iowa (x3), Louisiana, Michigan (x2) Minnesota, New Hampshire, New Mexico, North
Carolina (x3), Ohio (x3), Pennsylvania (x2), Tennessee (x3), Texas (x4), Utah, Virginia, Washington
California, Iowa (x3), Maine, Nebraska, North Dakota, Ohio, Oklahoma (x2), Oregon, Rhode
Island, Tennessee, Utah, Virginia, Washington
Montana
North Carolina
California, Colorado, Florida, Hawaii, Kansas, Minnesota, Mississippi, Missouri (x2), Montana (x2).
North Dakota, Oregon, South Dakota, Tennessee
South Carolina
Indiana
Arkansas, California, Georgia, North Dakota
Illinois, Michigan, New Jersey (x2)
Colorado, Florida, Georgia, Hawaii, Idaho, Indiana (x6), Iowa (x4), Kansas (x2), Kentucky (x4),
Louisiana, Maine (x2), Maryland (x2), Michigan (x2), Missouri, Montana (x3), Nebraska, New Mexico
(x2). New York (x2). North Carolina (x4). North Dakota (x3), Ohio, Oklahoma (x3), Oregon (x3),
Pennsylvania, South Carolina (x5). South Dakota, Vermont, Virginia, Wisconsin, Wyoming
Idaho, Washington
Delaware, District of Columbia, Florida (x2), Georgia, Hawaii, Illinois (x2), Indiana, Louisiana,
Massachusetts, Michigan, Missouri, Nebraska, New Mexico, North Carolina (x2). North Dakota,
Oklahoma, Oregon, Rhode Island, Texas, Washington (x2), Wisconsin
Alaska, Arizona, Hawaii, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, New York,
South Dakota
Kentucky, Montana, Pennsylvania, South Dakota, Wisconsin
Source: U.S. DOE, 2008
then "revolves" over a multiyear period, as payments
from borrowers are returned to the pool and lent
anew to other borrowers. Revolving loan funds can
be created from several sources, including PBFs, util-
ity program funds, state general revenues, or federal
programs. Loan funds are typically created by state
legislatures and administered by state energy offices.
Biofuels Incentives. Many states have incentives to
help promote development of biofuels. These incen-
tives can include exemptions from state gasoline excise
taxes, direct production payments, state RFSs, and
price supports. A current list of state ethanol incentives
can be found on the RFA Web site at www.ethanolrfa.
org/policy/actions/state/.
CHAPTER FIVE | State Bioenergy Primer 73
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5.5 RESEARCH, DEVELOPMENT,
AND DEMONSTRATION
Lack of confidence in the less common biomass
conversion technologies, such as gasification,
generally will discourage lending and investment in
bioenergy. Research, development, and demonstration
projects will help not only to advance the capabilities
of emerging technologies, but will increase investor
confidence and therefore facilitate bioenergy develop-
ers' access to capital.
FLORIDA'S RENEWABLE ENERGY AND ENERGY-EFFICIENT
TECHNOLOGIES GRANTS PROGRAM
Since 2006, Florida's Renewable Energy and Energy-Efficient
Technologies Grants Program has provided more than $27
million in matching grants to support a variety of renewable
energy projects. Nonprofit organizations, as well as Florida
municipalities and county governments, state agencies, for-
profit businesses, universities and colleges, and utilities, are
eligible to receive funding. Numerous bioenergy projects have
benefited from the program in recent years.
One of these projects includes a field demonstration of a
power, refrigeration, heat, and a fresh water plant that is
capable of running on a variety of biomass-derived fuels-
including crop and forest wastes, energy crops, and municipal
wastes, in addition to hydrogen and conventional fuels.
Located at the University of Florida Energy Research Park,
the plant uses the university's patented PoWER technology
and is designed to provide essentials such as fresh water,
refrigeration, and electricity even during grid outages that can
occur due to hurricanes and other emergencies.
To learn more about the program, as well as the renewable
energy projects that have received funding under this program,
visit www.floridaenergy.org/energy/energyact/grants.htm.
Sources: DSIRE
5.6 INFORMATION SHARING
Potential lenders and investors will not necessarily be
aware of the financial incentives offered in each state
for bioenergy development. States can facilitate financ-
ing of bioenergy projects by providing information
about financing sources. This information will help
developers, investors, and lenders take advantage of
revenue streams as well as any federal and municipal
financing options.
In addition, states can develop their own outreach pro-
grams that educate consumers, potential markets, and
74 State Bioenergy Primer | CHAPTER FIVE
regulators about the benefits of bioenergy and how it
will meet state goals. Additional options are described
in Section 5.7—Resources for Detailed Information.
Some examples of outreach efforts that can be used by
states include:
Wood Stove Changeout Campaign. U.S. EPA offers
resources to assist states and local governments with
successful implementation of a Wood Stove Change-
out Campaign, including how to identify potential
partners, identify sources of funding, develop a
project plan, implement the campaign, and measure
success. States provide information and incentives
(e.g., rebates or discounts) to encourage residents to
replace their old, conventional wood stoves with EPA-
certified wood-burning appliances that burn more
cleanly and efficiently. See www.epa.gov/woodstoves/
how-to-guide.html.
Southern Forest Research Partnership materials. The
Southern Forest Research Partnership offers numerous
publications, presentations, links, images, case studies,
activities, videos, and other educational tools that can
be used to share woody biomass information with nat-
ural resource management and extension professionals
as well as community planning and development
professionals. The Sustainable Forestry for Bioenergy
and Bio-based Products Training Curriculum Notebook
is a comprehensive training resource, which includes
a trainer's introduction, seven modules, fact sheets, a
glossary, evaluation resources, example activities, and
a supplemental materials list. See www.forestbioenergy.
net/training-materials.
It All Adds Up To Cleaner Air Resources Toolkit.
While not explicitly designed for bioenergy, this U.S.
Department of Transportation step-by-step guide to
implementing a public outreach program provides
many tips that would be appropriate for any outreach
campaign. See http://www.italladdsup.gov/tools/
how_to.asp.
5.6.1 NATIONAL BIOMASS STATE AND
REGIONAL PARTNERSHIPS
States can also participate in regional partnerships
to share best practices. U.S. DOE's Biomass Program
works with the National Biomass State and Regional
Partnerships, listed below. Each organization provides
leadership in its region with regard to policies and
technical issues to advance the use of biomass. Contact
information is provided on the program Web sites.
-------
Great Lakes Regional Biomass Energy Program
(Illinois, Indiana, Iowa, Michigan, Minnesota, Ohio,
Wisconsin) www.cglg.org/biomass
Northeast Regional Biomass Energy Program
(Connecticut, Delaware, Maine, Maryland, Massachu-
setts, New Hampshire, New Jersey, New York, Pennsyl-
vania, Rhode Island, Vermont) www.nrbp.org/
Pacific Regional Biomass Energy Program
(Alaska, Hawaii, Idaho, Oregon, Montana, Washing-
ton) www.pacificbiomass.org
Southern State Energy Board
(Alabama, Arkansas, Florida, Georgia, Kentucky,
Louisiana, Maryland, Mississippi, Missouri, North
Carolina, Oklahoma, South Carolina, Tennessee, Texas,
Virginia, West Virginia, Puerto Rico, U.S. Virgin Is-
lands) www.sseb.org/
Southeast Regional Biomass Energy Program
(Alabama, Arkansas, D.C., Florida, Georgia, Kentucky,
Louisiana, Mississippi, Missouri, North Carolina,
Puerto Rico, South Carolina, Tennessee, Virgin Islands,
Virginia, West Virginia) www.serbep.org/
Western Regional Energy Program
(Arizona, California, Colorado, Kansas, Nebraska,
Nevada, New Mexico, North Dakota, Oklahoma, South
Dakota, Texas, Utah, Wyoming) www.westgov.org/
wga/initiatives/biomass/
5.7 RESOURCES FOR DETAILED INFORMATION
Resource
Description
Bioenergy
Capturing the Full Potential of
Bioenergy: A Model for Regional
Bioenergy Initiatives, GEN
Publishing, Inc., 2007
Advances a step-by-step approach for advancing bioenergy.
www.liebertonline.com/doi/
abs/10.1089/ind.2007.3.120
Clean Energy-Environment
Guide to Action: Policies, Best
Practices, and Action Steps for
States, U.S. EPA, 2006.
This Web site and guide present 16 policies that states use to
advance clean energy.
www.epa.gov/cleanrgy/
stateandlocal/g uidetoaction.htm
Clean Energy Lead by Example
Guide, U.S. EPA, 2009.
Describes proven strategies, resources, and tools to help
states save money and reduce greenhouse gas emissions by
adopting clean energy practices in their facilities, operations,
and vehicle fleets.
www.epa.gov/cleanenergy/
documen ts/epa_lbe.pdf
Database of State Incentives for
Renewable Energy (DSIRE)
Searchable database of incentives relevant to bioenergy, by
state. Select a renewable energy search, by technology, for
biomass, CHP, and/or landfill gas. The database is updated
routinely.
www.dsireusa.org/
State Policies for Promoting the
Next Generation of Biomass
Technologies, Great Plains
Institute, November 22, 2006.
Summarizes recommendations on state policies to advance
biomass.
www.ef.org/documen ts/B WG_
State_Policy_Menu_Final_v3.pdf
State Incentives and Resources
Search, U.S. DOE.
This Web page includes state energy information for
biomass, other renewable energy, and fossil energy.
wwwl .eere. energy, gov/in dus try/
about/state_activities/incentive_
search.asp
CHAPTER FIVE | State Bioenergy Primer 75
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5.7 RESOURCES FOR DETAILED INFORMATION (cont.)
Resource
Developing State Policies
Supportive of Bioenergy
Development, Southern States
Energy Board, 2002.
Environment and Energy Study
Institute (EESI)
It All Adds Up to Cleaner
Air Resources Toolkit, U.S.
Department of Transportation.
Southern Forest Research
Partnership
State Woody Biomass Utilization
Policies, University of Minnesota,
Department of Forest Resources,
Staff Paper 199. Becker, D.R., and
C. Lee. 2008.
Biopower/Bioheat
Green-e Certification Process
State Energy Program
State Technologies
Advancement Collaborative
Program, U.S. DOE, National
Association of State Energy
Officials, Association of State
Energy Research and Technology
Transfer Institutions.
Alternative Fuels Data Center:
All State Incentives and Laws,
U.S. DOE, NREL.
Funding Database - Biomass/
Biogas, U.S. EPA.
Understanding and Informing
the Policy Environment:
State- Level Renewable Fuels
Standards, NREL, January 2007
Description
Analyzes policy options to advance bioenergy, based on
regional experiences in the Southeast.
This Web site includes information on bioenergy and federal
and state incentives.
While not explicitly designed for bioenergy, this step-by-step
guide to implementing a public outreach program provides
many tips that would be appropriate to any outreach
campaign.
Offers numerous publications, presentations, links, images,
case studies, activities, videos, and other educational tools
that can be used to share woody biomass information with
natural resource management and extension professionals as
well as community planning and development professionals.
A comprehensive database of woody biomass legislation for
each state in the United States.
A voluntary market for renewable energy certificates exists,
and some kinds of biopower generation are eligible for
Green-e certification. Eligible sources must go through the
certification process to be able to sell certified products.
This collaboration of DOE and the states provides joint
funding for state formula grant projects and local energy
efficiency and renewable energy projects.
This collaboration provides funding for state energy
efficiency and renewable energy projects.
The data center is a comprehensive clearinghouse of data,
publications, tools, and information related to advanced
transportation technologies.
This database of financial and regulatory incentives at the
state level is updated monthly.
Summary and analysis of state actions on renewable fuels
standards.
www.osti.gov/bridge/
servlets/purl/828971-Pbxl2e/
native/828971.pdf
www.eesi.org/Sustainable_
Biomass_Energy_Program
www.italladdsup.gov/tools/
how_to.asp
www.forestbioenergy.net/
training-materials
www.forestry.umn.edu/
publica tions/s taff papers/
Staffpaperl99.pdf
www.green-e. org/docs/
Appendix_D-Green-e_National_
Standard.pdf
and www.green-e.org/getcert_
re_ 6s teps.sh tml#rec
http://appsl.eere.energy.gov/
state_energy_program/
www.s tacenergy. org
www.afdc. energy.gov/afdc/da ta/
methodology.h tml
www.epa.gov/chp/funding/bio.
html
www.nrel.gov/docs/
fy07osti/41075.pdf
76 State Bioenergy Primer | CHAPTER FIVE
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5.7 RESOURCES FOR DETAILED INFORMATION (cont.)
Description
Funding Landfill Gas Energy
Projects: State, Federal, and
Foundation Resources, U.S. EPA
This guide from the Landfill Methane Outreach Program
details potential sources of funding for landfill gas projects.
State Exarrmles
Arkansas
State-Specific Financing Information
www.epa.gov/lmop/res/guide/
index.htm
h ttp://arkansasenergy. org/solar-
wind-bioenergy/bioenergy.aspx
Florida
State-Specific Financing Information
www. floridafarm tofuei com/
Downloads/FTF%20Gran t%20
Agreemen t%20Con tract%20
092507.pdf
Michigan
State-Specific Financing Information
http://michigan.gov/documents/
cis/CIS_EO_Funding_
Opportunities_192768_7.pdf
Montana
State-Specific Financing Information
www. deq.state.mt us/En ergy/
bioenergy/Biodiesel_Production_
Educ_ Presen ta tions/Combined_
BiodieseL EthanoL Govt_
Incen tives_Mon tana_Jan 07_
bshh.pdf
Washington
State-Specific Financing Information
h ttp://agr. wa.gov/Bioenergy/
5.8 REFERENCES
California Environmental Protection Agency, 2009.
Proposed Regulation to Implement the Low Carbon
Fuel Standard (Vol. 1). Sacramento, CA, March 5,
2009. www.arb.ca.gov/fuels/lcfs/lcfs.htm.
DSIRE (Database of State Incentives for Renewables
& Efficiency). North Carolina Solar Center, Raleigh,
NC. www.dsireusa.org.
Pew Center on Global Climate Change, 2008. Man-
dates and Incentives Promoting Biofuels. Pew Center
on Global Climate Change, Arlington, Virginia, August
5, 2008. http://pewclimate.org/what_s_being_done/
in_the_states/map_ethanol.cfm.
U.S. DOE (Department of Energy), 2008. Alterna-
tive Fuels Data Center. Washington, DC, December
29, 2008. http://www.afdc.energy.gov/afdc/incen-
tives laws.html.
U.S. DOE, 2009. Alternative Fuels and Advanced
Vehicles Data Center. Washington, DC, 2009. www.
indystar. com/article/20081116/BUSINESS/811160391;
www.afdc.energy.gov/afdc/progs/view_all.php/IN/0;
www.afdc.energy.gov/afdc/progs/ind_state.php/IN/
E85; www.afdc.energy.gov/afdc/progs/ind_state.php/
IN/BD.
U.S. EPA (Environmental Protection Agency), 2008a.
Environmental Revenue Streams for Combined Heat
and Power. Combined Heat and Power Partnership.
U.S. EPA, Washington, DC, December 2008. www.epa.
gov/chp/documents/ers_program_details.pdf.
U.S. EPA, 2008b. State and Regional Climate Policy
Maps. U.S. EPA, Washington, DC, May, 2008. http://
epa.gov/climatechange/wycd/stateandlocalgov/
state actionslist.html.
CHAPTER FIVE | State Bioenergy Primer 77
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78 State Bioenergy Primer | CHAPTER FIVE
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APPENDIX A
Resources and Tools for States
The resources for detailed information that are includ-
ed at the end of each chapter are also compiled here
to serve as a comprehensive snapshot of key reports,
tools, and guidance documents.
APPENDIX A CONTENTS
i A.I Biomass Feedstocks and Conversion
Technologies
i A.2 Benefits of Bioenergy (Environmental,
Economic, Energy)
i A.3 Assessing Potential Markets for Biomass
i A.4 Tools to Help Estimate Economic, Energy,
and/or Environmental Benefits
i A.5 Financing Bioenergy Projects
APPENDIX A | State Bioenergy Primer 79
-------
A.I BIOMASS FEEDSTOCKS AND CONVERSION TECHNOLOGIES
Description
Woody Biomass Utilization, U.S.
Forest Service and Bureau of Land
Management.
This U.S. Forest Service and Bureau of Land Management
Web site provides links to a variety of resources and reports
on woody biomass utilization, including tools and references
specifically targeted at state governments.
www. fores tsandrangelands.gov/
Woody_ Biomass/index.sh tml
BioWeb, Sun Grant Initiative.
An online catalog of a broad range of resources on
bioenergy, including descriptions of biomass resources,
biofuels, and bioproducts; explanations of conversion
technologies; and summaries of relevant policies. The
resources are searchable by both topic and level of detail of
information provided. The catalog is a product of the Sun
Grant Initiative, a national network of land-grant universities
and federally funded laboratories working together to
further establish a bio-based economy.
h ftp://bioweb.sung ran t.org/
Biomass as Feedstock for a
Bioenergy and Bioproducts
Industry: The Technical
Feasibility of a Billion-Ton
Annual Supply, U.S. DOE, USDA,
2005.
Describes issues associated with reaching the goal of 1
billion tons of annual biomass production (see especially pp.
34-37).
www. os ti. gov/b ridge
Biomass Energy Data Book, U.S.
DOE, September 2006.
Provides a compilation of biomass-related statistical data.
http://cta.ornl.gov/bedb/index.
shtml
Biomass Feedstock Composition
and Property Database, U.S. DOE
Provides results on chemical composition and physical
properties from analyses of more than 150 samples of
potential bioenergy feedstocks, including corn stover; wheat
straw, bagasse, switchgrass, and other grasses; and poplars
and other fast-growing trees.
wwwl.eere.energy.gov/biomass/
feeds tock_da tabases.h tml
A Geographic Perspective on
the Current Biomass Resource
Availability in the United States,
Milbrandt, A., 2005.
Describes the availability of the various types of biomass on a
county-by-county basis.
www.nrel.gov/docs/
fy06osti/39181.pdf
Kent and Riegel's Handbook
of Industrial Chemistry and
Biotechnology, Kent, 2007
Detailed, comprehensive, fairly technical explanation of the
range of biomass conversion technologies.
Bionower/Bioheat
Biomass Combined Heat and
Power Catalog of Technologies,
U.S. EPA, September 2007
Detailed technology characterization of biomass CHP
systems, including technical and economic characterization
of biomass resources, biomass preparation, energy
conversion technologies, power production systems, and
complete integrated systems. Includes extensive discussion
of biomass feedstocks.
www.epa.gov/chp/documents/
biomass_chp_catalog.pdf
Combined Heat and Power
Market Potential for Opportunity
Fuels, U.S. DOE, Resource
Dynamics Corporation, August
2004.
Determines the best "opportunity fuels" for distributed
energy sources and CHP applications.
www.eere.energy.gov/de/pdfs/
chp_opportunityfuels.pdf
80 State Bioenergy Primer | APPENDIX A
-------
A.I BIOMASS FEEDSTOCKS AND CONVERSION TECHNOLOGIES (cont.)
Description
Jioproducts
Bioenergy Conversion
Technology Characteristics,
Western Governors' Association,
September 2008.
Investigates the biofuel conversion technologies that are
currently available, as well as technologies currently under
development that are developed enough to be potentially
available on a commercial basis circa 2015.
www. wes tgov.org/wga/in itia fives/
transfuels/Task%202.pdf
A National Laboratory Market
and Technology Assessment of
the 30x30 Scenario, NREL, March
2007
Draft assessment of the market drivers and technology needs
to achieve the goal of supplying 30 percent of 2004 motor
gasoline fuel demand with biofuels by 2030.
From Biomass to BioFuels: NREL
Leads the Way, NREL, August
2006.
Provides an overview of the world of biofuels, including the
maturity levels of various biofuels, how they are produced,
and the U.S. potential for biofuels.
www. nrel. gov/biomass/
pdfs/39436.pdf
Research Advances Cellulosic
Ethanol: NREL Leads the Way,
NREL, March 2007
Highlights some of NREL's most recent advances in cellulosic
ethanol production.
www. nrel. gov/biomass/
pdfs/40742.pdf
APPENDIX A | State Bioenergy Primer 81
-------
A.2 BENEFITS OF BIOENERGY (ENVIRONMENTAL, ECONOMIC, ENERGY)
Description
Economic Impacts of Bioenergy
Production and Use, U.S. DOE,
SSEB Southeast Biomass State and
Regional Partnership, October
2005.
Summarizes the benefits of bioenergy production in the U.S.,
including job creation, reduced demand for fossil fuels, and
expanded tax bases.
www.vienergy.org/Economics.pdf
State Energy Alternatives
Web Site, U.S. DOE, National
Conference of State Legislatures.
Provides information on state-specific biomass resources,
policies, and status as well as current biofuels and biopower
technology information.
http://appsl.eere.energy.gov/
states/
An Assessment of Biomass
Harvesting Guidelines, Evans and
Perschel, Forest Guild, 2009.
Presents an assessment of existing biomass harvesting
guidelines and provides recommendations for the
development of future guidelines.
www. fores tguild.org/
publications/research/2009/
biomass_guidelines.pdf
Planning for Disaster Debris, U.S.
EPA, 2008.
Provides information and examples for developing a disaster
debris plan that will help a community identify options for
collecting, recycling, and disposing of debris in the event of a
natural disaster.
www.epa.gov/osw/conserve/rrr/
imr/cdm/pubs/disaster.htm
Biopower/Bioheat
Biomass Power and
Conventional Fossil Systems
with and without CO2
Sequestration—Comparing the
Energy Balance, Greenhouse
Gas Emissions, and Economics,
NREL, January 2004.
Provides a comparative analysis of a number of different
biopower, natural gas, and coal technologies.
www.nrel.gov/docs/
fy04osti/32575.pdf
Economic Impacts Resulting
from Co-Firing Biomass
Feedstocks in Southeastern
U.S. Coal-Fired Power Plants,
Presentation by Burton English et
al, University of Tennessee.
Summarizes the economic impacts in eight southeastern
states from using biomass to co-fire power plants that
traditionally have only used coal for fuel.
www.farmfoundation.org/
projects/documen ts/english-
cofire. pp tprojec ts/docum en ts/
english-cofire.ppt
Green Power Equivalency
Calculator, U.S. EPA
Allows any bioenergy user to communicate to internal and
external audiences the environmental impact of purchasing
or directly using green power in place of fossil fuel derived
energy by calculating the avoided carbon dioxide (CO2)
emissions. Results can be converted into an equivalent
number of passenger cars, gallons of gasoline, barrels of oil,
or American households' electricity use.
www.epa.gov/grnpower/pubs/
calculator.htm
Job Jolt: The Economic Impacts
of Repowering the Midwest:
The Clean Energy Development
Plan for the Heartland, Regional
Economics Applications
Laboratory, November 2002.
Analyzes the economic and job creation benefits of
implementing a clean energy plan in the 10-state Midwest
region.
www.michigan.gov/
documents/nwlb/Job_Jolt_
RepoweringMidwest_235553_7.
pdf
Potential Impacts of Biomass
Power on the Rural Development
of Missouri, Community Policy
Analysis Center, Department of
Agricultural Economics, University
of Missouri-Columbia, 2006.
Analyzes the relationship between bioenergy and rural
development, and studies the economic impacts of a
hypothetical biopower plant in Missouri.
www. implan.com/library/
documents/2006pdfs/08_
biomass_power_liu.pdf
82 State Bioenergy Primer | APPENDIX A
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A.2 BENEFITS OF BIOENERGY (ENVIRONMENTAL, ECONOMIC, ENERGY) (cont)
Description
Jioproducts
Alternative Fueling Station
Locator, U.S. DOE.
Allows users to find alternative fuels stations near a specific
location on a route, obtain counts of alternative fuels stations
by state, view U.S. maps, and more. The following alternative
fuels are included in the mapping application: compressed
natural gas, E85, propane/liquefied petroleum gas, biodiesel,
electricity, hydrogen, and liquefied natural gas.
www.afdc.energy.gov/afdc/data/
geographic.html
Biomass Energy Data Book,
ORNL, September 2008.
Describes a meta-analysis of energy balance analyses for
ethanol, revealing the sources of differences among the
different studies.
http://cta.ornl.gov/bedb/pdf/
Biomass_Energy_Data_Book.pdf
Changing the Climate: Ethanol
Industry Outlook 2008, Renewable
Fuels Association (RFA), 2008.
Forecasts that 4 billion gallons of ethanol production capacity
will come on line from 68 biorefineries being constructed in
2008 and beyond, increasing the 2007 figure by nearly 50%.
www.ethanolrfa.org/objects/pdf/
outlook/RFA_Outlook_2008.pdf
Contribution of the Ethanol
Industry to the Economy of the
United States, RFA, 2007
Finds that the industry spent $12.5 billion on raw materials,
other inputs, and goods and services to produce about 6.5
billion gallons of ethanol in 2007. An additional $1.6 billion
was spent to transport grain and other inputs to production
facilities; ethanol from the plant to terminals where it is
blended with gasoline; and co-products to end-users.
www.ethanolrfa.org/objects/
documents/576/economic_
con tribution_2006.pdf
Economic and Agricultural
Impacts of Ethanol and Biodiesel
Expansion, University of
Tennessee, 2006.
Finds that producing 60 billion gallons of ethanol and 1.6
billion gallons of biodiesel from renewable resources by 2030
would likely result in development of a new industrial complex
with nearly 35 million acres planted dedicated to energy crops.
h ftp://beag.ag.utk.edu/pp/
Ethanolagimpacts.pdf
Ethanol and the Local
Community, RFA, 2002
Summarizes possible effects of ethanol production on local
economic development.
www.ethanolrfa.org/objects/
documents/120/ethanol_local_
community.pdf
Greener Fuels, Greener Vehicles:
A State Resource Guide, National
Governors' Association, 2008.
Discusses alternative transportation fuels and vehicle
technologies.
www.nga.org/Files/
pdf/0802GREENERFUELS.PDF
Greenhouse Gas Impacts of
Expanded Renewable and
Alternative Fuels Use, U.S. EPA,
April 2007
Provides a summary of GHG emissions from a variety of
advanced fuel options.
www.epa.gov/oms/
renewablefuels/420f07035.htm
New Analysis Shows Oil-Savings
Potential of Ethanol Biofuels,
National Resources Defense
Council (NRDC), 2006.
Describes NRDC's meta-analysis of energy balance papers
and its standardized methods.
www.nrdc.org/media/
pressreleases/060209a.asp
A Rebuttal to "Ethanol Fuels:
Energy, Economics and
Environmental Impacts," National
Corn Growers Association, 2002.
Refutes the contention in a previous article that more energy
goes into producing ethanol than ethanol itself can actually
provide, creating a negative energy balance.
www. e thanolrfa. org/
objects/documen ts/84/
ethanolffuelsrebuttal.pdf
Renewable Fuel Standard
Program, U.S. EPA
Describes efforts undertaken by U.S. EPA toward a National
Renewable Fuels Standard under requirements of the Energy
Policy Act of 2005. While these requirements are superseded
by more recent legislation, links from this page provide
useful background. In particular, the discussion of estimated
costs summarizes the expected incremental costs of policies
advancing ethanol.
www.epa.gov/oms/
renewablefuels/
APPENDIX A | State Bioenergy Primer 83
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A.2 BENEFITS OF BIOENERGY (ENVIRONMENTAL, ECONOMIC, ENERGY) (cont)
Description
Regulatory Impact Analysis:
Renewable Fuel Standard
Program, U.S. EPA, 2007
Examines proposed standards that would implement a
renewable fuel program as required by the Energy Policy Act
of 2005. It notes, however, that renewable fuel use is forecast
to exceed the standards due to market forces anyway.
www.epa.gov/OMS/
renewablefuels/420r07004-
sections.htm
SmartWay Grow & Go Factsheet
on Biodiesel, U.S. EPA, October
2006.
Describes how biodiesel is made, its benefits versus
vegetable oil, performance, availability, affordability, and
other characteristics.
www.epa.gov/smartway/
growandgo/documen ts/
factsheet-biodiesel.htm
SmartWay Grow & Go Factsheet
on ESS and Flex Fuel Vehicles,
U.S. EPA, October 2006.
Describes E85-fuel and flex-fuel vehicles, including their
affordability and benefits.
www.epa.gov/smartway/
growandgo/documen ts/
factsheet-e85.htm
State-Level Workshops on
Ethanol for Transportation: Final
Report
Summarizes a series of DOE-sponsored, state-level
workshops exploring and encouraging construction of
ethanol plants.
www.nrel.gov/docs/
fy04osti/35212.pdf
TransAtlas Interactive
Alternative Fuel Map, U.S. DOE
Provides user-friendly Google Maps to display the locations
of existing and planned alternative fueling stations,
concentrations of different vehicle types, alternative fuel
production facilities, roads, and political boundaries.
www.afdc.energy.gov/afdc/data/
geographic.html
Analysis of Potential Causes of
Consumer Food Price Inflation,
RFA, 2007
Asserts that the "marketing bill," not increased ethanol
production, is responsible for rising food prices.
www. e thanolrfa. org/resource/
facts/food/documen ts/lnforma_
Renew_Fuels_Study_Dec_2007.
pdf
Ethanol Juggernaut Diverts
Corn from Food to Fuel, Raloff,
Janet, Science News, 2007
Makes the case that ethanol is driving up food prices.
www.sciencenews.org/view/
generic/id/8179/title/Food_for_
Thought Ethanol_Juggernaut_
Diverts_ Corn_from_ Food_ to_
Fuel
Food versus Fuel in the United
States, Institute for Agriculture
and Trade Policy, 2007
Finds that biofuel production is not diverting food from
tables in the U.S. or abroad.
www. ia tp.org/ia tp/publica tions.
cfm ?accountlD=258&reflD=
100001
U.S. Corn Growers: Producing
Food and Fuel, National Corn
Growers Association, 2006.
Provides the corn growers' perspective that producing food
and fuel from corn is working out well, without undue impact
on food prices.
www.ncga.com/files/pdf/
FoodandFuelPaperlO-08.pdf
Aggressive Use of Bioderived
Products and Materials in the
U.S. by 2010, A.D. Little, Inc., 2001.
The presentation and report summarize near-term
opportunities to dramatically increase the use of biomass to
make nonfuel products.
www. p2pays. org/ref/4 0/39 031.
pdf
Industrial Bioproducts: Today
and Tomorrow, U.S. DOE, July
2003.
The report finds that a bioindustry could harness the energy
and molecular building blocks of biomass (crops, trees,
grasses, crop residues, forest residues, animal waste, and
municipal solid waste) to create products now manufactured
from petroleum, making us far less dependent on fossil fuels.
www. brdisolutions. com/pdfs/
BioProductsOpportunitiesReportFinal.
pdf
Preliminary Screening Technical
and Economic Assessment
of Synthesis Gas to Fuels and
Chemicals with Emphasis on the
Potential for Biomass-Derived
Syngas, NREL, 2003.
Summarizes opportunities for biomass to be used to
manufacture a variety of products beyond fuels alone.
www.nrel.gov/docs/
fy04osti/34929.pdf
84 State Bioenergy Primer | APPENDIX A
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A.2 BENEFITS OF BIOENERGY (ENVIRONMENTAL, ECONOMIC, ENERGY) (cont)
Description
Environmental Life Cycle
Implications of Fuel Oxygenate
Production from California
Biomass - Technical Report,
NREL, 1999.
Looks at the costs and benefits of biomass-derived ethanol,
ETBE, and E10 as fuel oxygenates across their life cycles.
www-erd.llnl.gov/
FuelsoftheFuture/pdf_files/
lifecyclecalif.pdf
Quantifying Cradle-to-Farm
Gate Life-Cycle Impacts
Associated with Fertilizer used
for Corn, Soybean, and Stover
Production, NREL, May 2005.
Documents the costs, such as eutrophication, and benefits of
nitrate and phosphate fertilizers used in production of three
crops.
wwwl.eere.energy.gov/biomass/
pdfs/37500.pdf
Life Cycle Analysis of Ethanol
from Corn Stover, NREL, 2002
This comprehensive accounting of ethanol's flows to and
from the environment focuses on ethanol produced from
corn stover
www.nrel.gov/docs/gen/
fy02/31792.pdf
Life Cycle Inventory of Biodiesel
and Petroleum Diesel for Use
in an Urban Bus: Final Report,
NREL, 1998.
Examines the relative costs and benefits of using biodiesel
versus petroleum diesel in an urban bus.
www.nrel.gov/docs/legosti/
fy98/24089.pdf
Life Cycle Assessment of
Biodiesel versus Petroleum
Diesel Fuel, Institute of Electrical
and Electronics Engineers, 1996.
The proceedings of the 31st Intersociety Energy Conversion
Engineering Conference, held August 11-16,1996, in
Washington, DC.
Accessible by subscription only
Life Cycle Assessment of
Biomass-Derived Refinery
Feedstocks for Reducing CO2,
NREL, 1997
Discusses the two processes for producing 1,4-butanediol.
The first process is the conventional hydrocarbon feedstock-
based approach, utilizing methane to produce formaldehyde,
and acetylene with synthesis under conditions of heat and
pressure. The second is a biomass-based feedstock approach
where glucose derived from corn is fermented.
Not available online
Life Cycle Assessment of
Biomass Cofiring in a Coal-Fired
Power Plant, NREL, 2001.
Reports on a cradle-to-grave analysis of all processes
necessary for the operation of a coal-fired power plant that
co-fires wood residue, including raw material extraction, feed
preparation, transportation, and waste disposal and recycling.
Accessible by subscription only
Understanding Land Use
Change and U.S. Ethanol
Expansion, RFA, November 2008.
Discusses historical agricultural land use and crop utilization
trends, explores the role of increased productivity, looks at
the contributions of ethanol feed co-products, and examines
global agricultural land use projections obtained from
Informa Economics.
www.ethanolrfa.org/objects/
documen ts/2041/final_ land_
use_1110_w_execsumm.pdf
National Biofuels Action
Plan, Biomass Research and
Development Board, October
2008.
Outlines areas where cooperation between federal agencies
will help to evolve bio-based fuel production technologies
into competitive solutions for meeting U.S. fuel demands.
Seven key areas for action are identified: feedstock
production; feedstock logistics; conversion of feedstock to
fuel; distribution; end Use; sustainability; and Environment,
Health, and Safety.
wwwl.eere.energy.gov/biomass/
pdfs/nbap.pdf
APPENDIX A | State Bioenergy Primer 85
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A.3 ASSESSING POTENTIAL MARKETS FOR BIOMASS
Description
Biomass Resource Assessment
Tool, U.S. EPA and NREL.
Online mapping tool that takes various biomass resource
datasets and maps them, allowing user queries and
analysis. For example, users can select a point on the map
and determine the quantity of feedstock within a certain
radius, and the quantity of energy that could potentially be
produced from that biomass.
h ttp://rpm.nrel.gov/biopower/
biopower/launch
Coordinated Resource Offering
Protocol (CROP) Evaluations,
U.S. Forest Service and Bureau of
Land Management.
Provides the results of ten CROP evaluations that have been
conducted for over 30 million acres of public forestlands
potentially vulnerable to wildfires. The evaluations contain
detailed resource-offering maps that illustrate the growing
fuel load problem within major forest systems and quantify
the biomass available for removal within five years.
www.forestsandrangelands.gov/
Woody_Biomass/supply/CROP/
index.shtml
USFS Forest Inventory Data
Online (FIDO)
Provides access to the National Forest Inventory and Analysis
databases. It can be used to generate tables and maps of
forest statistics (including tree biomass) by running standard
reports for specific states or counties and survey year, or
customized reports based on criteria selected by the user.
http://fiatools.fs.fed.us/fido/index.
html
Biomass Feedstocks, U.S. DOE
U.S. DOE Biomass Program Web site
wwwl.eere.energy.gov/biomass/
biomass_feedstocks.html
Dynamic Maps, CIS Data, and
Analysis Tools, NREL
Provides county-level biomass resource maps. The feedstock
categories include crop residues, forest residues, primary
mill residues, secondary mill residues, urban wood waste,
methane emissions from landfills, methane emissions from
manure management, methane emissions from wastewater
treatment plants, and dedicated energy crops. The maps
are derived from data contained in a report. Geographic
Perspective on the Current Biomass Resource Availability in
the United States (described below). Note that these maps
present technical biomass resource data. The economic
biomass resource availability will most likely be somewhat
less than what is presented in the maps.
www.nrel.gov/gis/biomass.htmt
Geographic Perspective on
the Current Biomass Resource
Availability in the United States,
NREL, 2006.
Provides the basis for the maps and data presented in
NREL's Dynamic Maps, CIS Data, and Analysis Tools Web site
described above. The report provides a geographic analysis
of biomass resource potential at the county level, and can
give state officials a sense of the major biomass resources
available within their state and their technical potential
relative to other states.
www.nrel.gov/docs/
fy06osti/39181.pdf
State Assessment for Biomass
Resources (SABRE), U.S. DOE
Provides detailed information on biomass resources and
utilization throughout the United States. It features state-
specific information on conventional fuel and biofuel use,
ethanol and biodiesel stations and production plants,
and biofuel production capacities. In addition, it offers
state-by-state snapshots of available feedstocks, data on
potential production capacities, and projections on the
future use of biofuels.
www.afdc.energy.gov/afdc/sabre/
index.php
86 State Bioenergy Primer | APPENDIX A
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A.3 ASSESSING POTENTIAL MARKETS FOR BIOMASS (cont.)
Description
State Woody Biomass
Utilization Policies,
University of Minnesota,
Department of Forest
Resources, Staff Paper 199. Becker,
D.R., and C. Lee. 2008.
Documents information on state policies to facilitate
comparison of the types of approaches used in certain
areas, policy structures and incentives employed, program
administration, and relationships to complementary local and
federal actions.
www. forestry, umn. edu/
publications/staff papers/
Staffpaperl99.pdf
Biopower/Bioheat
Initial Market Assessment for
Small-Scale Biomass-Based CHP.
National Renewable Energy
Laboratory, NREL, January 2008.
Examines the energy generation market opportunities
for biomass CHP applications smaller than 20 MW. Using
relevant literature and expert opinion, the paper provides
an overview of the benefits of and challenges for biomass
CHP in terms of policy and economic drivers, and identifies
primary characteristics of potential markets.
www.nrel.gov/docs/
fy08osti/42046.pdf
Green Power Marketing in the
United States: A Status Report,
NREL.
Documents green power marketing activities and trends in
voluntary markets in the United States.
h ttp://apps3. eere. energy.
gov/greenpower/resources/
pdfs/38994.pdf
U.S. EPAs Landfill Methane
Outreach Program (LMOP)
Promotes the use of landfill gas as a renewable, green energy
source. Its Web site contains general information, tools, and
links to databases containing specific landfill data.
www. epa.gov/lmop/
U.S. EPAs Landfill Methane
Outreach Program (LMOP)
Landfill Database
Provides a nationwide listing of operational and under-
construction LFG energy projects; candidate municipal solid
waste landfills having LFG energy potential; and information
on additional landfills that could represent LFG energy
opportunities. The database can be accessed as a series
of downloadable Excel spreadsheets, which are updated
and posted to the Web site each month. The information
contained in the LMOP database is compiled from a variety
of sources, including annual voluntary submissions by LMOP
partners and industry publications.
www. epa.gov/lmop/proj/index.
htm
Landfill Gas Energy Project
Development Handbook, U.S.
EPA Landfill Methane Outreach
Program.
Provides landfill gas energy project development guidance,
with individual chapters on the basics of landfill gas energy,
gas modeling, technology options, economic analysis and
financing, contract and permitting considerations, and
selection of project partners.
www. epa.gov/lmop/res/
handbook.htm
Market Opportunities for Biogas
Recovery Systems, U.S. EPA
AgStar.
Assesses the market potential for biogas energy projects at
swine and dairy farms in the United States. For the top ten
swine and dairy states, the guide characterizes the sizes and
types of operations where biogas projects are technically
feasible, along with estimates of potential methane
production, electricity generation, and greenhouse gas
emission reductions.
www.epa.gov/agstar/pdf/
biogas%20recovery%20sys tems_
screenres.pdf
U.S. EPAs Combined Heat and
Power (CHP) Partnership
Promotes the use of biomass-fueled CHP and the use of
biogas at wastewater treatment facilities.
www. epa.gov/chp
APPENDIX A | State Bioenergy Primer 87
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A.3 ASSESSING POTENTIAL MARKETS FOR BIOMASS (cont.)
Description
Jioproducts
State Assessment for Biomass
Resources, U.S. DOE
Provides detailed information on biomass resources and
utilization throughout the United States. It features state-
specific information on conventional fuel and biofuel use,
ethanol and biodiesel stations and production plants,
and biofuel production capacities. It offers state-by-
state snapshots of available feedstocks, data on potential
production capacities, and projections on the future use of
biofuels. The site is particularly useful for states interested in
evaluating resource potential for producing biofuels.
www.afdc.energy.gov/afdc/sabre/
index.php
Environmental Laws Applicable
to Construction and Operation
of Ethanol Plants, U.S. EPA
This compliance assistance manual, issued by EPA Region 7,
serves as a road map of information on federal environmental
programs and federal and state agency roles applicable to the
construction, modification, and operation of ethanol plants.
www.epa.gov/region07/priorities/
agriculture/ethanol_plan ts_
manual.pdf
Environmental Laws Applicable
to Construction and Operation
of Biodiesel Production
Facilities, U.S. EPA
State Examples
California
This compliance assistance manual, issued by EPA Region 7,
serves as a road map of information on federal environmental
programs and federal, state, and local agency roles
applicable to designing, building, and operating biodiesel
manufacturing facilities.
www.epa.gov/region07/priorities/
agriculture/biodiesel_manual.pdf
An Assessment of Biomass Resources in California, 2007,
provides an updated biomass inventory for the state along
with an assessment of potential growth in biomass resources
and power generation that could help to satisfy the state
renewable portfolio standard (RPS).
h ttp://biomass. ucdavis. edu/
materials/reports%20and%20
publications/2008/CBC_Biomass_
Resources_2007.pdf
Georgia
Biomass Wood Resource Assessment on a County-
by-County Basis for the State of Georgia provides a
biomass wood resource assessment on a county-level
basis for Georgia.
www.gfc.state.ga.us/
ForestMarketing/documents/
Biomass WRACoun tybyCoun tyGA 05.
pdf
Hawaii
Biomass and Bioenergy Resource Assessment: State of
Hawaii provides an assessment of current and potential
biomass and bioenergy resources for the state. Includes
animal wastes, forest products residues, agricultural residues,
and urban wastes.
www.hawaii.gov/dbedt/info/
energy/publications/biomass-
assessment.pdf
Mississippi
Mississippi Institute for Forest Inventory Dynamic Report
Generator provides a continuous, statewide forest resource
inventory necessary for the sustainable forest-based
economy. The inventory information is derived from
sampling estimation techniques with a presumed precision of
+/-15% sampling error with 95 percent confidence.
www.mifi.ms.gov/
South Carolina
Potential for Biomass Energy Development in South Carolina
quantifies the amount of forestry and agricultural biomass
available for energy production on a sustainable basis in
South Carolina. Also includes an analysis of the economic
impacts of transferring out-of-state costs for coal to in-state
family forest landowners and biomass processors.
www.scbiomass.org/Publications/
Po ten tial%20Biomass%20
Energy%20in%20SC.pdf
88 State Bioenergy Primer | APPENDIX A
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A.3 ASSESSING POTENTIAL MARKETS FOR BIOMASS (cont.)
Description
Oregon
Biomass Energy and Biofuels from Oregon's Forests assesses
the statewide potential for production of electricity and
biofuels from woody biomass, including the available
wood supply and the environmental, energy, forest health,
and economic effects. Reviews and summarizes efforts
underway to promote electric energy and biofuels from
woody biomass, and identifies gaps in existing efforts.
Assesses constraints and challenges to the development of
biomass energy and biofuels from Oregon forests, including
economic, environmental, legal, policy, infrastructure, and
other barriers and develops recommendations on how to
overcome these barriers.
www. Oregon fores ts.org/asse ts/
uploads/Biomass_Full_Report.pdf
Northeastern states (CT, DE, ME,
MD, MA, NH, NJ, NY, PA, RI, VT)
Securing a Place for Biomass in the Northeast United States:
A Review of Renewable Energy and Related Policies provides
a biomass feedstock assessment for northeastern states.
www.nrbp.org/pdfs/nrbp_final_
report.pdf
Western states (WA, OR, ID, MT,
WY, CO, NM, AZ, UT, NV, CA, TX,
OK, ND, SD, NE, KS, AK, HI)
The Western BioenergyAssessment includes a series of
technical reports produced for the Western Governors'
Association. These reports extensively evaluate biomass
resources in the western states, biofuel conversion
technologies, spatial analysis and supply curve development,
and deployment scenarios and potential policy interactions.
www.westgov.org/wga/initiatives/
transfuels/index.h tml
Western states (WA, OR, ID, MT,
WY, CO, NM, AZ, UT, NV, CA, TX,
OK, ND, SD, NE, KS, AK, HI)
The Western Governors'Association Transportation Fuels for
the Future Initiative provides seven working group reports
and a final report analyzing the potential for the development
of alternative fuels and vehicle fuel efficiency in the West.
www.westgov.org/wga/initiatives/
transfuels/index.h tml
Western states (WA, OR, ID, MT,
WY, CO, NM, AZ, UT, NV, CA, TX,
ND, SD, NE, KS, AK, HI)
Biomass Task Force Report focuses on the use of biomass
resources for the production of electricity as part of an overall
effort of the Western Governors'Association to increase the
contribution of clean and renewable energy in the region.
www.westgov.org/wga/initiatives/
cdeac/Biomass-fulipdf
APPENDIX A | State Bioenergy Primer 89
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A.4 TOOLS TO HELP ESTIMATE ECONOMIC, ENERGY, AND/OR ENVIRONMENTAL BENEFITS
Description
Evaluating Ben
AirCRED, Argonne National
Laboratory, August 2007
This tool is used to support local air emission reductions
claims associated with alternative-fuel vehicles within the
State Implementation Planning process.
www.transportation.anl.gov/
modeling_simulation/AirCred/
index.html
Biomass Technology Analysis
Models and Tools
Web sites of models and tools that demonstrate biomass
technologies and uses, and can be used in life-cycle
assessments. Most tools can be applied on a global, regional,
local, or project basis.
www.nrelgov/analysis/analysis_
tools_ tech_bio.h tml
Biomass Feedstock Composition
and Property Database
Provides data results from analysis of more than 150 samples
of potential biofuels feedstocks, including corn stover, wheat
straw, bagasse, switchgrass and other grasses, and poplars
and other fast-growing trees.
wwwl.eere.energy.gov/biomass/
feedstock_databases.html
CHP Emissions Calculator, U.S.
EPA.
Enables a quick and easy analysis of the criteria air pollutant
and GHG emission reductions from incorporating CHP
designs into plants and production facilities. It also translates
these reductions into "cars" and "trees" to convey their value
to a nontechnical audience.
www.epa.gov/chp/basic/
calculator.html
Clean Air Climate Protection
Software, ICLEI and NACAA.
Helps local governments create greenhouse gas inventories,
quantify the benefits of reduction measures, and formulate
local climate action plans.
www.cacpsoftware.org/
Emissions & Generation
Resource Integrated Database
(EGRID), U.S. EPA
Provides a comprehensive database of electric-sector
emissions at the plant, state, and regional levels. These
can be compared to emissions from biopower to estimate
emissions'effects.
www.epa.gov/cleanrgy/egrid/
index.htm
Greenhouse Gases, Regulated
Emissions, and Energy Use in
Transportation (GREET) Model,
Argonne National Laboratory,
August 2007
Includes full fuel-cycle and vehicle-cycle emissions and
energy estimation capability. While not a full life-cycle
assessment tool, it allows estimation of upstream emissions
and energy effects. For some state policy questions, it may
provide sufficient analytic detail on its own. For decisions
with greater financial implications, it may be most appropriate
to use for initial screening to support development of a more
detailed study. States may wish to use GREET directly or to
consider analyses that have been done using this tool.
www.transportation.anl.gov/
modeling_simulation/GREET/
Job and Economic Development
Impact (JEDI) Models
Easy-to-use, spreadsheet-based tools that analyze the
economic impacts of constructing and operating power
generation and biofuel plants at the local and state levels.
www.nrel.gov/analysis/jedi
Power Profiler, U.S. EPA
Provides a quick estimate of electricity emissions rates
by location, which could be compared to emissions from
biopower to estimate emissions effects.
www.epa.gov/grnpower/buygp/
powerprofiler.htm
Standard Biomass Analytical
Procedures
Provides tested and accepted methods for performing
analyses commonly used in biofuels research.
wwwl.eere.energy.gov/biomass/
analytical_procedures.h tml
Theoretical Ethanol Yield
Calculator
Calculates the theoretical ethanol yield of a particular
biomass feedstock based on its sugar content.
wwwl.eere.energy.gov/biomass/
ethanol_yield_calculator.html
Thermodynamic Data for
Biomass Conversion and Waste
Incineration, NREL, National
Bureau of Standards.
Provides heat of combustion and other useful data for
biopower and biofuels research on a wide range of biomass
and non-biomass materials.
wwwl.eere.energy.gov/biomass/
pdfs/2839.pdf
90 State Bioenergy Primer | APPENDIX A
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A.5 FINANCING BIOENERGY PROJECTS
Description
Capturing the Full Potential of
Bioenergy: A Model for Regional
Bioenergy Initiatives, GEN
Publishing, Inc., 2007
Advances a step-by-step approach for advancing bioenergy.
www.liebertonline.com/doi/
abs/10.1089/ind.2007.3.120
Clean Energy-Environment
Guide to Action: Policies, Best
Practices, and Action Steps for
States, U.S. EPA, 2006.
This Web site and guide present 16 policies that states use to
advance clean energy.
www.epa.gov/cleanrgy/
stateandlocal/g uidetoaction.htm
Clean Energy Lead by Example
Guide, U.S. EPA, 2009.
Describes proven strategies, resources, and tools to help
states save money and reduce greenhouse gas emissions by
adopting clean energy practices in their facilities, operations,
and vehicle fleets.
www.epa.gov/cleanenergy/
documen ts/epa_lbe.pdf
Database of State Incentives for
Renewable Energy (DSIRE)
Searchable database of incentives relevant to bioenergy, by
state. Select a renewable energy search, by technology, for
biomass, CHP, and/or landfill gas. The database is updated
routinely.
www.dsireusa.org/
State Policies for Promoting the
Next Generation of Biomass
Technologies, Great Plains
Institute, November 22, 2006.
Summarizes recommendations on state policies to advance
biomass.
www.ef.org/documen ts/B WG_
State_Policy_Menu_Final_v3.pdf
State Incentives and Resources
Search, U.S. DOE.
This Web page includes state energy information for
biomass, other renewable energy, and fossil energy.
wwwl .eere. energy, gov/in dus try/
about/state_activities/incentive_
search.asp
Developing State Policies
Supportive of Bioenergy
Development, Southern States
Energy Board, 2002.
Analyzes policy options to advance bioenergy, based on
regional experiences in the Southeast.
www.osti.gov/bridge/
servlets/purl/828971-Pbx!2e/
native/828971.pdf
Environment and Energy Study
Institute (EESI)
This Web site includes information on bioenergy and federal
and state incentives.
www.eesi.org/Sustainable_
Biomass_Energy_Program
It All Adds Up to Cleaner
Air Resources Toolkit, U.S.
Department of Transportation.
While not explicitly designed for bioenergy, this step-by-step
guide to implementing a public outreach program provides
many tips that would be appropriate to any outreach
campaign.
www.italladdsup.gov/tools/
how_to.asp
Southern Forest Research
Partnership
Offers numerous publications, presentations, links, images,
case studies, activities, videos, and other educational tools
that can be used to share woody biomass information with
natural resource management and extension professionals as
well as community planning and development professionals.
www.forestbioenergy.net/
training-materials
State Woody Biomass Utilization
Policies, University of Minnesota,
Department of Forest Resources,
Staff Paper 199. Becker, D.R., and
C. Lee. 2008.
A comprehensive database of woody biomass legislation for
each state in the United States.
www.forestry.umn.edu/
publica tions/s taffpapers/
Staffpaperl99.pdf
APPENDIX A | State Bioenergy Primer 91
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A.5 FINANCING BIOENERGY PROJECTS (cont.)
Description
Green-e Certification Process
A voluntary market for renewable energy certificates exists,
and some kinds of biopower generation are eligible for
Green-e certification. Eligible sources must go through the
certification process to be able to sell certified products.
www.green -e. org/docs/
Appendix_D-Green-e_National_
Standard.pdf
and www.green-e.org/getcert_
re_ 6s teps.sh tml#rec
State Energy Program
This collaboration of DOE and the states provides joint
funding for state formula grant projects and local energy
efficiency and renewable energy projects.
http://appsl.eere.energy.gov/
state_energy_program/
State Technologies Advancement
Collaborative Program, U.S.
DOE, National Association of
State Energy Officials, Association
of State Energy Research and
Technology Transfer Institutions.
This collaboration provides funding for state energy
efficiency and renewable energy projects.
www.s tacenergy. org
Alternative Fuels Data Center:
All State Incentives and Laws,
U.S. DOE, NREL.
The data center is a comprehensive clearinghouse of data,
publications, tools, and information related to advanced
transportation technologies.
www.afdc. energy.gov/afdc/da ta/
methodology.h tml
Funding Database - Biomass/
Biogas, U.S. EPA.
This database of financial and regulatory incentives at the
state level is updated monthly.
www.epa.gov/chp/funding/bio.
html
Understanding and Informing
the Policy Environment:
State-Level Renewable Fuels
Standards, NREL, January 2007
Summary and analysis of state actions on renewable fuels
standards.
www.nrel.gov/docs/
fy07osti/41075.pdf
Funding Landfill Gas Energy
Projects: State, Federal, and
Foundation Resources, U.S. EPA
This guide from the Landfill Methane Outreach Program
details potential sources of funding for landfill gas projects.
Arkansas
State-Specific Financing Information
www.epa.gov/lmop/res/guide/
index.htm
http://arkansasenergy.org/solar-
win d-bioen ergy/bioen ergy. aspx
Florida
State-Specific Financing Information
www. floridafarm tofuel. com/
Downloads/FTF%20Gran t%20
Agreement%20Contract%20
092507.pdf
Michigan
State-Specific Financing Information
http://michigan.gov/documents/
cis/CIS_EO_Funding_
Opportunities_192768_7.pdf
Montana
State-Specific Financing Information
www.deq.state.mt.us/fnergy/
bioenergy/Biodiesel_Production_
Educ_Presentations/Combined_
Biodiesel_ Ethanol_Govt_ln cen tives_
Montana_Jan07_bshh.pdf
Washington
State-Specific Financing Information
h ttp://agr. wa.gov/Bioenergy/
92 State Bioenergy Primer | APPENDIX A
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APPENDIX B
agricultural residue: Plant parts, primarily stalks and
leaves, not removed from fields with the primary food
or fiber product. Examples include corn stover (stalks,
leaves, husks, and cobs), wheat straw, and rice straw.
algae: Simple photosynthetic plants containing chloro-
phyll, often fast growing and able to live in freshwater,
seawater, or damp oils. May be unicellular and micro-
scopic or very large, as in the giant kelps.
anaerobic: Living or active in an airless environment.
anaerobic digestion: Degradation of organic matter by
microbes in the absence of oxygen to produce methane
and CO..
benzene: Aromatic component of gasoline that is a
known cancer-causing agent.
biodiesel: Biodegradable transportation fuel used in
diesel engines. Biodiesel is produced through transes-
terification of organically derived oils and fats. It may
be used either as a replacement for or component of
diesel fuel.
bioenergy: Renewable energy produced from biomass.
biofuels: Fuels for transportation made from biomass
or its derivatives after processing. The major biofuels
include ethanol and biodiesel.
biogas: Gaseous mixture of CO2 and methane pro-
duced by anaerobic digestion of organic matter.
biomass: Any plant-derived organic matter. Biomass
available for energy on a sustainable basis includes her-
baceous and woody energy crops, agricultural food and
feed crops, agricultural crop wastes and residues, wood
wastes and residues, aquatic plants, and other waste
materials, including some municipal wastes.
biopower: Use of biomass to produce electricity
and heat.
bioproducts: Commercial or industrial products
(other than food or feed) that are composed in whole
or significant part of biomass.
carbohydrate: Organic compounds made up of car-
bon, hydrogen, and oxygen and having approximately
the formula (CH2O)n; includes cellulosics, starches, and
sugars.
carbon dioxide: (CO2) Naturally occurring gas, and
also a by-product of burning fossil fuels and biomass,
as well as land use changes and other industrial pro-
cesses. It is the principal anthropogenic GHG that
affects the earth's radiative balance.
carbon monoxide: (CO) Colorless, odorless, poison-
ous gas produced by incomplete combustion.
catalyst: Substance that increases the rate of a chemical
reaction without being consumed or produced by the
reaction. Enzymes are catalysts for many biochemical
reactions.
cellulase: Family of enzymes that break down cellulose
into glucose molecules.
APPENDIX B | State Bioenergy Primer 93
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1 cellulose: Carbohydrate that is the principal constitu-
ent of wood and other biomass and forms the struc-
tural framework of the wood cells.
1 chips: Small fragments of wood chopped or broken by
mechanical equipment. Total tree chips include wood,
bark, and foliage. Pulp chips or clean chips are free of
bark and foliage.
1 cofiring: Use of a mixture of two fuels within the same
combustion chamber.
1 cogeneration: Technology of producing electric energy
and another form of useful energy (usually thermal) for
industrial, commercial, or domestic heating or cooling
purposes through sequential use of the energy source.
Also called combined heat and power (CHP).
1 combustion: Chemical reaction between a fuel and
oxygen that produces heat (and usually light).
1 coproducts: Resulting substances and materials that
accompany production of a fuel product such as
ethanol.
1 corn stover: Refuse of a corn crop after the grain
is harvested.
1 criteria pollutants: Pollutants regulated under the
federal NAAQS, which were established under the
Clean Air Act. Criteria pollutants include CO, lead,
nitrogen dioxide, PM (PM2.5, PM10), ground-level
ozone, and SO .
D
digester: Biochemical reactor in which anaerobic bac-
teria are used to decompose biomass or organic wastes
into methane and CO,.
1 E10: Mixture of 10 percent ethanol and 90 percent
gasoline based on volume.
1 E85: Mixture of 85 percent ethanol and 15 percent
gasoline based on volume.
1 effluent: Liquid or gas discharged after processing ac-
tivities, usually containing residues from such use. Also
discharge from a chemical reactor.
1 energy crop: Crop grown specifically for its fuel value.
These include food crops such as corn and sugar
cane, and nonfood crops such as poplar trees and
switchgrass.
94 State Bioenergy Primer | APPENDIX B
1 enzyme: Protein or protein-based molecule that speeds
up chemical reactions in living things. Enzymes act as
catalysts for a single reaction, converting a specific set
of reactants into specific products.
1 ester: Compound formed from the reaction between
an acid and an alcohol.
1 ethanol: (CH3CH2OH) A colorless, flammable liquid
produced by fermentation of sugars. Ethanol is used as
a fuel oxygenate. Ethanol is the alcohol found in alco-
holic beverages, but is denatured for fuel use.
1 eutrophic conditions: In surface waters, conditions
such as significant algae growth and subsequent oxy-
gen depletion, which can be caused by excessive nutri-
ents from fertilizers, pesticides, and herbicides. Some
aquatic species cannot survive eutrophic conditions.
1 feedstock: Any material used as a fuel directly or con-
verted to another form of fuel or energy product.
1 fermentation: Biochemical reaction that breaks down
complex organic molecules (such as carbohydrates)
into simpler materials (such as ethanol, CO2, and wa-
ter). Bacteria or yeasts can ferment sugars to ethanol.
1 fluidized bed: Gasifier or combustor design in which
feedstock particles are kept in suspension by a bed of
solids kept in motion by a rising column of gas. The
fluidized bed produces approximately isothermal con-
ditions with high heat transfer between the particles
and gases.
1 forestry residues: Includes tops, limbs, and other
woody material not removed in forest harvesting
operations in commercial hardwood and softwood
stands, as well as woody material resulting from forest
management such as precommercial thinnings and
removal of dead and dying trees.
1 fossil fuel: Carbon or hydrocarbon fuel formed in
the ground over millions of years from the remains of
dead plants and animals. Oil, natural gas, and coal are
fossil fuels.
1 gasification: Any chemical or heat process used to
convert a feedstock to a gaseous fuel.
1 greenhouse gas: Gas—such as water vapor, CO2, tro-
pospheric ozone, methane, and low-level ozone—that
contributes to the greenhouse effect.
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H
• hemicellulose: Hemicellulose consists of short, highly
branched chains of sugars. In contrast to cellulose,
which is a polymer of only glucose, a hemicellulose is a
polymer of five different sugars.
• herbaceous plants: Non-woody species of vegetation,
usually of low lignin content, such as grasses.
• herbaceous energy crops: Perennial non-woody crops
that are harvested annually, though they may take
two to three years to reach full productivity. Examples
include switchgrass (Panicum virgatum), reed canary
grass (Phalaris arundinacea), miscanthus (Miscanthus x
giganteus), and giant reed (Arundo donax).
• hydrolysis: Conversion, by reaction with water, of a
complex substance into two or more smaller units,
such as conversion of cellulose into glucose sugar units.
1 landfill gas: Biogas produced from natural degrada-
tion of organic material in landfills. By volume, LFG
is about 50 percent methane and 50 percent CO2 and
water vapor.
1 life-cycle analysis: Assessment of the impacts
from all stages of a products development, from
extraction of fuel for power to production, marketing,
use, and disposal.
1 lignin: Structural constituent of wood and other native
plant material that encrusts the cell walls and cements
the cells together.
1 lignocellulose: Plant materials made up primarily of
lignin, cellulose, and hemicellulose.
M
methane: (CH4) The major component of natural gas.
It can be formed by anaerobic digestion of biomass or
gasification of coal or biomass.
methanol (wood alcohol): (CH3OH) Alcohol
formed by catalytically combining carbon monoxide
with hydrogen in a 1:2 ratio under high temperature
and pressure.
microorganism: Any microscopic organism such as
yeast, bacteria, fungi, etc.
municipal solid waste: Any organic matter, including
sewage, industrial, and commercial wastes, from mu-
nicipal waste collection systems. Municipal waste does
not include agricultural and wood wastes or residues.
N
net energy balance: Total amount of energy used over
the full life cycle of a fuel, from feedstock production
to end use.
nitrogen oxides: (NOX) Product of photochemical
reactions of nitric oxide in ambient air, and the major
component of photochemical smog.
nonrenewable resource: One that cannot be
replaced as it is used. Although fossil fuels, such as
coal and oil, are in fact fossilized biomass resources,
they form at such a slow rate that, in practice, they
are nonrenewable.
opportunity fuels: Biomass feedstocks derived from
waste materials that would otherwise go unused or
would be disposed of. Bioenergy production provides
an opportunity to productively use these materials.
oxygenate: Compound that contains oxygen in its
molecular structure. Ethanol and biodiesel act as oxy-
genates when they are blended with conventional fuels.
Oxygenated fuel improves combustion efficiency and
reduces tailpipe emissions of CO.
particulates: Fine liquid or solid particle, such as dust,
smoke, mist, fumes, or smog, found in air or emissions.
petroleum: Any substance composed of a complex
blend of hydrocarbons derived from crude oil, includ-
ing motor fuel, jet oil, lubricants, petroleum solvents,
and used oil.
pyrolysis: Breaking apart of complex molecules by
heating in the absence of oxygen, producing solid,
liquid, and gaseous fuels.
APPENDIX B | State Bioenergy Primer 95
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1 renewable energy resource: Energy resources that can
be replaced as they are used, including solar, wind, geo-
thermal, hydro, and biomass. MSW is also considered a
renewable energy resource.
1 residues, biomass: By-products from processing
all forms of biomass that have significant energy
potential. For example, making solid wood products
and pulp from logs produces bark, shavings, sawdust,
and spent pulping liquors. Because these residues are
already collected at the point of processing, they can
be convenient and relatively inexpensive sources of
biomass for energy.
silviculture: Science and practice of growing trees for
human use.
stover: Dried stalks and leaves of a crop remaining
after the grain has been harvested.
syngas: Synthesis gas produced by the gasification
process using biomass feedstock. Syngas can be burned
in a boiler or engine to produce electricity or heat, and
can be used to produce a liquid for biofuels production.
tar: Liquid product of thermal processing of carbona-
ceous materials.
thermochemical conversion: Use of heat to change
substances chemically to produce energy products.
transesterification: Chemical process that reacts an
alcohol with triglycerides contained in vegetable oils
and animal fats to produce biodiesel and glycerin.
V
1 volatile: Solid or liquid material that easily vaporizes.
X
1 xylose: (C5H1QO5) Five-carbon sugar that is a product
of hydrolysis of xylan found in the hemicellulose frac-
tion of biomass.
96 State Bioenergy Primer | APPENDIX B
zero net contribution: Refers to a process that results
in contribution of no additional carbon emissions to the
atmosphere. For example, combustion of biomass feed-
stocks returns the same amount of CO2 to the atmo-
sphere that was absorbed during growth of the biomass,
resulting in no additional CO2 released into the air.
Source: Adapted from National Renewable Energy Laboratory (NREL) Glos-
sary of Biomass Terms, www.nrel.gov/biomass/glossary.html
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U.S. Environmental Protection Agency
Office of Atmospheric Programs
Climate Protection Partnerships Division
1200 Pennsylvania Ave, NW (6202J)
Washington, DC 20460
www.epa.gov
EPA 430-R-09-024
NREL/TP-6A2-44688
September 2009
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