This Webinar is brought to you by: Biomass Thermal Energy ...

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Biomass Energy Policy Outlook

Biomass Energy - A Policy Outlook:Programs, Legislation and the New

Congress

This Webinar is brought to you by:

Biomass Thermal Energy Council (BTEC)

With the generous support of the U.S. Forest Service

Wood Education Resource Center

1 PM ET, January 27, 2011

“The work upon which this publication is based was funded in whole or in part through a grant awarded by the Wood Education and Resource Center, Northeastern Area State and Private Forestry, U.S. Forest Service. This institution is an equal

opportunity provider.”

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Quick NotesTwo Audio Options: Streaming Audio and Dial-In.1. Streaming Audio/Computer Speakers (Default)

2. Dial-In: Use the Audio Panel (right side of screen) to see dial-in instructions. Call-in separately from your telephone.

Ask questions using the Questions Panel on the right side of your screen.

The recording of the webinar and the slides will be available after the event. Registrants will be notified by email.

Quick Notes - Seymour

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Presentation OutlineI. Introduction – Joseph SeymourII. Legislative Review – Jesse DickermanIII. Current Programs – Steve MarshallIV. The New Congress – Patrick RitaV. Q & A, Next Events – Joseph Seymour

[Full presentation will be available online, www.biomassthermal.org/resource/webinars.asp]

I. Event Introduction - Seymour

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SpeakersJesse Dickerman, Director of Industry & Government Relations, Zilkha Biomass Energy

Steve Marshall, Assistant Director: Cooperative Forestry, USFS

Patrick Rita, Founder and Principal, Orion Advocates

Joseph Seymour, Program Coordinator – Policy and Government Affairs, Biomass Thermal Energy Council

Moderator

I. Event Introduction - Seymour

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Joseph Seymour - Moderator

Program Coordinator – Policy and Government Affairs Biomass Thermal Energy Council

Project Assistant, Technology Transition Corporation

I. Introducing BTEC – Seymour

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About BTEC – Mission & CompositionThe Biomass Thermal Energy Council (BTEC) is a nonprofit association dedicated to advancing the use of biomass for heatand other thermal energy applications.

BTEC engages in research, education, and public advocacy for thefast growing biomass thermal energy industry.

Formed in January 2009 by eight companies, BTEC currently has 88 members from 34 U.S. states, Canada, Austria, and Denmark

Includes landowners, fuel refiners, appliance manufacturers, project developers, nonprofits, universities, and others

I. Introducing BTEC - Seymour

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Current BTEC Membership

I. Introducing BTEC - Seymour

A3 Energy Partners Fröling GmbH Price BIOStockAbundant Power Fuel Pellet Techno logies Proe Power SystemsACT Bioenergy Fulton Compan ies Public Po lic y VirginiaAlliance for Green Heat FutureMetrics Rain fo rest AllianceAmerican A gr icultu re Movement Gavilon Group Re source Pro fessionals GroupAmerican Wood Fibers Green Clean Heat Richmond Energy AssociatesAPEX Indeck Ladysmith Sandr i CompaniesBear Mountain Forest Products Innovative Natural Resource Solu tions Santa Ene rgy CorporationBeaver Wood Energy In tegrated Biomass Resources ScandtecBiomass Combustion Systems International Renewab le Energy Technology Institute Sewall CompanyBiomass Commoditie s Corporation In ternational Silic a Technologies Skanden E nergyBiomass Energy Resource Center In ternational WoodFuels Southland Bio EnergyBiomass Energy Works Jesse E. L yman Pelle ts State of Montana DNRCBiowood Energy Kr ie g DeVault State University o f New York (SUNY – ESF)

Ch ip Energy Lignet ic s of Virginia Tarm BiomassClean Power Development Maine Energy Systems Twin Ports Test ingComact Equ ipment Maine Pellet Fuels Association Vapor Locomotive CompanyConfluence Energy Marth VecoplanCont rol Labs Montana Community Development Corporat ion Vermont Wood PelletCorin th Wood Pellet National Network of Fore st Practitioners Viab ilit yCousineau Fore st Products New England Wood Pellet ViessmannDejno 's New Horizon West Oregon Wood ProductsEcost rat Northeast Mill Serv ices Western A g EnterprisesEnTec Works Ontario Sawdust Supp lies Westervelt Renewable EnergyEnviva Materials Ore gon Forest Industries Council Wilson Engineering Serv icesErnst Biomass Paraclete Bioenergy WoodFuels VirginiaEwing Bemiss & Co . Piney Woods Pellets WoodPelle ts. comFuel Pellet Techno logies Plum Creek WoodstoneForest Energy Corporation PowerStock Zilkha Biomass EnergyFroling Energy Pratt & Whitney Power Systems – Turboden

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Project made possible by the USDA FS WERCBTEC awarded a grant from the USDA Forest Service’s Wood Education and Resource Center (WERC) in June 2010 to advance education and outreach on biomass thermal energy

The Center's mission is to work with the forest products industry toward sustainable forest products production for the eastern hardwood forest region.

Previous webinar - “Green Heat for Homes: Benefits and Challenges of Residential Biomass Energy”, www.biomassthermal.org/resource.

Next webinar – Biomass Emissions and Air Quality

All questions and attendee feedback will help form future activities.

Remember to answer the survey at the webinar’s conclusion!

I. Sponsoring Entity - Seymour

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Jesse Dickerman

Director of Industry and Government Relations,Zilkha Biomass Energy

Policy Committee Chair, Biomass Thermal Energy Council

Biomass Thermal Energy: Legislative & Regulatory Review

II. Policy Overview – Dickerman

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Biomass Energy Use and U.S. Thermal Demand

II. Policy Overview - Dickerman

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40

32.4

'

Energy Use – Fuel Energy Use - Sector

Petroleum GasCoal RenewableNuclear Trans. Elec. Thermal/Other Primary

Renewable Energy Consumption

Source: USDOE Energy Information Administration

Commercial12%

Industrial68%

Residential20%

'

40.57

23.14 22.37

8.2 6.38

'

Biomass41%

Other renewable

15%

Hydropower44%

'

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Legislative Opportunities and Outcomes


Proposed Legislation from the 111th Congress

Residential IncentivesH.R. 2080 H.R. 5019 “HomeStar”Stove credit & the Continuing Resolution

Commercial/Industrial IncentivesS. 3188TREEA (S. 3626 & H.R. 5805)

Renewable Thermal StandardSec. 610 of S. 1462 (Renewable Electric Standard) and S.

20 (Clean Energy Standard)

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Federal Regulatory Developments


Biomass Neutrality and the EPAPSD Tailoring Rule3 Year Deferral

Boiler MACT Rules – Area/Major Source Biomass Boilers

Long extension deniedDeadline of February 21, 2011“Reconsideration Process” and comments

Biomass Crop Assistance Program Revision

New rules narrow scope of eligible materials

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Biomass Energy Policy Progress


Policy Presence on Thermal>25 supportive bills introduced in the 111th CongressBipartisan support, House and SenateMany angles: grants, loans, thermal RECs, rebates, tax

credits, others.

Open Communication with AgenciesContinuation of a modified BCAP (USDA)PSD Tailoring Rule (EPA)

Hostile 2010 environment for tax creditsSec. 45 PTC removed for biomass power, 25(c) stove credit

reducedRecovery Act provisions: Sec. 1603 grants extended, 48(c)

AEMTC cut

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Steve Marshall

Assistant Director: Cooperative Forestry, U.S. Forest Service

Existing Biomass Thermal Programs – Updates & Thoughts

III. Current Programs – Marshall

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The Biomass Crop Assistance Program (BCAP)

III. Current Programs - Marshall

Provides financial assistance to owners/operators of agricultural and non-industrial private forest land to establish, produce, and deliver biomass feedstocks.

Two supporting types of assistance:Matching payments for the delivery of eligible material

to qualified biomass conversion facilities by eligible material owners.

Annual payments to producers of eligible biomass crops on contract acres within BCAP project areas.

Recent Changes: Initiated in 2009, suspended in 2010, revised rules in late 2010, new limits on eligible materials.

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Community Wood Energy Program (CWEP)


Grants to state and local governments to develop community wood energy plans and to acquire or upgrade wood energy systems.

Similar to popular ‘Fuels for Schools.’

Authorized funds of $5 million per year from FY 2009 through FY 2012.

Currently not funded.

Reflection on funding problems.

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Rural Energy for America Program (REAP)


Combination of incentives – guaranteed loans, grants for renewable energy/efficiency projects, and grants for feasibility studies.

Available to farmers, ranchers, rural small businesses, rural electric co-ops.

Technologies: wind, solar, biomass, geothermal, hydro power and hydrogen-based sources.

In 2010, more than $30 million in loans and grants for 516 recipient energy projects.

Thoughts on thresholds.

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Federal Energy Management Program (FEMP)


Operated within the U.S. Department of Energy (EPACT 2005)

Provides technical assistance and resources to help Federal agencies evaluate/implement renewable energy technologies, help meet renewable energy requirements.

3% in fiscal years 2007-2009≥ 5% in fiscal years 2010-2012≥ 7.5% in fiscal year 2013 and thereafter

Forest Service and DOE exploring feasibility of energy projects.

Room for private sector.

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Wood-to-Energy Program


USDA-wide initiative, supported by three Under Secretaries

Natural Resources, FSA, and Rural Development

Launched in October 2010.

Pooling resources to advance renewable energySix primary steps and associated action items

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2012 Farm Bill – Thoughts and Potential


As the 2012 Farm Bill nears, two items are in the discussion:

Scale

Focus on System

2012?

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Patrick Rita

Founder and Principal, Orion Advocates

Washington, D.C.-based Government Affairs Consultant

Outlook on the New Congressional Environment

IV. New Congress - Rita

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New Congress, New Majorities, New MembersHistoric political swing, realignment of Congress

Senate: Democrats 53 (-6), GOP 47 (+6)House: Democrats 193 (-63), GOP 242 (+63)

New EnvironmentCommittee LeadershipMembers of CongressStaff

Major Changes on Committees with Jurisdiction on BiomassHouse AgricultureHouse Energy and CommerceHouse Ways and MeansSenate Agriculture

Divided Government – compromise or gridlock?


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New Environment

House of RepresentativesFulfilling Campaign PledgesFocus on Oversight

Budget and funding methods Pay-go vs. Pay-cut

President Pivotingto Middle


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Outlook for the Short TermEnergy Legislation

Renewable vs. CleanState of the Union

TaxOutcome-based vs. technology-specific policy

Farm Bill—Senate hearingsPrograms: BCAP, CWEP, REAP, etc.Definition of biomass.

Continued Shift/Focus on Regulatory PSD Tailoring rule, Boiler MACT


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Q & A

V. Discussion - Seymour

Ask questions using the Questions Panel on the right side of your screen.

All questions and comments will be recorded and incorporated in the webinar summary report.

Also, please take a few moments to answer the survey questions.

Stay tuned for the next webinar on Biomass Emissions and Air Quality, February 2011.

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Additional Webinar Topics in 2011

Biomass thermal and environmental markets: carbon credits, renewable energy certificates, and other environmental commodities.

Biomass thermal energy and air quality: Overview of issues and concerns, existing technologies and those under development

VI. Webinar Topics - Seymour

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Upcoming Events

Next webinar – March, 2011: Air Quality and Emissions

Additional resources (www.biomassthermal.org/resources)

-- Interviews (also on iTunes Podcasts)-- Factsheets-- Presentation

VI. Upcoming Events - Seymour

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More InformationThis Webinar will be available on www.biomassthermal.org/resource by Wednesday, February 3, 2011.

Sign up to receive announcements on future webinars, factsheets, audio interviews, and BTEC news at www.biomassthermal.com/mailingForm.asp

Questions or comments on BTEC’s WERC resources?Email Joseph Seymour, BTEC Program Associate, [email protected].

VI. More Information - Seymour

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Thank you!

BTEC Board of Directors

If you want to learn more about the biomass thermal industry, BTEC, or membership, visit

www.biomassthermal.org

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This Webinar is brought to you by: Biomass Thermal Energy ...

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