BIOGAS INDUSTRY BULLETIN
Issue #1, March 2009
Issue #1, March 2009
Farming Clean Energy Conference: The San Joaquin Valley Clean Energy Organization (SJVCEO) http://www.sjvcleanenergy.org hosted the Farming Clean Energy Conference on November 5th, 2008, at the Southern California Edison’s AgTAC facility in Tulare. The Bioenergy Working Group participated during the plenary session on 11/5/08 and a breakout session on 11/6/08. To see copies of the working group’s Power Point presentations, as well as other conference presentations, please visit:
http://www.sjvcleanenergy.org/document-library
Purpose of the Biogas Working Group Bulletin: To disseminate information that is relevant to the development of the biogas industry in the San Joaquin Valley region.
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New State Government Funding Opportunities: The California Energy Commission released the Renewable Energy Secure Communities (RESCO) program solicitation. In addition to renewable energy integration solution projects, the solicitation is funding dairy biogas or bio-power technology characterization, assessment and validation projects as well as demonstration of low emission technologies for conversion of biomass fuels such as biogas. Proposals are due February 27th. Please visit:
Purpose of the Biogas Working Group Bulletin: To disseminate information that is relevant to the development of the biogas industry in the San Joaquin Valley region.
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New State Government Funding Opportunities: The California Energy Commission released the Renewable Energy Secure Communities (RESCO) program solicitation. In addition to renewable energy integration solution projects, the solicitation is funding dairy biogas or bio-power technology characterization, assessment and validation projects as well as demonstration of low emission technologies for conversion of biomass fuels such as biogas. Proposals are due February 27th. Please visit:
http://energy.ca.gov/contracts/pier.html#renewable
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New Federal Government Funding Opportunities: On January 16, 2009, the USDA Natural Resources Conservation Service (NRCS) announced the availability of funding for Conservation Innovation Grants (CIG). Funds for single- or multi-year projects, not to exceed three years, will be awarded through a nationwide competitive grants process with applications accepted from all eligible non-federal government or non-government organizations or individuals. CIG enables NRCS to work with other public and private entities to accelerate technology transfer and adoption of promising technologies and approaches to address pressing natural resource concerns. Examples of target areas for this year's funding that are applicable to anaerobic digestion include:
Improved On-Farm Energy Efficiency (e.g., biobased energy opportunities; methane recovery)
Water Resources (e.g., innovative animal manure management systems)
Funding for CIG is made available through the Environmental Quality Incentives Program (EQIP). All proposed CIG projects must involve EQIP-eligible producers. CIG is not a research program, but rather a tool to stimulate the adoption of conservation approaches or technologies that have been studied sufficiently to indicate a high likelihood of success. CIG will fund projects targeting innovative on-the-ground conservation, including pilot projects and field demonstrations. Technologies and approaches that are commonly used in the geographic area covered by the application, and which are eligible for funding through EQIP, are not eligible for funding through CIG. The federal contribution for a single project cannot exceed $2 million. At least 50 percent of the total cost of the project must come from non-federal matching funds (cash and in-kind contributions) provided by the grantee. Applications must be received in the NRCS National Headquarters by close of business March 2, 2009. The complete Announcement of Program Funding is available at:
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New Federal Government Funding Opportunities: On January 16, 2009, the USDA Natural Resources Conservation Service (NRCS) announced the availability of funding for Conservation Innovation Grants (CIG). Funds for single- or multi-year projects, not to exceed three years, will be awarded through a nationwide competitive grants process with applications accepted from all eligible non-federal government or non-government organizations or individuals. CIG enables NRCS to work with other public and private entities to accelerate technology transfer and adoption of promising technologies and approaches to address pressing natural resource concerns. Examples of target areas for this year's funding that are applicable to anaerobic digestion include:
Improved On-Farm Energy Efficiency (e.g., biobased energy opportunities; methane recovery)
Water Resources (e.g., innovative animal manure management systems)
Funding for CIG is made available through the Environmental Quality Incentives Program (EQIP). All proposed CIG projects must involve EQIP-eligible producers. CIG is not a research program, but rather a tool to stimulate the adoption of conservation approaches or technologies that have been studied sufficiently to indicate a high likelihood of success. CIG will fund projects targeting innovative on-the-ground conservation, including pilot projects and field demonstrations. Technologies and approaches that are commonly used in the geographic area covered by the application, and which are eligible for funding through EQIP, are not eligible for funding through CIG. The federal contribution for a single project cannot exceed $2 million. At least 50 percent of the total cost of the project must come from non-federal matching funds (cash and in-kind contributions) provided by the grantee. Applications must be received in the NRCS National Headquarters by close of business March 2, 2009. The complete Announcement of Program Funding is available at:
http://www.nrcs.usda.gov/programs/cig
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Demonstration Projects: Two heavy-duty diesel powered milk trucks converted to run on methane gas were showcased at the Dairy Pavilion, World Ag Expo, International Agri-Center, Tulare, 1:30 PM, on February 11. For further information, contact Carolyn Brown, 510-813-5521, carolyn@GreenWaveStrategies.com
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Local Government Efforts: Kern County Board of Supervisors approved on January 27, 2009 a resolution to exempt biogas pipelines less than eight miles in length from review under the California Environmental Quality Act (CEQA).
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Federal Legislation: A bipartisan group of U.S. senators introduced legislation January 22, 2009 to promote the development of biogas. Under the Biogas Production Incentive Act of 2009, producers would receive a tax credit of $4.27 for every million British thermal units of produced biogas.
“Farmers Optimistic About Biogas Bill”
By Leora Broydo Vestel
The street value of manure could rise sharply if a new bill introduced by Senator Ben Nelson, Democrat of Nebraska, gets the green light from Congress. The Biogas Production Incentive Act of 2009 would provide tax credits for transforming livestock waste into a renewable form of natural gas.
Under the proposed legislation, producers would be eligible for $4.27 per million B.T.U.s of biogas produced annually for a ten-year period. Running the numbers for a 1,000-cow dairy farm which produces 40.32 million B.T.U.s of biogas per day — the average output for a facility that size, according the Environmental Protection
Agency’s AgSTAR program, the tax credit would be about $63,000 annually. “Natural gas prices today are $5.00 to $6.00 per million B.T.U.s wholesale. At those kinds of prices there isn’t any motivation for dairymen to get into this business,” said David Albers, owner of Vintage Dairy in Riverdale, California, and president of BioEnergy Solutions, which installs and operates biogas systems and then shares revenues from the sale of the gas with the farmer. The tax credit, Mr. Albers said, “is a way to level the playing field so they can attract different sources of capital.”
The bill is virtually a carbon copy of legislation introduced in 2008 and 2007, both of which died in committee. Proponents feel the current political climate — with the focus on renewable energy as a means to invigorate the economy while reducing reliance of fossil fuels — is just right. “An idea like this suddenly has a lot more cache,
” said Jake Thompson, a spokesman for Senator Nelson. Mr. Thompson noted his office is lobbying the Senate Finance Committee to incorporate the legislation into the stimulus proposal, which in draft form, provides nearly $25 billion in tax incentives to producers of renewable energy.
Experts say such fiscal enticements from the federal government are needed for biogas to become a commercially-viable alternative to natural gas. As of 2008, there were 121 biogas recovery systems in the United States generating about 256,000 megawatt hours of power, according to AgSTAR. But the agency found that biogas systems are technically feasible at about 7,000 existing dairy and swine operations, with a potential of producing up to 6 million
megawatt hours of energy annually (PDF). “Existing incentives for biogas have been very week compared to other
renewables,” observed Brent Gloy, an associate professor at Cornell University’s Department of Applied Economics and Management. Mr. Gloy said the proposed legislation was “a real step in the right direction that could really get the industry going.”
_________________________________________________________________________
Federal Programs:
The AgSTAR Program, a partnership between the U.S. Environmental Protection Agency (EPA), the U.S. Department of Agriculture, and the U.S. Department of Energy, encourages the use of methane recovery (biogas) technologies. Please visit: http://www.epa.gov/agstar/
_________________________________________________________________________
Demonstration Projects: Two heavy-duty diesel powered milk trucks converted to run on methane gas were showcased at the Dairy Pavilion, World Ag Expo, International Agri-Center, Tulare, 1:30 PM, on February 11. For further information, contact Carolyn Brown, 510-813-5521, carolyn@GreenWaveStrategies.com
_________________________________________________________________________
Local Government Efforts: Kern County Board of Supervisors approved on January 27, 2009 a resolution to exempt biogas pipelines less than eight miles in length from review under the California Environmental Quality Act (CEQA).
_________________________________________________________________________
Federal Legislation: A bipartisan group of U.S. senators introduced legislation January 22, 2009 to promote the development of biogas. Under the Biogas Production Incentive Act of 2009, producers would receive a tax credit of $4.27 for every million British thermal units of produced biogas.
“Farmers Optimistic About Biogas Bill”
By Leora Broydo Vestel
The street value of manure could rise sharply if a new bill introduced by Senator Ben Nelson, Democrat of Nebraska, gets the green light from Congress. The Biogas Production Incentive Act of 2009 would provide tax credits for transforming livestock waste into a renewable form of natural gas.
Under the proposed legislation, producers would be eligible for $4.27 per million B.T.U.s of biogas produced annually for a ten-year period. Running the numbers for a 1,000-cow dairy farm which produces 40.32 million B.T.U.s of biogas per day — the average output for a facility that size, according the Environmental Protection
Agency’s AgSTAR program, the tax credit would be about $63,000 annually. “Natural gas prices today are $5.00 to $6.00 per million B.T.U.s wholesale. At those kinds of prices there isn’t any motivation for dairymen to get into this business,” said David Albers, owner of Vintage Dairy in Riverdale, California, and president of BioEnergy Solutions, which installs and operates biogas systems and then shares revenues from the sale of the gas with the farmer. The tax credit, Mr. Albers said, “is a way to level the playing field so they can attract different sources of capital.”
The bill is virtually a carbon copy of legislation introduced in 2008 and 2007, both of which died in committee. Proponents feel the current political climate — with the focus on renewable energy as a means to invigorate the economy while reducing reliance of fossil fuels — is just right. “An idea like this suddenly has a lot more cache,
” said Jake Thompson, a spokesman for Senator Nelson. Mr. Thompson noted his office is lobbying the Senate Finance Committee to incorporate the legislation into the stimulus proposal, which in draft form, provides nearly $25 billion in tax incentives to producers of renewable energy.
Experts say such fiscal enticements from the federal government are needed for biogas to become a commercially-viable alternative to natural gas. As of 2008, there were 121 biogas recovery systems in the United States generating about 256,000 megawatt hours of power, according to AgSTAR. But the agency found that biogas systems are technically feasible at about 7,000 existing dairy and swine operations, with a potential of producing up to 6 million
megawatt hours of energy annually (PDF). “Existing incentives for biogas have been very week compared to other
renewables,” observed Brent Gloy, an associate professor at Cornell University’s Department of Applied Economics and Management. Mr. Gloy said the proposed legislation was “a real step in the right direction that could really get the industry going.”
_________________________________________________________________________
Federal Programs:
The AgSTAR Program, a partnership between the U.S. Environmental Protection Agency (EPA), the U.S. Department of Agriculture, and the U.S. Department of Energy, encourages the use of methane recovery (biogas) technologies. Please visit: http://www.epa.gov/agstar/
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