Wednesday, April 22, 2009

Bio-Energy Industry Bulletin Issue #2, April 2009



Sponsored by the San Joaquin Valley Clean Energy Organization (SJVCEO)





Purpose of the BioEnergy Working Group Bulletin: To disseminate information that is relevant to the development of the bio-energy industry in the San Joaquin Valley region. To advance the deployment of biologically derived fuels using regional bio-resources. To encourage adoption of biomass conversion systems that significantly reduce waste loads, produce clean energy and contributes to environmental benefits. Establishing sustainability!






California Incentives for Renewable Energy Generation and Energy Efficiency



California Economic Recovery -- The California Energy Commission has been allocated $275.6 million for energy efficiency and renewable energy programs. The Energy Commission's two main areas of responsibility are the State Energy Program and the Energy Efficiency and Conservation Block Grant Program. In addition, there is an estimated $36 billion available nationwide that the U.S. Department of Energy (DOE) will administer through competitive grants and other financing for energy- and climate change-related programs. Sign up for list-server: http://www.energy.ca.gov/recovery/index.html

California Public Utilities Commission Feed-in Tariff -- California enacted legislation
(Assembly Bill 1969) in September 2006 requiring every electrical corporation to file with the California Public Utilities Commission (CPUC) a standard tariff for renewable energy output produced by a public water or wastewater agency that is a retail customer of an electrical corporation. A subsequent CPUC decision (D.07-07-027), issued in July 2007 authorized two expansions of the tariffs. First, Pacific Gas and Electric (PG&E) and Southern California Edison (SCE) were required to submit separate tariffs for the purchase of eligible renewable generation from entities other than public water and wastewater agencies. Second, PG&E, SCE and San Diego Gas and Electric (SDG&E) were all required to offer both a full buy/sell option and an excess sale option in each tariff submitted for approval. Other electrical corporations were only required to offer the full buy/sell option, but they could offer both options if they chose to do so. The end result is an effective feed-in tariff to encourage small, customer-owned renewables up to 1.5 MW in capacity. The California feed-in tariff allows eligible customer-generators to enter into 10-, 15- or 20-year standard contracts with their utilities to sell the electricity produced by small renewable energy systems -- up to 1.5 megawatt (MW) -- at time-differentiated market-based prices. The price paid will be based on the CPUC’s market price referent (MPR) table, shown in CPUC Resolution E-4137. Time-of-use adjustments will be applied by each utility and will reflect the increased value of the electricity to the utility during peak periods and its lesser value during off-peak periods. A special, higher-level rate is provided for solar electricity generated between 8 a.m. and 6 p.m. As the feed-in tariff is meant to help the utilities meet California's renewable portfolio standard (RPS), all green attributes associated with the energy, including renewable energy credits (RECs), transfer to the utility with the sale. Any customer-generator who sells power to the utility under this tariff may not participate in other state incentive programs. The tariffs will be available until the combined statewide cumulative capacity of eligible generation installed equals 500 MW. Each utility will be responsible for a portion of that cumulative total based on their proportionate sales.



Contacts:


Southern California Edison George Wiltsee (626) 302-4945 george.wiltsee@sce.com


Pacific Gas and Electric Feed-inTariffs@pge.com


San Diego Gas and Electric Michael J. Lammarino, (858) 654-8270




California Public Utilities Commission Karin Hieta (415) 703-2743 kar@cpuc.ca.gov





SCE - Biomass Standard Contract --Southern California Edison Company (SCE), an investor-owned electric utility, offers a production incentive to customers who generate electricity with eligible biomass-energy systems, including landfill gas, municipal solid waste, wood and wood waste, fuel cells, digester gas, and sewer gas. Separate contracts are available to facilities with capacities of less than 1 megawatt (MW), facilities greater than or equal to 1 MW but not greater than 5 MW, and systems greater than 5 MW but not greater than 20 MW. The seller may select a term of 10, 15 or 20 years. The production incentive payment is tied to the Market Price Referent, which increases annually. Participants will receive the rate that is available when their project comes on-line for the duration of their contract period. The Market Price Referent for 2008 varies from $92.71 per megawatt-hour (MWh) to $95.72 per MWh, depending on the length of the contract. All renewable-energy credits (RECs) convey to SCE. http://www.sce.com

Federal Incentives for Renewable Energy Generation and Energy Efficiency
Renewable Electricity Production Tax Credit (PTC) --
The American Recovery and Reinvestment Act of 2009 (H.R. 1) allows taxpayers eligible for the federal renewable electricity production tax credit (PTC) to take the federal
business energy investment tax credit (ITC) or to receive a grant from the U.S. Treasury Department instead of taking the PTC for new installations. The new law also allows taxpayers eligible for the business ITC to receive a grant from the U.S. Treasury Department instead of taking the business ITC for new installations.










Clean Renewable Energy Bonds (CREBs) -- Clean renewable energy bonds (CREBs) may be used by certain entities -- primarily in the public sector -- to finance renewable energy projects. The list of qualifying technologies is generally the same as that used for the federal renewable energy production tax credit (PTC). CREBs may be issued by electric cooperatives, government entities (states, cities, counties, territories, Indian tribal governments or any political subdivision thereof), and by certain lenders. CREBs are issued, theoretically, with a 0% interest rate.* The borrower pays back only the principal of the bond, and the bondholder receives federal tax credits in lieu of the traditional bond interest.



The Energy Improvement and Extension Act of 2008 allocated $800 million for new Clean Renewable Energy Bonds (CREBs). In February 2009, the American Recovery and Reinvestment Act of 2009 allocated an additional $1.6 billion for CREBs. The Energy Improvement and Extension Act of 2008 also extended the deadline for previously reserved allocations until December 31, 2009, and addressed several weaknesses in the existing law that previously limited the usefulness of the program for some projects. A separate section of the law extended CREBs eligibility to marine energy and hydrokinetic power projects. The IRS has not yet announced that it is accepting applications for the new allocations made in 2008 and 2009, and it has not issued official guidance detailing how the program will operate. Until such official guidance is issued, it remains to be seen if the new program will operate exactly as described below. STAY INFORMED!



Source: Established in 1995, the Database of State Incentives for Renewables & Efficiency is an ongoing project of the North Carolina Solar Center and the Interstate Renewable Energy Council (IREC) funded by the U.S. Department of Energy.

NEW EPA National Clean Diesel Campaign American Recovery and Reinvestment Act Funding Now Available -- The American Recovery and Reinvestment Act (ARRA), signed into law on February 17, 2009, include $300 million in grant funding opportunities to support clean diesel activities. The competitive announcement Request for Proposals and Applications for the ARRA Funding for National Diesel Emissions Reduction Program is now available. Please note that ARRA Funding for National Diesel Emissions Reduction Program will have an expedited competition schedule and that applicants must comply with ARRA provisions. The applications are due April 28, 2009. To request application and questions submit in via email to: Grace Cheng,
Cheng.Grace@epa.gov 415-972-3983

NEW US Department of Agriculture, Rural Business-Cooperative Service Funding -- In the 2008 Farm Bill Congress added the Energy Audit and Renewable Energy Development Assistance program as a separate section of the Rural Energy for America Program. REAP offers grants to units of State, tribal or local government, land-grant colleges, universities, or other institutions of higher education (including 1994 Land Grant Tribal Colleges and Historically Black Universities), rural electric cooperatives or public power entities to assist agricultural producers and rural small businesses by conducting energy audits and providing recommendations and information on renewable energy development assistance and improving energy efficiency. Due date: 6/9/09.
http://edocket.access.gpo.gov/2009/E9-5154.htm



Demonstration Projects



Cow Power Carries California Milk to Market -- On February 11, the nation's first 'cow-powered' milk truck made its debut at the World Ag Expo in Tulare, California. The USEPA Region 9, West Coast Collaborative funded project is converting biogas from cow manure to fuel vehicles used on dairy farms. The process includes bacteria induced manure break down, methane capture and biogas upgrading to remove impurities. The biogas is pressurized and put into a modified truck fuel tank. The purpose is to demonstrate the potential to produce bio-natural gas to replace diesel fuel use, while protecting surface and groundwater quality from manure nutrient leaching. Air and green house gas emission reductions can also be achieved through the biogas system. Nationally, dairy cows could power around one million vehicles with clean-burning bio-methane. Project partners include California Air Resources Board, Sustainable Conservation, Western United Resource Development and Hilarides Dairy.


Conferences



The 2009 National Bio-methane Summit,


Sheraton Grand Hotel,


Sacramento, CA 6/23/09


http://www.biomethanesummit.com/

Bio-methane is quickly becoming one of the most significant emerging technologies in today's low carbon vehicle fuel market and alternative energy arena. Researchers, scientists, practitioners, and stakeholders from across the nation will convene in California's Capital - home of the nation's first Low Carbon Fuel Standard -- to present the latest information, applications, success stories, and technology in the fields of: Landfill Gas To Vehicle Fuel; Dairy Waste Methane Recovery; Wastewater Processing Plants; Greenhouse Gas Emission Reductions; Other Sources Of Renewable Natural Gas.

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