Reinvest in Minnesota-Clean Energy (RIM-CE) is an innovative model policy to incentivize feedstock supply. It is structured similar to a conservation reserve program but focused on producing biomass with payments based on tiers of sustainable practices that needed to be met. The types and number of practices implemented would affect price. The policy has been passed in Minnesota, but the legislature has waited on full funding to see how the Farm Bill 2008’s Biomass Crop Assistance Program (BCAP) would be addressed. MN may have more fully developed guidelines and be more useful in using as a model for the region.
Michigan, Minnesota and Wisconsin already have specific statutes and regulations that stipulate best management practices (BMP’s) for water, soils, and wildlife during forest management activities because forest biomass harvest will take place in conjunction with logging. Minnesota has additional biomass harvest BMP’s in place for both forests and brushlands, with Wisconsin and Michigan following suit. Biomass harvest needs to be done in conjunction with logging and pulp because of the need to capture the whole value chain.
Each state has a conservationist (IA, WI, MN gives this role high priority). Water protection using cover crops is an indentified priority but still trying to create a market, especially for cellulosic ethanol and CHP.
State outreach and education programs to private landowners such as those found in Minnesota, Wisconsin and Michigan.
Wisconsin has The Buffer Initiative to identify size and types of biomass that can be grown in buffer areas. http://bombadil.lic.wisc.edu/WBI/index.htm
Cooperative Conservation Partnership Initiative: Upper Midwest should participate as a region.
POET, which recently brought its 20,000 gallon-per-year pilot cellulosic ethanol plant online in Scotland, S.D. plans to commercialize cellulosic ethanol by using corn cobs as feedstock in Emmetsburg, Iowa through Project LIBERTY. From there, POET anticipates installing the technology at other POET plants across Iowa and the Midwest. For more information, go to www.poet.com. For information about Project LIBERTY, visit www.projectliberty.com
The Private Landowner’s Network provides a list of resources that includes federal, regional and state programs, including funding opportunities, to assist private landowners in sustainable land management including biomass production. http://www.privatelandownernetwork.org/grantprograms/index.asp?pp=true
North Dakota 2002 HB 1515 creates a biomass demonstration project and incentives for biomass development.
A budding organization in Wisconsin is connecting utilities with cellulosic experts but is in need of growers to include in the network.
Missouri Agricultural and Small Business Development Authority, created in 1999. Seven commissioners, appointed by the governor, make capital available through grants, loan, loan guarantees, and tax credits to Missouri farmers, particularly independent projects, agribusiness and small business at competitive interest rates on a scale to make a major impact.
Type(s) of GHG Reductions
Primarily CO2 from replacing fossil fuel based sources of energy with biomass.
Estimated GHG Reductions and Net Costs or Cost Savings
This policy option is too broad at this time to accurately predict specific costs, savings or greenhouse gas reductions.
Key Uncertainties
The effects of the economic downturn on the ability of states to provide incentives and to initiate programs related to biomass. Private investors will likely remain fairly inactive in the marketplace until the effects and recovery trend from this economic crisis are clearer.
Biomass converted to energy or transportation fuels develops a new revenue stream for private landowners where a material that was thought of as low value or a waste now can provide income.
Planting flood prone areas, riparian areas and buffer areas for biomass production increases wildlife habitat, modifies run-off events, captures heavy metals, reduces nitrogen contributions to water ways and reduces dependence on food-producing lands for the production of biomass.
Feasibility Issues
Research gaps
Determining driving forces and responding in a timely manner to market forces,
Quantifying realistic, reliable supply or demand volumes.
Status of Group Approval
Pending
Level of Group Support
TBD
Barriers to Consensus
TBD
BT-5.2: Biomass Feedstock Supply Logistics
Policy Description
Effective logistics for production, harvest, transportation and storage are keys to any successful biomass to energy program. The policy options focuses on providing technical assistance and incentives to projects seeking to develop and maintain a supply of cellulosic biomass for bioenergy projects.
Policy Design
Define and support planting and crop rotation systems that allow for biomass production and harvest over the widest range of time possible to minimize handling and storage needs.
Use USDA Forest Service Inventory data (FIA) and resource mapping to help identify the largest zones where biomass is available to aid in plant and infrastructure location decisions.
Identify, by product, the potential feedstock contribution to GHG reductions through fossil fuel use displacement and carbon sequestration. Preference should be given to the feedstocks that reduce the most GHG and sequester the most carbon.
Adjust current policy to allow short-rotation fiber production under traditional private forestry land programs and associated tax programs.
Develop processes and programs that support the densification of fuels to increase the relative energy intensity by volume of biomass feedstock being stored and transported. This includes pelletizing and compressing materials as well as providing the equipment and infrastructure to handle, sort, store and transport new forms of feedstocks.
Develop key gathering, densification and storage (concentration) sites where the distance is too great between individual production sites and processing facilities for more economical transport.
Define the connections and pathways between land and market: look sequentially from farm/forest (source) to market (geographic zone).
Develop and use innovative storage systems that maintain the quality and quantity of feedstocks over time.
Ensure quality in material and reliability in product and price through standardization of weights and measures of biomass feedstocks as addressed in BT-5.1.
Implement regional studies to strategically locate processing facilities between suppliers and end-product industries. Communities in these key areas should be encouraged to participate in the planning, ownership, and support of these critical supply chain links through business incentives, tax advantages, and upgrading or utilization of facilities for handling this new form of energy. Brownfield conversion presents an opportunity to participate in this new economy. (See BT-6.1 and 6.2 Wealth and Job Creation Options.)
Identify and support new opportunities in community economic development through participation in the supply chain logistics and plant location.
Use USDA Forest Service inventory data (FIA) and Timber Products Output Mapmaker (federal resource from USDA) to provide supply and location data of potentially available forest biomass. Supply estimates need to be mapped and correlated with ownership regionally and comprehensively to determine sustainable utilization.
Utilize existing tools such as the BioFeedstock Logistics Simulator, developed by a company in San Jose, CA. It was developed to model and analyze the transportation and receiving operations of biomass feedstocks delivered from on-farm storage facilities to the receiving facility at a cellulosic ethanol plant.
Ensure that rural roads and travel-ways are suitable and sustainable for the year-round transport of biomass feedstocks. Cost-sharing programs may ameliorate impacts to counties where all who benefit from the maintenance of the transportation infrastructure contribute to its upkeep. Transportation planning should be sensitive to safety and quality of life impacts to residents who also rely on these travel-ways.
Use the most fuel-efficient transportation and most energy efficient processing to maintain the life-cycle energy costs of biomass feedstocks low and add to the overall emission reductions sought.
Investigate the use of rail and/or barge in intra-region transport of densified biomass.
Locate processing plants as close as possible to solid waste collection points is important to reduce transportation costs and tipping fees. Streamlined sorting mechanisms will maximize energy output and minimize the release of toxic elements. This also has the benefit of reducing methane, a potent GHG emission from landfills.
Advance research and technology to facilitate the desired conversions of this policy.
Goals:
Create a regional map of existing and potential production sites based on biomass sources. Connect the production sites to regional processing nodes, and where necessary, concentration sites.
Evaluate travel routes for suitability for predicted traffic volume and types.
Evaluate degree and type of change necessary to existing infrastructure. Seek key leverage points where change will encourage and facilitate further improvements.
Invite competition between zones within the region for proposals to develop and support a biomass supply chain. Reward the most innovative, energy efficient proposals with funding through grants and loans.
Timing: Accomplish the above goals by 2011.
Parties Involved: Rural and country transportation and development planning departments, biomass producers, biomass processors, universities, freight transportation sector, USDA
