Policy Mechanisms to Grow the Midwestern Biogas Industry Amanda Bilek Energy Policy Specialist Great Plains Institute
Great Plains Institute • Non-partisan, nonprofit corporation based in Minneapolis • 12 years old • Mission: to accelerate the transition to a renewable and lowcarbon economy.
To accomplish this mission we convene diverse leaders • • • • • • • •
Governors & Legislators Regulators Energy & Utility executives Grid operators & planners Non-profit leaders Ag. and farm interests Investment bankers University researchers and officials
GPI-led U.S. and Canadian delegation to Europe, 2003 In front of Amsterdam hydrogen station
Barriers to Scaling-up Biogas • Public policy • Formal organization or advocacy presence • Technical research • New development or management models • Emphasis on electricity production
Midwestern Biogas Policy Report elements: • State and federal policy background • State and federal policy and regulatory recommendations • Policy and project profiles • Future research directions www.gpisd.net
Policy Recommendations • • • •
Existing Policies that are Best in Class Existing Policies that Just Need a Tweak Proposed Policies that Just Need a Push Promising New Policies that Need a Champion • Other Ideas
Existing Policies: Best in Class • Rural Energy for America Program (REAP) • State level Renewable Portfolio Standards (RPS) • Voluntary electricity tariff programs by utilities • State level grant programs
Existing Policies: Need a Tweak • Production Tax Credit (PTC) • Business Energy Investment Tax Credit (ITC) • U.S. Department of Treasury, Section 1603
Proposed Policies: Need a Push • Investment tax credit for biomethane projects • Biogas Production Incentive Act • Federal cap on carbon emissions • Federal Renewable Portfolio Standard (RPS)
Proposed Policies: Need a Push Renewable Fuel Standard • 36 billion gallons by 2022 • Primarily mandates liquid transportation fuels – Biogas added as a qualifying fuel to generate credits – 77,000 Btu = 1 gal. renewable fuel
Federal Renewable Fuel Standard Source: GLBRC
Proposed Policies: Low Carbon Fuel Standard • Biogas CNG: lowest lifecycle GHG emissions • Biogas CNG: lower than hydrogen, electric vehicles and ethanol Source: StormFischer Biogas, www.stormfisher.com/biogas.htm
New Policies: Need a Champion • Advanced Renewable/Feed-in-Tariffs (ARTs/FITs) • State/National nutrient trading program • Rural Infrastructure Development Fund • Renewable Gas Standard • Source separated organics diversion
New Policies: eRPS • Enhanced Renewable Portfolio Standard (eRPS) – Expands renewable resources to include: • electric and thermal combined heat and power • Biogas injected into natural gas pipeline
– Non-Electric Energy is Converted to Renewable Energy Certificates (RECs) in Electrical Units (e.g., kilowatthours)
Other Ideas • Third party ownership models • Model solid waste regulations for waste to energy facilities • Integrate existing USDA programs
Summary • Biogas policy paper available at – www.gpisd.net • Future is full of opportunity for biogas policy • Several examples of successful models for a robust Midwestern Industry and there is a lot of room to grow!
Thank You Amanda Bilek Energy Policy Specialist Great Plains Institute www.gpisd.net abilek@gpisd.net 612-278-7118