Posts

BAC Comments on the CPUC’s Biomethane Procurement Proposal

BAC submitted comments on the CPUC’s Staff Proposal on Biomethane Procurement.  The Staff Proposal recommends requiring California’s gas utilities to procure 75 billion cubic feet of biomethane annually by 2030.  That only represents 4 percent of California’s total gas use.  By comparison, state law requires that 60 percent of California’s electricity come from renewable resources by 2030.  In comments on the Staff Proposal, BAC urges the Commission to:

  • Increase the biomethane procurement target to 150 BCF to help meet the state’s climate, clean energy, waste and wildfire reduction goals.
  • Include all eligible organic waste feedstocks.
  • Base program prices on the carbon intensity of the biomethane to prioritize the lowest carbon sources that help reduce climate super pollutants (Short-Lived Climate Pollutants).
  • Offer additional incentives to maximize the carbon reductions and other benefits of the program

To read BAC’s detailed comments, see R.13-02-008 BAC Comments on Phase 4A Staff Proposal

CPUC Proposes Biomethane Procurement Program

In June, the CPUC released a draft Staff Proposal on biomethane procurement.  The proposal recommends requiring the gas utilities to procure 75 billion cubic feet of biomethane annually by 2030, primarily from organic waste that is diverted from landfills and from landfill gas.  The Staff Proposal also recommends the inclusion of two pilot projects that convert forest waste to biomethane, which will help the state to meet its wildfire and black carbon reduction goals.  Unfortunately, the Staff Proposal excludes biomethane from dairy waste and does not address agricultural waste or urban wood waste at all.

See, CPUC’s Biomethane Procurement Staff Proposal

 

Princeton Study Highlights Need for Bioenergy, Renewable Hydrogen

Princeton University has released a groundbreaking study on how the United States can achieve carbon neutrality.  The study finds that bioenergy – especially biomass with carbon capture and storage – and renewable hydrogen will be critical to achieve carbon neutrality.  The study’s main conclusions related to bioenergy are:

  • Biomass plays an especially important role in achieving carbon neutrality because i) it removes CO2  from the atmosphere as it grows and so combustion of hydrocarbon fuels made with biomass carbon results in no net CO2 emissions to the atmosphere, ii) it can be converted into H2  while capturing and permanently sequestering its carbon, resulting in a net negative-emissions fuel, and iii) it can similarly be used to make negative-emissions electricity.
  • Starting in the 2030s, H2  from biomass with capture of CO2  that is permanently sequestered is a highly cost-competitive technology option because of the  high value of the  associated negative emissions; negative-emissions bio electricity is less valued because of abundant low cost of solar and wind electricity.
  • Hydrogen is a key carbon-free intermediate or final fuel.

You can download the full study here.  The Bioenergy chapter begins on slide 200.

Air Board Adopts Plan to Phase Out Open Burning of Agricultural Waste in San Joaquin Valley

In late February, the California Air Resources Board approved a plan to phase out the open burning of agricultural waste in the San Joaquin Valley, California’s largest agricultural region.  Open burning, which has increased nearly 500% in the past several years, is a major source of air and climate pollution in the Valley.  In fact, open burning of agricultural and forest waste is one of the largest sources of black carbon emissions – a powerful Short-Lived Climate Pollutant that is 3200 times more damaging to the climate than carbon dioxide and is also very harmful to public health, crops, forests, and more.

The Air Board’s plan calls specifically for:

  • A Clean Biomass/Bioenergy Collaborative across state agencies
  • Increased funding for bioenergy and other alternatives to open burning
  • Increased production of liquid and gaseous fuels from agricultural waste

See:  CARB Approved Plan to Phase Out Ag Burning (Feb2021)

CA Board of Forestry Adopts Biomass Utilization Plan

On November 4, the California Board of Forestry adopted a forest biomass utilization plan that recommends many actions to put California’s extensive forest waste to beneficial re-use, including numerous bioenergy recommendations.  Some of the most important recommendations related to bioenergy are:

  • Consolidated permitting
  • State procurement of bioenergy
  • Inclusion of forest biomass in microgrid tariffs
  • Allocating 20% of electricity and gas R&D funding (EPIC and PIER) to forest biomass, including biomass to hydrogen projects
  • Adopting pipeline standards for biomass and hydrogen
  • Incentivizing both electricity and pipeline interconnection for forest biomass projects
  • Incentivizing use of forest biomass under the Low Carbon Fuel Standard
  • Increasing BioMAT category 3 (forest waste) to 250 MW and allowing Community Choice Aggregators (CCA’s) and publicly owned utilities to participate in the program
  • Requiring a portion of new RPS power to be baseload and flexible generation

Read:  Joint Institute Wood and Biomass Utilization Recommendations

BAC’s Comments on Proposed BioMAT Decision

BAC submitted comments in support of the Proposed Decision on BioMAT, which is a 250 megawatt program required by state law (SB 1122, Rubio, 2012).  Most importantly, the Proposed Decision will extend the program end date to the end of 2025.  BAC also supports the Proposed Decision to increase flexibility for developers, set deadlines for utility’s, and to convert to a statewide program in recognition of the statewide benefits that BioMAT projects provide.

See BAC Comments on Proposed BioMAT Decision

CPUC Extends BioMAT Program, Adopts Important Changes

The CPUC voted 5-0 to extend the BioMAT program and make several critical changes to the program.  The CPUC’s Decision extends the program end date to the end of 2025.  This is critical since the utilities have only procured about 20 percent of the 250 megawatts required by the program.  The CPUC Decision also increases delivery flexibility for project developers, establishes deadlines for utilities to review project eligibility and approve contracts, and establishes a non-bypassable charge so that all rate-payers will share the costs of the program.  The CPUC proposed the non-bypassable charge in recognition of the fact that BioMAT projects provide important statewide benefits that all ratepayers should help to pay for, not just the purchasing utility’s customers.

See CPUC’s Proposed Decision on BioMAT (July 24, 2020), which was adopted by the Commission on August 28.

CPUC Votes to Re-Authorize EPIC Program

The CPUC voted unanimously to re-authorize the Electricity Program Investment Charge (EPIC) program for another ten years.  EPIC has provided about $165 million per year for the past decade to a variety of clean energy research, development, deployment, and market facilitation projects.  Many small-scale bioenergy projects have received EPIC funding to demonstrate new technologies, better quantify greenhouse gas reductions and other environmental benefits, improve pollution controls, and more.  In the past, the California Energy Commission has administered 80% of the EPIC funds and the utilities have administered the other 20%.  The CPUC’s Proposed Decision only re-authorizes the 80% of funding administered by the Energy Commission.  It will consider what the major funding categories should be and whether to re-authorize the utilties’ portion of funding in the next phase of the proceeding.

See CPUC’s Proposed Decision on EPIC Reauthorization, which was adopted on August 28.