Policy Mechanisms to Grow the Midwestern Biogas Industry

Amanda Bilek Energy Policy Specialist

Great Plains Institute

Great Plains Institute •  Non-partisan, non-

profit corporation based in Minneapolis

•  12 years old

•  Mission: to accelerate the transition to a renewable and low-carbon 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

We work with them to. . . 1.  Develop & advance win-

win policies

2.  Demonstrate promising energy technologies

3.  Identify research critical to their commercialization

4.  Educate key audiences about benefits & costs.

Hydrogen Hybrid Bus Cold-weather tested in Winnipeg

Photo courtesy of Manitoba Energy Development Initiative

Our Portfolio Approach to the Energy Challenge

Analysis: Energy Choice Simulator

If not biogas, then what? •  Agriculture is vital to

Midwest economy •  If not biogas, what is

the GHG mitigation strategy for animal agriculture?

We need every technology and strategy to achieve GHG reduction goals

Source: World Resources Institute (WRI) EarthTrends, 2008; using data from the Climate Analysis Indicators Tool (CAIT)

Operational Livestock Biogas Projects

Source: U.S. EPA AgStar Program

Total farm-scale projects: 138 Total regional/centralized projects: 13

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