Landowners, Forest Products Industry, Professional Foresters and Conservation Groups Working Together to Improve New York’s Forest Resources Issue Sheet - 2015 Wood Energy Objective: Modify state renewable energy policies to create greater consumer choice and incentivize the use of sustainable in-state wood supplies to meet New York’s clean energy needs, create jobs in rural economies and reduce the use of imported heating oil. Rationale The dual objectives of increasing the use of clean energy and the long-term sustainability of our State’s forests can be met by replacing fossil fuels through such applications as high efficiency heating, biopower generation, combined heat and power (CHP) generation and liquid transportation fuels. Economic Benefits: Consumers who switch to highly efficient wood heat from oil or propane cut their heating costs by 40% or more. Their heating dollars go to local wood chip or pellet manufacturers, creating jobs in the woods and in the mills, and 100% of the money spent on wood fuel stays in New York, in contrast to the high export of fuel dollars for imported fuels such as oil and propane. Job Creation: Wood energy requires annual production of fuels and provides continuing rural employment, in contrast with other forms of renewable energy where beneficial job impacts come mostly at the time of construction. In the biomass-to-electricity sector, every 1 MW of power supports 5 jobs. Forest Sustainability: Developing demand for sustainably harvested biomass has the potential to improve the quality of forests while combating pests, diseases and invasive species. Supplies of forest harvesting residues, wood waste, and low-value timber to produce energy exceed current market demand in most regions of the state; new markets for wood energy provide an important means to use these resources. Action Items: The Council of Forest Resource Organizations is asking for the following support: Equitable tax treatment for all biomass derived fuels - whether solid, liquid, or gaseous - and review of all energy bills as they move through the legislative process to make sure that they explicitly include carbonbalanced, sustainable wood energy among the renewable technologies being encouraged or supported or set technology-neutral renewable energy targets compatible with the stated goals of the incentive programs. For example: o A.2069 (Crouch, et. al.) relative to alternate energy systems and general equipment tax credit . This bill creates a homeowner or business tax credit for renewable energy property capital investments, such as installation of biomass boiler systems. o S.1915 (Young) relative to expansion of the Biofuel Production Tax Credit to include the production of cellulosic ethanol, densified biofuel and renewable fuel oil within the biofuel production tax credit . This bill expands a credit which already exists for the production of liquid biodiesel to include other liquid and solid fuels made from farm or forest biomass. Inclusion of biomass thermal energy and continued recognition of biomass electric, as currently found in the Main Tier, Maintenance Tier and Customer –Sited Tiers of the Renewable Portfolio Standard (RPS), and in the implementation of the Clean Energy Fund and Green Bank. AFFILIATED ORGANIZATIONS Adirondack Landowners Association American Forest and Paper Association Audubon New York Catskill Forest Association Empire State Forest Products Association NY Biomass Energy Association NY Forest Owners Association NY Farm Bureau NYS Sustainable Forestry Initiative State Implementation Committee NYS Society of American Foresters NYS Tree Farm NYS Urban Forestry Council SUNY College of Environmental Science & Forestry The Nature Conservancy Watershed Agricultural Council For More Information, Contact: Matthew McArdle, CFRO Chair at matt.mcardle@mesabioenergy.com or (315) 704-0004