Sustainable Value Extraction from Highway Rights - Trb

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SESSION: ALTERNATIVE USES OF RIGHTS OF WAY
Highway Right-of-Way use for carbon sequestration, biomass production, and energy efficient lighting
By: David Ponder, Good Company
As state DOTs seek solutions to funding issues and enhance environmental outcomes, they have begun to explore opportunities to
leverage their assets for sustainability value creation. One potential opportunity is the utilization of highway rights-of-way to for
renewable energy development or the cultivation of vegetation for carbon sequestration and biomass feedstock generation. There
is also significant opportunity for sustainability value creation from investments in energy efficiency particularly in roadway lighting.
This presentation will summarize the finding of two recent research projects that considered these opportunities in detail.
The first, NCHRP 25-35, Guidebook for Designing and Managing Rights of Way for Carbon Sequestration and Biomass
Generation, evaluated the technical and financial aspects of carbon sequestration and bioenergy feedstock generation projects in
the right-of-way. The second, Opportunities On The State Highway System To Generate Revenue Or Offset Expenditures For The
State Of Florida evaluates the technical and financial feasibility of a number of sustainability value creation project types including
solar photovoltaic energy systems and LED highway lighting.
The presentation will include discussion of agency management considerations and policy frameworks affecting implementation,
evaluation of cost-effectiveness and market prerequisites, and the potential for public-private partnerships. The presentation will
also review the decision support tools for DOT personnel developed for these research projects.
David Ponder offers technical and market research and analysis in service of Good Company’s clients in the transportation and energy infrastructure
sectors. He recently completed research assesing the opportunity for renewable energy generation, carbon sequestration, and value extraction in highway
rights-of-way for Florida DOT and NCHRP. David is the primary author of the Oregon DOT guidebook to developing Solar in the ROW and was instrumental
in analysis for the development of Oregon’s Solar Highway Program. David has lead the the firm’s work for a municipal electric and water utility to produce
annual sustainability reports and annual greenhouse gas inventories of its operations and power resource portfolio. Prior to joining Good Company, David
served as a research analyst at the Appalachian State University Energy Center, and directed the Montana Public Interest Research Group for 5 years.
SUSTAINABLE VALUE EXTRACTION FROM
HIGHWAY RIGHTS OF WAY:
A REVIEW OF CARBON SEQUESTRATION,
BIOENERGY FEEDSTOCK
& ENERGY EFFICIENCY OPPORTUNITIES
TRANSPORTATION RESEARCH BOARD COMMITTEE ADC60
SUSTAINABLE AND RESILIENT INFRASTRUCTURE WORKSHOP
JUNE 17, 2014
DAVID PONDER, ASSOCIATE, GOOD COMPANY
MAKING SUSTAINABILITY WORK
www.goodcompany.com
Overview
 Review findings from two recent research reports
 NCHRP 25-35 Designing and Managing Rights-of-Way
for Carbon Sequestration and Biomass Generation
 Opportunities on the State Highway System to
Generate Revenue or Offset Expenditures for the
State of Florida
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TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
www.goodcompany.com
Our firm
Good Company
 Sustainability research and consulting firm
 Mission-driven, for-profit
 Industries
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transportation
civil infrastructure
clean energy and fuels
public agencies
TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
www.goodcompany.com
NCHRP 25-35
Carbon sequestration and bioenergy feedstocks
 While technically feasible constrained by:
 Safety and other considerations
 Clear zone and access control
 Limited market opportunity for commodities
 Carbon offsets (protocols not intended for ROW)
 Bioenergy feedstock (commodity value chain)
 Poor financial performance
 Carbon (carbon prices $5-$10/ tonne)
 Bioenergy (higher costs, lower yields in ROW)
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TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
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Safety and other considerations
Reduces available ROW and increases costs
Issue
Standard/Practice
Implications
Clear zone
No vegetation > 4-in. within ~30-feet of edge of
roadway; allowable behind safety barrier
Projects involving trees not
suitable to clear zone
Sight
distance
Limits on placement and maximum allowable
height of vegetation
Projects involving tall vegetation
should not obstruct sightlines
Access
control
Ingress and egress from roadway discouraged;
new access on Interstate requires FHWA
approval
Projects that require frequent
access via roadway not suitable
Work zone
Work on or off the shoulder requires traffic
control; some states also restrict time, manner
and place of equipment operation
Projects will require traffic control
Wildlife
collision
Vegetation maintained to discourage cover and
reduce forage
Projects involving highly
palatable forage should be
disallowed
Shading
and hazard
trees
Vegetation should be maintained to minimize risk
of drifting snow, roadway shading or limbs and
branches falling onto the roadway
Projects involving trees should
be appropriately sited
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TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
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Safety and other considerations
DOTs should consider these as well
 Asset management
 Need to avoid conflict with existing and future
infrastructure
 Environmental impact
 Need to balance project benefits against potential
impacts (e.g. noxious weeds, water quality, GMOs)
 Regulatory and policy issues
 Business models, FHWA approval
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TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
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Carbon offsets
Terrestrial carbon sequestration
 Carbon cycle
 Above-ground biomass
 Below-ground biomass
 Enhanced through
 Avoiding removals
 Increasing number of plants
 Boosting soil organic matter
 Can mitigate CO2 levels in
atmosphere
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TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
Courtesy: TERC
www.goodcompany.com
Carbon Offsets
Markets and quality standards
 Voluntary versus compliance market
 Compliance: smaller market, higher prices
 Voluntary: larger market, lower prices
 Offset quality
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Real (ongoing monitoring)
Additional (Δ beyond current practice)
Independent (3rd party verification)
Enforceable (contract)
Permanent (min. 100-yr commitment, buffer pool)
TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
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Carbon Offsets
Key takeaways
 Potential projects limited by
 Protocol requirements and restrictions
 Limited demand and weak pricing for offsets
 Safety and long-term asset management concerns
 Conditions to monitor
 Protocol development and revisions
 Carbon policy and offset prices
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TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
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Bioenergy feedstocks
Biomass for heat and power
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TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
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Bioenergy feedstocks
Short rotation woody crops
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TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
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Bioenergy feedstocks
Short rotation woody crops
Shrub Willow
Crop
• Coppiced
• 20-25 yr. rotation
• 3-4 yr. harvest cycle
• 2-6 dry tons ac-1 yr-1
Hybrid
Poplar
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Agronomics
• Plantation
• 8 yr. harvest &
rotation cycle
• 2-6 dry tons ac-1 yr-1
Bioenergy
opportunity /
constraints
Applicability to
ROW
Economic
Feasibility
• Industrial & electric
power sector
• No active buyers
• Low maintenance
• Small diameter
• > 12’ tall at maturity
• Potential cobenefits
• Requires > 20 acre
blocks
• Not currently
viable
• Low yields
• High production
cost
• Low prices
• Industrial and electric
power sector
• Bioenergy use is
secondary to higher,
better uses
• Limited
maintenance
• > 4” diameter at
maturity
• > 40’ tall at maturity
• Requires > 20 acre
blocks
• Not currently
viable
• Low yields
• High costs
• Low prices
TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
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Bioenergy feedstocks
Biomass for liquid fuels
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TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
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Bioenergy feedstocks
Oilseeds
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TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
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Bioenergy feedstocks
Oilseeds
Crop
Canola
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Agronomics
Spring/winter cultivars;
rotated with wheat;
GMO; 1,200-1,800
pounds/acre, 40% oil
content
Bioenergy
opportunity /
constraints
Applicability
to ROW
Financial
viability
Biodiesel /
commodity
value chain (2%
of canola oil
serves
biodiesel)
Technically
feasible; little to
no large scale
market
opportunity
• Not currently
viable
• Low yields
• High costs
• Low prices
TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
www.goodcompany.com
Bioenergy feedstocks
Key takeaways
 Potential projects limited by
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Supply chain logistics
Geography of the ROW
High production costs relative to feedstock prices
Safety and other management concerns
 Conditions to monitor
 Emerging technologies
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Fossil fuel prices
TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
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FDOT
Energy efficiency from LED lighting
 One of three concepts examined
 also looked at solar PV and haying
 LED Lighting
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Saves energy, reduces GHGs
Cost-effective
Adaptive controls, increase energy savings
Safety co-benefit
TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
www.goodcompany.com
LED Lighting
Potential roadway applications
Conventional
lighting
High mast lighting
www.goodcompany.com
LED Lighting
Financial analysis
Comparison of Scenarios and Simply Payback
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TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
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LED Lighting
Potential business models
Utility
Incentives
State DOT
Funded
Fund through DOT
budgets; limited by
budget availability
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Energy Services
Performance
Contract
ESCO provides the upfront financing; payment
to ESCO and DOT
based on the resulting
energy savings
TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
Partnerships
Partner with
municipalities or utilities
to effectively install more
lights
www.goodcompany.com
LED Lighting
Key takeaways
 Rapidly evolving technologies
 Develop pre-qualified product lists
 No national guidance, yet
 WSDOT, MNDOT, CalTrans have specifications
 Financing a challenge
 Innovative business models exist
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TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
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Thank you
Questions and Discussion
David Ponder, Associate
65 Centennial Loop, Ste. B
Eugene, Oregon 97401
541.341.4663 ext. 214
david.ponder@goodcompany.com
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TRB ADC 60: Sustainable Value Extraction from
Highway Rights-of-Way
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