BIOMASS ENERGY: ENVIRONMENTAL IMPACTS AND EMERGING REGULATION Mary S. Booth, PhD Partnership for Policy Integrity www.pfpi.net KIUC Energy Conference, Lexington, KY March 13, 2014 “BIOMASS ENERGY” – Combustion of wood and other biological materials to produce steam and generate heat and power; or gasification of fuel to drive a turbine. – Combustion at “direct-fired” plants or as co-firing with coal – “Biomass” = wood. Few facilities using agricultural residues or energy crops – Considered “renewable energy”: eligible for same incentives and subsidies as wind and solar power. – Has been considered “carbon neutral” – now changing 2 OUTLINE • Biomass power plants emit more CO2 and key “conventional” pollutants than fossil-fueled plants • New policies and regulatory decisions recognize these impacts 3 WOOD-FUELED BIOPOWER AND ITS EMISSIONS 4 McNeil Power Plant, Burlington,Vermont Photo: Chris Matera, Massachusetts Forest Watch 5 PROPOSED ECOPOWER PLANT, HAZARD • ~58 MW gross; likely less than 52 MW net (parasitic load) • 745 MMBtu boiler • Air cooled, low-efficiency • Will harvest trees for fuel • “Synthetic minor” source under Clean Air Act: allowable particulate matter emissions 2x greater than coal; no air quality modeling; no short term emissions limits 6 ECOPOWER WEBSITE 7 BIOMASS POWER EMITS MORE CO2 PER MWH THAN COAL OR GAS Fuel CO2 per heat content Facility (lb/mmbtu) efficiency Fuel mmbtu required to generate 1 MWh Lb CO2/MWh Gas combined cycle 117.1 0.45 7.54 883 Gas steam turbine 117.1 0.33 10.40 1,218 Coal steam turbine 205.6 0.34 10.15 2,086 213 0.24 14.22 3,029 Biomass steam turbine A biomass plant emits ~150% the CO2 of a coal plant ~250% the CO2 of a gas plant ~ 340% the CO2 of a combined cycle plant lb CO2 emitted per MWh Gas CC Gas ST Coal ST Fuel CO2 per heat content data are from EIA. Efficiency for fossil fuel facilities calculated using EIA heat rate data (http://www.eia.gov/cneaf/electricity/epa/epat5p4.html); biomass Biomass ST efficiency value is common value for utility-scale facilities. - 500 1,000 1,500 2,000 2,500 3,000 3,500 8 BIOPOWER AIR POLLUTANT EMISSIONS ARE GREATER THAN COAL OR GAS 1.80 COAL: Santee Cooper Pee Dee Generating Station, SC Pounds per megawatt-hour 1.60 BIOMASS: Gainesville Renewable Energy, FL 1.40 GAS: Pioneer Valley Energy Center, MA 1.20 1.00 0.80 0.60 0.40 0.20 Carbon monoxide Nitrogen oxides Filterable PM10 Sulfur dioxide Volatile organic compounds 9 BIOMASS ENERGY IS OPPOSED BY HEALTH ORGANIZATIONS Massachusetts Medical Society resolution: (December, 2009) • “biomass power plants pose an unacceptable risk to the public’s health by increasing air pollution” American Lung Association Energy Policy: (June 11, 2011) • The American Lung Association does not support biomass combustion for electricity production, a category that includes wood, wood products, agricultural residues or forest wastes, and potentially highly toxic feedstocks, such as construction and demolition waste. • The American Lung Association strongly opposes the combustion of wood and other biomass sources at schools and institutions with vulnerable populations. 10 WHY HAS BIOMASS ENERGY BEEN TREATED AS “CARBON NEUTRAL”? – The “waste” argument: Materials burned are waste and would decompose and emit CO2 anyway – The “resequestration” argument: Ongoing or future forest growth re-sequesters carbon that’s released by burning. • Bioenergy “offsetting” Neither argument acknowledges time-lag between burning biomass and offsetting emissions. 11 SIMPLISTIC EXPLANATION • “Carbon in biomass is part of the natural carbon cycle” - versus fossil fuels. • But again: timing matters 12 WHERE’S THE CARBON? Less stack CO2 More stack CO2 Fossil fuel scenario More forest biomass Biopower scenario Less forest biomass Time NET BIOPOWER NET CO2 EMISSIONS EXCEED EMISSIONS FROM NATURAL GAS FOR DECADES Natural gas (stack emissions only) CUMULATIVE EMISSIONS Trees that otherwise continue growing “Waste” wood that would decompose anyway Slash that would be burned in the woods 10 20 30 40 50 YEARS 60 70 80 90 14 ECOPOWER WILL BURN WHOLE TREES FOR FUEL “Within a 55-mile radius of the Project, there are more than 400,000 green tons of mill residuals and over 67 million green tons of standing low-grade wood with a growth rate of over 1 million green tons annually.” 15 60-MILE FUEL-SOURCING RADIUS 16 BIOMASS HARVESTING THREATENS FORESTS AND BIODIVERSITY NEW REGULATORY AND POLICY DEVELOPMENTS FOR BIOENERGY 18 EPA’S “DEFERRAL” FOR COUNTING BIOENERGY CO2 UNDER CLEAN AIR ACT DEEMED UNLAWFUL • U.S. Court of Appeals: EPA should not exclude bioenergy CO2 emissions from counting toward Prevention of Significant Deterioration (PSD) triggering threshold 19 FUTURE REGULATION OF BIOMASS CO2 UNDER CLEAN AIR ACT? • Science Advisory Board: “Bioenergy is not a priori carbon neutral” • July, 2014: Bioenergy exemption ends 20 EPA’S POWER PLANT RULE FOR CO2 Suggests standards may be set for bioenergy CO2 eventually: “the overall net atmospheric loading of CO2 resulting from the use of a biogenic feedstock by a stationary source will ultimately depend on the stationary source process and the type of feedstock used, as well as the conditions under which that feedstock is grown and harvested.” Again – bioenergy not automatically carbon neutral MASSACHUSETTS RULES ELIMINATE LARGESCALE BIOMASS POWER FROM RPS Efficiency 50% efficiency to qualify for ½ REC/MWh (60% for full REC) GHG emissions accounting Framework accounts for carbon debt of whole tree harvesting Requires 50% reduction in GHGs over 20 yrs compared to combined cycle natural gas facility Harvesting standards Allowable removals depend on soil conditions Protects old growth, slopes, downed woody material Requires harvest plans Other states have similar plans to restrict biopower eligibility for RPS: MD, DC VERMONT PUBLIC SERVICE BOARD DENIES BIOMASS PLANT “CERTIFICATE OF PUBLIC GOOD” BASED ON CO2 EMISSIONS • “the Project would release as much as 448,714 tons of CO2e per year, and that sequestration of those greenhouse gases would not occur until future years, possibly not for decades, and would not occur at all in the case of forest-regeneration failures. This annual level of greenhouse gas emissions is a significant burden to be weighed in determining whether the Project would promote the general good.” • Plant will interfere with ability of state to reduce greenhouse gas emissions 23 INVESTOR COMPLAINT LETTER TO SECURITIES AND EXCHANGE COMMISSION ON BIOENERGY “GREENWASHING” • Signed by investors with over $100b in assets • Calls out “carbon neutral” claims and other misrepresentations by Dominion, Southern Company, Covanta • Shareholder resolution on ballot at Dominion, calling for study of bioenergy climate and investment risks 24 Mary S. Booth mbooth@pfpi.net