Issue Papers

Renewable Thermal Biomass Energy Policy

Woody biomass removal and utilization can provide ecosystem benefits by reducing forest fire risk, improving forest stand health and productivity, restoring natural habitat, and helping to meet rural community economic development goals. As a source of renewable energy, woody biomass has the potential to reduce our nation’s dependence on fossil fuels by displacing heating fuels such as heating oil and propane, which contribute to reduced carbon emissions, and act as a source of wealth capture to build stronger, more viable rural economies.

In developing renewable energy legislation, Congress should strive for a holistic solution that ultimately aims to reduce the consumption of fossil fuels across energy sectors. National renewable policy only addresses two-thirds of the U.S. energy portfolio: electricity and transportation fuels. While thermal energy represents one-third of our national energy consumption, there is currently no thermal energy component of national renewable energy policy.

Key Recommendations

1. Extend the Production Tax Credit equal to the closed loop rate for any biomass to electricity facility able to document system efficiency greater than 60%.
2. As requested in the President’s FY2011 budget, appropriate full authorization of $5 million to the Community Wood Energy Program.
3. Increase authorization of the Community Wood Energy Program to $50 million for FY2012 and beyond.
4. In the FY2011 Interior Appropriations Bill, increase funding for the Woody Biomass Utilization Grant Program to $10 million.
5. Increase the maximum amounts per project to $5,000,000 or 60% of capital costs to include more capitalization assistance for district energy systems.
6. Consider allowing the States to administer the program through the state department of energy.
7. Establish a Revolving Loan Fund to support retro-fits of institutional facilities that use petroleum-based fuels to generate thermal energy.
8. Require that existing facilities incorporate energy efficiency upgrades of 20% to qualify for the program.
9. Establish a grants program within the Department of Education to support retro-fits of rural elementary and secondary schools using petroleum-based fuel for space heating.
10. Increase funding for the Fuels for Schools Program to at least $15 million to support program delivery across the western states. We estimate that the program should provide $1 million annually in grant funds to meet the financial and technical assistance needs of communities.
11. Congress should authorize the Fuels for Schools Program as a stand alone program of the U.S. Forest Service.
12. Provide a 2:1 REC multiplier for electricity generation from newly constructed biomass systems that can achieve a minimum 60% system efficiency; Include a cap for the RECs fulfilled by multipliers.

To learn more read the 2010 Renewable Thermal Biomass Energy Policy Issue Paper.

Thermal Energy Uses of Woody Biomass

Across the nation, rural communities are developing energy projects that use woody biomass to create thermal energy (heat). The use of woody biomass as a source of thermal energy can reduce our dependence on fossil fuels, enhance energy efficiency, cut consumer and industrial energy costs, strengthen rural economies, and aid in forest restoration. It is critical that policy addressing the development of woody biomass thermal applications support the integrated goals of promoting responsible stewardship of our national forests and contributing to the economic health of rural economies.

RVCC Key Recommendations:

1. Develop a thermal energy component of national renewable energy policy that includes incentives for stand-alone biomass thermal energy generation and provides tax credits for capitalization costs of space heat projects.
2. Fund the Community Wood Energy Program and other relevant programs in the Food, Conservation, and Energy Act of 2008 and the Energy Independence and Security Act of 2007.
3. Promote wood bio-energy technologies with higher system efficiencies in a national Renewable Portfolio Standard (RPS) or Renewable Electricity Standard (RES) through policy mechanisms such as Renewable Energy Credit (REC). multipliers and prioritizing the connection of smaller-scaled projects to the electricity grid (prioritized interconnection).
4. Use feed-in tariffs in an RPS or RES to incentivize development of appropriately scaled distributed biomass combined heat and power (CHP) systems that function as a source of wealth capture for forest-reliant rural communities.
5. A definition of renewable biomass in national renewable energy policy must include sustainably harvested material from private and public land, including National Forest System lands.

To learn more read the 2009 Thermal Energy Uses of Woody Biomass Issue Paper.

The development of national programs and policies to encourage woody biomass harvesting and utilization is moving forward rapidly, and is being driven by a number of factors. Energy security, development of renewable energy, combating global climate change, and wildfire risk reduction are national priorities, and the utilization of woody biomass plays a role in each, as well as in the management of long-term forest health. To learn more read our primer on woody biomass utilization and our vision for community-scaled energy.