Presentation Transcript

1. Biomass Power2012 Year in Review

   San Diego March 21 and 22, 2012
2. Federal Activities at a Glance Boiler MACT/NHSM Changes in Section 45 Tailoring Rule 2013 Vision/Priorities
3. We Worked With Friends Boiler MACT—AF&PA, NAM NHSM—C&D Lobby (CMRA) BCAP-Ag Energy Coalition Tailoring Rule—Bioenergy Coalition Tax-focus was on baseloads Promotion of biomass—ACORE, Biomass Caucus
4. Boiler MACT/NHSM Three level chess match Legislative Regulatory Litigation
5. Regulatory March 21, 2011 EPA published final Boiler MACT and final NHSM. Resounding concerns across industrial sectors. Concerns around feasibility, cost, regulatory uncertainty. EPA immediately gave notice that it was reconsidering Boiler MACT and stayed effective date of rule during reconsideration process. EPA expressed no interest in reconsidering NHSM, despite industry pleas and meetings with the Agency We met with Agency in early December Published revised rules in December, 2012 NHSM=good. Boiler MACT=not so sure. Do we litigate?
6. Coalition formed on all fronts Boiler and CISWI Coalition— American Petroleum Institute ERC AFPA Hardwood American Wood Council NAM BPA Bus Rdtble Composite Panel Assn CMRA Corn Refiners
7. Legislative/Congressional Intervention HR 2250 “EPA Regulatory Relief Act of 2011. 4 Republican and four Democratic co-sponsors. Stayed Rule Gives EPA more time Provides extra time to comply Directs EPA to adopt EPA’s CISWI solida waste definition Sets more reasonable time limits
8. Legislation cont’d S. 1392, “EPA Regulatory Relief Act.” Similar to HR 2250, except that provides list of non-hazardous secondary materials that are not “wastes” and thus not subject to CISWI. Garnered broad, bi-partisan support. Senator Wyden took heat in Oregon press Wyden largely responsible for EPA’s reconsideration of the NHSM Legislation ultimately failed but we got a better rule and prevailed (maybe) on NHSM
9. Coalition Efforts On the Hill (BPA/CBEA Fly-in September, 2012) At the Agency (multiple meetings) Engaged consulting firm, law firm, PR/lobbying teams joined forces Actively litigated both rules in the DC Circuit and the District Court
10. Litigation, briefly summarized 2001 Sierra Club Petition, Sierra Club v. Jackson, seeking to compel the Agency to issue rules. EPA entered into consent decree. Coalition, Sierra Club filed challenge to Feb 2011 Rules. Challenges to EPA’s stay of Rules Challenges to Rules on Hold Court overturned EPA’s Stay Do we continue to litigate?
11. Tailoring Rule—We Must Win This! Background June 3, 2010, EPA published final PSD and Title V GHG Tailoring Rule New facilities emitting 100,000 TPY on a C02. Modifications at existing facilities that exceed 75,000 tpy. EPA elected not to categorically exempt biogenic emissions in June 2010 Rule. Instead published Call for Information July 20, 2011, EPA deferred for three years regulating GHG’s from biogenic, based on petition filed by NAFO Gregg to discuss SAB
12. What is at Stake? State RPS Programs (Mass, Md, and now Ct) Value of biomass versus coal Congressional Support—Tax (Section 45, Carbon Tax) Congressional Suport—Non-tax (RES) Renewable Fuels Standard Section 111(d) of the Clean Air Act
13. “Science” of Biogenic Emissions May, 2011—”How Manomet got it backwards: Challenging the “debt-then-dividend” axiom.” By Bill Strauss, FutureMetrics. July, 2011—”Regional Crabon Dioxide Implications of Forest Bioenergy Production.” Hudiburg et al. Oregon State University. August, 2011—”Lifecycle Impacts of Forest Management and Bioenergy Production.” Howe et al. Dovetail Partners. June, 2011. 25x25 National Wood-to-energy Roadmap November, 2011. “Managing Forests Because Carbon Matters: Integrating Energy, Products and Land Management Policy, USDA Forest Service Pacific Northwest Research Station. February, 2012. “Biomass Supply and Carbon Accounting for Southeastern Forests.” BERC. Favorable studies in the EU (Seth Ginther to cover)
14. Litigation (What else?) Filed by NRDC, Center for Biological Diversity, Conservation Law Foundation, NRCM, Georgia Forest Watch, Wild Virginia, Coastal Conservation League, Dogwood Alliance. “The forests and communities of the Southern US are facing a huge threat in the form of industrial-scale wood-based bioenergy…The South is already seeing a huge uptick in the number of new and retrofitted facilities that will burn woody biomass, which will create increasing pressure to cut native, standing forests for fuel.”
15. Issues in Tailoring Rule Litigation Whether EPA’s deferral was arbitrary, capricious or otherwise unlawful. Whether EPA justifiably relied on “necessity doctrine” ie impossible to impose biogenic emissions on each source. Whether EPA justifiably relied on “de minimis” doctrine. Whether EPA justifiably relied on the “one step at a time” doctrine.
16. Tailoring Rule Litigation Timeline Joint Brief of Petitioners March 7, 2012 Joint Brief of Respondents May 7, 2012 Intervenors Brief June 6, 2012 Reply Brief, Pet. June 26, 2012 Final briefs July 24, 2012 Oral argument April, 2013 Final decision Summer, 2013
17. BPA’s Legal Challenges CAA does not authorize EPA to regulate biogenic emissions which do not adversely affect the environment. EPA has discretion to distinguish between carbon emissions and fossil-fuel based emissions. EPA can limit the reach of PSD programs.
18. What Is Our Strategy During 2013 Comment on EPA’s Draft Framework Engage key agencies (USDA, DOE) Congressional Champions/engage new members Engage Biomass Caucus (BPA is leading the renewal of Caucus) Mike Jostrum to cover in greater depth
19. Federal Tax Policy Section 45 “Commencement of Construction” Tax Parity and political effort Hill Hearings Appearance before the Tax Reform Committee (circulate presentation) New Ideas in the tax realm to assist biomass
20. Efforts to Save BCAP and other Energy Programs in Farm Bill Joined Ag Energy Coalition (EESI, Bio, various ag interests) Worked Senate Ag and Senate Approps Committee. Program zeroed out in House President’s 2012 Budget capped CHST at $70 million Funding included in 2012 Senate Farm Bill Stabenow event and support Fate uncertain.
21. Non-Legislative Activities Coalition Building—focus on baseload technologies Biomass Caucus Annual Fly-in (45 Hill meetings in 2 days) Energy Foundation Bio-energy Coalition
22. 2013 Vision Expand Collaboration Grow Membership Advocacy of Boiler MACT/NHSM Advocacy of Biogenic Emissions as “Carbon friendly” Seek extension and tax parity Long-term favorable federal energy policy BCAP and other incentives
23. Special Thanks to… Your support of BPA The BPA Board My Assistant, Kerry Hewitt Carrie Annand at Hillenby Gary Melow Tim Urban and the Team at WCEY CBEA and Julee and her Team