The Regional Low Carbon Fuel Standard and Sustainable Biomass in the Northeast
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Transcript of The Regional Low Carbon Fuel Standard and Sustainable Biomass in the Northeast
Restructuring Roundtable
Boston, MA
December 4, 2009
The Regional Low Carbon Fuel Standard and Sustainable Biomass in the Northeast
Michelle Manion
NESCAUM
(Northeast States for Coordinated Air Use Management)
2
What’s “carbon intensity” again?
• A measure of the total CO2-equivalent emissions produced throughout a fuel’s lifecycle
• Measured in grams of CO2-equivalent GHG emissions per unit of energy in fuel
gCO2e/MJ
3
Carbon Intensity Calculation: Conventional Gasoline
Well-To-Tank Carbon Intensity: 16.9 gCO2e/MJ
+ Carbon Content of Fuel: 72.9 gCO2e/MJ
+ Vehicle emissions of CH4 and N20: 2.47gCO2e/MJ
= Lifecycle Carbon Intensity: 92.3 gCO2e/MJ
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Emissions from Indirect Land Use Change
•Plants and soils store large amounts of carbon that is released during land conversion
•Diversion of corn or other crops from existing markets to biofuels production can induce farmers elsewhere to bring new acreage into production
•Initial carbon release from land conversion event may exceed GHG benefits of displacing use of petroleum or other fossil fuels
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Example of Indirect Land Use Change Emissions
One acre cropland
devoted tocorn ethanol
.06 forest.24 grasslandconverted toagriculture
~30 metric tons CO2 released
Saves~1 metric ton
CO2 emissionsannually
Produces~400
gallons/yrethanol
-29 CO2 Net GHG Emissions
Source: CARB 2009, based on GTAP modeling.
6
Local/Regional Biomass Feedstocks
• Municipal Solid Waste– Only items that have reached the end of their use cycle
(non-reusable, non-recyclable) – The Northeast’s most significant resource – Less likely to induce additional LUC than virgin feedstocks
• Woody Biomass– New England has substantial woody biomass but also many
existing markets (e.g., pulp and paper, exports)– NY and PA combine for approximately two-thirds of total
supply
• Agricultural Residues– New York and Pennsylvania dominate again,
approximately 75 to 90 percent of agricultural biomass resources
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Estimated Biomass Availability in the Northeast
Biomass Quantity Biomass Category Units
2010 2020 Woody Biomass (likely availability)
5,051,120 5,177,398
Municipal Solid Waste (Yard Waste, Paper, Food Scraps, Wood Waste)
20,390,809 20,978,928
Livestock Waste 5,215,063 5,355,422
Wastewater Biosolids
Dry tons
725,208 742,761
Total 31,382,200 32,254,509
Wastewater Biogas Cubic feet
27,892,590 28,567,719
Total Electricity Potential MW 1,144 1,174
Total Homes Heated by Wood Pellets (6 tons per home)
Homes 115,000 117,500
Sources: NESCAUM and INRS analysis, 2008; US EPA 2006-2008.
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Current Regional Market for Woody Biomass
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Climate Change Impacts on Forest Carbon
Source: Natural Resources Canada, 2006.
Source: Canadian Forest Service, Knight Science Journalism, 2009.
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Thank You
Northeast States for Coordinated Air Use Management
89 South Street, Suite 602
Phone 617-259-2000
Boston, MA 02111
Fax 617-742-9162
Arthur Marin, Executive [email protected]
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Transportation Sector GHGs are Important!
• GHG emissions from transportation are large and increasing (over 30% of total in most states)
• Transportation GHG emissions affected by:– Amount and type of transportation fuels– Efficiency of motor vehicles– Number of vehicle miles traveled
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Northeast/Mid-Atlantic Low Carbon Fuel Standard
• December 2008: Commissioners from 11 Northeast and Mid-Atlantic states signed Letter of Intent to develop framework for regional LCFS
• Governors will sign LCFS Memorandum of Understanding this month
Connecticut
Delaware
Maine
Maryland
Massachusetts
New Hampshire
New Jersey
New York
Pennsylvania
Rhode Island
Vermont
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“What is a Low Carbon Fuel Standard?”
• Performance-based standard for fuels
• Does not “pick winners” or ban any fuel
• Regulates “carbon intensity” or lifecycle carbon emissions from fuels
• Requires displacement of conventional transportation fuels with advanced fuels that have low carbon intensities, such as:– Natural gas– Low-carbon biofuels– Electricity generated with renewable sources– Hydrogen produced from renewable sources
14
“What is a Low Carbon Fuel Standard?”
• Would require reductions in carbon intensity from today’s transportation fuels:– Gasoline – Diesel
• Requires lifecycle GHG accounting for – All baseline fuels– Low-carbon substitutes on an opt-in basis
• Heating oil could be included
• NOT A CAP ON TRANSPORTATION EMISSIONS
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How is the LCFS Different From Other Regulations?
• Typical vehicle and fuel standards regulate tailpipe emissions LCFS regulates GHG emissions from the full fuel lifecycle
• Cap-and-trade regulations limit total emissions allowed LCFS regulates only the “intensity” of emissions for a unit of fuel
Total transportation emissions could still increase if total energy use increases
LCFS complements vehicle efficiency standards and travel demand management strategies
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Program Structure: Who is Regulated?
• Providers of most petroleum and biofuels are ‘regulated parties’
• Providers of fuels that meet 2020 levels must ‘opt in’ to earn credits:– Electricity– Hydrogen – Natural Gas
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Flexible, Market-Driven Compliance Options
• Supply a mix of fuels with carbon intensity equal to the standard
• Provide fuels that have lower carbon intensity than the standard
• Use purchased or banked credits to meet the standard
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Regional LCFS Initiative: Stringency
• California’s LCFS requires a 10% reduction in GHG-intensity of fuels by 2020
• States are not required by any law to adopt the same LCFS stringency as California
• Given the interconnected nature of the region’s fuel supply network, adopting the same stringency within the region is optimal
• Facilitate compliance for regulated parties
• Maximize program effectiveness
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• An accounting of the emissions associated with each stage in the life of a product.
» Production» Transport» Storage» Delivery» End Use
• “Cradle-to-Grave”, “Well-to-Wheels”, “Full Fuel Cycle”…
• Simple addition… …but keeping track of every stage can be very complicated!
What is Lifecycle Analysis?