Energy
Biomass Ash - The Renewable Energy Committee of the Environmental Management Commission met this month to discuss the environmental regulation of ash as a byproduct of biomass combustion. Because of the Renewable Portfolio Standard in North Carolina, it is very likely that there will be a considerable increase in the combustion of biomass for the generation of power. One of the byproducts of these projects is ash. Depending on the original feedstock and the state of the ash (solid or liquid), ash disposal/reuse falls under either Solid Waste regulations or Water Quality regulations. The typical manner that solid ash is utilized is as a liming substitute on farmland. The Committee will evaluate the need for any additional regulation based on the types of projects that are proposed in the future. NCFB staff will continue to follow this issue.
FEEP Update - This year's grant cycle for the USDA-Rural Development REAP grants for farm energy efficiency and renewable energy ended this week. The REAP grant provides up to 25% of the cost of an energy efficiency or renewable energy project. NCFB Farm Energy Efficiency Project (FEEP) assisted over 80 farmers with energy audits in preparation for the REAP grants. Grant awards will be announced in the coming weeks. The NCFB FEEP program will continue offering energy audits for farmers who wish to participate in next year's REAP grant cycle. FEEP will also announce the availability of additional cost-share grants for farm energy projects later this summer. For more information go to the project website www.ncfarmenergy.org
Renewable Energy-Biomass Definition - The North Carolina Utilities Commission has opened a docket to determine whether wood chips from whole trees are an eligible feedstock for renewable energy production under the state's Renewable Energy and Energy Efficiency Portfolio Standard (REPS). Duke Energy applied for renewable energy credits for two of its coal fired power plants where they had conducted test burns using wood chips mixed with the coal. Duke was requesting that the energy produced from the wood chips be given credit toward their mandate under the REPS. Several groups challenged that only wood waste should qualify, not wood chips and especially not wood chips from whole trees. NCFB and the North Carolina Forestry Association (NCFA) jointly filed comments and testimony in support of Duke's application and urged the Utilities Commission to find that wood chips from whole trees are an allowable feedstock under the REPS. Wood is clearly a renewable biomass resource and should be utilized for its renewable energy potential. The Utilities Commission will hold a hearing for this docket on July 14th.
DOT Touts Benefits of Biodiesel - The NC Department of Transportation is involved in research with NCSU on growing canola in roadside beautification plots, and harvesting the crop for biodiesel. DOT is already using B20 (20 percent biodiesel and the rest low sulphur diesel) to run its diesel vehicles. DOT told the News and Observer in Raleigh that their use of biodiesel has saved an estimated 4 million gallons of fossil fuel since 2006. For every gallon of biodiesel used, air pollution is 20 percent less than what it would have been if the fleet was running on all fossil fuels. The canola project is an example of DOT trying to meet several objectives at once – roadside beautification (canola has yellow flowers), bioenergy production and productive use of the acres and acres of rights of way in NC. This is the second year of the canola project and NCSU is evaluating the results.
Biomass for Renewable Electricity - NC Utilities Commission will conduct a hearing next month to determine the eligibility of whole tree wood chips as a use for renewable energy feedstock. Duke Energy has applied to the Commission for permission to use wood chips co-fired in their coal plants to gain renewable energy credits that would count toward their requirements under the Renewable Portfolio Standard. NCFB is following this docket and is considering our response.
Fibrowatt Update - The Surry County Board of Commissioners recently voted unanimously to end negotiations with Fibrowatt LLC over its planned chicken-litter incinerator plant near Elkin. The project would have added about $140 million to the county's tax base. But commissioners, who'd once been solidly in favor of the project, responded to local pressure and cited environmental concerns and the impact on the county's tourism and wine industry as the reasoning for their action.
Renewable Energy Economic Outlook - The NC Sustainable Energy Association hosted an Economic Outlook Luncheon this week to discuss the most up-to-date information and economic outlook for North Carolina and the important role renewable energy and energy efficiency industries will play. Featured lunch speakers included Dale Carroll, Deputy Secretary at the NC Department of Commerce, and Bob Conner, VP of Photovoltaics at Semprius. The message from both speakers was that the general economy is slowly recovering and the renewable energy industry continues to grow, though access to capital continues to be an issue. NCFB staff attended the luncheon.
Biomass Regulations - This issue of utilizing biomass (crops, crop residue, wood, forestry residue, etc.) for bioenegy production continues to be multifaceted. The passage of Senate Bill 3 several years ago directed the state's utility companies to utilize renewable energy as a percentage of their portfolio. The Biofuels Center of North Carolina has a goal of producing a certain amount of biofuels in the state. On the other hand, there is pressure to protect ecosystems, wildlife habitats, and air quality by regulating the amount of biomass used for bioenergy projects. There has been discussion of creating a workgroup to study the issue. On a similar note, discussions at several of this week's Environmental Management Commission subcommittee meetings dealt with the regulation of biomass. The Air Quality Committee heard a presentation and discussed the regulation of air emissions from biomass combustion projects. The Renewable Energy Committee focused on future committee discussions that will include regulation of swine waste energy projects. NCFB staff will continue to follow these issues as they continue to develop.
Ethanol Plant Nearing Completion - NCFB staff visited the Clean Burn Fuels ethanol plant construction site in Hoke County this week. Construction of the state's first commercial ethanol plant is nearly 85% complete. The plant should be at full scale operation by the spring. The plant is committed to purchasing 4 million bushels of corn locally to satisfy a portion of the 20 million bushel annual requirement. A public ribbon cutting event will be scheduled in the spring.