BIOENERGY AND TRANSPORTATION FUELS

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Pernille Dideriksen
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1 BIOENERGY AND TRANSPORTATION FUELS Governors Ethanol Coalition Meeting Billings, MT September 29, 2008 Alex Schroeder Program Director, Western Governors Association

2 The Western Governors Association - Highlighted Programs Transportation Fuels for the Future Western Bioenergy Assessment Western Renewable Energy Zones

Transportation Fuels for the Future - WGA Resolution 06-20 Instructed a Western Regional Task Force to describe the potential of alternative fuels in the

3 Transportation Fuels for the Future - WGA Resolution Instructed a Western Regional Task Force to describe the potential of alternative fuels in the western states and the policy measures needed to achieve this Consider issues of sustainable feedstock development, environmental impacts, infrastructure, and cost

4 Transportation Fuels for the Future - The End Game Increase the region s supply and technical capacity for domestically produced alternative fuels Develop adequate infrastructure including: Conversion/refining facilities Storage facilities Compatible vehicle systems/components Vehicle refueling stations Product distribution network Position the Western States as both leaders and key producers in the emerging alternative fuels economy.

5 Transportation Fuels for the Future - Technical Working Groups Biodiesel and Renewable Diesel Vehicle Fuel Efficiency Electric Bio-fuels Coal to Liquids (Fischer Tropsch) Non-Conventional Fuels: Propane and Natural Gas Hydrogen

6 Transportation Fuels for the Future - Cross-cutting Recommendations Leadership Environmental Stewardship Financial and Economic Support Infrastructure Feedstocks Workforce Development

7 Transportation Fuels for the Future - Implementation Transportation Fuels for the West: A Roadmap for Energy Security and Improving the Environment and the Economy (February 2008) Western Governors established a Council of their representatives to oversee the implementation of the resolution Council will develop an implementation plan and report progress back to the Western Governors in 2009 The Council s activities are focused on education, outreach, and coordination among states and with the federal government

WGA Western Bioenergy Assessment - Goals and Deliverables Goal To develop a biomass supply and biorefinery optimization model for the Western United States Feedstock resource and cost database

8 WGA Western Bioenergy Assessment - Goals and Deliverables Goal To develop a biomass supply and biorefinery optimization model for the Western United States Feedstock resource and cost database development Conversion technology performance and cost database development Preliminary biorefinery siting model High resolution sustainable feedstock data Scenario analysis and final framework implementation

WGA Western Bioenergy Assessment - Significant Energy Contributions

increase from 2006 Renewable Power from Biomass: 10 GW a five fold

fuels, or $6 Billion for power (not including byproducts) About $23

9 WGA Western Bioenergy Assessment - Significant Energy Contributions Renewable Transportation Fuels: 11 billion gallons per year a four fold increase from 2006 Renewable Power from Biomass: 10 GW a five fold increase from 2006 $18 Billion pumped into the Western Rural Economy for fuels, or $6 Billion for power (not including byproducts) About $23 Billion Investment in technology and infrastructure in the West (either case) Add pictures here

10 WGA Western Bioenergy Assessment - Deployment Scenarios 20,000 Potential Growth Moderate Growth 15,000 RFS mandates 15,000 MGY ethanol by 2015 Capcity (MGY) 10,000 5,000 11,300 MGY potential includes 6,700 MGY LC Ethanol and 4,300 MGY Corn Ethanol by ,100 MGY forecast includes 2,500 MGY LC Ethanol and 4,300 MGY Corn Ethanol by US Forecast for Transporation Fuel Demand 231,000 MGY (EIA AEO 2008 Reference Case). Western Biofuel Potential in 2015 represents 5%

11 WGA Western Bioenergy Assessment - Sustainability Considerations Agriculture residues: used residue retention for soil loss constraints (source: NRCS) Forest residues: removal of logging residues and hazardous fuels in areas of critical fire regime and priority condition class, and thinning described in the management plans.

12 WGA Western Bioenergy Assessment - Resource Assessment Lignocellulosics Beef Tallow Corn Lipids

13 WGA Western Bioenergy Assessment - Biomass Supply Curves

14 WGA Western Bioenergy Assessment - Potential Biorefinery Locations and Fuel Terminals

15 Western Renewable Energy Zones - A Joint Initiative of WGA and U.S. DOE Launched by WGA and DOE in May 2008 Will generate reliable information for that supports the cost-effective and environmentally sensitive development of renewable energy in specified zones Will develop conceptual transmission plans for delivering renewable energy to load centers within the Western Interconnection. Support the Western Governors goal of 30,000 MW of clean and diverse energy by 2015

16 Transportation Fuels for the Future - What s Next? Governors Energy Recommendations for the Next Administration National Bioenergy Assessment Letter to Congress on the Definition of Renewable Biomass National Biomass Partnership Webinar on the Food vs. Fuels Debate WGA Transportation Fuels Council Implementation Priorities

17 The Western Governors Association For more information, please visit Alex Schroeder ext. 112

18 The Western Governors Association Extra Slides

19 Transportation Fuels for the Future - Environmental Stewardship Performance-Based GHG Standards: Consider regional framework for cooperation on development of performance based GHG standard, such as the LCFS Advisory Committee recommends WGA work with EPA on national greenhouse gas transportation rule A Common Lifecycle Analytic Model and Methodology: Adopt a common methodology and modeling structure to evaluate GHG emissions, land, air and water impacts We need regional cooperation on a single, widely accepted set of assumptions and methods

20 Transportation Fuels for the Future -Financial and Economic Support Consider innovative, alternative funding approaches Promote federal R&D Promote pilot and demonstration projects Tie infrastructure incentives to market penetration Establish regulatory rules and keep them consistent, predictable and transparent

21 Transportation Fuels for the Future -Infrastructure Building new infrastructure will require capital and time Address: Feedstock transportation Fuel distribution Fueling stations

22 Transportation Fuels for the Future -Leadership Promote fuel efficiency Procure alternative fuel vehicles for state fleets Work with industry to bring alternative vehicles to market Create partnerships Identify critical research needs and support alternative energy technologies and energy efficiency Provide information and demonstrations

23 Transportation Fuels for the Future -Feedstocks Feedstock research Incentives for feedstock production Feedstock availability potential of waste Fueling stations

24 Transportation Fuels for the Future Recommendations to the Governors Bio-Fuels Full funding for current DOE and USDA R&D programs Federal and state efforts to deliver feedstock production, provide residue removal, and evaluate resource inventories Provide government assistance to implement producer short- and medium-term burden sharing. Consider making funds available to cost-share purchases of new bioenergy harvesting machinery. Establish a low carbon renewable fuels loan guarantee program. Encourage investigations of engine and vehicle compatibility with intermediate blends Establish goals for increasing higher blend infrastructure and consider supporting these with incentives

25 Transportation Fuels for the Future Recommendations to the Governors Bio/Renewable Diesel Fund research to determine impact on soil systems and water resources Support incentives for growers of crops that have oil producing qualities Encourage USDA to make long-term, low-interest loans to infrastructure, refinery, oil mill and/or production agriculture Promote strong state and federal enforcement and funding of fuel quality and labeling for biodiesel Continue research on algae and sustainable production Support research to reduce production costs.

climate change Partner Observer Montana, Utah, British Columbia, and

26 Launched in February 2007 by the Governors of Arizona, California, New Mexico, Oregon and Washington to develop regional strategies to address climate change Partner Observer Montana, Utah, British Columbia, and Manitoba have since joined as partners WCI released its draft recommendations on September 23

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