Transcript Ag to Energy - Welcome to the PSC Web Site

Florida Public Service Commission
Renewable Energy Workshop
January 19, 2007
Overview of the Potential for More Renewable
Energy in Florida
Florida Department of Agriculture
and Consumer Services
CHARLES H. BRONSON COMMISSIONER
Outline
 Current Energy Situation
 Recent Initiatives
 Biomass Potential
US Energy Supply
23%
Petroleum
Natural Gas
39%
Nuclear
Renewable
6%
Coal
8%
24%
Source: Energy Information Administration (2004 Data)
U.S. Renewable Energy Supply
1%
Solar
47%
45%
Biomass
Wind
Geothermal
Hydroelectric
5%
2%
Source: Energy Information Administration
Renewable Energy in Florida
 "Renewable energy" means electrical energy produced
from a method that uses one or more of the following
fuels or energy sources: hydrogen produced from
sources other than fossil fuels, biomass, solar energy,
geothermal energy, wind energy, ocean energy, and
hydroelectric power. The term includes the alternative
energy resource, waste heat, from sulfuric acid
manufacturing operations. ss. 366.91(2)(b), 377.803(6),
FS.
Installed Generating Capacity by Primary
Fuel Source in Florida
Coal
23.0%
Non-Utility Gen
39.0%
Renewable
4.0%
1.0%
Petroleum
Nuclear
Natural Gas
8.0%
Source: Florida’s Energy Plan (2006)
25.0%
Recent Initiatives
 Energy Policy Act of 2005
 President’s Advanced Energy Initiative
 Foster the breakthrough technologies needed to make
cellulosic ethanol cost-competitive with corn-based
ethanol by 2012
 Florida Renewable Energy Technologies and
Efficiency Act of 2006
 100 Innovative Ideas for Florida’s Future
 25x’25
 Florida Farm to Fuel
Florida Renewable Energy
Technologies and Efficiency Act
 Renewable Energy Technologies Grants Program
provides matching grants for renewable energy
technology demonstration, commercialization, research,
and development projects. $15 million.
 74 bioenergy applications requesting nearly $88 million with
more than $350 million cost share
 148 renewable energy applications requesting more than $185
million with more than $412 million cost share
 Renewable energy production tax credit of $0.01 per
kwh with a $5 million per year cap to encourage the
development and expansion of facilities that produce and
sell renewable energy in Florida.
Grants for Renewable Energy Technologies
*
*
*
*
*
*
*
D.C.
*
State offers at least one grant program
* Private, utility and/or local program
DSIRE: www.dsireusa.org
November 2006
Loan Programs for Renewables
D.C
.
State & utility/local programs
State program
Utility or local programs
DSIRE: www.dsireusa.org
November 2006
Renewable Portfolio Standards
MN: 10% by 2015 Goal +
Xcel mandate of
1,125 MW wind by 2010
*WA: 15% by 2020
MT: 15% by 2015
VT: RE meets load
growth by 2012
WI: requirement varies by
utility; 10% by 2015 Goal
ME: 30% by 2000;
10% by 2017 goal - new RE
MA: 4% by 2009 +
1% annual increase
RI: 15% by 2020
CT: 10% by 2010
CA: 20% by 2010
☼ NY: 24% by 2013
IA: 105 MW
☼ NV: 20% by 2015
☼ CO: 10% by 2015
IL: 8% by 2013
☼ NJ: 22.5% by 2021
☼ PA: 18%¹ by 2020
*MD: 7.5% by 2019
☼ AZ: 15% by 2025
*NM: 10% by 2011
*DE: 10% by 2019
☼ DC: 11% by 2022
TX: 5,880 MW by 2015
HI: 20% by 2020
☼ Minimum solar or customer-sited requirement
* Increased credit for solar or customer-sited
¹PA: 8% Tier I, 10% Tier II (includes non-renewable sources)
DSIRE: www.dsireusa.org
November 2006
State RPS
State Goal
SWH eligible
Net Metering Rules
25
kW
100
50
25/100
30
1,000
*
VT: 15/150
100 *
*
20
40
25
*
25*
*
10
25
*
500
2,000*
10*
100
50
*
50
40
30
* *
10
*
15
20/100
*
25/100
10/100
State-wide net metering for certain utility types (e.g., IOUs only)
**
* PA:
* NJ:
*
no limit
25/100
100
10/400
*
State-wide net metering for all utility types
*
100
kW
50
kW
DE:
MD:
DC:
VA:
NH: 25
MA: 60
RI: 25 *
CT: 100
50/1,000/2,000
2,000
25
500
100
10/500
10
Net metering is
available in
40 states + D.C.
Net metering offered by one or more individual utilities
#s indicate system size limit (kW); in some cases limits are different for residential and commercial as shown
www.dsireusa.org
September 2006
100 Innovative Ideas
for Florida’s Future
IDEA
75
“Strive to be the national leader in
fostering the development and use of
alternative energy sources, and strive to
lead the nation in ethanol production.”
Problem: Dependence on oil jeopardizes
Florida’s continued economic prosperity.
Solution: Promote the development and use of
alternative energy sources, and begin production
of ethanol.
By the year 2025,
America’s farms, ranches
and forests will provide 25
percent of the total
energy consumed in the
U.S. while continuing to
produce safe, abundant
and affordable food, feed
and fiber.
Total Domestic Energy Production
and Consumption
Quads of Energy
140
127.0
99.7
70
70.4
}
86.6
29.3
Prod Cons
}
40.4
Prod Cons
0
2004 Actual
Source: EIA Annual Energy Outlook 2006
2025 Forecast
25x’25
Current (2004)
6.1 Quads
Renewable Energy
99.7 Quads
Total Energy
Consumed
Goal (2025)
31.7 Quads
Renewable Energy
127.0 Quads
Total Energy
Consumed
25x’25 Initiative
 Formed Spring 2004
 Organized to explore agriculture and forestry’s
role in energy production
 Seeks to forge consensus on a new energy
future
 Focuses on economic, national security and
environmental benefits
 Endorsed by more than 350 groups
 Three-phase project
 create a vision
 build an energy alliance
 construct an implementation strategy
25x’25 goal will be met by...





Producing transportation fuels
Harnessing wind energy
Converting biogas emissions
Capturing solar energy
Providing biomass for generating heat and
power
Implementing the 25x’25 Goal:
A Call to Action
 Policies needed for….
 Increasing production of renewable energy
 Delivering renewable energy to markets
 Expanding renewable energy markets
www.25x25.org
Is 25x’25 Achievable?
YES!
 A recent study from the RAND Corp. concluded that the
25% renewables goal could be reached without raising
the overall cost of the energy supply and would cut a
projected increase in CO2 emissions by two thirds.
 A University of Tennessee study recently concluded that
the 25x’25 goal can be met while continuing to provide
safe, abundant and affordable food, feed and fiber. It
estimated that America’s farms, forests and ranches can
annually produce:
 86 billion gallons of ethanol
 1.1 billion gallons of biodiesel
 932 billion kwh of electricity
 15.45 quads of energy from biomass
570.954 Farm-to-fuel initiative.-(1) The department may develop a farm-to-fuel initiative to
enhance the market for and promote the production and distribution
of renewable energy from Florida-grown crops, agricultural wastes
and residues, and other biomass and to enhance the value of
agricultural products or expand agribusiness in the state.
(2) The department may conduct a statewide comprehensive
information and education program aimed at educating the general
public about the benefits of renewable energy and the use of
alternative fuels.
(3) The department shall coordinate with and solicit the expertise
of the state energy office within the Department of Environmental
Protection when developing and implementing this initiative.
Farm to Fuel Summit
 First of its kind in Florida
 More than 300 participants







Ag Industry (50)
Federal/State/Local Government (65)
Future Ethanol/Biodiesel Producers (65)
Education (25)
Petroleum Industry (20)
Finance/Lending (10)
Government Relations (10)
 Topics included ethanol/biodiesel
research, production, distribution and
incentives
Biomass
 "Biomass" means a power source that is comprised of,
but not limited to, combustible residues or gases from
forest products manufacturing, agricultural and orchard
crops, waste products from livestock and poultry
operations and food processing, urban wood waste,
municipal solid waste, municipal liquid waste treatment
operations, and landfill gas. s. 366.91(2)(a), FS.
 Offers an alternative to conventional energy sources.
 Provides national energy security, economic growth, and
environmental benefits.
Renewable Energy from Agriculture
Electricity
Biodiesel
Ethanol
Residues
Corn, Wheat
Dedicated
Energy Crops
Corn
Oilseed Crops
Residues
Corn and Wheat
Dedicated
Energy Crops
Cattle Manure
Tallow
Beef and Poultry
Forest Residues
Anaerobic Digester
Mill Wastes
Forest Residues
Yellow Grease
Mill Wastes
Food Wastes
“Billion Ton Study”
Annual biomass resource potential from forest
and agricultural resources
368
Forest resources
998
Ag resources
Total resource
potential
1366
0
500
1000
Million dry tons per year
Source: Perlack, Wright et al., 2005
1500
Sources of Biomass in Florida
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43,000 farms and ranches
10 million acres cropland
15.5 million acres of timberland
3.4 million acres of pastureland
Marginal land can be put in crops that are wellsuited to Florida to make ethanol
Types of Biomass in Florida
Fast-growing trees and crops
Agricultural residues
Animal manures
Forest debris and thinnings,
undergrowth in timber stands
 Leftover materials from the wood
products industry
 Urban wood waste
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Agricultural Feedstocks in Florida
Commodity
Quantity
Product
Sugarcane
420,000 acres
Ethanol, Energy
Citrus
748,555 acres
Ethanol
Citrus Peel
1,200,000 tons
Ethanol
Field Corn
70,000 acres
Ethanol
Sweet Corn
38,900 acres
Ethanol
Cotton
89,000 acres
Biodiesel, Ethanol
Potatoes
30,500 acres
Ethanol
Wheat
18,000 acres
Ethanol
Peanuts
145,000 acres
Biodiesel
Soybean
19,000 acres
Biodiesel
Poultry
126 million broilers
Biodiesel, Energy
Dairy Cows
138,000 cows
Energy
Source: Florida Agriculture Statistical Directory 2005
Benefits of Renewable
Energy to Agriculture
 Increased farm income
 Added value uses for crops, livestock, agricultural
residues, and byproducts
 Alternative agricultural and rural enterprises
 More productive use of marginal land
 Resolution of air, water and soil quality problems
 Increased reliance on new markets to maintain the
viability of agriculture
 Major impact on rural development with many job
opportunities being created through the processing of
agricultural products and byproducts
www.florida-agriculture.com/farmtofuel.htm