U.S. Senate Passes Energy Bill with Biomass Carbon Neutrality, Thermal Energy "Renewable" Amendments

Yesterday, the U.S. Senate voted 85-12 to pass the Energy Policy Modernization Act-S. 2012. The legislation is the first meaningful energy bill to pass the Senate in almost a decade. The legislation is wide ranging, covering areas related to energy efficiency to oil exports to smart manufacturing. We wanted to alert PFI members to this development and call your attention to a few provisions in the bill that we worked hard to secure. They are:

1. Biomass Carbon Neutrality.  The bill includes a provision directing EPA and other federal agencies to recognize the carbon neutrality of sustainably sourced forest based biomass fuels/energy in any federal air and energy regulatory actions. This language is helpful in our advocacy with EPA to establish a clear, supportive policy regarding biomass in the context of the Clean Power Plan and related/subsequent regulatory proceedings. As we witnessed earlier this month at an EPA workshop, state officials are supportive of including biomass in their state compliance plans for the Clean Power Plan but are frustrated over the lack of clear guidance coming from EPA. It is also painfully evident that a number of environmental groups are vehemently opposed to any recognition of biomass energy's carbon benefits and those groups weighed in heavily against this provision.   
   
   
2. Thermal Energy as "Renewable."  The bill opens up the federal renewable energy purchase requirement-put in place by the Energy Policy Act of 2005-- to allow federal departments and agencies to count thermal energy towards their renewable energy utilization goals.   Currently electricity is the only energy pathway that counts.   We worked dozens of Congressional offices and committee staffs in the House and Senate to include this provision, lobbying in close collaboration with our brethren in the geothermal and solar thermal spaces. This provision is one piece of our overall effort to achieve parity for thermal energy in the context of federal policy recognition of energy pathways and technologies. 

One other provision that we were not actively involved in, but may positively affect markets for densified biomass fuel is an amendment put forward by Sen. Joe Manchin (D-WV) that would incentivize coal fired utilities to co-fire with biomass. The provision stipulates that biomass combustion would have "net-negative carbon emissions" when paired with carbon capture and sequestration technologies. Like the carbon neutrality language, environmental groups have come unglued over this language and sent a letter earlier this week opposing both the Manchin and Collins amendments. It was signed by over 75 groups.      

Next Steps: The bill now goes to a Senate-House conference committee to reconcile the differences between its provisions and the language of House-passed H.R. 8. Recall that H.R. 8 has language repealing the NSPS for wood heaters. Leadership is hopeful to have a final package ready to send to the president within the next two months.    

Once the conferees are appointed, we will be reaching out to you to make contact with these legislators to express support for keeping the provisions outlined above in the final package.

The date is set for PFI's 2016 Annual Conference. Join us July 24-26 at the Omni Grove Park Inn in Asheville, NC! 

The PFI Annual Conference highlights the various applications of densified biomass, as well as trends and best practices within the densified biomass industry. It attracts a broad range of individuals from the public and private sectors, academia, and local, state and national governments from North America and beyond. The conference features two days of educational sessions as well as industry exhibits, extensive networking opportunities and a golf tournament. 

Visit PFI's website for more information. Be sure to watch this space, as registration will open soon! Sponsorship and exhibiting opportunities are available now!