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Realizing Plants Full Potential:Electricity from Biomass
By Becky Schanz andMegan Garvey
Chicago-Kent College of Law
Energy Law Presentation*
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Overview of Presentation
Introduction and Background
Technologies that Produce Electricity fromBiomass
Legal Aspects
Conclusion
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Biomass:
Biomass is plant matter or other biological
material, such as trees, grasses, or agriculturalcrops.
On average, biomass is made of 75%carbohydrates and 25% lignin.
Lignin forms the woody cell walls of the plants.
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Biomass
Wood and Wood
products
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Biomass
Agricultural Biproducts
and Residues
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Bioenergy:
Bioenergy or biomass energy is any fuel,
electric power, or useful chemical productderived from organic matter.
Bioenergy can be derived either directly fromthe plants or indirectly from plant-derived
wastes and residues.
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Environmental Factors
Generates same amount of heat and carbon
dioxide as from natural processes. Renewable energy source
Reduces erosion by preserving soil
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Environmental Factors
Provides a habitat for wildlife species
Provides moisture retention and shade, whichcools our atmosphere.
Most wood used is remnants from the loggingindustry, such as tree tops and wood chips.
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Reliability
The United States has an estimated 65-90
billion tons of dry matter. At 2000 energy use levels, this biomass could
supply 14-19 years of energy.
The Department of Energy states that all of the
biomass available now has an energy contentthat would produce an estimated 2,740 Quads.
1 Quad = 1,000,000,000,000,000 Btus
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USSources of Biomass
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US Electricity Generation
U.S. Energy Consumption and Electricity Generation, 2001
Consumption.............. ..... Electricity Generation...... .
Energy Source (Quads *) (% Total) (Bill. kWh **) (% Total)Total 97.1 3,719.4
Coal/Coal Coke 21.9 22.6 1,904.0 51.2
Petroleum 38.2 39.4 126.0 3.4
Natural Gas 23.2 23.9 627.1 16.9
Nuclear 8.0 8.0 768.8 20.7
Hydro Pumped Storage -0.09 -8.8
Renewables (Total) 5.7 5.9 297.3 7.9
Hydro 2.4 2.5 217.5 5.6
Biomass/Biofuels 2.9 2.9 59.7 1.6
Geothermal 0.32 0.32 13.8 0.37
Solar 0.06 0.07 0.5 0.01
Wind 0.06 0.06 5.8 0.16
_______________________________________________________________Note: values are rounded.* A quad is quadrillion British Thermal Units (Btu), and is the equivalent of about 180 million barrels of crude oil.** Bill. kWh = a billion kilowatt-hours; One kilowatt-hour (kWh) is the equivalent of running a 100 Watt light bulb for 10 hours.
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US Biomass Generation
The US is the largest biopower generator. It
produces 37 billion kWh of biomass electricitywhich requires about 60 million tons ofbiomass a year.
The US has more than 7,000 MW of installed
capacity. We have about $15 billion invested and 66,000
jobs.
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Biomass Potential in Illinois
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Biomass Usage
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Marketing & Incentives
Green Power Marketing provides choices for
consumers to purchase power from renewableor environmentally friendly sources.
Customers also pay a premium to supportinvestment in renewable energy technologies.
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Marketing & Incentives
The EPA Combined Heat and PowerPartnership program is a voluntary partnershipbetween EPA, combined heat and power(CHP) industry, utilities, and state and local
governments that create CHP programs.
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Biomass Uses for Energy
Heating stoves, process heat
Cooking developing world Transportation ethanol
Electric Power Production
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Technologies used to ProduceElectricity from Biomass
Direct Combustion -
burning biomass withexcess air to producesteam
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Technologies (cont.)
Co-Firing replaces part
of the coal with biomass,as a supplementaryenergy source.
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Technologies (cont.)
Gasification heat
biomass without oxygento produce a calorific gas
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Technologies (cont.)
Small Modular Bio-
Power develops small,efficient, clean biopowersystems
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Direct-Fired Combustion
Oxidation of air and biomass
Produces hot flue gases that produce steam Steam generates electricity in generators
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Direct-Fired Biomass System
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Small-ModularSystems
Less than 5 MW
Potential to power villages Consist of power generation attached to the
transmission and distribution grid, which isclose to the end consumer.
Potential to supply 2.5 billion people who arecurrently without electricity.
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Gasification
Two processes:
Pyrolysis releases volatile compounds of the fuel Bigger role here than in coal fired plants
Char Conversion carbon remaining after pyrolysisreacts with steam and/or oxygen (combustion) Biomass has high reactivity
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Types of Gasifiers
Direct Gasifier
Indirect Gasifier
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Direct Gasifier
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Indirect Gasifier
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Gasification Process DirectGasifier
Plant gets wood chips
Biomass is gasified Air is extracted from the gas turbine and fed
into the gasifier
Gasification steam is extracted.
Remaining fuel gases are cooled.
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Gasification Process Direct
Gasifier
Fuel gas combusts and produces electric
power and a high temperature exhaust steam Exhaust steam expands in a steam turbine to
produce additional power
Steam is extracted and electricity is sent to a
substation
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Generating Capacity
The United States has about 7 GW of grid-
connected biomass generating capacity. Coal-fired electric units are 297 GW of
capacity, which is about 43% of totalgenerating capacity.
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Vermont Project
Vermont has the first industrial biomass
gasification process located in Burlington. The process integrates a high-throughput
gasifier with a high-efficiency gas turbine.
Circulating hot sand surrounds the biomass
particles and the particles break down andproduce gas.
This project uses an indirect gasifier system.
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Vermont Project
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Advantages of Gasification
Biomass closes thecarbon system andtherefore reducesemissions.
Biomass is low in sulfur Biomass contains .05 to
.20 % of weight is sulfur Coal contains 2-3% of
weight is sulfur
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Advantages of Gasification
Operates at a lower temperature and widervarietyof feedstocks than direct combustion systems.
Can produce a Btu gas that is interchangeable withnatural gas.
Produces nitrogen free gas.
Less landfill waste.
Future technologies are being developed
Fuel Cell Systems
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Disadvantages of Gasification
Some biomass plants have closed because of
deregulation of the electric utility industry. Hard to compete with cheaper sources, such
as coal, oil, and nuclear.
Small amounts of tar are released in the gas.
The tar can coat parts of the pipe or theequipment. Catalyst reactor has been developed to decrease
the amount of tar to parts-per-million.
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Disadvantages of Gasfication
Still a new technology and the Vermont Plant
has not been able to operate continuously yetfor a sustained period of days or weeks.
Over storage of wood fuel can lead to odorproblems and spontaneous combustion.
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Present and Future Costs
Steam Turbine AdvancedGasification
Capital 3-5 cents/kWh 2.63 cents/kWh
Operating(excluding fuel)
2.2-2.8 cents/kWh .4 cents/kWh
BiomassFeedstock
1.2-3.5 cents/kWh 1.62 cents/kWh
TOTAL 6.4-11.3cents/kWh
4.65 cents/kWh
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Costs
Capital costs of building a biomass-fired steam
turbine plant is about $2000-2500 per KW ofinstalled capacity.
These costs are expected to decrease in thefuture.
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Future of Gasification
Gasification has a bright future, once the
technology is fine-tuned. If the cost of the process decreases as
expected, it will be able to competeeconomically with current energy sources.
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Co-Firing Biomass with Coal andthe Legal/Governmental Incentives
for Biomass as a Renewable
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Co-firing Biomass with Coal to
produce Electricity
What is Co-firing? The simultaneous combustion of biomass and coal in a pre-
existing boiler of a traditional coal-fired power plant
2 Methods
Blending
(+) Least expensive
(-) Limited amounts; higher possibility of damage
Separate Feed (+) greater emission reductions; greater amounts of biomass
tolerates; less harmful to existing boiler
(-) requires more resources (equipment, $)
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One form of blending isdirectly adding biomassto the coal-belt.
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Advantages of Co-firing:
Something for Everyone
The Existing Power Plant
Existing equipment is still utilized Easier to meet environmental regulations and hedge
future regulations
Cost savings
Tax incentives Fuel supply options
Good PR
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Advantages of Co-firing:
Something for Everyone
Biomass
Encourages developmentof feedstock infrastructure
Creates a market for
residues and energy crops
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Advantages of Co-firing:
Something for Everyone
The Environment
Reduces GHG emissions(CO2; CH4)
Reduces SO2 and NOXemissions
Reduces burden onlandfills
Extends the life of coal-use for electricitygeneration
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Advantages of Co-firing:
Something for Everyone
The Economy $$$
Provides an end use for lowvalue/negative value products
Maintains existing market forcoal
Increases domestic economicgrowth and job creation
Increase economic activity inrural/agricultural areas
Increase business forequipment suppliers
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Disadvantages of Co-firing
Technological issues
Existing boilers/systems designed (exclusively) forfossil fuels Negative impact on existing boilers
CL-based corrosion
Negative impact on boiler capacity
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Disadvantages
Diverse feedstock
Range of different fuelcharacteristics
Woody Grassy
Residues energy crops
Ash content
Fuel nitrogen content
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Uncertainties due to different biomass
propertiesDifferences between biomass and coal
Higher moisture content (= low net calorific value)
Higher CL content
Low heating value Low bulk density
Higher content of volatile matter (80%:coal 30%)
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Disadvantages
Feeding methods
Fuel preparation and handling
Ash-related issues
Biomass = source of aerosols
Pure-coal ash required for concrete use
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Just a couple moredisadvantages
Engineering to commercial/economical issues?
Requires incentives Less incentives for small-scale plants
Might require additional investments Equipment
Biomass material Dependant on the availability and price of low-
cost biomass feedstocks
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Co-Firing Programs
Goals:
Promote biomass using theleast-cost approach
Broaden the base of utilitiesemploying co-firing
Increase the # and type of co-
firing techniques Provide the underpinning for
advanced designs
DOEs Biopower Program
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Accomplishments
Switchgrass; willow = successful bio-material
Biomass co-firing = technologically successful
Viability demonstrated
Pollutant emission reductions verified
Economic models/feeding techniques developed
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Co-Firing Programs
Regional Biomass Energy Program (RBEP) Federally-funded; located in 5 regions of U.S.
Goal = to increase the production and use of bioenergyresources
Best candidates
Full-scale analysis
Accomplishments:
Successful biomass co-firing operations from an operational andperformance perspective requires
Biomass price 20% less than that of coal
Reliable and automated procedures
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Co-Firing Programs
Co-firing project atHawaii CommercialSugar
Result:
Sugar cane (bio-material)+ coal = less NOXemissions!
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Co-Firing Programs
Co-firing program forurban wood waste Northern Indiana Pub.
Service Co + ElectricPower Research Institute+ DOE
Urban wood waste + coal
(W. bituminous andPowder River Basin)
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Current Power Plants Using Co-
Firing Method on a Regular Basis
Northern States Power (NSP) Wood residues + coal
Tacoma Public Utitlies Wood wastes and garbage + coal
TVA Wood waste + coal
Southern Company Wood residues (grnd pallets/hurricane-damaged trees) + coal
NY State Electric and Gas (NYSEG) Sawdust; furniture factory waste + coal
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Furthermore, Numerous OtherPower Plants are Exploring the
Benefits of Co-Firing
Niagara Mohawk PowerCo.
GPU GENCO
Madison Gas & Electric
Atlantic Electric
American Electric Power
Illinois Power Company
Plains Electric
IES Utilities
Northern Indiana PublicService Co.
And MANY more!!
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Summary
Co-Firing biomass capitalizes on the large
investment and infrastructure associated withthe existing coal-fired power plants whiletraditional pollutants (SO2; NOX) and netGHGs (CO2; CH4) are decreased!!
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Legal Aspects and GovernmentalIncentives pertaining to Biomass
as a renewable form of energy
Federal
State
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Federal
1. Energy Policy Act of 2003 (Energy Bill/S.
2095) Title II: renewable energy incentives
Title XIII: energy tax incentives
Section 206
2. Biomass R&D Initiative of 20033. Bioenery Initiative
Exec. Order 13134
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Federal (cont)
4. Ag. Risk Protection Act of 2000 (P.L. 106-224);
TitleIII
. Biomass R&D Act5. Green Power Purchasing Goal
Exec. Order 13123
6. Renewable Energy Systems and Energy
Efficiency Improvement Program7. CAA amendments
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(1) Energy Policy Act of 2003
Energy Bill (S. 2095)
Title II: renewable energy incentives
New incentives for development and use ofrenewables
Mandates assessments to assist in long-term plans
Reauthorizes the Renewable energy ProductionIncentive Program
Grants for turning forest material into biomassenergy
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Energy Bill (S. 2095)
Title XII: Energy tax incentives Previous Renewable Electricity (and Energy) Production
Credit expired for all new projects on 12/31/2003 Creates a NEW Tax incentive!!
Extends placed-in service date forclosed-loop biomass andpoultry waste facilities
Adds open-looped biomass, municipal bio-solids, and recycledsludgeas qualifying energy resources
Credit = 1.8 cents/kWh (no inflation adjustment) Allows for tradable tax credits for tax-exempt entities, co-ops, and
municipal utilities
Effective: 10/1/2004
www.energy.senate.gov
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Energy Bill (S. 2095)
Section 206
Grants to improve the commercial value of forestbiomass for electric energyand other commercialpurposes
The government found that: Risk
(wildfire; insect infestation; tree mortality; drought)
requires preventive measures
=by-products of biomass BUT no suitable market
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Energy Bill (S. 2095)
Section 206 (cont.)
Therefore, the U.S. should:
Promote economic and entrepreneurial opportunities inusing these by-products
Develop and expand markets
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(2) Biomass R&D Initiative of 2003
DOE and USDA
$23 million allocated to 19 different biomassprojects
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(3) Bioenergy Initiative
Exec. Order 13134: Developing and Promoting
Bio-based Products and Bioenergy Policy = national strategy to stimulate the creation
and early adoption of technologies needed to makebiobased products and bioenergy cost-competitive Expand employment opportunities
Create new market
Reduce Nations dependence on foreign resources
Decrease pollution
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Bioenergy Initiative
Presidents goal = triple U.S. use of bio-based
products and bioenergy by 2010
DOE + federal organizations = nationalpartnership to develop an integrated industry to
produce powerfrom biomass
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(4) Agricultural Risk Protection Actof 2000 (P.L. 106-224)
Title III. Biomass R&DAct
Recognition that biomass has outstanding potential tobenefit the national interest
Combined efforts of DOA and DOE Purposes:
1. To understand biomass
2. To develop new and cost-effective technologies that wouldresult in large-scale commercial production
3. To ensure economic and energy security and environmentalbenefits of bio-products
4. To promote the development and use of agricultural andenergy crops for conversion
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(5) Green Power Purchasing
Program
Applicable sector: federal government
Goal = 2.5% renewables by 2005 Effective: 6/2000
Authority: Exec. Order 13123 Requires federal agencies to increase their use of
renewable energy Biomass systems installed after 1990 apply asnew renewable energy resources (emphasis onnew to reach goal)
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Green Power Purchasing Program
2000: obtaining 13% of goal
March 2004: 77% of goal !!!
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(6) Renewable Energy Systemsand Energy Efficiency Improvement
Program
Federal grant program through the USDA
Commercial/agricultural producers Grants provided for 25% of eligible project
costs
Producer must demonstrate financial need
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(7) 1990 Amendments to CAA
(7) Lowered baseline limitations for SO2
emissions = increase in market-price of air emissionallowances
= electricity generators will turn to bio-energy toreduce costs and meet stricter regulations
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State Law/Incentives
Illinois
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State
1. Mainstay Energy Rewards Program
2. IL Clean Energy Community Foundation Grants
(ICECF) 220 ILCS 5/16-111.1
3. Renewable Energy Resources Trust Fund 220 ILCS 687/6-4
4.
Renewable Energy Resources Program Grants(RERP)
5. Renewables Portfolio Goal 220 ILCS 5/16-111.1
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(1) Mainstay Energy Rewards
Program
Green Tag Purchase Program = production incentive Private company buys the green tags (RECs) which are
brought to the market as Green-e certified products Participating companies receive regular, recurring payments
Dependant on type of renewable; production of energy; length ofK
Biomass is eligible
Commercial and residential sectors
Amount = .1-1cent/kWh (for biomass)
Certification fee and requirements
200 current participants!
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(2) IL Clean Energy Community
Foundation (ICECF) Grants
State grant program Grants, loans, other financial support
$250 million endowment from ComEd
Non-profit; schools, state and local governmentsserving IL
Authority = 20 ILCS 5/16-111.1
IL Resource Development and Energy Security Act Purposes: Enhance the states energy security by ensuring
that(iv) pilot projects are undertaken to explore the capacity ofnew, often renewable sources of energy
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(2) ICECF Grants (cont)
Effective 2001
How to apply? Submit proposal (competitive basis)
Between 2001-2002:
ICECF awarded more than $17 million in grants for
renewable energy projects in IL!!
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(3) Renewable Energy Resources
Trust Fund
Public benefits fund required in 220 ILCS687/6-4
Available for the general public/consumer
$50 million for 10 years
Collection
$.50 cents/month from residential and smallcommercial electric and gas customers
$37.50/month from large commercial electricitycustomers
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(4) Renewable Energy Resources
Program (RERP) Grants
State grant program funded by the RenewableEnergy Resources Trust Fund
Distributed in the form of grants (for largesystems) and rebates (for small systems)
Involves an annual RFP process
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(5) Renewables Portfolio Goal
Specific standard to IL
Applies to Utilities 5% by 201015% by 2020
Effective: 7/2001
Authority: 220 ILCS 5/16-111.1
Contains a goal but NO implementation schedule,compliance verification or credit-trading provisions
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Biomass Utilization for ElectricityProduction =
SOMETHING
FOR
EVERYONE!!!